De.mem Limited has extended its growth streak with record quarterly cash receipts of approximately $10.4 million, a 31% increase year-on-year, alongside positive operating cash flow of $504,000 for the March 2026 quarter.
- Record quarterly cash receipts of $10.4 million, up 31% year-on-year
- 28 consecutive quarters of cash receipts growth sustained
- Positive operating cash flow of $504,000 achieved
- Core Chemicals acquisition contributes $1.6 million in quarterly cash receipts
- Domestic water filtration market entry progressing with key certifications
Record Cash Receipts and Sustained Growth Momentum
De.mem Limited (ASX:DEM) has delivered its highest quarterly cash receipts in history, reporting approximately $10.4 million for the March 2026 quarter. This marks a 31% increase compared to the prior corresponding period, extending the company’s remarkable run of 28 consecutive quarters of cash receipts growth. Over seven years, De.mem has achieved a compound annual growth rate (CAGR) of around 26% in cash receipts, underscoring the resilience of its recurring revenue model.
The company’s positive operating cash flow of $504,000 for the quarter reflects disciplined cost management and expanding margins, supported by its focus on high-margin recurring revenue segments such as services and specialty chemicals. Notably, De.mem’s German subsidiary contributed approximately $350,000 to this result by delivering on a wastewater treatment project awarded in the previous quarter.
Strategic Acquisition Boosts Industrial Water Treatment Revenue
Core Chemicals Pty Ltd, acquired recently by De.mem, delivered a strong first full quarter contribution with around $1.6 million in cash receipts. This Western Australian specialty chemicals supplier services gold mining clients, providing process chemicals that enhance gold extraction and recovery from refining waste streams. The acquisition has materially increased De.mem’s exposure to the gold mining sector, a theme highlighted in the company’s prior 20% revenue surge and positive EBITDA report.
The integration of Core Chemicals validates De.mem’s acquisition strategy by delivering earnings accretion and expanding its footprint in a sector with significant growth potential. The company’s blue-chip industrial customer base also includes utilities and food and beverage giants such as AGL, Givaudan, Coca-Cola, Alcoa, Rio Tinto, and South 32, diversifying its revenue streams.
Progress in Domestic Water Filtration Market
De.mem is advancing its entry into the domestic water filtration market, leveraging its flagship Graphene Oxide (GO) enhanced Ultrafiltration membrane technology. The company has secured National Sanitation Foundation (NSF) certification under Standard 53 for potable water applications in the USA, a significant regulatory milestone that supports its third-party sales distribution model across North America and Asia-Pacific markets including Singapore, Indonesia, China, and Japan.
In Australia, De.mem has initiated the mandatory WaterMark certification process for its domestic water treatment systems, with site audits completed and further documentation submitted during the quarter. The global domestic water filtration market, estimated at US$12.1 billion in 2022 and projected to grow at over 10% annually, represents a substantial opportunity for the company’s membrane products.
Solid Financial Position and Outlook for 2026
De.mem’s cash balance increased to approximately $4.2 million as of 31 March 2026, up from $4 million at the end of 2025. The company’s net cash from operating activities and modest investing outflows contributed to this improvement, despite net cash used in financing activities related to loan repayments and lease liabilities.
Chief Executive Officer Andreas Kroell emphasised the company’s confidence entering calendar year 2026, citing the record cash receipts, sustained growth momentum, and positive operating cash flow as indicators of a strong outlook. The company’s strategy to drive revenue growth through high-margin recurring sales and strategic acquisitions positions it well to capitalise on opportunities in both industrial and residential water treatment markets.
Bottom Line?
De.mem’s record cash receipts and positive operating cash flow reinforce its growth trajectory, but execution in the domestic filtration market and integration of acquisitions will be critical to sustaining momentum.
Questions in the middle?
- How will De.mem scale its domestic water filtration sales amid regulatory and distribution challenges?
- What impact will the Core Chemicals acquisition have on margins and earnings in the medium term?
- Can De.mem maintain its 28-quarter growth streak as market conditions evolve?