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ReadCloud Ltd.
(Sydney:RCL)
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Rating:55Neutral
Price Target:
AU$0.05
▼(-23.33% Downside)
Action:Reiterated
Date:10/23/26
The score is supported primarily by improving fundamentals—strong revenue growth, positive operating/free cash flow in 2025, and a low-debt balance sheet. This is tempered by still-negative profitability and very thin gross margins, while technicals are the main drag due to a clear downtrend and weak momentum. Valuation provides limited help because the company remains loss-making and no dividend yield is available.
Positive Factors
Multi-year revenue growth
The strong multi-year revenue expansion indicates broader customer adoption and a growing commercial base. If ReadCloud sustains this trajectory, scale can support operating leverage, product investment, and stronger competitive positioning over the next several quarters.
Negative Factors
Continuing net losses
Despite improving from earlier periods, persistent operating and net losses show that revenue growth has not yet translated into sustainable profitability. Continued losses can restrict reinvestment capacity and leave results vulnerable if growth slows or costs remain elevated.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue growth
The strong multi-year revenue expansion indicates broader customer adoption and a growing commercial base. If ReadCloud sustains this trajectory, scale can support operating leverage, product investment, and stronger competitive positioning over the next several quarters.
Read all positive factors
ReadCloud Ltd. (RCL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$6.91M
Dividend YieldN/A
Average Volume (3M)20.84K
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth-7.14%
EPS Growth-1188.89%
CountryAU
Employees24
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)N/A
Shares Outstanding153,619,770
10 Day Avg. Volume17,582
30 Day Avg. Volume20,844
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)1.46
Price to Sales (P/S)1.05
P/FCF Ratio26.75
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
ReadCloud Ltd. Business Overview & Revenue Model
Company Description
ReadCloud Limited specializes in offering digital textbook solutions to Australian secondary schools. Its interactive eBooks facilitate collaboration, allowing students and educators to exchange notes, pose questions, embed multimedia like videos ...
ReadCloud Ltd. Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
78
Positive
Cash Flow
62
Positive
| Breakdown | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.63M | 11.90M | 10.35M | 8.21M | 7.17M |
| Gross Profit | 707.43K | 11.77M | -1.26M | -755.92K | -271.20K |
| EBITDA | 213.07K | 25.88K | -1.30M | -487.22K | -557.93K |
| Net Income | -415.90K | -1.02M | -2.25M | -1.64M | -1.15M |
Balance Sheet | |||||
| Total Assets | 11.58M | 11.33M | 14.08M | 12.08M | 15.89M |
| Cash, Cash Equivalents and Short-Term Investments | 1.92M | 1.43M | 1.71M | 2.47M | 6.30M |
| Total Debt | 233.24K | 106.43K | 222.80K | 382.25K | 790.88K |
| Total Liabilities | 2.50M | 2.55M | 4.41M | 2.06M | 3.16M |
| Stockholders Equity | 9.08M | 8.78M | 9.67M | 10.01M | 12.73M |
Cash Flow | |||||
| Free Cash Flow | 496.04K | 394.37K | -992.22K | -1.27M | -858.98K |
| Operating Cash Flow | 522.71K | 413.45K | -405.23K | -517.50K | -103.72K |
| Investing Cash Flow | -475.05K | -552.22K | -1.32M | -752.53K | -2.80M |
| Financing Cash Flow | 440.94K | -139.48K | 946.57K | -202.44K | 5.80M |
ReadCloud Ltd. Technical Analysis
Negative
0.06
Price Trends
0.06
Negative
0.06
Negative
0.07
Negative
Market Momentum
>-0.01
Positive
8.80
Positive
-8.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RCL, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.06, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 8.80 is Positive, neither overbought nor oversold. The STOCH value of -8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RCL.
ReadCloud Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$626.39M | 16.67 | 33.67% | 3.97% | 6.59% | 4.49% | |
70 Outperform | AU$10.78B | 75.09 | 32.19% | 1.15% | 14.48% | 6.31% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | AU$6.91M | -37.50 | -19.61% | ― | -7.14% | -1188.89% | |
51 Neutral | AU$158.16M | -32.28 | -3.57% | ― | 2.61% | 70.72% | |
43 Neutral | AU$8.60M | -3.55 | -1327.81% | ― | 44.95% | 10.45% | |
41 Neutral | AU$999.30K | -1.72 | -198.69% | ― | 180.92% | 74.83% |
* Technology Sector Average
AU:RCL
ReadCloud Ltd.
0.05
-0.04
-49.44%
AU:TNE
Technology One Limited
32.95
-5.15
-13.51%
AU:RDY
ReadyTech Holdings Ltd.
1.28
-0.87
-40.47%
AU:OCL
Objective Corporation Limited
6.55
-12.14
-64.95%
AU:OLL
OpenLearning Ltd.
0.01
-0.02
-69.44%
AU:BGE
Bridge SaaS Ltd.
0.01
>-0.01
-23.08%
ReadCloud Ltd. Corporate Events
ReadCloud posts record school receipts as VET division drives growth
Jul 27, 2026
ReadCloud Ltd., an ASX-listed education technology and vocational training provider, sells digital textbooks and VET-in-schools courses to secondary schools in Australia and international markets. Its ReadCloudVET and eBooks divisions generate rec...
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.