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8Common Ltd (AU:8CO)
ASX:8CO
Australian Market
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8Common Ltd (8CO) AI Stock Analysis

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AU:8CO

8Common Ltd

(Sydney:8CO)

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Neutral 47 (OpenAI - Gpt-5.6Sol)
Rating:47Neutral
Price Target:
AU$0.04
▲(16.67% Upside)
Action:Reiterated
Date:09/06/26
The score is primarily weighed down by weak valuation (very high P/E) and technically overextended momentum signals (RSI/Stoch at extreme levels). Financial performance is improving meaningfully due to the profitability and cash-flow turnaround, but declining recent revenue and negative equity keep overall fundamentals in a cautious range.
Positive Factors
Gross margin recovery
A rebound to ~66% gross margin materially improves unit economics and the company's ability to cover operating costs. Sustained higher gross margins create durable operating leverage, making future profitability easier to achieve if revenue stabilises and product mix/pricing hold.
Negative Factors
Negative shareholders' equity
Negative equity is a persistent structural overhang that limits capital-raising options and increases financing cost and covenant risk. Repairing the balance sheet requires sustained profits or new capital, constraining strategic flexibility and making long-term recovery dependent on execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross margin recovery
A rebound to ~66% gross margin materially improves unit economics and the company's ability to cover operating costs. Sustained higher gross margins create durable operating leverage, making future profitability easier to achieve if revenue stabilises and product mix/pricing hold.
Read all positive factors

8Common Ltd (8CO) vs. iShares MSCI Australia ETF (EWA)

8Common Ltd Business Overview & Revenue Model

Company Description
8common Limited engages in the expense management software business in Australia, Asia, North America, and internationally. It offers Expense8, which provides end-to-end travel expense management software, card application, and management; and Car...
How the Company Makes Money
8common makes money primarily by selling access to its software products and associated services. Key revenue streams typically include (1) recurring fees from customers for ongoing use of its software (e.g., subscription/SaaS or licence and maint...

8Common Ltd Financial Statement Overview

Summary
Turnaround is visible with FY2026 returning to modest profitability and strong improvement in operating and free cash flow. However, the overall picture is held back by declining revenue in the last two years and a fragile capital base (negative shareholders’ equity), which reduces financial flexibility despite having no reported debt.
Income Statement
52
Neutral
Balance Sheet
28
Negative
Cash Flow
70
Positive
BreakdownJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue6.40M7.29M8.12M7.24M4.57M
Gross Profit4.65M4.85M3.46M-820.89K-898.89K
EBITDA857.00K-18.89K-1.92M-2.60M-1.73M
Net Income45.00K-793.95K-2.55M-3.30M-2.50M
Balance Sheet
Total Assets1.72M2.24M3.15M5.74M8.73M
Cash, Cash Equivalents and Short-Term Investments114.38K102.40K131.74K1.81M3.25M
Total Debt0.00448.38K0.000.000.00
Total Liabilities1.87M2.65M2.73M2.69M1.84M
Stockholders Equity-145.91K-403.68K417.31K3.05M6.89M
Cash Flow
Free Cash Flow713.98K140.66K-1.79M-1.52M-3.56M
Operating Cash Flow720.43K140.66K-1.68M-265.03K-1.66M
Investing Cash Flow-255.49K0.006.54K-1.18M-1.90M
Financing Cash Flow-452.96K-170.00K0.000.003.59M

8Common Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.03
Price Trends
50DMA
0.04
Positive
100DMA
0.03
Positive
200DMA
0.03
Positive
Market Momentum
MACD
<0.01
Positive
RSI
98.74
Negative
STOCH
125.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:8CO, the sentiment is Positive. The current price of 0.03 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 98.74 is Negative, neither overbought nor oversold. The STOCH value of 125.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:8CO.

8Common Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
51
Neutral
AU$191.52M-39.24-3.57%2.61%70.72%
47
Neutral
AU$8.07M180.00-15.81%-11.93%
43
Neutral
AU$21.29M-1.21-80.59%119.88%-130.38%
42
Neutral
AU$12.99M-29.508.99%-10.18%80.00%
41
Neutral
AU$13.42M-3.10-146.51%-23.49%-57.78%
40
Underperform
AU$4.53M-0.88564.22%-1.21%-10.88%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:8CO
8Common Ltd
0.04
-0.02
-30.00%
AU:CF1
Complii Fintech Solutions Ltd
0.02
0.00
0.00%
AU:AR9
archTIS Ltd.
0.05
-0.10
-65.33%
AU:RDY
ReadyTech Holdings Ltd.
1.55
-0.64
-29.22%
AU:XF1
Xref Ltd
0.06
-0.12
-67.22%
AU:ID8
Identitii Ltd.
0.90
-1.30
-59.09%

8Common Ltd Corporate Events

8Common Returns to Profit Despite Revenue Decline in FY2026
Aug 31, 2026
8Common Ltd has reported a return to profitability for the year ended 30 June 2026, posting a net profit after tax of $105,987 from continuing operations compared with a loss of $793,946 in the prior year. The turnaround occurred despite a 12% dec...
8common details ASX governance compliance and diversity stance in 2026 statement
Aug 31, 2026
8common Limited has released its 2026 corporate governance statement outlining its level of compliance with the ASX Corporate Governance Council&#8217;s Fourth Edition Principles and Recommendations. The board has endorsed a comprehensive governan...
8common lodges ASX governance disclosures for FY26
Aug 31, 2026
8common Limited has lodged its Appendix 4G with the ASX, confirming the location and currency of its corporate governance statement for the year ended 30 June 2026. The company has chosen to host this statement on its website, with the board appro...
8common wins $1.95m ATO contract, expanding government footprint
Jul 7, 2026
8common has secured a three-year contract, with options for extension, to provide its Expense8 software-as-a-service, transaction processing and related services to the Australian Taxation Office in a deal valued at $1.95 million including GST. Th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 06, 2026