De.mem Posts A$7.8M Quarterly Cash Receipts, 16% H1 Growth
De.mem Limited has reported its second highest quarterly cash receipts ever, alongside a fourth consecutive quarter of positive operating cash flow, positioning the company for a record full-year 2025 performance.
- June Quarter 2025 cash receipts hit approximately A$7.8 million
- Positive operating cash flow for four consecutive quarters totaling A$1.515 million over 12 months
- Over 90% of cash receipts are recurring, driven by long-term contracts and specialty chemicals
- Advancing domestic water filtration market with new product launches and certifications
- Two recent acquisitions contributing around A$2 million in annualized cash receipts
Record Cash Receipts Mark a Milestone
De.mem Limited (ASX, DEM), a specialist in industrial and domestic water treatment, has delivered a standout performance in the June Quarter of 2025. The company recorded approximately A$7.8 million in cash receipts, marking the second highest quarterly total in its history. This achievement underscores a robust 16% increase in cash receipts for the first half of 2025 compared to the prior corresponding period, continuing a remarkable streak of 25 consecutive quarters of growth.
Sustained Positive Operating Cash Flow
Beyond revenue growth, De.mem has demonstrated strong cash flow discipline, reporting positive operating cash flows for the fourth consecutive quarter. The June Quarter alone generated A$533,000 in operating cash flow, contributing to a total of A$1.515 million over the past 12 months. This consistent cash flow generation is largely supported by the company’s focus on recurring revenue streams, which now account for over 90% of cash receipts. These include long-term water treatment contracts, specialty chemical sales, and membrane product offerings.
Innovation and Market Expansion Drive Growth
De.mem’s competitive edge is bolstered by its proprietary graphene oxide enhanced membrane technology, which offers superior filtration performance and cost efficiencies. The company has successfully secured NSF certification for these membranes, enabling deployment in potable water applications, particularly in North America through partnerships like Purafy Technologies. Additionally, De.mem is actively expanding its footprint in Asia with new distribution agreements covering China, Indonesia, and Japan, and has initiated the Australian WaterMark certification process to support domestic market entry.
Strategic Acquisitions Strengthen Position
Complementing organic growth, De.mem has integrated two acquisitions, Border Pumpworks and Auswater Systems, both contributing approximately A$2 million in annualized cash receipts. These acquisitions enhance De.mem’s national reach and service capabilities, particularly in regional Australia, and align with its strategy to consolidate a fragmented water treatment sector.
Outlook and CEO Commentary
With a strong first half behind it, De.mem is on track to deliver record full-year results in 2025. CEO Andreas Kroell highlighted the company’s successful execution of its strategy, emphasizing the importance of positive cash flow momentum and innovative technology in driving shareholder value. The company’s focus on recurring revenue and margin expansion positions it well for sustainable growth amid a competitive and evolving water treatment landscape.
Bottom Line?
De.mem’s sustained cash flow strength and technological innovation set the stage for continued growth and market leadership in 2025 and beyond.
Questions in the middle?
- How will the Australian WaterMark certification impact De.mem’s domestic market penetration?
- What are the prospects for scaling graphene oxide membrane technology in new international markets?
- Could De.mem pursue further acquisitions to accelerate growth and enhance shareholder returns?
