Stakk Limited (SKK.AX) Earnings Call Transcript & Summary

Good morning, everyone. Thank you for attending the webinar this morning. I'll just give another 30 seconds. I see there's a few more people jumping on. Okay. Good morning, everyone. I'll kick things off. Thank you for joining me today for this end of year wrap. Long overdue. So really excited about presenting our progress to date. And I know there's been a lot of questions specifically about the business and really what we're doing. So hopefully, this is a great opportunity for me to go deeper into the business and talk you through what's actually transpired the last 12 months as well as giving you a bit of a view on how we see 2026. So I will kick off. Now hopefully, you can see this. Let's -- okay. So look, I'd like to kick off for 2025 highlights. It's been a massive year for us here, huge transition. As many of you are aware, we started off life as a direct-to-consumer business and made the strategic decision to pivot last year to a B2B offering now focused on embedded finance, rolling out to Tier 1 and Tier 2 banks. So we're really focused on expanding across the U.S. market using a distribution-first acquisition strategy that was predominantly initiated through the acquisition of Radical DBX. Not only did Radical give us customers, give us revenue, but most importantly, it gave us quite a superior distribution channel, which I'll talk to you about as we go through this. We've been very focused on consolidating and modularizing the product to what we now call Stakk IQ offering. And subsequently, really in the second half of this year, we've been able to secure some amazing customer client contracts with the likes of Chime, SoFi, Robinhood, T-Mobile, H&R Block, Sharetec, Current and Stride Bank, all of which we've announced. What that's meant is we've really seen a sharp uptick in ARR, which is really now how we're judging growth, annualized recurring revenue as a SaaS business is really what you can expect us to talk more about. Contract wins, client additions, revenue acceleration and operational performance has really excelled. And as many of you know, we strengthened our balance sheet a couple of months ago now with a $15 million institutional placement, which sets us up nicely for the next year ahead. A bit of an overview about the business. Stakk is very much described as the modular API-first embedded finance platform. What we do is offer the critical financial infrastructure that every modern financial services program and company requires today to really innovate and automate core workflows. I'll call it -- our clients call it Stakk IQ. So we're very much focused now on being a SaaS-based infrastructure provider operating across 2 key markets in the U.S.A. and Australia. Distribution right now is coming from tech-enabled businesses, predominantly processes as well as core banking providers that are driving inbound sales to us. We're in a very fortunate position that we don't need to have a big sales team. We've got great partnerships that mean we can get access to some big brands through some bigger enablement and integrations that are going on. Right now, we're currently tracking to just over the $8 million in ARR which we guided, which actually sees us increase from -- actually sees us increase year-to-date to 566%, and that's accelerating. To give you a bit of an overview of the total addressable market. The size of the U.S. market is pretty sizable already. It's kind of sitting at around $26 billion and growing at a consolidated rate of around 32% year-on-year. So it is projected by 2030 that overall embedded finance as an industry conservatively will be around that USD 103 billion (sic) [ USD 103.86 billion ] mark and aggressively $300 billion. It's growing fast. And Australia, we estimate is around 7% of the U.S. market. The key benefits now of our model is that we're dealing in long-term 3-year contracts with auto-renewals. We've now moved from a, what I call, a low-margin consumer business to a high-margin ARR derived SaaS business, which is really predominantly coming from transactional-based activity on our APIs and SDKs with deep integration into our partners. Usage-based expansion revenue as client grows. So what this means is as we embed into bigger customer groups and there's more adoption by those customers of our services, you can expect to see a big increase in transaction revenue that's coming through, which actually makes up about 85% of our revenue profile. The great thing about this business is we have minimal to no churn due to the deep technical integration. The simple barriers for customers once they integrate us is just too high to switch us out. We very much are the plumbing that's embedded into the infrastructure layer of a lot of these businesses. That means we're very capital efficient in the operating model that we run. Predominantly, we need account management and support staff to support these programs once onboarded, but then very low maintenance moving forward. So that gives us very predictable and renewal-driven cash flows. In terms of the problem that we're solving, I know we had a lot of questions about this. So I wanted to be very precise. What we see, and we actually saw this as a direct-to-consumer business in the U.S. ourselves, is that a lot of banks and fintech companies invest heavily into building innovative front-end UI experiences and functionality, but typically overlook the critical back-office infrastructure that's needed to be successful. By that, we mean minimizing fraud, properly scoring risk, onboarding customers safely to weed out bad actors and automate process documentation, reconciliation and settlement, showing good audit trails as well as being regulatory compliance. Obviously, as you can imagine, it's a very competitive space out there. So typically, what we find with programs is that they're running very fast to innovate and compete. But typically, always overlook the critical compliance aspects needed to really scale effectively. So this creates operational risk, slows down product development and increases costs for a lot of these programs. And quickly, you accumulate tech debt. I guess, what we found here is that the best solution is unifying a lot of these core competencies into a single infrastructure layer that integrates all these essential but boring operational functions that spans