Revenue growth remains highly inconsistent, highlighted by a 52.5% contraction in 2025Q2 and operating margins that plummeted to -125.6% in the most recent quarter.
Recon Technology, Ltd. (RCON) annual income statement — 20-year revenue, gross profit & net income history
| Metric | Jun'26 | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 |
|---|
| Sales/Revenue | 109.9M | 66.29M | 68.85M | 67.11M | 83.78M | 47.94M | 65.12M | 102.38M | 84.43M | 60.05M | 42.73M | 51.51M | 93.45M | 76.59M | 75.54M | 63.69M | 117M | 75.65M | 65.75M | 57.84M |
| Revenue Growth % | 65.8% | -3.73% | 2.59% | -19.89% | 74.76% | -26.38% | -36.4% | 21.27% | 40.59% | 40.55% | -17.05% | -44.87% | 22.02% | 1.38% | 18.61% | -45.57% | 54.67% | 15.06% | 13.67% | - |
| Cost of Goods Sold | 73.41M | 51.04M | 47.98M | 48.25M | 64.35M | 40.72M | 45.51M | 72.52M | 80.28M | 44.09M | 35.48M | 41.4M | 61.03M | 51.53M | 51.27M | 43.47M | 67.59M | 45.76M | 39.77M | 37.41M |
| COGS % of Revenue | 66.8% | 77.01% | 69.68% | 71.89% | 76.81% | 84.95% | 69.89% | 70.83% | 95.08% | 73.42% | 83.04% | 80.37% | 65.31% | 67.29% | 67.87% | 68.25% | 57.77% | 60.49% | 60.49% | 64.68% |
| Gross Profit | 36.49M | 15.24M | 20.88M | 18.87M | 19.42M | 7.22M | 19.61M | 29.87M | 4.15M | 15.96M | 7.25M | 10.11M | 32.42M | 25.05M | 24.27M | 20.22M | 49.41M | 29.89M | 25.98M | 20.43M |
| Gross Margin % | 33.2% | 22.99% | 30.32% | 28.11% | 23.19% | 15.05% | 30.11% | 29.17% | 4.92% | 26.58% | 16.96% | 19.63% | 34.69% | 32.71% | 32.13% | 31.75% | 42.23% | 39.51% | 39.51% | 35.32% |
| Gross Profit Growth % | 139.41% | -27% | 10.66% | -2.87% | 169.23% | -63.2% | -34.35% | 619.62% | -74% | 120.28% | -28.34% | -68.81% | 29.39% | 3.22% | 20.05% | -59.08% | 65.32% | 15.06% | 27.16% | - |
| Operating Expenses | 77.72M | 72.56M | 92.52M | 88.2M | 101.73M | 67.67M | 38.57M | 52.96M | 44.7M | 46.44M | 46.87M | 44.85M | 28.34M | 23.36M | 27.81M | 39.79M | 21.47M | 11.25M | 9.28M | 9.97M |
| OpEx % of Revenue | 70.72% | 109.47% | 134.36% | 131.42% | 121.42% | 141.16% | 59.24% | 51.73% | 52.95% | 77.33% | 109.69% | 87.06% | 30.32% | 30.5% | 36.81% | 62.48% | 18.35% | 14.88% | 14.11% | 17.24% |
| Selling, General & Admin | 60.76M | 58.99M | 74.14M | 87.42M | 93.43M | 53.99M | 30.54M | 50.36M | 42.7M | 37.21M | 25.83M | 41.46M | 21.49M | 17.11M | 27.81M | 39.79M | 21.47M | 11.25M | 9.28M | 9.97M |
| SG&A % of Revenue | 55.29% | 88.99% | 107.68% | 130.26% | 111.52% | 112.62% | 46.9% | 49.19% | 50.58% | 61.96% | 60.44% | 80.48% | 23% | 22.33% | 36.81% | 62.48% | 18.35% | 14.88% | 14.11% | 17.24% |
| Research & Development | 12.86M | 16.43M | 14.29M | 8.81M | 8.96M | 5.85M | 7.04M | 3.13M | 3.22M | 7.6M | 6.86M | 4.17M | 8.09M | 8.51M | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | 11.7% | 24.78% | 20.75% | 13.12% | 10.7% | 12.2% | 10.82% | 3.06% | 3.81% | 12.65% | 16.05% | 8.09% | 8.66% | 11.12% | - | - | - | - | - | - |
