Key Highlights

  • Record half-year Revenue reached $17.6 million, up 26% on the prior corresponding period, with cash receipts up 28% to $20.0 million.
  • Adjusted EBITDA grew approximately three times to $1.58 million, up 185% from $556,000 in H1 2025.
  • Gross Margin was 41% for the half, continuing a multi-year improvement trend from 18% in CY2017.
  • Operating cash flow was $928,000 for the half, compared with $318,000 for the full 2025 calendar year, supported by more than 90% recurring revenue.

De.mem Limited (ASX:DEM) share price was trading at $0.12, up 15.00% or $0.015 on the day, as at 27 August 2026, 11:23am AEST, as the international water and waste water treatment company released its results for the six months ended 30 June 2026 (H1 2026). Revenue increased 26% to $17.6 million from $14.0 million in H1 2025, while cash receipts grew 28% to $20.0 million from $15.7 million, marking 29 consecutive quarters of cash receipts growth against prior corresponding periods.

Adjusted EBITDA was $1,582,000 for the half, an increase of approximately three times, or 185%, compared with $556,000 in H1 2025. CEO Andreas Kroell said the company delivered its strongest half-year results in its history, with revenue growth of 26% and cash receipts growth of 28% demonstrating the success of its strategic focus on Recurring Revenue segments and operational excellence.

Recurring Revenue Underpins Growth Visibility

The company's recurring revenue model continued to underpin results, with approximately 90% of H1 2026 cash receipts derived from recurring sources, including Build, Own, Operate and Operations & Maintenance contracts, regular maintenance work, membrane replacement sales, specialty chemicals sales, and domestic water treatment systems and cartridge sales. This recurring base is described by the company as providing strong cash flow visibility supporting its record calendar year 2026 outlook.

Gross margin was 41% for H1 2026, continuing a multi-year improvement trend from 18% in CY2017 through 34% in CY2021 and 42% in CY2025, which the company attributed to its focus on cross-selling higher-margin recurring revenue segments across its Business units.

Operating Cash Flow Improves Substantially

Operating cash flows were positive $928,000 for the half, a significant improvement compared with operating cash flows of $318,000 for the full 2025 calendar year. The company said this result includes continued Investment in its Singapore-based membrane Research and Development activities, which it said contributes to its Competitive Advantage through a proprietary portfolio of water treatment technology and intellectual property.

The Company closed the period with $4.3 million in cash and term deposits at 30 June 2026, supporting continued investment in growth initiatives across its business segments.

Western Australian and German Businesses Drive Contribution

De.mem's Western Australian business, which includes the recently acquired Core Chemicals Pty Ltd along with existing entities De.mem-Capic Pty Ltd and Auswater Systems Pty Ltd, contributed approximately 49% of overall group revenue during H1 2026. Core Chemicals, acquired on 31 October 2025, supplies specialty chemicals for gold fragment extraction and recovery to gold Mining clients, and the company said it has won new clients since the Acquisition while actively quoting additional potential new clients.

The company's German subsidiary, De.mem-Geutec GmbH, delivered what the company described as an outstanding half, generating record revenue of approximately $2.5 million, driven by a robust services and chemicals business combined with delivery of a waste water treatment equipment project awarded in late CY2025.

Domestic Filtration Launch and Outlook

De.mem continued the launch of its domestic water treatment products built around its Graphene-Oxide enhanced hollow fibre membrane technology, which received American NSF product certification in 2024. The company received an initial order for a new business in Singapore estimated to be worth approximately $100,000 per annum, with the Australian WaterMark certification process in progress and expected to conclude in CY2026.

The company said it expects continued strong performance in H2 2026, supported by its record H1 2026 results, approximately 90% recurring revenues, a strong and growing cash balance, and continued contribution from its Western Australian and German businesses, positioning the company for what it described as a record full calendar year 2026 outlook.

Conclusion

De.mem's H1 2026 results reflect record performance across revenue, cash receipts, gross margin and adjusted EBITDA, underpinned by a recurring revenue base exceeding 90% of cash receipts and contributions from its Western Australian and German operating segments. With domestic water filtration products progressing toward Australian certification and the company's 29-quarter streak of cash receipts growth continuing, the trajectory into the second half of calendar 2026 will be shaped by the pace of the domestic filtration rollout and continued momentum from the Core Chemicals and De.mem-Geutec businesses.