Highlights

  • mem shares increased 3.45% to AUD 0.090 on 24 April 2026 following its quarterly update.
  • Record quarterly cash receipts of approximately AUD 10.4 million, up 31% year-on-year.
  • 28 consecutive quarters of cash receipts growth achieved
  • Positive operating cash flow of AUD 504k reported for the quarter
  • Cash balance strengthened to around AUD 4.2 million as of 31 March 2026
  • Core Chemicals acquisition contributed approximately AUD 1.6 million in quarterly receipts.
  • Long-term cash receipts CAGR of around 26% over seven years.

De.mem Limited (ASX:DEM) shares rose 3.45% to AUD 0.090 during the morning session on 24 April 2026, following the release of its March 2026 Quarterly Activities Report and Appendix 4C. The upward movement in the share price comes after the company reported record cash receipts and positive operating cash flow for the quarter. Despite today’s gain, the stock remains down 18.18% over the past year, reflecting a broader reassessment by investors over a longer period.

Company Overview

De.mem Limited is an international water and wastewater treatment company headquartered in Australia, specialising in decentralised water treatment solutions. The company designs, builds, owns and operates systems that provide clean water and wastewater management for industrial clients, municipalities, and residential developments.

Its business model centres on providing a comprehensive “one-stop-shop” offering, which includes equipment, services, specialty chemicals and consumables. This integrated approach supports recurring revenue generation, particularly through long-term service contracts, maintenance, and chemical supply.

De.mem also develops proprietary membrane technologies, including its graphene oxide-enhanced ultrafiltration membranes, which are used across both industrial and residential applications.

Record Cash Receipts Drive Quarterly Performance

A key feature of the March 2026 quarter was the reporting of record cash receipts of approximately AUD 10.4 million. This represents a 31% increase compared to the prior corresponding period in March 2025.

The result marks the highest quarterly cash receipts in the company’s history and includes double-digit organic growth across its core operating segments. The increase reflects continued demand for De.mem’s water treatment solutions across multiple markets and industries.

In addition to quarterly growth, the company highlighted a long-term compound annual growth rate (CAGR) of approximately 26% in cash receipts over a seven-year period, indicating sustained expansion in its operating base.

Continued Growth Momentum

De.mem reported that it has now achieved 28 consecutive quarters of cash receipts growth compared to prior corresponding periods. This ongoing trend reflects the company’s recurring revenue model and consistent execution across its operations.

Recurring revenues account for more than 90% of the company’s total revenue base. These revenues are generated through various streams, including long-term Build, Own, Operate (BOO) and Operations & Maintenance (O&M) contracts, specialty chemical sales, equipment maintenance, and consumables.

The consistency of these recurring revenues is a central component of the company’s growth trajectory, providing visibility over future cash flows.

Positive Operating Cash Flow

The company reported positive operating cash flow of AUD 504,000 for the March 2026 quarter. This outcome follows a combination of higher cash receipts, a focus on higher-margin recurring revenue streams, and disciplined cost management.

De.mem’s German subsidiary contributed approximately AUD 350,000 to the positive operating cash flow. This contribution was linked to the delivery of a wastewater treatment project for a galvanising client, originally awarded in the September 2025 quarter.

The project generated approximately AUD 500,000 in total revenue, with the majority of cash receipts received during the March quarter.

Strengthening Cash Position

As of 31 March 2026, De.mem reported a cash balance of approximately AUD 4.2 million. This represents an increase from AUD 4.0 million at the end of December 2025 and AUD 3.3 million as of September 2025.

The improvement in cash position reflects the company’s positive operating cash flow and continued revenue growth. Total cash and cash equivalents recorded in the Appendix 4C stood at AUD 4.206 million.

During the quarter, De.mem recorded cash receipts from customers of AUD 10.357 million, while key outflows included AUD 6.514 million in product manufacturing and operating costs, AUD 2.563 million in staff costs, and AUD 688,000 in administration and corporate expenses.

Net cash from operating activities was reported at AUD 504,000, while investing activities resulted in a net outflow of AUD 36,000 and financing activities saw a net outflow of AUD 233,000.

Contribution from Core Chemicals Acquisition

Core Chemicals Pty Ltd, a Western Australia-based business acquired by De.mem, delivered approximately AUD 1.6 million in quarterly cash receipts during its first full quarter within the group.

Prior to acquisition, Core Chemicals generated approximately AUD 4 million in annual cash receipts. The performance during the March quarter indicates an uplift in contribution following integration into De.mem’s operations.

Core Chemicals supplies specialty chemicals used in gold extraction and recovery processes within the mining sector. The acquisition has increased De.mem’s exposure to gold mining, providing additional growth opportunities through cross-selling and servicing new mining clients.

Diversified Customer Base Across Industries

De.mem’s customer base includes large industrial clients across multiple sectors such as utilities, food and beverages, and mining. Customers include companies such as AGL, Givaudan, Coca-Cola, Alcoa, Rio Tinto, and South32.

This diversification provides exposure to different industries and reduces reliance on any single sector. The addition of Core Chemicals has further increased the company’s exposure to the gold mining sector.

Expansion into Domestic Water Filtration Market

De.mem is also progressing its entry into the domestic water filtration market. The company’s residential products utilise its graphene oxide-enhanced ultrafiltration membrane technology.

The global domestic water filtration market was estimated at approximately US$12.1 billion in 2022 and is projected to grow to US$26.7 billion by 2030, representing an annual growth rate of 10.5%.

The company has secured certifications required for potable water applications in multiple markets, including certification under NSF Standard 53 in the United States.

De.mem is pursuing a third-party distribution model to expand its reach, with partnerships already established across North America, Singapore, Indonesia, China, and Japan.

Progress on Australian Certification

During the June 2025 quarter, De.mem initiated the WaterMark certification process for its domestic water treatment systems in Australia. This certification ensures compliance with Australian standards for plumbing and drainage products.

A site audit in Singapore was completed during the December 2025 quarter, and additional requirements were addressed in the March 2026 quarter, indicating ongoing progress towards certification.

Outlook for Calendar Year 2026

The company has indicated a favourable outlook for the 2026 calendar year, supported by several factors including record cash receipts, sustained growth momentum, continued contribution from acquisitions, and expansion into new markets.

The combination of organic growth, recurring revenue streams, and strategic initiatives is expected to support ongoing development across its operations.

What This Means for Investors?

The latest quarterly update from De.mem highlights continued growth in cash receipts, consistent revenue momentum, and positive operating cash flow. These factors appear to have contributed to the share price increase during today’s session.

At the same time, the company’s longer-term share price performance indicates that investors remain focused on sustained execution, margin expansion, and the impact of strategic initiatives such as acquisitions and market expansion.

With ongoing developments across its industrial and residential segments, market participants are likely to monitor how De.mem progresses through 2026.