Stakk Reports FY2026 Revenue of A$14.89 Million and Operating Profit of A$1.07 Million

Revenue Explosion and Operating Profit Milestone

Stakk Limited (ASX:SKK) has delivered a seismic leap in revenue for FY2026, reporting a 1,098% increase to A$14.89 million, up from just A$1.24 million the previous year. This surge was fuelled by the rollout of enterprise customer agreements and higher customer utilisation across its AI-native Digital Trust platform, which serves regulated industries including banks, fintechs, and credit unions in Australia and the US.

Crucially, Stakk swung to an operating profit of A$1.07 million, reversing a loss of A$2.64 million in FY2025. This operating profit was achieved despite a hefty A$6.37 million spent on research and development to expand the company’s technology capabilities, signalling a significant step in commercialising its unified Digital Trust infrastructure.

Statutory Loss Reflects Acquisition and Legacy Business Costs

While the operating result is encouraging, the statutory loss after tax widened to A$5.12 million due to A$6.19 million in non-operating expenses. These included A$3.30 million in acquisition-related costs, A$100,000 in finance costs tied to the acquisition of Stakk IQ, Inc., and a non-cash A$2.79 million loss from the deconsolidation and orderly wind-down of dormant Douugh entities, part of Stakk’s former consumer finance business.

The Douugh-related loss did not impact the operating profit or cash position, as these entities were no longer part of the core Digital Trust operations. This separation underscores Stakk’s strategic pivot and focus on its AI-driven platform for regulated sectors.

Cash Flow Strength and Balance Sheet Boost

Stakk’s cash position strengthened dramatically, ending FY2026 with A$17.57 million in cash and equivalents, compared to just A$0.37 million a year earlier. The company generated net operating cash inflows of A$3.78 million, a sharp turnaround from the prior year’s cash outflows. This was supported by disciplined receivables management and strong customer cash receipts of A$14.51 million.

Net assets more than tripled to A$28.72 million, with net current assets standing at A$16.85 million. These improvements reflect both the operational scale-up and capital raised during the year, excluding the A$27 million institutional placement completed after year-end to fund the ParaScript acquisition.

ParaScript Acquisition to Accelerate Growth

Stakk announced the proposed US$63 million acquisition of ParaScript, a US-based AI-powered document intelligence and fraud detection provider, subsequent to the financial year-end. The deal, still subject to completion conditions, is expected to materially increase Stakk’s scale, revenue, earnings, and international customer base by combining complementary AI technologies.

The acquisition is backed by a fully subscribed A$27 million institutional placement, positioning Stakk to integrate ParaScript’s capabilities and expand its footprint across the US, Europe, and Australia. The combined platform aims to process over 100 billion digital interactions annually, a significant leap in market reach.

FY2027 Revenue Outlook Excludes Acquisition Contribution

Looking ahead, Stakk projects standalone FY2027 revenue of approximately A$21.8 million, based on contracted recurring services and current implementation schedules. This forecast excludes any incremental revenue from ParaScript or potential new customer wins and cross-selling opportunities.

The company’s Executive Chair, Nikhil Ghanekar, emphasised a disciplined approach to growth, balancing revenue expansion with margin protection and cost control to build long-term shareholder value.