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De.mem Hits Record Growth as Recurring Revenue Model Lifts Margins

Story Highlights
  • De.mem has achieved 26 consecutive quarters of cash receipt growth, with double-digit increases in 2024 and H1 2025.
  • Over 90% recurring revenue has driven gross margins to 43% and supported positive EBITDA and strong cash flows.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
De.mem Hits Record Growth as Recurring Revenue Model Lifts Margins

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De.mem Ltd. ( (AU:DEM) ) has shared an update.

De.mem has reported record financial performance over the period to H1 2025, with cash receipts rising 15% in calendar 2024 to $28.4 million and a further 16% in the first half of 2025 to $15.7 million, marking 26 consecutive quarters of growth and a compound annual growth rate of about 24% since 2019. More than 90% of revenue now comes from recurring sources such as service contracts and specialty chemicals, helping drive gross margins to a record 43% in H1 2025 from 41% in 2024 and 18% in 2017, and enabling the company to reach positive EBITDA and strong operating cash flows, which management presents as a structural inflection point in profitability and scale for shareholders.

The most recent analyst rating on (AU:DEM) stock is a Hold with a A$0.11 price target. To see the full list of analyst forecasts on De.mem Ltd. stock, see the AU:DEM Stock Forecast page.

More about De.mem Ltd.

De.mem Limited is an Australian-listed water and wastewater treatment company that has built a national platform around long-term service contracts, specialty chemicals, consumables, membrane replacements, and operations and maintenance. Its business is increasingly focused on high-quality recurring revenues from industrial and infrastructure customers, positioning the group as a provider of integrated, ongoing water treatment solutions rather than one-off project work.

Average Trading Volume: 285,876

Technical Sentiment Signal: Strong Sell

Current Market Cap: A$34.02M

Learn more about DEM stock on TipRanks’ Stock Analysis page.

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