iscover Reckon reports strong HY2026 results
BusinessAccounting software provider Reckon has reported its first-half results, delivering significant growth in FY25 while maintaining revenue and EBITDA in constant currency and growing NPAT.
The Australian cloud-based accounting software company has continued to execute its cloud transition strategy and to grow Reckon One and the Legal Group’s Billing Workflows.
Reckon One continued its revenue growth from HY25 with a 23 per cent improvement in revenue over the prior period and a 19 per cent increase in average revenue per subscription.
Within the business group, aggregate subscription turnover held firm compared with the prior corresponding period, reflecting the company’s strategic emphasis on migrating established product users to the Reckon One environment.
Reckon’s half-year highlights included group revenue of $32 million, stable in constant currency terms compared to the previous corresponding period.
Moreover, the company reported EBITDA stable at $14 million and an NPAT of $5 million, up 6 per cent on the previous year. It also reported a net debt of $1.5 million, compared with $5.4 million at 31 December 2025, and a fully franked dividend of $0.025 per share was declared.
Reckon typically charges $24 per month for Accounting Plus and $46 per month for Accounting Premium. As recently reported, some accountants are seeking new payroll alternatives to Xero after the accounting software powerhouse hiked its prices by over 10 per cent across its three plans.
Reckon Group chief executive Sam Allert noted strong expansion within the business group, highlighting growth across the company’s cloud-based products across both operating divisions.
“Reckon One again delivered strong growth within the business group, while billing workflows continued to gain momentum in the legal group,” Allert said.
“These outcomes enabled the Group to maintain its elevated FY25 earnings base while increasing NPAT and generating strong operating cash flows.”
“Our sales and customer support teams focused their efforts on the migration of legacy customers to Reckon One and sales to our existing customer base.”
“The implementation and adoption of AI greatly reduced our development timelines, allowing us to bring Reckon One closer to parity with the functional requirements of the vast majority of our legacy product users faster than was anticipated.”
The positive results follow the software company’s recent announcement of a strategy to combine high-quality talent with AI so its teams can move faster, innovate more effectively, and deliver better outcomes for customers.
“Investment in AI initiatives presents an opportunity to accelerate sales across the group by driving innovation, improving customer outcomes and supporting shareholder value,” Allert said.
“With our strong cash generation, we see AI as an opportunity for revenue growth, rather than a tool to reduce cost.”
“The legal group launched DataQ AI during FY25, marking our first AI-enabled product, and we are collaborating with Amazon Web Services through their dedicated AI initiatives and enablement programs.”
The company noted two large and distinct markets: providing accounting and payroll solutions for SMEs and their advisors, with revenue of $48.6 million, and billing and document workflow for legal firms, with revenue of $13.8 million.
Building for H22026, Reckon implied a new AI-powered onboarding assistant in development to help new and existing SME customers get up and running faster.
Furthermore, Reckon noted that it would have AI governance frameworks in place to ensure responsible deployment, along with in-product notifications and bank automation enhancements in development to proactively surface compliance obligations.
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