How Reckon’s Acquisition Fueled a 67% Profit Surge in 2025
Reckon Limited has reported a robust 66.7% increase in net profit for the 2025 financial year, driven by strong revenue growth and the acquisition of Cashflow Manager. The company maintains its dividend policy amid expanding subscription revenues.
- Net profit attributable to members up 66.7% to $7.4 million
- Revenue increased 15.4% to $62.4 million
- EBITDA rose 29.3% to $26.1 million
- Acquisition of Cashflow Manager and OKKE contributed positively
- Fully franked dividend of 2.5 cents per share maintained
Strong Financial Performance Amid Strategic Growth
Reckon Limited has delivered a striking financial performance for the year ended 31 December 2025, with net profit attributable to members soaring by 66.7% to $7.4 million. This impressive growth accompanies a 15.4% rise in revenue to $62.4 million and a 29.3% increase in EBITDA to $26.1 million, underscoring the company’s successful execution of its growth strategy.
The company’s results were notably bolstered by the acquisition of the Adelaide-based Cashflow Manager and OKKE businesses, completed at the start of 2025. These acquisitions contributed $6.1 million in revenue and $1.7 million in net profit after tax, highlighting Reckon’s effective integration of complementary software solutions into its portfolio.
Subscription Revenue and Segment Insights
Subscription revenue remains a key driver, accounting for over half of the total revenue at $33.3 million, reflecting Reckon’s ongoing shift towards recurring income streams. The Business Group segment, focused on accounting and personal financial software, generated $48.6 million in revenue, while the Legal Group, specialising in legal market software solutions, contributed $13.8 million.
Despite a working capital deficiency influenced by lease accounting standards, Reckon maintains a solid liquidity position with $894,000 in cash and $18 million in unused bank facilities. Borrowings increased to $6.3 million but remain well-managed within existing covenants, supporting the company’s operational and strategic initiatives.
Dividend and Outlook
Reckon declared a fully franked dividend of 2.5 cents per share, consistent with the prior year, signalling confidence in its cash flow generation and financial stability. The company’s balance sheet reflects ongoing investment in software development, with capitalised development costs of nearly $30 million and goodwill of $11.6 million, primarily related to recent acquisitions.
Looking ahead, Reckon’s focus on expanding its subscription offerings and integrating acquired businesses positions it well to sustain growth. The company’s management remains confident in its going concern status, supported by stable cash flows and prudent financial management.
Bottom Line?
Reckon’s 2025 results mark a pivotal step in its growth journey, with acquisitions and subscription momentum setting the stage for future gains.
Questions in the middle?
- How will Reckon leverage the Cashflow Manager acquisition to drive future revenue?
- What are the company’s plans to address the working capital deficiency?
- Will Reckon increase dividends or pursue further acquisitions in the near term?