risk, fraud, identity, orchestration, ledger syncing, document capture, compliance and the list goes on. It really is allowing financial institutions and fintechs to offload mission-critical back-end workflows and focus instead on customer-facing innovation. So the way that we like to say it operates here is that we're invisible. We really are sitting behind our client applications who are then servicing to their end users. Our solution is very developer-friendly, it's configurable and most importantly, highly secure. We've got 5 core offerings in the market today. These span everything from mobile image capturing, optical character recognition software around customer IDs and transactional documentation right through to dynamic risk and fraud scoring, authorization for payment flows and transaction initiation, routing and orchestration and post-transaction reconciliation and settlement. Again, our core function here is to minimize fraud losses for our programs and automate the workflows as much as possible. And when you're talking about big programs at scale, moving the needle by a few percentage points is worth a lot to these programs. Typically, the use cases we found are with traditional banks and fintechs and lenders, but certainly moving into 2026 and beyond. We now think marketplaces and platforms will start to adopt a lot of this technology as more scrutiny by regulators comes on then having to better know and understand their customer base and take protective and preemptive measures to reduce fraud and eliminate losses. And certainly, with the advent of AI, this is becoming more sophisticated by the day. The key benefits we like to show for embedded finance really are focused around helping our programs increase revenue by launching new features, new products, new services. So in the case of Robinhood, for example, we were part of their new banking services launch where they're offering bank accounts and cards to their customer bases. This also extends now into new lending products and programs that we see as a growth trajectory for us next year. This really enhances customer experience and satisfaction because we're taking on a lot of automation and eliminating a lot of the friction in some of these propositions. Improved operational efficiency is an outcome of our technology. Again, streamlining workflows means less manual oversight and a reliance on humans to intervene. And therefore, you're also seeing reduced risk and compliance burden for all of these programs, which ultimately reduced overheads and costs. So we're really proud of the progress we've made in the last 12 months. We're now successfully scaling defensible ARR. We're now currently serving 212 clients, completing roughly around 144 million transactions a month, which is seeing us process over around 413 million transfers a month in U.S. dollars. And some key clients here that we've already announced, it's really showing now that we are focused and happy to attract enterprise level clients as we really adopt a land and expand strategy here to grow share of wallet. We talk a lot about our competitive moat internally, and I think this is very important for investors to actually see that what we're building is very sticky. Our years of operational experience and that extends to the R-DBX business and the team involved there. What it's meant is we've generated a lot of high-quality data sets that I think a lot of competitors will struggle to replicate. It's a lot of proprietary data that we've used to train these models, and that's over a long period of time. We're fully integrated deeply into our client applications and operations, which means our removal is very cost prohibited for these programs, as I've mentioned. So we do have very high switching costs in this industry. In terms of distribution, I talked about this at the beginning, and it's critical to our future. Our distribution framework is really designed to maximize reach, accelerate adoption and provide diverse entry points into global financial markets. So we really operate a multichannel strategy that includes direct enterprise sales targeting banks, fintechs and platforms. We're constantly looking to build out new channel partnerships with core processes. What I mean by core processes is companies that represent Visa, Mastercard and issuing card products to process transactions, integrators and enablers as well as traditional infrastructure providers that see value in our core technology to round out some of their wider offerings. OEM and white label arrangements embedding Stakk IQ natively into third-party platforms is a big growth area as well as developer portals and programs that can allow adoption through API integration and SDK simplified onboarding. The difference between APIs and SDKs for those of you that are not aware, is that SDKs is more of an application solution we can drop into people's mobile apps that gives us more control of the customer experience and allows us to customize that for the end users, typically used by second-tier banks that currently don't really have an in-house development team. But API integration is predominantly the #1 form of adoption. We've got a lot of questions around how we start. I thought this slide will be quite important for people. As you can see, we try to keep things very simple. I want you to view us as a high-margin SaaS business. We're currently operating around 79%, 78% gross margins. This is made up of monthly platform fees where we charge anywhere between $1,500 to $15,000 per month. As I said before, the bulk, 85% of the revenue is in transactional volume once our APIs are called by our providers or our customers, I should say. And at the moment, that ranges between $0.30 to $0.50 per transaction. And then we also operate minimum monthly fees that are sort of based on an indicative 80% forecast by our programs. That's just really to protect us if there's a bit of a delay in programs ramping up or rolling out to the wider customer bases. This is a key question that's come up. So I wanted to spend a bit of time on this. We have numerous competitors that sort of overlap on what we do, but we don't really see core competitors trying to enshrine everything we're doing into a single proposition. So if you look at document capture right through to what we're now driving on Risk IQ around credit decisioning, fraud mitigation, you've got the likes of the Fiserv, the Jack Henry, the