How De.mem’s Record Quarter and Gold Sector Acquisition Could Reshape Its Future

Robust Growth Momentum

De.mem Limited, a leader in decentralized water and wastewater treatment solutions, has delivered a standout September quarter in 2025, reporting its second highest ever quarterly cash receipts at approximately A$7.81 million. This performance continues a remarkable streak of 26 consecutive quarters of growth in cash receipts compared to the prior corresponding period, underscoring the resilience and scalability of its business model.

The company’s cash receipts have grown at a compound annual growth rate of around 24% over the past six and a half years, reflecting sustained demand for its industrial water treatment products and services. Despite a slight negative operating cash flow in the quarter, De.mem posted positive operating cash flow of about A$1.2 million over the last 12 months, with expectations of a return to positive cash flow in the December quarter driven by seasonal purchasing patterns and advance payments made in Q3.

Record Revenues and Profitability

Alongside cash receipts, De.mem achieved record quarterly revenues of approximately A$7.6 million and an adjusted EBITDA of around A$550,000 (unaudited). For the first nine months of 2025, the company’s standalone adjusted EBITDA reached about A$1.1 million, signaling strong operational leverage and margin expansion. The company’s gross margins have notably improved from 18% in 2017 to a record 41% in 2024, well above industry averages, driven by its premium product offerings and blue-chip client base.

Strategic Acquisition Enhances Gold Sector Exposure

In a significant strategic move, De.mem announced the acquisition of Core Chemicals Pty Ltd, a supplier of process chemicals to gold mining clients, for approximately A$3 million. This acquisition, expected to complete by the end of October 2025, adds an estimated A$730,000 in annual adjusted EBITDA based on Core Chemicals’ historic financials. It also positions De.mem to capitalize on the surging gold mining sector, with opportunities for cross-selling and revenue synergies across both companies’ client portfolios.

Expanding Domestic Water Filtration Market Presence

De.mem is actively progressing its entry into the domestic water filtration market, a segment projected to nearly double in size by 2030. The company has launched its membrane products in key Asian markets through partnerships and is pursuing Australian WaterMark certification to enable product deployment in drinking water applications. Early trials and initial orders in Indonesia and China mark promising steps toward capturing this growing market.

Outlook and Market Position

With a strong pipeline of recurring contracts, recent project awards totaling around A$1 million, and extended service contracts worth approximately A$1.3 million annually, De.mem is on track to deliver record full-year results in 2025. The company’s diversified customer base, including global industrial giants and mining clients, combined with its proprietary technology and comprehensive service offering, underpin its confidence in sustained growth and profitability into 2026.