Key Highlights

  • De.mem (ASX:DEM) is trading at AUD$0.12 during the 13 August 2026 session as the market assesses the company's latest operating performance.
  • June-quarter cash receipts reached approximately AUD$9.6 million, taking first-half 2026 cash receipts to about AUD$20.0 million.
  • The company recorded positive Operating Cash Flow of AUD$424,000 during the June quarter and AUD$928,000 for the first half of calendar 2026.
  • More than 90% of De.mem's Revenue is recurring, spanning water treatment services, specialty chemicals, consumables and membrane replacement products.

De.mem (ASX:DEM) share price jumped 9.52% to trade at AUD$0.12 during the 13 August session, with investors assessing the latest operating figures from the industrial water and wastewater treatment company. The company's June-quarter update, released on 29 July, showed continued expansion in cash receipts alongside positive operating cash flow, providing a financial backdrop for the current share performance.

De.mem reported approximately AUD$9.6 million in cash receipts for the June quarter, representing the second-highest quarterly result in its history. First-half calendar 2026 cash receipts reached approximately AUD$20.0 million, marking the company's strongest first-half performance.

Cash Receipts Continue to Expand

The June-quarter result extended De.mem's record of year-on-year Cash Receipt growth to 29 consecutive quarters. The company reported approximately 24% growth in quarterly cash receipts compared with the corresponding period, while first-half cash receipts were approximately 28% higher.

Over a period of more than seven years, De.mem has recorded a compound annual growth rate of approximately 24% in cash receipts. The company attributes the continuing expansion to growth across its core operations and increasing exposure to Recurring Revenue activities.

The Business provides decentralised water and wastewater treatment solutions to industrial and residential customers. Its industrial offering includes treatment equipment, services, specialty chemicals and related consumables, while its residential strategy includes membrane-based domestic water treatment products.

Positive Operating Cash Flow Adds to Earnings Profile

De.mem generated AUD$424,000 of positive operating cash flow during the June quarter, following AUD$504,000 in the March quarter. This resulted in first-half operating cash flow of AUD$928,000.

The company said the result reflected continued cash receipt growth, increased contribution from higher-margin recurring revenue activities and cost management. The operating cash generation occurred while De.mem continued to invest in membrane product development, organic growth and integration activities.

Its cash balance increased to approximately AUD$4.3 million at 30 June, compared with AUD$4.2 million three months earlier and AUD$4.0 million at the end of December 2025.

Western Australian Operations Remain Material Contributor

De.mem's Western Australian operations generated approximately 45% of group cash receipts during the June quarter. The segment includes Core Chemicals, which was acquired in November 2025, alongside De.mem-Capic and Auswater Systems.

Core Chemicals supplies specialty chemicals used in gold extraction and recovery from refining waste streams. The business serves gold Mining customers in Western Australia and has continued pursuing additional customers since joining the De.mem group.

The contribution from Western Australia gives the group exposure to an established mining-sector customer base while providing opportunities to cross-sell products and services across the combined operations.

German Subsidiary Records Higher Quarterly Activity

De.mem-Geutec GmbH, the company's German subsidiary, delivered approximately AUD$1.5 million in cash receipts during the June quarter. It also generated approximately AUD$350,000 in positive operating cash flow.

The result included the delivery of a wastewater treatment equipment project for a galvanising customer, with total revenues and cash receipts of approximately AUD$500,000. Around two-thirds of the project's cash receipts were received before the end of June, with most of the work completed by that point.

The German business also continued to generate cash through its services and specialty chemicals activities, providing a combination of project-based and recurring operating revenue.

Recurring Revenue Remains Central to the Business Model

More than 90% of De.mem's revenue is recurring, according to the company's June-quarter report. This includes long-term Build, Own, Operate and Operations & Maintenance contracts, regular equipment and pump maintenance, specialty chemicals, small equipment and consumables.

The recurring component also extends to membrane replacement sales for industrial facilities and domestic water treatment systems and replacement cartridges. This mix gives the company multiple revenue streams across industrial and residential water treatment markets.

De.mem also reported a new order worth approximately AUD$100,000 for filter cartridges used in domestic water treatment applications in Singapore, while continuing preparations for WaterMark certification expected before the end of 2026.

Conclusion

De.mem (ASX:DEM) enters the 13 August Trading session with operating momentum underpinned by expanding cash receipts and positive cash generation. The company's first-half cash receipts reached approximately AUD$20 million, while operating cash flow remained positive and the cash balance increased through June. Contributions from Western Australian operations and the German subsidiary add geographic and business diversification, while recurring revenue continues to account for more than 90% of the company's revenue base. The next phase of the company's operating performance will be shaped by continued cash receipt growth, integration of its acquired businesses, development of its membrane products and progress in its domestic water treatment expansion.