Sardine's, the Plaids that are all touching some of these capabilities. And these are typically KYC providers. These are typically providers that are focused on customer onboarding journeys. In the case of Plaid, they very much come from the open banking world, now are moving more into credit decisioning and facilitation. And then you've got players like the [ DataSeer's ] that typically have a lot of proprietary data that do a lot of operational work with teams to mitigate fraud. But the likes of Mambu we are providing more workflows around core banking system and ledgers. So we're touching on a few different segments here. And certainly, as we move forward and focus more on this embedded lending opportunity that we see, we'll be touching a lot more around core banking and traditional sort of ledger solutions. We thought it'd be prudent to touch on the revenue performance to date and give you a bit of a view on how we sort of see the rest of the financial year panning out. So these are unaudited figures. These are based on actual revenue forecasts, not ARR. And it's really looking at on organic growth from the core operating business, which is the U.S. subsidiary right now delivering this. So these are the actuals up to the end of November. As you can see, with the recent client wins that we've announced over the last 6 weeks, they're slowly now starting to turn on. The bulk of that will be seen in the next quarterly. But you can really see how we see this uptick happening now moving into 2026. And this obviously does not include any acquisitive growth that comes from M&A activity or big new client contracts. So we want to be conservative here. In terms of the operating costs and the margins, again, I've had a lot of questions around this, so I thought we should address it. This is really reflective of the year-to-date costs up to the end of November in Australian dollars. So we're really showing that the actual underlying operating business already is cash flow positive, minus corporate costs. So we're really anticipating that by the end of this financial year, we'll be profitable for the first time. But certainly, for many of you that have tracked the business over the last 5 years since we listed the company in 2020, this is really the first time we've been at a cash flow positive state. So we're really proud of the team and what we've done to reduce costs to get us to this point. And this really sets us up to be in control of our destiny next year and grow confidently and profitably. The growth catalyst next year are really going to come from a couple of areas. We'll be continuing to close out the ever-expanding sales pipeline that we're building. We expect a lot of organic growth to come from existing customer bases as they roll out to the wider customer groups, specifically with Robinhood, T-Mobile. They're really at the beginning of their journey on their products and where this will go. So definitely expect us to report on growth at a customer level from existing customer bases as they are rolled out. But we also have been very vocal on the fact that we see M&A as a core driver for us to turbocharge or speed up a lot of our growth going into 2026. We think this will be an important part of giving us new capability, new distribution as well as new customers that we can land and expand to roll out other modules to those core customer groups. So I think a bit of a breakdown on how we sort of see ourselves viewed today. We're certainly addressing a clear market demand. I think we've really shown that we've got product market fit now. There's an urgent market need that is getting more urgent by the day as AI really evolves and becomes more sophisticated. We're delivering proven technology and know-how. I think it's a testament to the companies that we've onboarded that we've got the trust and credibility there to point to now that our technology is good at what it does and is very bulletproof. We've got a very experienced team around this. As you see, we've made a lot of changes to the Board over the last 6 months to bring in more skill sets as we move more into embedded lending and Agentic AI solutions. We believe we've delivered strong growth this year, and that will continue. Most importantly, we've built a sustainable and defensible revenue stream. Annualized recurring revenue is really important. It's our key metric moving forward, and we expect this to really grow. The capital efficiency of the business model we're operating to, now that we've actually removed all the marketing risk that we have means that we're very lean in how we scale. And really, the incremental cost as we onboard new customers is more around account management and hosting. So if I talk about the next 12 months, we really want to make continued investment in the core offering. I think it's important for us to remain competitive. We need to be on the cutting edge of where artificial intelligence is going to better automate decision and streamline the workflow solutions that we're building out. We sort of see this expanding more into the area of core banking deposit taking as well as lending workflows. And this is really spanning customer origination, credit decisioning and overall loan program management for a lot of these brands as well as forging new distribution partnerships and opening up new markets. But the aim really of the business now is to become a critical global one-stop platform solution for Tier 1 enterprises and Tier 2 banks. And look, I haven't touched on this, but if you look at the fact that there are about 9,500 Tier 2 banks in the U.S. alone, we've got a long way to grow and penetrate that market. And that really is our focus, specifically scaling the U.S. with the distribution as well as scaling up revenue in Australia and then looking at new markets like Southeast Asia, U.K. and Europe. So look, as I've mentioned, we've got a good Board and executives that have really pulled together now that really spans fintech experience, ASX experience and a lot of experience in U.S. knowledge and know-how in how we can build up and scale these channels. So we're well positioned. So with that done, what I'd like to do now, thank you again for your time, is go into the Q&A. We've got a lot of questions already pre-submitted. And again, feel free to put in any questions into the webinar. And I think I'll hand over to Derek to go through this one by one.

