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8Common Ltd
(Sydney:8CO)
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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)
Market Cap
AU$8.29M
Dividend YieldN/A
Average Volume (3M)40.72K
Price to Earnings (P/E)180.0
Beta (1Y)-0.02
Revenue Growth-11.93%
EPS GrowthN/A
CountryAU
Employees35
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)<0.01
Shares Outstanding224,094,910
10 Day Avg. Volume32,312
30 Day Avg. Volume40,720
Financial Highlights & Ratios
PEG Ratio-1.09
Price to Book (P/B)0.00
Price to Sales (P/S)0.79
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Income Statement
34
Negative
Balance Sheet
28
Negative
Cash Flow
45
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.40M | 7.29M | 8.12M | 7.24M | 4.57M |
| Gross Profit | 4.65M | 4.85M | 3.46M | -820.89K | -898.89K |
| EBITDA | 857.00K | -18.89K | -1.92M | -2.60M | -1.73M |
| Net Income | 45.00K | -793.95K | -2.55M | -3.30M | -2.50M |
Balance Sheet | |||||
| Total Assets | 1.72M | 2.24M | 3.15M | 5.74M | 8.73M |
| Cash, Cash Equivalents and Short-Term Investments | 114.38K | 102.40K | 131.74K | 1.81M | 3.25M |
| Total Debt | 0.00 | 448.38K | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 1.87M | 2.65M | 2.73M | 2.69M | 1.84M |
| Stockholders Equity | -145.91K | -403.68K | 417.31K | 3.05M | 6.89M |
Cash Flow | |||||
| Free Cash Flow | 713.98K | 140.66K | -1.79M | -1.52M | -3.56M |
| Operating Cash Flow | 720.43K | 140.66K | -1.68M | -265.03K | -1.66M |
| Investing Cash Flow | -255.49K | 0.00 | 6.54K | -1.18M | -1.90M |
| Financing Cash Flow | -452.96K | -170.00K | 0.00 | 0.00 | 3.59M |
8Common Ltd Technical Analysis
Positive
0.03
Price Trends
0.04
Positive
0.03
Positive
0.03
Positive
Market Momentum
<0.01
Positive
98.74
Negative
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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | AU$190.29M | -39.24 | -3.57% | ― | 2.61% | 70.72% | |
49 Neutral | AU$8.29M | 180.00 | -10.88% | ― | -11.93% | ― | |
43 Neutral | AU$12.99M | -29.50 | 8.99% | ― | -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 | -0.88 | 564.22% | ― | -1.21% | -10.88% |
* Technology Sector Average
AU:8CO
8Common Ltd
0.04
>-0.01
-20.00%
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Complii Fintech Solutions Ltd
0.02
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-12.00%
AU:AR9
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0.04
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-71.61%
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ReadyTech Holdings Ltd.
1.55
-0.68
-30.49%
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0.06
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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.