Stakk Posts 186% Revenue Surge to $5.52m on Client Conversions

Quarterly Revenue Rockets on Client Billing Activation

Stakk Ltd (ASX:SKK) has delivered a remarkable 186% quarter-on-quarter revenue increase to A$5.52 million for the quarter ended 31 March 2026, up from A$1.93 million in the prior period. This surge reflects the successful conversion of previously contracted clients into active billing, alongside new client wins that continue to fuel the company’s expanding footprint in regulated industries.

The Board has classified this uplift as material under ASX Listing Rule 3.1, providing a clear benchmark for shareholders to gauge Stakk’s emerging revenue trajectory. The company’s AI-native trust and decisioning infrastructure, embedded within the control paths of regulated systems, is gaining traction particularly among banks, fintechs, and global enterprises.

Resilient Recurring Revenue and High Margins

Stakk’s revenue growth is underpinned by a predominantly recurring revenue model, with the company boasting a zero churn client base over the past 24 months; an impressive feat in the competitive tech landscape. The firm continues to operate with gross margins exceeding 85%, highlighting the scalability and quality of its earnings. This is a testament to the efficiency of its AI-driven platform designed specifically for real-time, pre-exposure decisioning across regulated digital interactions.

Cash receipts for the quarter closely tracked booked revenue at A$5.36 million, driving a net cash increase of A$2.25 million and lifting the cash balance to A$17.34 million. This strong cash conversion aligns with Stakk’s disciplined growth strategy, converting revenue expansion directly into balance sheet strength and operational cash flow. The company’s recent cash flow turnaround builds on momentum from its $5.36m receipts and positive cash flow reported just days earlier.

Near-Term Growth Visibility from Implementation Pipeline

Adding to the momentum, Stakk has approximately A$2.7 million in annualised recurring revenue currently in implementation, expected to convert to active billing within the next 120 days as milestones are met. This pipeline provides tangible near-term visibility on continued revenue growth, supported by ongoing client wins that expand the company’s footprint.

The company’s differentiated AI-native execution-layer capabilities are increasingly recognised as mission-critical infrastructure by enterprise clients, enabling real-time governance of high-consequence digital interactions. This positions Stakk well amid a broader environment where traditional SaaS models face growing pressure, as its high-quality recurring revenue and strong cash flow conversion underscore a robust and defensible business model.

Stakk’s recent contract wins, including a landmark US$7.85 million deal secured earlier this year, have bolstered its expansion into regulated sectors such as healthcare and financial services, reinforcing its growth narrative. This builds on the company’s track record of securing institutional clients and expanding annualised recurring revenue, as seen in its nine new institutional clients adding ARR earlier in 2026.

Strategic Execution Validated by Financial Strength

The Board views this step-change in quarterly revenue, combined with strong cash generation and a growing contracted revenue base, as validation of Stakk’s strategic execution and underlying market demand. The company’s ability to scale while maintaining high margins and cash flow discipline positions it to strengthen its financial footing as it continues to roll out its AI-native trust infrastructure.