De.mem Limited reported a 20% increase in revenue to $29.9 million for FY2025, alongside a reduced net loss and its first full-year positive adjusted EBITDA. The company also completed the acquisition of Core Chemicals, expanding its specialty chemicals footprint in the gold mining sector.
- 20% revenue growth to $29.9 million in 2025
- Net loss narrowed by 27% to $2.03 million
- Positive adjusted EBITDA of $1.56 million achieved
- Acquisition and integration of Core Chemicals Pty Ltd
- Launch of domestic water treatment products with new distribution partnerships
Strong Financial Performance and Margin Expansion
De.mem Limited (ASX:DEM) has reported a robust financial performance for the year ended 31 December 2025, with revenues climbing 20% to $29.9 million. This growth was accompanied by an improvement in gross margins, which rose from 41% to 43%, translating to a gross profit of $12.7 million. Despite still reporting a net loss of $2.03 million, this represents a 27% reduction compared to the previous year, signaling progress towards profitability.
Notably, De.mem achieved its first full financial year of positive adjusted EBITDA at $1.56 million, a significant turnaround from losses in prior years. This adjusted figure excludes one-off costs such as acquisition expenses and share-based payments, providing a clearer view of the underlying operational performance.
Strategic Acquisition Bolsters Specialty Chemicals Offering
In a strategic move to deepen its presence in the gold mining sector, De.mem completed the acquisition of Core Chemicals Pty Ltd in November 2025. Core Chemicals supplies specialty process chemicals that aid gold extraction and recovery, complementing De.mem's existing water treatment solutions. The acquisition consideration totaled approximately $2.7 million, including cash, shares, and contingent payments tied to future profit milestones.
Integration of Core Chemicals into De.mem’s operations in Perth has been completed within the financial year, positioning the company to capitalize on the booming gold mining market. This acquisition is expected to contribute positively to revenue and margins in the coming year.
Growth in Recurring Revenue and New Product Launches
De.mem’s growth strategy continues to focus on high-margin recurring revenue streams, which accounted for about 90% of total revenues in 2025, up from 85% in 2024. The specialty chemicals segment, particularly through the De.mem-Capic subsidiary, saw a 50% revenue increase, underscoring its role as a key growth driver.
The company also advanced its domestic water treatment product line, leveraging its proprietary graphene oxide-enhanced membrane technology. A new distribution partnership with Singapore-based Firmbase Pte Ltd was signed, facilitating entry into the Chinese market with initial orders already received. De.mem is progressing through the Australian WaterMark certification process, expected to conclude in 2026, which will enable broader domestic market access.
Solid Balance Sheet and Funding Capacity
De.mem ended the year with a healthy cash position of $3.94 million and net assets of $14 million, providing sufficient liquidity to support ongoing growth initiatives. The company also secured a $500,000 shareholder loan facility with a 9% interest rate to fund the Core Chemicals acquisition and scale-up activities.
These financial resources, combined with improved operational cash flows, position De.mem to pursue further strategic acquisitions and expand its Build, Own, Operate (BOO) and Operations & Maintenance (O&M) service contracts.
Governance and Leadership Updates
The company underwent notable board changes during the year, with Andreas Hendrik (Harry) De Wit appointed as Non-Executive Chairman in May 2025, succeeding Cosimo Trimigliozzi who retired at year-end. The leadership team remains focused on executing De.mem’s growth strategy and enhancing shareholder value.
De.mem’s financial statements were audited by Hall Chadwick Melbourne Audit, which issued an unmodified opinion, affirming the integrity of the reported results.
Bottom Line?
With positive EBITDA and strategic acquisitions underpinning growth, De.mem is poised to accelerate its market presence, though investors will watch closely for margin sustainability amid inflationary pressures.
Questions in the middle?
- How will Core Chemicals’ integration impact De.mem’s profitability in FY2026?
- What progress will De.mem make on WaterMark certification and domestic product sales?
- Can De.mem sustain margin improvements amid rising raw material costs and inflation?