Thanks, Andy. We've got around 30 questions so far. I'll do my best to avoid duplications, but first one is, when will Stakk become profitable? And what margins can investors expect?

So look, hopefully, I've touched on that. We're very much confident that we'll be profitable by the end of this financial year. And as I said, the margins that we're seeing at about 80% gross margin, we do expect that to increase as we get economies of scale with a lot of these programs. Proportionate increases in overhead, as I've mentioned. But really, you can expect this to align with high-performing SaaS infrastructure providers, which typically means strong gross margins and improving operating leverage as ARR expands and usage volumes really grow.

Next is one, I guess, directed at you, Andy. Why is the founder selling shares? And do any directors R-DBX vendors or Relentless plan further sales?

Yes. So look, I just want to put it out there. I've been with the company now approximately 9 years. So this is really the first time that I've had the chance to take some shares off the table. That was predominantly driven by a trading window that was approved by the Board. And really, the motivation was family and personal obligations and diversification. It amounted to 10% of my holdings. I just want everyone to know that I'm extremely committed and bullish around the future to the point that I've actually voluntarily agreed to enter into a standstill agreement through to the end of 2026. And I can also talk on behalf of our strategic investors, which is Relentless Fintech as well as the R-DBX vendors that they have also agreed to enter into a voluntary standstill agreement to the end of 2026 subject to the remaining Board members also agreeing to this. So the Board, the key investors are very resolute on the future, very mindful of the optics, and they're really happy to show their commitment. No one has any intention of selling any additional shares before that time.

Do you expect the growth in new contracts to continue into 2026?

Absolutely, yes. Look, we've obviously seen extreme acceleration in 2025, and that was predominantly due to us betting down things in the first 6 months and then really working hard to close out some of the pipeline for last year. A lot of the budgets for 2026 have already been set with the U.S. being a calendar year-end. So we're pretty excited about what that pipeline looks like. There's really strong demand for automation. There's a lot of increased regulatory pressure now going on in the U.S. There's a lot of infrastructure fatigue that we're seeing. And again, a really big shift towards modular embedded finances as a lot of these fintechs, especially are moving away from monolithic systems to wanting to work with more flexible modularized solutions in terms of how they build out their own propositions moving forward. So it's going to be a big year next year.

Are the new dealers profitable? Or are they loss leaders pending upsell?

