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Recon Technology
(NASDAQ:RCON)
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Rating:45Neutral
Price Target:
$1.00
▼(-50.98% Downside)
Action:Reiterated
Date:10/03/26
The score is held down primarily by weak financial performance—ongoing net losses and sustained negative operating/free cash flow—despite a low-debt balance sheet and improved FY2026 revenue and gross margin. Technical indicators add further pressure due to strong bearish momentum, while valuation remains constrained by a negative P/E and lack of dividend support.
Positive Factors
Revenue and margin recovery
The strong FY2026 revenue rebound and higher gross margin indicate improved operating performance and customer activity in the company’s oilfield-services business. If sustained, this recovery could strengthen the revenue base and provide greater operating leverage over the next several quarters.
Negative Factors
Persistent unprofitability
The FY2026 loss, following deeper losses in FY2023–FY2025, shows that the revenue recovery has not yet translated into sustainable profitability. Continued losses can weaken retained capital, limit internal funding, and make future earnings performance difficult to forecast.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin recovery
The strong FY2026 revenue rebound and higher gross margin indicate improved operating performance and customer activity in the company’s oilfield-services business. If sustained, this recovery could strengthen the revenue base and provide greater operating leverage over the next several quarters.
Read all positive factors
Recon Technology (RCON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.30M
Dividend YieldN/A
Average Volume (3M)228.00K
Price to Earnings (P/E)―
Beta (1Y)0.44
Revenue Growth69.14%
EPS Growth90.45%
CountryUS
Employees194
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-168.24
Shares Outstanding963,224
10 Day Avg. Volume148,186
30 Day Avg. Volume227,995
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.10
Price to Sales (P/S)0.52
P/FCF Ratio-0.51
Enterprise Value/Market Cap4.31
Enterprise Value/Revenue0.09
Enterprise Value/Gross Profit0.27
Enterprise Value/Ebitda-0.29
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-1.82
Revenue Forecast (FY)$11.90M
Recon Technology Business Overview & Revenue Model
Company Description
Recon Technology, Ltd. (RCON) is a company that delivers a comprehensive suite of hardware, software, and field-based services to enterprises operating within China's petroleum exploration and production sector. The company's hardware portfolio en...
How the Company Makes Money
Recon Technology makes money primarily by selling oilfield-related services and equipment to upstream oil and gas customers, with revenue recognized from project-based delivery and service contracts tied to oilfield operations. Key revenue streams...
Recon Technology Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
74
Positive
Cash Flow
18
Very Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 109.84M | 66.29M | 68.85M | 67.11M | 83.78M |
| Gross Profit | 36.47M | 15.24M | 20.88M | 18.87M | 19.42M |
| EBITDA | -35.42M | -49.51M | ― | -52.01M | 101.68M |
| Net Income | -29.64M | -42.59M | -49.87M | -59.17M | 95.59M |
Balance Sheet | |||||
| Total Assets | 639.67M | 525.62M | 552.39M | 531.82M | 490.24M |
| Cash, Cash Equivalents and Short-Term Investments | 38.76M | 102.47M | 198.08M | 288.31M | 316.97M |
| Total Debt | 37.57M | 34.44M | 40.14M | 35.56M | 31.60M |
| Total Liabilities | 87.05M | 71.65M | 61.46M | 92.67M | 77.36M |
| Stockholders Equity | 566.53M | 467.43M | 502.55M | 449.21M | 420.63M |
Cash Flow | |||||
| Free Cash Flow | -111.70M | -43.71M | -44.25M | -52.63M | -26.94M |
| Operating Cash Flow | -58.77M | -33.77M | -43.75M | -51.69M | -26.25M |
| Investing Cash Flow | -130.82M | 33.71M | 2.98M | -245.22M | -328.68K |
| Financing Cash Flow | 121.55M | -3.27M | 45.02M | 56.38M | -10.00M |
Recon Technology Technical Analysis
Negative
2.04
Price Trends
7.55
Negative
52.99
Negative
141.27
Negative
Market Momentum
-2.51
Negative
21.03
Positive
11.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCON, the sentiment is Negative. The current price of 2.04 is above the 20-day moving average (MA) of 1.26, below the 50-day MA of 7.55, and below the 200-day MA of 141.27, indicating a bearish trend. The MACD of -2.51 indicates Negative momentum. The RSI at 21.03 is Positive, neither overbought nor oversold. The STOCH value of 11.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RCON.
Recon Technology Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $223.87M | 19.53 | 4.41% | 6.63% | 26.53% | 1135.48% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
49 Neutral | $107.97M | 1.19 | 514.81% | ― | -7.15% | ― | |
49 Neutral | $139.49M | -0.42 | 73.91% | ― | -4.78% | 22.13% | |
47 Neutral | $80.43M | 21.21 | 19.56% | 19.05% | 86.31% | ― | |
47 Neutral | $72.33M | -25.34 | -2.49% | ― | -5.48% | 32.73% | |
45 Neutral | $2.30M | -0.04 | -8.25% | ― | 69.14% | 90.45% |
* Energy Sector Average
RCON
Recon Technology
1.11
-390.89
-99.72%
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KLXE
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1.32
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DTI
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2.05
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Recon Technology Corporate Events
Recon Technology Restores Nasdaq Bid Price Compliance Ahead of Delisting Deadline
Sep 18, 2026
On September 16, 2026, Recon Technology regained compliance with Nasdaq’s minimum bid price requirement after its Class A shares closed at or above $1.00 for ten consecutive trading days from September 1 to September 15. The move closes a no...
Recon Technology Enacts 1-for-200 Reverse Split to Support Nasdaq Listing
Aug 13, 2026
On July 1, 2026, Recon Technology, Ltd.’s board approved a 1‑for‑200 consolidation of its Class A Ordinary Shares, acting under authority granted by shareholders at the February 13, 2026 annual meeting. The move is intended to ra...
Recon Technology Launches $100 Million ATM Equity Offering
Jul 31, 2026
On July 28, 2026, Recon Technology, Ltd. entered into an At-the-Market Issuance Sales Agreement with Pacific Century Securities, LLC, allowing the company to issue and sell up to $100 million of its Class A ordinary shares from time to time. The p...
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.