How Did Stakk Achieve 158% Revenue Growth in FY25?
Stakk Limited reports a striking 158% year-over-year revenue increase in FY25, driven by its Embedded Finance solutions and strategic partnerships. The company’s pivot from B2C to B2B signals a focused growth trajectory into FY26.
- 158% revenue growth to $1.24 million in FY25
- Pro forma normalised revenue of $2.07 million including R-DBX acquisition
- Over 200 financial institutions served across Australia and the US
- New Sharetec partnership adds $1.02 million in annual recurring revenue
- B2C app wind down delivers operational cost savings and sharper B2B focus
Strong Revenue Growth Driven by Embedded Finance
Stakk Limited (ASX, SKK) has unveiled a robust financial performance for the fiscal year ended June 2025, posting a 158% increase in revenue to $1.24 million. This surge is largely attributed to the successful commercialisation of its Embedded Finance solutions, which integrate financial services directly into business platforms, enhancing customer experiences and operational efficiencies.
On a pro forma basis, which includes six months of revenue from its recent acquisition of R-DBX, Stakk’s normalised revenue reached $2.07 million. This acquisition has bolstered Stakk’s footprint and product offering, positioning the company well within the competitive embedded finance landscape.
Strategic Shift from B2C to B2B Focus
CEO Andy Taylor highlighted the company’s strategic pivot away from its previous B2C app, which was wound down during the year. This move has not only reduced operational costs in Australia and the US but also allowed Stakk to concentrate on its core B2B market. The transition underscores a deliberate focus on delivering embedded finance solutions to banks, credit unions, neobanks, and fintech partners.
Currently, Stakk serves over 200 financial institutions, including notable clients such as Current, GreenFi, Albert, Navy Federal, and Lili. This diverse client base reflects the company’s growing influence across both Australian and US markets.
New Partnerships Fuel Recurring Revenue Growth
Adding to its momentum, Stakk recently announced a partnership with Sharetec, a significant player in financial software. This collaboration is expected to contribute an additional $1.02 million in annual recurring revenue (ARR), projecting $3.05 million over the next three years. Such partnerships are critical in expanding Stakk’s recurring revenue streams and underpinning its long-term growth strategy.
Looking ahead, the company’s ARR now stands at $3.05 million, a promising indicator as it navigates an inflection point in FY26. The focus remains on scaling embedded finance solutions and deepening relationships within the financial services sector.
Outlook and Market Positioning
Stakk’s FY25 results mark a pivotal moment, reflecting both operational discipline and strategic clarity. The wind down of less profitable B2C operations and the emphasis on B2B embedded finance solutions have set the stage for sustainable growth. While the company has yet to fully quantify the long-term financial impact of these changes, the early signs suggest a leaner, more focused business model.
Investors and market watchers will be keen to monitor how Stakk leverages its expanded client base and partnerships to drive revenue and profitability in the coming quarters. The embedded finance sector remains competitive but ripe with opportunity, and Stakk’s recent progress positions it as a noteworthy contender.
Bottom Line?
Stakk’s FY25 momentum and strategic refocus set the stage for a critical growth phase in FY26.
Questions in the middle?
- How will the full wind down of B2C operations impact Stakk’s cost structure and profitability?
- What are the integration plans and expected synergies from the R-DBX acquisition?
- Can Stakk sustain and accelerate ARR growth amid increasing competition in embedded finance?