Not at all. The way we price, the way we structure, the deals are profitable from day 1. We're really not in a position or want to be the business that needs to loss lead to win business. It's not sustainable. So we've never really engaged in loss leading pricing. And again, I think this talk to the strength of the distribution. The contracts are structured to be profitable day 1 with meaningful upside as clients expand usage or adopt additional Stakk IQ modules. That said, the most significant revenue expansion comes from increasing transactional volumes, cross-module adoption over a period of time. And as said, these are long-term contracts. We are working and account managing these programs to grow revenue through the adoption of new modules.

What percentage of revenue is API transaction-based versus service or licensing? And how will this evolve?

Yes. So look, I've touched on that. It's circa 85% of revenue is usage-based transactional fees and then the remaining 15% is recurring platform fees. So really, as our clients scale, API-driven revenue becomes the dominant component, and we expect usage-based ARR to represent an ever-increasing share of total revenue as we become further embedded in the client workflows.

How much will the business need to scale as new contracts come online? Will staffing increase or new technologies be required?

This is a good question, and it really comes back to the level of R&D spend that we've put into the platform today. We've really architected it properly to be scalable. We don't see the need to replace or rebuild once we hit breaking point on some volumes. So we really are scaled to allow large volumes of clients without proportionate increases in headcount. And being that we are predominantly based on a Microsoft Azure [ stack ] our costs are very scalable as transaction volume increases. So really where we see the investment going is in new engineering roles, customer success roles and operational infrastructure costs. But the majority of those require technology already exists and enhancements will just focus on decisioning logic, orchestration and authentication capabilities.

I guess further to that, Andy, I mean, what's our total staff in the business?

Yes. So look, you've got a mixture of full time and part time. So I'd say we're roughly around 25 people today. But in terms of the actual sales function, it's tiny. We've got a Chief Commercial Officer based here in Australia, with a sales lead in the U.S. The core account team -- account management team is very small. And we're looking to offshore most of our engineering capability at the moment to keep costs down. So we don't see that needing to double in the next 12 months. We are really adopting a just-in-time recruitment strategy now, which means we can keep operating costs low.

Why is Stakk different from existing technologies? Why the Tier 1 customers choose us?

So the answer to that is back to this unification of core capabilities through a single platform. So we call it a unified infrastructure layer. And that really reduces reliance on using multiple vendors. Constantly, you're seeing vendors doing -- sorry, not vendors, programs doing audits on how they consolidate their vendors. There is a lot of -- just like there's tech debt, there is a lot of vendor debt that builds up over time. So we lead with that from a sales point of view as well is streamline your vendors, streamline your workflows by dealing with a single provider. We really do pride ourselves in the fact that we have superior document intelligence, risk scoring and workflow automation as proven now by some really big clients. And certainly, having those Tier 1 clients to point to as reference clients has been very helpful in us converting the remainder of that sales pipeline. We're also very developer-friendly. So typically, whilst we're probably selling to different decision-makers in terms of integration operations, you've got developers talking to developers and having good robust documentation really, really helps. I think the fact that we're entrepreneurial, we're small, we can move fast. We're not a big heavy corporate really helps at an account management level. The fact that these clients can deal with senior management and directors as well is really, really important and should never be overlooked. And that's something we're conscious on as we scale is that we don't become a big bureaucratic behemoth that our customers can't reach out to key decision-makers if they have an issue. So we really pride ourselves on relationships.

What does Stakk's corporate structure and operational model look like?

Look, I touched on it, very, very lean, very capital efficient. So it's really broken out to 4 key areas: product and engineering, risk and compliance, commercial and partnerships and then client delivery. So this, again, it really puts us in the best position to structure ARR without large increases in fixed costs.

When will the recent contract wins be fully onboarded and contributing revenue?

So I think I touched on this before. A lot of the earlier ones certainly with Sharetec and T-Mobile are starting to contribute, but we really sort of see the benefits of SoFi specifically and Robinhood, T-Mobile coming online in the next few weeks. So I think we'll have a very accurate view in the next quarter of what those are looking like with full end of month bill runs. Typically, it takes us around 21 days to onboard a new program. And then it's -- we're very much beholden to the programs and how they roll out their solution to their customers. Certainly, in the case of a lot of them, specifically Robinhood, they're going very slowly, slowly. So unfortunately, we don't have a lot of control around how we can get customers activated, but we can certainly support our programs in rolling out.