| Other Operating Expenses | 4.09M | -2.86M | 4.09M | -8.03M | -670.82K | 7.84M | 993.21K | -538.24K | 65.54K | 36.18K | -2.44K | 24.56K | 939.7K | -32.9K | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -41.23M | -57.32M | -71.64M | -69.33M | -82.3M | -61.58M | -18.97M | -23.09M | -40.92M | -30.61M | -39.91M | -35.52M | 2.83M | -564.75K | -3.54M | -19.57M | 27.94M | 18.63M | 16.7M | 10.46M |
| Operating Margin % | -37.51% | -86.47% | -104.04% | -103.31% | -98.24% | -128.45% | -29.13% | -22.56% | -48.47% | -50.97% | -93.41% | -68.95% | 3.03% | -0.74% | -4.68% | -30.73% | 23.88% | 24.63% | 25.4% | 18.08% |
| Operating Income Growth % | 28.07% | 19.99% | -3.32% | 15.76% | -33.65% | -224.67% | 17.87% | 43.57% | -33.69% | 23.3% | -12.37% | -1354.88% | 601.15% | 84.04% | 81.93% | -170.05% | 49.95% | 11.58% | 59.7% | - |
| EBITDA | -38.36M | -54.17M | -67.25M | -62.4M | -75.82M | -56.56M | -15.95M | -21.97M | -39.81M | -29.75M | -38.96M | -34.99M | 3.43M | 53.8K | -3.34M | -19.21M | 28.31M | 18.96M | 16.9M | 10.69M |
| EBITDA Margin % | -34.9% | -81.73% | -97.66% | -92.97% | -90.51% | -117.99% | -24.49% | -21.46% | -47.15% | -49.55% | -91.17% | -67.93% | 3.67% | 0.07% | -4.42% | -30.16% | 24.2% | 25.06% | 25.7% | 18.49% |
| EBITDA Growth % | 29.19% | 19.44% | -7.77% | 17.71% | -34.05% | -254.65% | 27.41% | 44.81% | -33.78% | 23.62% | -11.33% | -1121.35% | 6267.22% | 101.61% | 82.62% | -167.86% | 49.36% | 12.19% | 58.03% | - |
| D&A (Non-Cash Add-back) | 2.87M | 3.15M | 4.39M | 6.94M | 6.48M | 5.02M | 3.02M | 1.12M | 1.12M | 856.74K | 955.08K | 526.05K | 595.65K | 618.55K | 197.87K | 361.84K | 368.8K | 321.3K | 195.62K | 234.2K |
| EBIT | -30.61M | -42.59M | -50.37M | -58.94M | 95.2M | -60.81M | -18.39M | -23.79M | -44.46M | -30.35M | -39.43M | -32.9M | 3.74M | 2.46M | -2.77M | -27.42M | 30.53M | 20.68M | 17.09M | 10.63M |
| Net Interest Income | 10.9M | 12.28M | 21.83M | 11.09M | 3.85M | -1.29M | -1.4M | -1.55M | -829.49K | -474.89K | -719.82K | -816.95K | -568.39K | -986.76K | -627.31K | -599.04K | -203.96K | -98.02K | -42.56K | -120.98K |
| Interest Income | 11.94M | 13.39M | 22.9M | 13.6M | 5.37M | 918.63K | 54.75K | 40.39K | 68.03K | 73.99K | 183.55K | 293.5K | 384.18K | 570.44K | 335.52K | 1.46K | 10.48K | 15.16K | 18.96K | 6.95K |
| Interest Expense | 1.04M | 1.11M | 1.07M | 2.51M | 1.52M | 2.21M | 1.45M | 1.59M | 897.52K | 548.88K | 903.37K | 1.11M | 952.57K | 1.56M | 962.82K | 564.65K | 214.43K | 113.18K | 61.52K | 127.93K |
| Other Income/Expense | 9.58M | 13.62M | 20.2M | 7.87M | 175.99M | 35.19M | 0 | -1.14M | -4.43M | -284.42K | -425.6K | 1.51M | -41.28K | 1.47M | -196.85K | -8.45M | 2.37M | 1.93M | 330.5K | 45.05K |
| Pretax Income | -31.65M | -43.7M | -51.44M | -61.46M | 93.68M | -26.39M | -19.84M | -25.38M | -45.36M | -30.9M | -40.34M | -34.01M | 2.79M | 906.41K | -3.73M | -28.02M | 30.32M | 20.56M | 17.03M | 10.5M |
