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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 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
AU$0.04
▲(30.00% Upside)
Action:Reiterated
Date:07/08/26
The score is held back primarily by financial risk—negative equity and continued net losses despite improving margins and a return to positive operating/free cash flow. Technicals are supportive with price above key moving averages, but the extremely overbought RSI raises near-term pullback risk. Valuation is also constrained by negative earnings (negative P/E) and no dividend yield.
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
null...

8Common Ltd Financial Statement Overview

Summary
Operational metrics improved in 2025 (gross margin rebounded to ~66%, losses narrowed, and operating/free cash flow turned positive), but the company remains loss-making, revenue declined (-3.5%), and the balance sheet is a major risk with shareholders’ equity turning negative.
Income Statement
34
Negative
Balance Sheet
28
Negative
Cash Flow
45
Neutral
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
111.11
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 neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 98.74 is Negative, neither overbought nor oversold. The STOCH value of 111.11 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$190.29M-39.24-3.57%2.61%70.72%
49
Neutral
AU$8.29M180.00-10.88%-11.93%
43
Neutral
AU$12.99M-29.508.99%-10.18%80.00%
41
Neutral
AU$13.42M-3.10-146.51%-23.49%-57.78%
41
Neutral
AU$20.80M-1.21-80.59%119.88%-130.38%
40
Underperform
AU$4.46M-0.88564.22%-1.21%-10.88%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:8CO
8Common Ltd
0.04
>-0.01
-20.00%
AU:CF1
Complii Fintech Solutions Ltd
0.02
>-0.01
-12.00%
AU:AR9
archTIS Ltd.
0.04
-0.11
-71.61%
AU:RDY
ReadyTech Holdings Ltd.
1.55
-0.68
-30.49%
AU:XF1
Xref Ltd
0.06
-0.11
-65.29%
AU:ID8
Identitii Ltd.
0.94
-1.26
-57.27%

8Common Ltd Corporate Events

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...
8common lifts SaaS revenue, wins new government contracts as it targets FY26 EBITDA profit
Apr 22, 2026
8common reported third-quarter FY26 SaaS and transaction revenue of $1.2 million, up 7% year on year, while total revenue eased 3% to $1.45 million, reflecting a shift toward higher-margin recurring income. The company expanded its user base to 19...
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: Jul 08, 2026