Can the company confirm expected timing and quantum of dilution from the R-DBX earnout and CEO performance shares?

Yes. So look, all the earn-outs and performance shares have been previously disclosed to shareholders in the ASX. So we are anticipating these will be calculated no later than the end of next quarter. We'll certainly provide updates, but that's -- the exact quantum of what those will look like will really depend on the criteria being met on the performance conditions. So we'll certainly keep the market informed on that.

How many fully diluted shares will be on issue after the earn-out in these convertibles?

Look, I think going back to that previous question, until we actually know the conditions have been met, it's very hard for me to predict. So again, we're very -- we'll be very open and transparent once those are achieved, and we'll all notify shareholders accordingly.

Has the Board considered a stock split or a consolidation?

Yes. Look, we're continually evaluating the corporate structure options, and this also includes potential consolidation. It's really to ensure that Stakk remains attractive now to institutional investors as we make this transition to becoming a profitable business and really aligning with the market's best practice. We've had a lot of feedback from institutions. I'd like to thank you for your feedback on what they'd like to see and what they'd expect. So we'll certainly communicate more as we make this transition over the coming months. But we haven't made any decisions at this time. But it should be noted that any changes will need shareholder approval as well.

Is the ASX the long-term listing venue? Or will you consider NASDAQ for the company?

Look, I think at some point in time, it potentially will make sense to do a dual listing on NASDAQ. We've had that question a lot. And we're certainly constantly reviewing the listing venue and suitability. But certainly, it's very early for us to look at that and where we're at on the current journey. But I think if we continue to ramp, especially generating the traction we're getting in the U.S., there will be discussions that we had on when and if that makes sense. But there's currently no short-term plans to do that.

Has the company evaluated a restructure or a strategic review?

Look, we're continually assessing our options, obviously, to maximize shareholder value. But at present, Stakk remains very focused on executing its growth strategy and integrating potential upcoming acquisitions. So a formal review, once completed, will really be summarized and shared with the shareholders -- we'll share that with shareholders in due course.

Has Stakk received external U.S. investor interest?

We have. Naturally, you would expect that. And certainly, with the recent client wins, it's really put us on the radar, which is great. And we're starting to get some good PR coverage as well, which will definitely lean into. So some discussions are preliminary at this stage and exploratory in nature. But obviously, any material developments will be disclosed.

What are management's top 3 strategic priorities for the next 12 months?

Look, we're very focused on deepening our penetration in the U.S. as well as growing the Australian market presence now that we've got a real foothold. We really want to expand on the Stakk IQ capability. So we've got some plans for some new products to be rolled out, specifically around orchestration, decisioning and program management. And look, as we've been very open and transparent about, we really see strategic M&A as a core focus to scale the business aggressively that can really enhance distribution and accelerate the ARR growth. So we are very focused on actively looking at accretive opportunities right now.

I think you've covered this one, Andy. But why are Tier 1 customers choosing Stakk? Is it better, cheaper or both?

Look, I think I've really answered that. Again, we don't loss lead. We're not about being the cheapest. We'll be about -- we're really focused on being the best, backed up by case studies, real data. And as I said, that becomes easier when you're attracting the client base that we are. So ultimately, it's solving a real pain point for these Tier 1s, which as said, if we're moving the needle by a few percentage points, that's worth a lot to these programs bottom lines. Risk and fraud is becoming an ever more important issue for a lot of these programs as well as regulators tightening the screws on what's expected of these programs. So we only expect that to increase. But again, I can't stress again, we're really proud of our relationship management with these providers and the distribution partnerships that we have. It would be very hard to compete if we're purely just knocking on doors, competing with existing vendors.

What is the pricing per transaction or platform fee?

Look, if you go back to the investor deck, we sort of covered that at a high level. We obviously can't give you commercially sensitive data at a program level, but it really does span at $0.30 to $0.50 at the moment. And that's predominantly based on the Capture IQ solution and I guess, the core modules that are getting all the traction. But I think as we move more into the embedded lending opportunity that we've outlined, I'd like to think we can move more into percentage-based transactional fees away from fixed price fees because that will give us the ability to really rapidly increase that ARR, and that's something we're exploring.

What additional cost-effective revenue streams could Stakk unlock?