| Pretax Margin % | -28.8% | -65.93% | -74.7% | -91.57% | 111.81% | -55.05% | -30.47% | -24.79% | -53.72% | -51.45% | -94.4% | -66.02% | 2.98% | 1.18% | -4.94% | -44% | 25.91% | 27.18% | 25.9% | 18.16% |
| Income Tax | -1.61K | 1.58K | 30 | 18.34K | -613.87K | -524.25K | 282.32K | 398.48K | 16.23K | 307.9K | 545.85K | -2.55M | 961.14K | 286.87K | -220.05K | 665.15K | 7.5M | 3.68M | 4.67M | 3.43M |
| Effective Tax Rate % | 0.01% | -0% | -0% | -0.03% | -0.66% | 1.99% | -1.42% | -1.57% | -0.04% | -1% | -1.35% | 7.5% | 34.46% | 31.65% | 5.89% | -2.37% | 24.76% | 17.89% | 27.4% | 32.69% |
| Net Income | -29.66M | -42.59M | -49.87M | -59.17M | 95.59M | -22.83M | -20.12M | -25.78M | -44.07M | -31.45M | -40.88M | -31.46M | 807.19K | 39.7K | -3.82M | -29.04M | 20.06M | 15.26M | 11.6M | 5.97M |
| Net Margin % | -26.99% | -64.25% | -72.43% | -88.16% | 114.1% | -47.63% | -30.9% | -25.18% | -52.2% | -52.36% | -95.68% | -61.07% | 0.86% | 0.05% | -5.06% | -45.59% | 17.14% | 20.17% | 17.64% | 10.32% |
| Net Income Growth % | 30.36% | 14.6% | 15.71% | -161.9% | 518.64% | -13.47% | 21.95% | 41.5% | -40.16% | 23.08% | -29.97% | -3997.03% | 1933.32% | 101.04% | 86.84% | -244.76% | 31.47% | 31.56% | 94.25% | - |
| Net Income (Continuing) | -31.64M | -43.7M | -51.44M | -61.48M | 94.29M | -25.87M | -20.12M | -25.78M | -45.38M | -31.2M | -40.88M | -31.46M | 1.83M | 619.54K | -3.51M | -28.69M | 22.81M | 16.89M | 11.1M | 6.6M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -13.9M | -13.46M | -11.62M | -10.06M | -7.75M | -7.58M | 10.61M | 11.09M | 10.86M | 8.46M | 8.22M | 8.22M | 8.23M | 7.2M | 6.62M | 6.32M | 9.58M | 6.84M | 0 | 0 |
| EPS (Diluted) | -266.52 | -4.68 | -197.60 | -627.80 | 1110.40 | -648.00 | -1566.40 | -2374.60 | -6908.20 | -490.00 | -723.20 | -32.25 | 0.90 | 0.05 | -4.83 | -36.74 | 26.15 | 33.75 | 26.20 | 13.95 |
| EPS Growth % | -5594.87% | 97.63% | 68.53% | -156.54% | 271.36% | 58.63% | 34.04% | 65.63% | -1309.84% | 32.25% | -2142.48% | -3683.33% | 1700% | 101.04% | 86.85% | -240.5% | -22.52% | 28.82% | 87.81% | - |
| EPS (Basic) | -266.52 | -4.68 | -135.40 | -627.80 | 1110.40 | -647.40 | -1566.40 | -2375.80 | -6908.40 | -490.00 | -723.20 | -32.25 | 0.95 | 0.05 | -4.83 | -36.74 | 26.30 | 35.55 | 27.05 | 13.95 |
| Diluted Shares Outstanding | 111.29K | 9.09M | 368.49K | 94.23K | 83.34K | 35.27K | 12.85K | 10.86K | 6.38K | 64.17K | 56.53K | 975.3K | 873.63K | 790.36K | 790.36K | 790.36K | 767.29K | 450.36K | 442.18K | 427.84K |
| Basic Shares Outstanding | 111.29K | 9.09M | 368.42K | 94.23K | 83.34K | 35.24K | 12.85K | 10.85K | 6.38K | 64.17K | 56.53K | 975.3K | 860.79K | 790.36K | 790.36K | 790.36K | 762.42K | 427.84K | 427.84K | 427.84K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying RCON stock.
