Straker Translations Ltd. (STG) AI Stock Analysis

• Market Cap: AU$24.77M
• Dividend Yield: N/A
• Average Volume (3M): 119.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.82
• Revenue Growth: -13.52%
• EPS Growth: 7.82%
• Country: AU
• Employees: 170
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.02
• Shares Outstanding: 64,339,300
• 10 Day Avg. Volume: 35,520
• 30 Day Avg. Volume: 119,963
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 9.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.37
• Price Target Upside: 5.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: AU$0.39 ▲(12.29% Upside)

The score is held down primarily by declining revenue and persistent net losses despite healthy gross margin and positive operating/free cash flow. Technical indicators are moderately supportive in the near term, but valuation remains pressured due to negative earnings and no stated dividend yield.

Positive Factors

High Gross Margin

A 66.95% gross margin signals strong service pricing and efficient project delivery using technology plus linguist network. Over the medium term this margin helps absorb cost pressures, funds quality/tech investment and supports durable unit economics if revenue stabilizes.

Positive Cash Generation

Positive operating and free cash flow despite accounting losses shows the business converts revenue into cash. This durable cash generation underpins working capital, funds product and platform investment, and reduces near-term dependence on dilutive external financing.

Low Leverage / Strong Equity Base

Very low leverage and a high equity ratio provide financial flexibility and lower solvency risk. This structural balance sheet strength preserves borrowing capacity and gives management runway to invest in technology or weather cyclical demand without immediate pressure to refinance.

Negative Factors

Declining Revenue Trend

A meaningful top-line contraction over two years erodes scale advantages and pricing leverage in a services business. If the decline persists, fixed-cost absorption weakens, margins compress and the firm’s ability to retain clients or invest in growth initiatives is materially constrained.

Persistent Net Losses

Deep negative net margins indicate the company has not yet turned gross profitability into net profits. Continued losses drain equity, limit reinvestment ability, and may force dilutive capital raises or painful cost cuts that could impair service quality and long-term competitiveness.

Negative Operating Profitability

Substantially negative EBIT and negative EBITDA signal structural issues with operating cost structure or pricing. Without durable improvements to productivity, pricing or overhead control, the company will struggle to achieve sustainable operating profitability and scale its business profitably.

Straker Translations Ltd. Business Overview & Revenue Model

Company Description

Straker Translations Limited, together with its subsidiaries, engages in the provision of translation services in Asia Pacific, Europe, the Middle East, Africa, and North America. The company operates AI-POWERED RAY, a suite of customizable AI and automation translation tools that creates a first draft translation and matching the customer's content with one or more of the approximately 10,000 crowd-sourced human translators for refinement. It offers subtitling, dubbing, access, and multimedia content services. The company also provides immigration, legal, and ECFMG translation services; birth, death, and marriage certificates translation services; and passports, visa, medical, personal and private docs, drivers license, police and legal documents, academic records and transcripts, insurance, and other document translation services, as well as API translation solutions. In addition, it offers onsite, online, conference, consecutive, simultaneous, court, telephone, sight, and medical interpreting services. Straker Translations Limited was incorporated in 1999 and is headquartered in Auckland, New Zealand.

How the Company Makes Money

Straker Translations generates revenue primarily through its translation and localization services. The company operates on a project-based pricing model, where clients are charged based on the volume of content translated, the complexity of the project, and the required turnaround time. Key revenue streams include direct sales to corporate clients, partnerships with technology companies that integrate Straker's services into their platforms, and subscription-based offerings for ongoing translation needs. Straker also benefits from strategic partnerships with other technology firms that enhance its service capabilities and broaden its market reach, contributing to a steady flow of income.

Straker Translations Ltd. Financial Statement Overview

Summary

Weak profitability and trends: revenue declined from $54.13M (2023) to $40.77M (2025) and net margin is deeply negative (-22.64%) with negative EBIT/EBITDA margins. Positives include a strong gross margin (66.95%) and positive operating/free cash flow ($3.08M/$3.00M), but overall financial health is constrained by persistent losses.

Income Statement

Straker Translations Ltd. has experienced declining revenue and profitability over recent years. The company's revenue decreased from $54.13M in 2023 to $40.77M in 2025, indicating a negative growth trend. Gross profit margin for 2025 was 66.95%, which is relatively strong, but the net profit margin was negative at -22.64%, reflecting significant operational challenges. EBIT and EBITDA margins were also negative, at -32.08% and -11.16%, respectively, highlighting ongoing struggles with profitability.

Balance Sheet

The balance sheet shows a stable equity position with stockholders' equity of $21.96M as of 2025, although it decreased from the previous year. The equity ratio stands at 72.33%, indicating a strong equity base relative to total assets. However, the debt-to-equity ratio is low at 0.03, which is generally positive, but the declining equity base is a concern. Return on equity is negative due to ongoing net losses, emphasizing the need for improved profitability.

