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ReadyTech Holdings Ltd.
(Sydney:RDY)
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Rating:51Neutral
Price Target:
AU$1.50
▼(-5.06% Downside)
Action:Reiterated
Date:08/29/26
The score is primarily supported by strong and improving cash generation and a manageable balance sheet. Offsetting this are weakened earnings fundamentals (revenue decline and ongoing net losses), a bearish technical backdrop (below key moving averages with negative MACD), and limited valuation support given the negative P/E and no provided dividend yield.
Positive Factors
Recurring cloud software model
The SaaS model can support recurring revenue, customer retention and scalable delivery across education and workforce-management markets. Subscription access also creates a foundation for operational leverage as the installed customer base expands.
Negative Factors
Recent revenue contraction
The 2026 revenue decline signals weaker near-term demand or execution after several years of expansion. If sustained, lower topline growth could reduce operating leverage, constrain reinvestment and make the recurring-revenue model less productive.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring cloud software model
The SaaS model can support recurring revenue, customer retention and scalable delivery across education and workforce-management markets. Subscription access also creates a foundation for operational leverage as the installed customer base expands.
Read all positive factors
ReadyTech Holdings Ltd. (RDY) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$191.52M
Dividend YieldN/A
Average Volume (3M)63.56K
Price to Earnings (P/E)―
Beta (1Y)0.25
Revenue Growth2.61%
EPS Growth70.72%
CountryAU
Employees365
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.04
Shares Outstanding123,564,110
10 Day Avg. Volume79,770
30 Day Avg. Volume63,561
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)1.53
Price to Sales (P/S)1.65
P/FCF Ratio8.46
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$2.13Price Target Upside34.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.06
Revenue Forecast (FY)AU$130.64M
ReadyTech Holdings Ltd. Business Overview & Revenue Model
Company Description
ReadyTech Holdings Limited (RDY.AX) is an Australian provider of SaaS (Software-as-a-Service) technology, serving diverse sectors including education and vocational pathways, workforce management, and government and judicial bodies. The Education ...
How the Company Makes Money
ReadyTech primarily makes money by selling access to its software platforms on a recurring basis (software-as-a-service), where customers pay subscription fees to use its cloud-based applications. A portion of revenue can also come from associated...
ReadyTech Holdings Ltd. Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
67
Positive
Cash Flow
74
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 125.01M | 121.84M | 113.80M | 103.31M | 78.28M |
| Gross Profit | 13.27M | 114.19M | 41.92M | 18.31M | 17.55M |
| EBITDA | 34.23M | 14.93M | 32.31M | 26.63M | 26.75M |
| Net Income | -4.88M | -16.14M | 5.46M | 4.97M | 8.79M |
Balance Sheet | |||||
| Total Assets | 255.42M | 250.38M | 261.43M | 259.28M | 185.97M |
| Cash, Cash Equivalents and Short-Term Investments | 27.47M | 19.70M | 21.87M | 20.62M | 9.20M |
| Total Debt | 63.48M | 60.48M | 47.06M | 52.11M | 37.34M |
| Total Liabilities | 120.72M | 108.88M | 110.22M | 131.03M | 87.80M |
| Stockholders Equity | 134.70M | 141.50M | 151.21M | 128.25M | 98.17M |
Cash Flow | |||||
| Free Cash Flow | 24.38M | 4.03M | 13.26M | 8.10M | 4.39M |
| Operating Cash Flow | 24.58M | 24.06M | 31.59M | 27.81M | 17.00M |
| Investing Cash Flow | -19.20M | -38.54M | -23.67M | -27.78M | -21.29M |
| Financing Cash Flow | 2.39M | 12.31M | -6.67M | 11.39M | 1.49M |
ReadyTech Holdings Ltd. Technical Analysis
Neutral
1.58
Price Trends
1.61
Negative
1.52
Positive
1.73
Negative
Market Momentum
-0.03
Positive
46.28
Neutral
67.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RDY, the sentiment is Neutral. The current price of 1.58 is below the 20-day moving average (MA) of 1.59, below the 50-day MA of 1.61, and below the 200-day MA of 1.73, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 46.28 is Neutral, neither overbought nor oversold. The STOCH value of 67.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:RDY.
