Stakk’s cash flow turns positive again as ParaScript enters the numbers

Operating cash flow reaches a second consecutive positive quarter

Stakk Limited (ASX:SKK) has put another quarter of positive operating cash flow on the board, generating A$731,000 in the three months to 30 September 2026. That was A$482,000 above the preceding quarter’s A$249,000, or a 193.6% increase, while customer receipts reached A$7.681 million.

The result gives Stakk a useful operational foothold after a period of rapid expansion. Its underlying business generated A$6.819 million of unaudited pro-forma revenue for the quarter, against A$6.289 million in statutory customer receipts, equivalent to roughly 92.2% of recognised revenue. The company attributed the difference principally to ordinary billing cycles and accrued receivables.

ParaScript lifts reported revenue but distorts the quarter-on-quarter comparison

Stakk’s combined group revenue was A$16.075 million on an unaudited pro-forma basis, with ParaScript contributing A$9.256 million. That figure includes ParaScript’s entire July to September quarter, even though Stakk completed the acquisition only on 14 September. The earlier Q1 revenue update had already put the quarter’s pro-forma revenue in focus, but the Appendix 4C now shows why revenue and cash receipts cannot be read as equivalent measures.

Statutory customer receipts included ParaScript only from completion, producing A$1.391 million from the acquired business during the reporting period. Stakk says the gap between A$16.075 million of pro-forma revenue and A$7.681 million of statutory receipts should not be treated as a matching collection shortfall. December’s quarter will be the first complete reporting period for consolidated cash flows from both businesses.

Acquisition funding leaves cash lower and debt fully drawn

The ParaScript transaction materially changed Stakk’s balance-sheet profile. The company recorded A$37.168 million of payments to acquire entities, offset by A$757,000 of cash acquired, for net investing cash outflows of A$36.411 million. A A$27 million institutional placement and A$5 million working capital facility partly funded the transaction, leaving A$11.814 million in consolidated cash at quarter end.

Stakk’s financing facilities totalled A$33.802 million and were fully drawn at 30 September, including the A$28.802 million Australian-dollar equivalent of a US$20 million Seller’s Note carrying 10.8% annual interest. Quarterly repayments begin on 14 December 2026 and the note matures in September 2030. The separate short-term loans, carrying fixed interest of 10%, were due in January 2027; Stakk disclosed that three of those facilities were repaid after quarter end, on 7 October, including A$250,000 of interest.

Executive Director Arthur Lo said Stakk’s second consecutive positive operating cash-flow quarter demonstrated “the financial progress we are making” and pointed to further commercial agreements expected during the current quarter. Those comments are forward-looking rather than quantified commitments. The next Appendix 4C will therefore have to answer two practical questions at once: whether ParaScript’s full-quarter receipts convert the enlarged group’s revenue into sustained operating cash generation, and how comfortably that cash can absorb the scheduled financing burden.