Stakk Ltd has gone through significant transformation over the last couple of years, and it may be starting to pay off with management guiding for ARR to hit $8.0m by December 2025.

What they do: Having now ditched the retail side of their business, Stakk is a SaaS provider of compliance and risk management tools to "embedded finance" businesses. Stakk provides tools to onboard and risk assess customers for fintech solutions who may not wish to invest in building their own tools in-house. Stakk makes money from charging a base monthly fee for this software as well as charging for usage by their customers, so that revenue will grow as customers grow. The recent announcements of Robinhood and T-Mobile signing as customers is good validation that there is a customer value proposition for both startups and larger enterprises.

With continued strong growth, Stakk will be able to turn cashflow positive within 1-2 years. They recently announced customer acquisitions will need time to scale up for Stakk to see revenue reach maturity. They currently rely upon $1m in government grants to stabilise operating cashflow, but with their current growth this is easily achievable within 1-2 years. Profit breakeven would soon follow, however I think it is highly likely profits are on a very far horizon as the business would probably re-invest rather than achieve profitability. Capital allocation here is key, and there is a good chance of future capital raises even after the recent $15m raise.

Finally, pure speculation on my part: given that the majority of their customers are in the US, if the company achieves a high enough market cap then management might push for a NASDAQ listing.

Valuation of 10x ARR for high-growth SaaS implies a share price of ~$0.039. However, I view the recent share price activity (~$0.052 as of time of writing) as being a positive thing. The recent volatility provides much needed liquidity and attention, and the ASX is very willing to suffer high valuations for high-growth companies.