ReadyTech Holdings Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$13.54B | 91.69 | 3.68% | ― | 27.32% | -30.84% | |
71 Outperform | AU$627.22M | 16.82 | 33.67% | 3.20% | 6.59% | 4.49% | |
70 Outperform | AU$10.11B | 71.81 | 32.19% | 1.23% | 14.48% | 6.31% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | AU$191.52M | -39.24 | -3.57% | ― | 2.61% | 70.72% | |
40 Underperform | AU$10.95M | -4.52 | -1327.81% | ― | 44.95% | 10.45% |
* Technology Sector Average
AU:RDY
ReadyTech Holdings Ltd.
1.55
-0.66
-29.86%
AU:TNE
Technology One Limited
30.88
-6.29
-16.92%
AU:XRO
Xero Limited
79.37
-81.62
-50.70%
AU:RCL
ReadCloud Ltd.
0.06
-0.02
-28.57%
AU:OCL
Objective Corporation Limited
6.56
-14.23
-68.44%
AU:OLL
OpenLearning Ltd.
0.01
0.00
0.00%
ReadyTech Holdings Ltd. Corporate Events
ReadyTech Details Full Compliance with ASX Governance Principles and Sets Diversity Targets
Aug 26, 2026
ReadyTech Holdings Limited has reaffirmed its commitment to high standards of corporate governance, stating that it fully complies with the ASX Corporate Governance Principles and Recommendations (Fourth Edition) for the financial year ending 30 J...
ReadyTech flags margin recovery as AI and cost cuts underpin outlook
Aug 26, 2026
ReadyTech reported that its FY26 financial performance landed within revised guidance and indicated that current cash margins are at a low point, framing this as a base for future improvement. Management highlighted a significant Victorian TAFE co...
ReadyTech hits FY26 guidance as AI push and cost cuts pave way for stronger FY27
Aug 26, 2026
ReadyTech delivered FY26 revenue of $125 million and subscription revenue of $103.8 million, in line with revised guidance, as strong growth in flagship products was offset by elevated churn in its mature product base and lower margins at the peak...
ReadyTech Director Helen Lea Boosts Indirect Shareholding
Jul 6, 2026
ReadyTech Holdings Limited has disclosed a change in director interests, reporting that non-executive director Helen Lea has increased her indirect shareholding in the company. The additional shares were acquired through her Expand Extra Super acc...
ReadyTech Director Tony Faure Increases Indirect Shareholding
Jul 6, 2026
ReadyTech Holdings Limited has reported a change in the relevant interests of director Tony Faure in the company’s fully paid ordinary shares. The notice, lodged with the ASX, outlines an increase in Faure’s indirect shareholding throu...
ReadyTech wins role as student platform provider for Victorian TAFE network
Jun 28, 2026
ReadyTech has been chosen as the preferred student management system platform provider for the Victorian TAFE Network after a competitive tender, extending its existing relationships with Bendigo Kangan Institute, Chisholm Institute and Melbourne ...
Briarwood Exits Substantial Holding in ReadyTech After June Share Sales
Jun 8, 2026
Briarwood Capital Partners LP, a New York-based investment firm and former substantial shareholder in ReadyTech Holdings Limited, has significantly reduced its stake in the Australian software company. After previously accumulating 1,000,000 fully...
ReadyTech Board Rejects Takeover Approach from Total Specific Solutions
Jun 1, 2026
ReadyTech Holdings has confirmed it received an unsolicited, non-binding indicative takeover proposal from Total Specific Solutions to acquire all of its shares via a scheme of arrangement at $2.00 per share in cash, alongside a parallel off-marke...
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.