Aussie tech stock, rising six fold in a week stays a buy
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Close on the heels of renewal of longstanding Master Services Agreement with U.S. based Current Financial, Inc., Stakk Limited, signed a master services agreement with online broker Robinhood. Subsequently, it rose very fast and now has fallen into consolidation mode.
Stakk Limited (ASX: SKK)
stock price has been on a wild ride. The stock price skyrocketed by more than 500 per cent last week after the news was announced on Thursday, growing from just 0.6 cents to 3.6 cents. The announcement states that Stakk has come into a Master Services Agreement with US based RobinhoodTM. Robinwood is known for opening the doors of the stock market, crypto, and ETFs to a whole new generation of traders.
Robinhood is entering the banking segment, and hence came to an agreement to use the company’s embedded finance solutions. The deal is a key achievement for the company, capturing its image, authentication and transaction processing capabilities. On top of these, Stakk has renewed its agreement with New York-based Current Financial, Inc., providing its solutions to the company. Current is a fintech company founded in 2015, provides alternative banking solutions through its proprietary platform, Current Core. This agreement may contribute $280,000 in annual recurring revenue for the company in the upcoming 12 months.
The continuing support and client win this quarter indicate the company’s credibility and growth. Stakk has delivered critical functionality to more than 200 Banks and Credit Unions, 8 Neobanks and 2 fintech partners this year. Stakk has only just started rolling out its embedded solutions, yet it is already locking in deals with big-league players, including leading financial brands like GreenFi, Albert, Navy, Federal, and Lili.
On the financial front, total revenue this year was $1.24 million, up from $481k in FY24, indicating a 158 per cent increase year on year. Moreover, it has also announced a Sharetech partnership agreement worth $3.05 million in revenue over the next three years. This partnership will add $1.0 million to ARR.
Moving forward, SKK has concluded its B2C operations, generating cost efficiencies in both Australian and US operations. Its B2B operations have kicked off on a strong note, with robust plans to accelerate growth in future.
(Source: Company Announcement)
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