De.mem Limited posted its second highest quarterly cash receipts of approximately $9.6 million for June 2026, marking 29 consecutive quarters of growth and positive operating cash flow of $424k. The company’s strong half-year performance is underpinned by recurring revenues, a robust Western Australian business, and record results from its German subsidiary.
- 29 consecutive quarters of cash receipts growth
- Second highest quarterly cash receipts at ~$9.6m
- Positive operating cash flow of $424k in June quarter
- Western Australian business drives 45% of receipts
- German subsidiary delivers record $1.5m cash receipts
Record Growth Momentum Continues with 29 Consecutive Quarters
De.mem Limited (ASX:DEM) has extended its impressive streak of cash receipts growth to 29 consecutive quarters, delivering approximately $9.6 million in cash receipts for the June Quarter 2026. This represents a 24% increase compared to the same period last year and stands as the second highest quarterly cash receipts in the company’s history. For the first half of calendar year 2026, cash receipts reached a record $20 million, approximately 28% above the prior corresponding period.
The company’s long-term compound annual growth rate in cash receipts remains robust at around 24% over 7.25 years, underscoring the strength of De.mem’s recurring revenue model and its foothold in decentralized water and wastewater treatment solutions.
Positive Operating Cash Flow Reflects Operational Strength
De.mem reported positive operating cash flow of $424,000 for the June quarter, following $504,000 in the March quarter, bringing the total operating cash flow for H1 2026 to $928,000. This achievement is notable given ongoing investments in membrane product development and integration activities.
The German subsidiary, De.mem-Geutec GmbH, contributed approximately $350,000 in positive operating cash flow during the quarter, driven by a wastewater treatment equipment project for a galvanizing client worth around $500,000 in total revenues, alongside a strong services and chemicals business.
Western Australian Business Fuels Group Growth
De.mem’s Western Australian operations, including the recently acquired Core Chemicals Pty Ltd, accounted for roughly 45% of the group’s cash receipts in the quarter. Core Chemicals, acquired in November 2025, supplies specialty chemicals to gold mining clients for gold extraction and recovery, significantly boosting De.mem’s exposure to the surging gold mining sector.
The company has successfully expanded its client base since the acquisition and is actively pursuing cross-selling opportunities across its combined customer portfolio, highlighting the strategic value of this acquisition.
Domestic Water Filtration Market Entry Gains Traction
De.mem is progressing its entry into the domestic water filtration market using its proprietary Graphene Oxide enhanced Ultrafiltration membrane technology. In May 2026, the company secured a new order for filter cartridges from a Singapore distributor valued at approximately $100,000, with expectations of repeat orders reflecting the recurring nature of this business segment.
Additionally, De.mem is on track to complete the Australian WaterMark certification by the end of 2026, a crucial step that will enable the company to launch its membrane products for potable water applications in Australia.
Outlook for Calendar Year 2026 Remains Strong
De.mem’s CEO Andreas Kroell expressed confidence in the company’s trajectory, highlighting the record cash receipts, sustained growth momentum, and strong contributions from both the Western Australian business and German subsidiary. The ongoing launch of domestic water treatment products and new orders, such as the Singapore filter cartridge deal, are expected to further bolster revenue growth.
With a cash balance increasing to approximately $4.3 million as of 30 June 2026, De.mem appears well-positioned to capitalise on its diversified customer base, which includes blue-chip industrial clients across utilities, food and beverage, and mining sectors.
Bottom Line?
De.mem’s sustained cash receipts growth and positive cash flow reinforce its position in industrial and domestic water treatment, but upcoming certification milestones and repeat order traction will be key to watch.
Questions in the middle?
- Will De.mem’s WaterMark certification be secured on schedule to unlock the Australian domestic market?
- Can the company maintain its 29-quarter growth streak amid evolving market dynamics and competition?
- How will the integration and cross-selling opportunities from Core Chemicals impact future revenue diversification?