Stakk Limited reports a robust 222% quarterly revenue growth in 2025, with an $8.53 million annual recurring revenue run-rate and a strengthened balance sheet. The company also refines its accounting treatment of contingent consideration following its Radical-DBX acquisition.
- 222% compounded quarterly revenue growth in 2025
- Annual recurring revenue run-rate reaches $8.53 million
- Balance sheet assets surge 963%, liabilities down 42%
- Accounting reclassification reverses prior $2.4 million gain
- On track for profitability in calendar year 2026
Strong Revenue Momentum
Stakk Limited (ASX: SKK) has delivered a compelling half-year financial performance for the six months ended 31 December 2025, underpinned by a remarkable 222% compounded quarterly growth rate in booked revenue during calendar year 2025. The company’s annual recurring revenue (ARR) run-rate now stands at $8.53 million, reflecting growing traction with Tier-1 U.S. clients such as Robinhood, T-Mobile, Chime, and SoFi. This momentum is driven by expanding enterprise deployments and increased platform usage across onboarding, payment, and transaction processing workflows.
Balance Sheet Transformation
Stakk’s balance sheet has undergone a material transformation, with current assets soaring by approximately 963% to $16.8 million and cash reserves swelling to over $15 million. Concurrently, total liabilities have been reduced by 42%, resulting in net assets increasing by 178% to $26.65 million. This financial strengthening provides the company with a solid foundation to continue investing prudently in technology development and growth initiatives, including its AI and machine learning-powered Embedded Finance platform, Stakk IQ™.
Accounting Refinement and Impact
During the finalisation of its half-year report, Stakk revisited the accounting classification of contingent consideration related to its December 2024 acquisition of Radical-DBX (now Stakk IQ, Inc.). Previously classified as a financial liability, the contingent consideration has been reclassified as equity following a detailed review under Australian accounting standards. This change led to the reversal of a $2.4 million fair value gain recognised in the prior period and retrospective restatement of comparative figures. Importantly, this adjustment has no cash impact and aligns the financial reporting more closely with the legal and economic substance of the transaction, removing prior accounting volatility.
Path to Profitability
Despite reporting a net loss of $2.77 million for the half-year, Stakk’s adjusted EBITDA loss narrowed significantly, approaching breakeven. Management remains focused on disciplined execution, aiming to convert signed but not yet live contracts and capitalise on high-margin product upsells, including a new document-capture liveness detection feature. The company has set a clear target to reach a $15 million ARR run-rate by 30 June 2026 and remains on track to achieve profitability in calendar year 2026, even amid challenging global technology equity market sentiment.
Outlook and Strategic Positioning
Stakk’s continued enterprise penetration and SaaS operating leverage, powered by AI and machine learning, position it well within the competitive embedded finance sector. The company’s ability to raise equity capital, manage contingent consideration through equity issuance, and maintain a strong cash position provides flexibility to navigate near-term uncertainties. Investors will be watching closely for the company’s upcoming business update, expected early next week, for further insights into its growth trajectory and operational execution.
Bottom Line?
Stakk’s strong revenue growth and balance sheet resilience set the stage for a pivotal year ahead, but execution risks remain as it pushes toward profitability.
Questions in the middle?
- How effectively will Stakk convert its signed but not yet live contracts into billed revenue?
- What impact will the new document-capture liveness detection capability have on upsell and client retention?
- How will broader market conditions affect Stakk’s ability to raise capital if needed?