Cash Flow

Operating cash flow has been positive at $3.08M in 2025, showing some ability to generate cash from operations despite net losses. Free cash flow improved to $3.00M, up from $2.19M in the previous year, reflecting better management of capital expenditures. However, the free cash flow to net income ratio remains distorted due to persistent net losses, and the operating cash flow to net income ratio is challenging due to negative net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.68M	40.77M	45.88M	54.13M	51.96M	28.75M
Gross Profit	25.10M	27.30M	29.28M	30.88M	22.47M	12.59M
EBITDA	685.64K	-4.55M	3.87M	-3.77M	-4.08M	-1.97M
Net Income	-5.54M	-9.23M	-2.01M	-2.58M	-5.49M	-5.53M
Balance Sheet
Total Assets	26.15M	30.36M	43.04M	52.63M	57.95M	42.10M
Cash, Cash Equivalents and Short-Term Investments	7.58M	11.74M	11.16M	11.68M	14.01M	6.60M
Total Debt	383.74K	660.67K	1.11M	1.37M	4.00M	8.61M
Total Liabilities	5.89M	8.41M	12.03M	17.08M	19.81M	23.66M
Stockholders Equity	20.26M	21.96M	31.01M	35.55M	38.15M	18.45M
Cash Flow
Free Cash Flow	-883.98K	3.00M	2.19M	-805.45K	-5.39M	-2.32M
Operating Cash Flow	-751.16K	3.08M	4.63M	1.30M	-2.86M	-713.41K
Investing Cash Flow	-2.30M	-2.04M	-2.49M	-2.16M	-4.27M	-8.30M
Financing Cash Flow	-665.35K	-624.34K	-2.40M	-2.10M	14.03M	5.17M

Straker Translations Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:STG, the sentiment is Neutral. The current price of 0.35 is below the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.35, and below the 200-day MA of 0.40, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.41 is Neutral, neither overbought nor oversold. The STOCH value of 58.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:STG.

Straker Translations Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FLN	55 Neutral	AU$96.95M	45.74	8.77%	―	3.81%	―
STG	49 Neutral	AU$24.77M	-4.47	-23.42%	―	-13.52%	7.82%

Straker Translations Ltd. Corporate Events

Straker Options Lapse, Trimming Potential Future Dilution

Straker Limited has announced that 66,667 options (STGAB), which were due to expire on various dates at various exercise prices, have lapsed unexercised as of 31 December 2025, resulting in the cessation of these securities from the company’s issued capital. The expiry of these options marginally simplifies Straker’s capital structure and removes a small potential source of future share dilution for existing shareholders, but does not involve any new capital raising or operational changes for the business.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.32 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Translations Embraces AI with $28M IBM Partnership

Straker Translations Ltd. has announced a strategic pivot towards AI-driven growth, highlighted by their partnership with IBM worth $28 million. This partnership validates their new model focused on high-margin, scalable growth through specialized AI research and development, positioning them as a key player in the AI industry.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Translations Releases FY2026 Interim Report

Straker Translations Ltd. has released its interim report for FY2026, highlighting its commitment to integrating cutting-edge technology with linguistic expertise to deliver superior language services. The company’s focus on innovation and analytics positions it as a key player in the global communications sector, potentially impacting stakeholders by enhancing operational efficiency and market competitiveness.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Translations Reports Continued Profitability and Strategic Partnership Expansion

Straker Translations Ltd reported its financial results for the first half of FY26, showing continued profitability with a revenue of $19.3 million and a gross margin of 66%. The company highlighted its strategic partnership renewal with IBM, which expands their AI token-based billing and underscores Straker’s leadership in Small Language Models. Despite a 15.3% decline in revenue due to softer market conditions, the company remains debt-free and is advancing its AI-first strategy, integrating AI capabilities into core workflows to improve productivity and customer experience.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Translations Reports Improved Financial Performance and Expands IBM Partnership

Straker Translations Ltd. reported a net loss of NZ$1.275 million for the six months ending September 2025, a significant improvement from the previous year’s loss due to reduced operating expenses and the absence of large non-cash charges. Despite a 15% decline in revenue attributed to softer trading conditions, the company maintained stable gross margins and achieved efficiency gains. Additionally, Straker strengthened its market position by renewing and expanding its strategic partnership with IBM, valued at NZ$28 million, further solidifying its role in AI-powered language technology.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Limited Announces FY26 Interim Results Release

Straker Limited, a company specializing in advanced language services using cutting-edge technology and AI, is set to release its FY26 Interim Results on November 26, 2025. The announcement includes a Zoom presentation and Q&A session, indicating the company’s commitment to transparency and stakeholder engagement, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Limited Showcases AI Translation Innovations at Investor Meeting

Straker Limited announced that CEO Grant Straker will present at the Coffee Microcaps Morning Meeting, highlighting the company’s AI technology and its potential impact on the market. The announcement underscores Straker’s strategic positioning in the AI translation industry and hints at significant developments, such as a $28M partnership with IBM, which could enhance its market standing and operational capabilities.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.