For fiscal year 2026, Recon Technology, Ltd. (RCON) reported total revenue of $109.9M. This represents a 90.0% increase compared to $57.8M in 2007.
Recon Technology, Ltd. (RCON) reported a net loss of $29.7M for the fiscal year ending 2026.
Recon Technology, Ltd. (RCON) reported an operating income of $-41.2M, resulting in an operating profit margin of -37.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Recon Technology, Ltd. (RCON) generated $36.5M in gross profit for the year, representing a gross profit margin of 33.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
SOE procurement dependency
Top Line Volatility and Contraction
As indicated by the most recent quarterly filings, Recon Technology's revenue growth remains highly inconsistent, with the latest figures showing a 2.6% year-over-year increase that fails to offset the significant revenue volatility observed in prior periods, such as the 52.5% decline recorded in 2025Q2.
The company's reliance on project-based tenders from state-owned enterprises creates a lumpy revenue profile that lacks the predictability of recurring service models. This erratic top-line performance suggests that Recon Technology struggles to maintain a consistent market presence, leaving it vulnerable to the cyclical capital expenditure budgets of its primary Chinese energy clients.
Structural Margin Compression and Scale
Based on the provided financial data, Recon Technology faces severe margin pressure, with gross margins fluctuating between 7.8% and 37.7% and operating margins consistently deep in negative territory, reaching -125.6% in the most recent quarter, which highlights a fundamental inability to achieve necessary economies of scale.
The wide gap between gross and operating margins implies that the company's fixed cost base is disproportionately high relative to its current revenue generation. This structural imbalance suggests that the firm's specialized automation offerings may be too costly to implement or that the competitive pricing environment within the Chinese oilfield services sector prevents adequate margin capture.
Operating Leverage Remains Critically Negative
According to the income statement history, Recon Technology exhibits a persistent lack of operating leverage, as SG&A expenses frequently exceed gross profit, resulting in operating losses that have reached as high as $55.6 million in a single quarter, as reported in 2023Q4.
The inability to scale operating income alongside gross profit suggests that the company's overhead structure is not aligned with its current project-based revenue model. Investors should monitor whether management can rationalize these fixed costs, as the current trajectory indicates that revenue growth alone may be insufficient to reach operational break-even.
Earnings Quality Impacted by Compensation
Financial statements reveal that stock-based compensation remains a significant recurring expense, with $2.5 million recorded in the most recent quarter, which further exacerbates the company's net losses and complicates the assessment of true operational performance for shareholders.
The consistent use of stock-based compensation during periods of deep net losses warrants investigation into the alignment of management incentives with shareholder value creation. This practice appears to dilute existing equity holders while the core business continues to struggle with achieving profitability, potentially masking the true extent of the company's cash burn.
Sustainability of the Cash Buffer
While the company maintains a substantial cash position, the persistent operational cash burn suggests that this liquidity may be a survival buffer rather than a growth engine, as evidenced by the recurring negative net income figures reported across the last ten quarters.
Short-term observers might view the cash balance as a sign of financial strength, but the lack of operational profitability suggests that the company is effectively consuming its capital to sustain its current business model. This raises questions about the long-term viability of the firm if it cannot transition toward a self-sustaining, cash-generative operational state.