ReckonRKNLF 50 Operating Margin % is 15.60% as of Dec. 2025, which is 15% above its 10-year median of 13.55. GuruFocus rates RKNLF with a GF Score™ of 50/100 and a GF Value™ of $0.52. The stock has 3 warning signs investors should review. Among 2,820 Software companies, Reckon ranks better than 82.09% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Reckon's Operating Income for the
six
months ended in Dec. 2025 was $3.13 Mil. Reckon's Revenue for the
six
months ended in Dec. 2025 was $20.08 Mil. Therefore, Reckon's Operating Margin % for the quarter that ended in Dec. 2025 was 15.60%.
Warning Sign:
Reckon Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -3.6%.
The historical rank and industry rank for Reckon's Operating Margin % or its related term are showing as below:
RKNLF'
s Operating Margin % Range Over the Past 10 Years
Min: 6.04 Med: 13.55 Max: 16.07
Current: 15.67
RKNLF's Operating Margin % is ranked better than 82.09% of 2820
companies
in the Software industry
Industry Median: 3.865
vs RKNLF: 15.67
Reckon's 5-Year Average Operating Margin % Growth Rate was -3.60% per year.
Reckon's Operating Income for the
six
months ended in Dec. 2025 was $3.13 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $6.43 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Reckon Operating Margin % Related Terms
Reckon Operating Margin % Historical Data
* Premium members only.
The historical data trend for Reckon's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
RKNLF vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Reckon's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Reckon Operating Margin % vs Software Industry
For the Software industry and Technology sector, Reckon's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Reckon's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Reckon's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Reckon (RKNLF) has a Operating Margin % of 15.60% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Reckon and its competitors. This is 15% above median its historical median of 13.55. Over the past decade, Reckon's Operating Margin % has ranged from 6.04 to 16.07. According to the industry distribution chart, Reckon ranks #505 out of 2820 companies in the Software industry, placing it in the top 17.9%.
Is Reckon's Operating Margin % too high?
Reckon's current Operating Margin % of 15.60% is 15% above median its 10-year median of 13.55. Over the past 10 years, this metric has ranged from a low of 6.04 to a high of 16.07. The Software industry median Operating Margin % is 3.87. Reckon's value of 15.60% is 303.6% above this industry median. Based on the distribution chart, Reckon ranks #505 out of 2820 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Reckon has a GF Score™ of 50/100, reflecting its overall financial health beyond just this single metric.
How does Reckon's Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Reckon ranks #505 out of 2820 companies for Operating Margin %. This places Reckon in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Reckon's value of 15.60% is 303.6% above this benchmark. Historically, Reckon's own Operating Margin % has ranged from 6.04 to 16.07 over the past decade. While the company's 10-year median is 13.55 vs. the industry median of 3.87, Reckon has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,820 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Reckon's current Operating Margin % of 15.60% is 303.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Reckon and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reckon's current Operating Margin % is 15.60%, which is 15% above median its own 10-year median of 13.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reckon stock overvalued right now?
Reckon (RKNLF) has a current Operating Margin % of 15.60%. The stock's GF Value™ is $0.52, compared to a current price of $0.33 — trading 36.5% below its estimated fair value. The current Operating Margin % is 15.60%, which is 15% above median its 10-year median of 13.55 and 303.6% above the Software industry median of 3.87. Reckon's overall GF Score™ is 50/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Reckon (RKNLF), the current Operating Margin % is 15.60% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Reckon (RKNLF) Overvalued in 2026?
Based on GuruFocus' analysis, Reckon stock appears to be undervalued.
The current stock price of $0.33 is trading 36.5% below its estimated GF Value™ of $0.52.
Key valuation signals for RKNLF:
Operating Margin %: 15.60% (15% above median its 10-year median of 13.55)
GF Value™: $0.52 vs. price of $0.33 (36.5% below fair value)
Industry Position: 303.6% above the Software median (#505 of 2820)
No single metric tells the full story. See the RKNLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reckon Ltd provides accounting and payroll software to the small and medium enterprise market. It operates in two operating divisions: development, distribution and support of business accounting and personal financial software, as well as related products and services. Products sold in this division include Reckon Accounts, Reckon One and Cashflow Manager; and Legal Group - development, distribution and support of cost recovery, cost management, scan and cloud-based integration platforms under the nQ Zebraworks and Zebraworks brands predominantly to the legal market. The company's geographical segments are Australia, the United States, and Other countries. The company generates the majority of its revenue from Australia, while it also has its presence in United States and Other Countries.
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