De.mem Accelerates Record Growth and Cashflow with Core Chemicals Boost

Sustained Growth Momentum Drives Record Outlook

De.mem Limited (ASX:DEM) is on course to deliver its strongest full-year performance yet in calendar year 2026, buoyed by a remarkable streak of 29 consecutive quarters of cash receipts growth. The company’s half-year figures reveal $20 million in cash receipts, with the second half of the year historically contributing around 55% of full-year revenue, setting the stage for a new record.

This growth trajectory is underpinned by a compound annual growth rate of approximately 24% in cash receipts over the past seven years, reflecting the resilience and scalability of De.mem’s business model. The company’s operating cashflow has also turned sharply positive, swinging from a $1.9 million outflow in 2022 to a $928,000 inflow in the first half of 2026. Cash on hand has steadily increased, reaching $4.3 million as of June 2026.

Recurring Revenues and Diversified Portfolio

More than 90% of De.mem’s cash receipts are recurring, a testament to its high-margin, subscription-style revenue streams. The company offers a comprehensive suite of decentralised water treatment solutions, combining proprietary hollow fibre membrane technology with chemicals, consumables, and operations and maintenance services.

Its Australian operations, including the recently acquired Core Chemicals, contribute roughly 45% of quarterly cash receipts. The German subsidiary, De.mem-Geutec GmbH, also posted a record quarter with $1.5 million in cash receipts and $350,000 in positive operating cashflow, highlighting the strength of De.mem’s international footprint.

Core Chemicals Acquisition Unlocks Gold Sector Potential

The acquisition of Core Chemicals in October 2025 has added a profitable, high-growth specialty chemicals business focused on the gold mining sector. Core Chemicals generates around $4 million in revenue and $730,000 in pre-tax profits, with substantial upside from servicing an untapped market of approximately 142 Australian gold mines not yet clients.

De.mem’s target revenue per gold mining client stands near $220,000 annually, and the company currently serves 18 gold mines through Core Chemicals and 15 through its existing mining segment, averaging $250,000 per client. This positions De.mem to capitalise on the gold sector’s strong outlook, with prices recently exceeding US$4,000 per ounce and forecasts pointing higher.

Residential Water Treatment Expands Global Reach

Beyond industrial applications, De.mem is advancing into residential water treatment with a range of small, standardised filtration systems featuring its Graphene Oxide-enhanced membranes. These products, manufactured in Singapore and certified by NSF in 2024, are being distributed globally through partnerships in Singapore, North America, and parts of Asia.

The Australian launch is underway, pending final WaterMark certification, while further expansion opportunities are being pursued in Southeast Asia and India. This diversification adds a promising new revenue stream alongside De.mem’s established industrial business.

Market Position and Valuation

De.mem occupies a unique position as the only ASX-listed company offering a fully diversified decentralised water treatment portfolio with national coverage. Its blue-chip client base spans mining, food and beverage, and industrial sectors, including Rio Tinto, Coca Cola, and AGL.

The company trades at a market capitalisation of approximately $31 million, valuing it at about 0.85 times last twelve months’ cash receipts, a notable discount of roughly 59% compared to ASX-listed peers and well below global takeover multiples in the water treatment space.