AutoCount, the Malaysian business-software firm, is showing what a shift to subscriptions can do for a homegrown software company. The Bursa Malaysia-listed group reported record recurring revenue for its first quarter of FY2026, a sign its move to software-as-a-service is gaining traction.
For the three months ended 31 March 2026, recurring revenue rose 35.6 percent from a year earlier to RM4.4 million. That now makes up 30.4 percent of total revenue, a sharp jump from 12.7 percent in the same quarter last year.
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The SaaS shift
The bigger story sits in the cloud line. SaaS revenue climbed 44.6 percent year on year to RM3.4 million as more businesses adopted AutoCount's cloud-native products. Subscription revenue now accounts for 26.3 percent of the group's distribution revenue, up from 9.8 percent a year ago. AutoCount pointed to higher take-up of its AutoCount Cloud HRMS, helped by small and medium firms moving HR and payroll to the cloud.
The numbers behind it
Overall, AutoCount posted revenue of RM14.47 million and pre-tax profit of RM6.26 million for the quarter. It generated RM7.3 million in net operating cash flow, and total liquid resources grew to RM56.0 million. The group says it remains debt-free.
Why it matters
For Malaysian SMEs, the trend is worth watching. As accounting and HR tools move from one-off licences to subscriptions, the software many local businesses rely on becomes cloud-based, updated more often and billed on a recurring basis. For AutoCount, recurring revenue brings more predictable income, which tends to be valued more highly than one-time sales. The quarter suggests the transition is paying off rather than weighing on the books.
The takeaway
A record recurring-revenue quarter, paired with a debt-free balance sheet and strong cash flow, points to a local software firm executing its cloud pivot on plan. The next few quarters will show whether the momentum holds.