Stakk’s ARR Rockets to $8m with US Expansion and $15m Placement
Stakk Limited reveals a striking 566% year-to-date growth in annual recurring revenue, driven by its pivot to a B2B embedded finance platform and strategic US market expansion. The company also secured a $15 million institutional placement, underpinning its ambitious growth plans.
- 566% year-to-date growth in Annual Recurring Revenue (ARR) to $8 million
- Expanded US presence via acquisition of Radical DBX, Inc.
- Secured marquee fintech clients including Chime, SoFi, and Robinhood
- US operations now cashflow positive excluding corporate costs
- Raised $15 million through institutional placement to strengthen balance sheet
Stakk's Strategic Transformation
Stakk Limited (ASX – SKK) has marked a significant milestone in its evolution from a direct-to-consumer fintech player to a robust B2B embedded finance platform. This transition is underscored by a remarkable 566% increase in annual recurring revenue (ARR) year-to-date, reaching approximately $8 million. The company’s modular, API-first platform, Stakk IQ™, now supports over 200 financial institutions and fintech partners across Australia and the United States.
US Market Expansion and Client Wins
Central to Stakk’s growth narrative is its strategic expansion into the US market, catalyzed by the acquisition of Radical DBX, Inc. This move has enabled the company to deploy a distribution-first acquisition strategy, rapidly scaling its footprint. Stakk’s client roster boasts some of the most recognised names in fintech and financial services, including Chime, SoFi, Robinhood, T-Mobile, and H&R Block, highlighting its growing influence in a competitive landscape.
Financial Performance and Operational Efficiency
The company disclosed unaudited financials through November 2025, revealing that its US subsidiary is now cashflow positive when excluding corporate overheads. Operating costs are tightly managed, with a gross margin of 78%, supported by a capital-efficient SaaS model that leverages long-term contracts with auto-renewal and usage-based revenue expansion. This model provides predictable cash flows and strong switching barriers due to deep technical integration with clients.
Capital Raising and Future Outlook
To fuel its ambitious growth trajectory, Stakk successfully completed a $15 million institutional placement, bolstering its balance sheet and providing capital for further investment. Looking ahead, the company plans to enhance its Stakk IQ™ platform by integrating Agentic-AI capabilities and expanding into core banking workflows such as deposit and lending origination. Additionally, Stakk aims to forge new distribution partnerships and enter new markets, positioning itself as a critical global one-stop embedded finance solution.
Market Position and Competitive Moat
Stakk’s competitive advantage lies in its unique, high-quality datasets and deeply embedded platform modules that create significant switching costs for clients. Its multi-channel distribution strategy; including direct sales, channel partnerships, OEM arrangements, and developer-driven adoption; ensures broad market reach and resilience against competitors. The company’s focus on operational excellence and capital efficiency further strengthens its position in the rapidly growing embedded finance sector, which is projected to reach between USD 104 billion and USD 300 billion in the US alone by 2030.
Bottom Line?
Stakk’s robust growth and strategic investments set the stage for a pivotal year ahead as it seeks to deepen market penetration and harness AI to redefine embedded finance infrastructure.
Questions in the middle?
- How will Stakk’s integration of Agentic-AI impact its competitive positioning and client adoption?
- What are the risks and challenges associated with scaling core banking workflows globally?
- How sustainable is the current ARR growth amid intensifying competition in embedded finance?
