Stakk (ASX: SKK) has reported a sharp improvement in cash generation for the March quarter, with gross receipts rising to $5.36 million and net operating cash flow turning positive at $2.25m.
Quarterly receipts were up 272% from $1.44m in the December quarter, reflecting rising transaction volumes across the platform and the conversion of previously announced client wins into active revenue-generating engagements.
Cash and cash equivalents at the end of the quarter increased to $17.34m from $15.09m at the end of the previous quarter, strengthening Stakk’s liquidity as it continues to scale.
The result marks a significant change from the December quarter, when the business recorded a net cash outflow of $1.96m, and points to a stronger annualised revenue conversion profile as contracted work moves into billing.
Client Wins Begin Converting into Cash
The March quarter receipts reflected continued growth in transaction volumes across Stakk’s platform as more customer contracts moved from implementation into active use.
Previously announced client wins are now converting into cash generation, validating the underlying demand for the company’s solutions across regulated industries.
Stakk sees the quarterly performance representing a material step change in cash generation, producing an annualised run rate consistent with shareholder expectations.
Executive director Andy Taylor said the latest results validated the revenue-generating capability of client wins previously disclosed to the market.
Pipeline Supports Near-Term Growth
Stakk has approximately A$2.6m in annualised recurring revenue that is already contracted and currently in implementation but not yet contributing to monthly recurring revenue.
That contracted revenue is expected to begin billing progressively over the next 120 days as clients go live, while ongoing new client wins continue to add to the implementation pipeline.
The company also has around A$2.7m of annual recurring revenue in implementation as part of its near-term growth outlook, pointing to further revenue conversion in the next few months.
Stakk expects the combination of contracted revenue in delivery and rising platform transaction volumes to support continued growth in receipts over coming quarters.
Quarterly Spending Remains Targeted
Cash outflows for the quarter included $1.07m in research and development, $2.19m in product manufacturing and operating costs, $0.20m in staff costs and $0.62m in administration and corporate costs.
The company also received $0.95m during the quarter through a research and development tax incentive credit, which supported the positive cash outcome.
Payments to related parties and their associates totalled about $145,000 and related to director fees and salaries on commercial terms.
With no financing facilities in place and positive operating cash flow recorded in the quarter, Stakk ended March with a stronger balance sheet and a clearer link between client acquisition, implementation, and cash conversion.
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