The big opportunity for us that we see the blue ocean opportunity, if you like, is expanded analytics and risk intelligent products that specifically are catered for lenders, banks and non-bank lenders. And this is ultimately around credit decisioning, customer onboarding, using agentic AI workflows to automate and dynamically decision and risk score rather than, what I call, the monolithic approach that the industry uses now, which typically you onboard a customer, you do basic credit decisioning, which is predominantly based off a bureau score, minimal affordability assessment, to be honest. But that's sort of a one-hit wonder. There typically is no ongoing real-time assessment of customer risk. And that's where we see a huge opportunity, especially in the commercial B2B payment space around short-term cash flow smoothing products, factoring products. Consumer is very much an early adopter of innovation in this space, especially buy now, pay later providers. But if you look at commercial lending, it's very, very behind and archaic. I mean a lot of these programs are still operating on Salesforce or even in some cases, spreadsheets to manage their lending activity. So we see huge scope there. We think deeper orchestration logic is going to make sense. Authentication and device security layers is also an area of opportunity as sophistication around how fraudsters can gain the system certainly around mobile phones. But again, workflow automation extensions is really where we see the core business moving towards. And we think there's some interesting opportunities for tax and underwriting that specifically would allow us to open up new channels with potentially accounting groups and things like that. So yes.

What types of deposits and transactions use Stakk technology today?

Look, we currently power a wide variety of workflows. So in the U.S., that spans from customer IDs around driver's licenses, passports, medical ID cards to check imaging, verification of pay stubs, invoicing. Any real financial document, our technology is used to capture and assess. Document-driven account opening is really a really core vertical for us as is payout and settlement orchestration for all of these day-to-day banking solutions and touched on the fact that workflow automation across risk and compliance as well. But usage really differs by client depending on their [ regulatory ] and operational needs.

Will there be a better investor communications hub?

Yes. Look, we are actively looking now at how we can uplift this again. We've had a lot of inbound, and I appreciate the questions there and shareholders want more engagement. So we will look to roll out some improvements very shortly. We're actually about to release a brand-new website as well. So really, we're uplifting a lot of our corporate and B2B comms channel now that we're going into a bit of a quieter period, which gives us the time to really uplift along these, including social platforms and the like. So yes, looking forward to that.

Is the company targeting large Australian customers? And I know that someone has mentioned Australia Post on the chart as well.

Absolutely. Yes. Look, obviously, it's our home market. It's a core strategic market for us. We're actively engaged in discussions with some major banks, payroll providers, fintechs and enterprise platforms here. So certainly, expect next year to be the Year of Australia as well as continued growth in the U.S.

When will Stakk expand into markets beyond the U.S. and Australia?

Look, this is on our radar for next year. And I think this will be accelerated through M&A as well. But certainly, we see Southeast Asia as a really exciting opportunity, aligning ourselves with Visa, Mastercard and a lot of the processes because when you look at these markets, there was a greater need for our solution in how the structural elements of those markets operate. But look, I don't want to deter from the fact that we are very focused on consolidating our position in the U.S. and Australia. And achieving operational profitability is a big milestone for us. So we want to get there as quick as possible. We've got -- I mean, we've got 10 minutes left, Derek. So happy to continue if there's any additional questions.

Yes, Andy, we've had a couple of questions, I guess, on Relentless Fintech. Maybe you can give us some background to that?

Yes. Look, so Relentless for original investor, when we actually did the R-DBX transaction. And for those of you that don't know, we did the R-DBX transaction when we were currently at a $0.005 share price. We were doing under $500,000 in revenue. So at that time, we were in a very different space. And Relentless has shown their willingness to provide us working capital and a facility that could allow us to really close this acquisition and scale up the ARR. So to their credit, they were with us right at the beginning. They had strong conviction in the business model. And it was there at their option to convert. And I think that's pretty standard with a lot of these facilities that were taking on sizable risk and backing us back then. And it's only fair that they get the upside there. But effectively, Relentless is a strategic, predominantly fintech investment fund out of the U.S. that we've known for a while and have been tracking us for a while. So they've been really influential in opening up networks for us, introducing new investors. So as I said before, they're very committed for the long term, judging by the fact they're happy to enter into a standstill. I think is testament to that long-term vision. And they think we can turn this into something very big very quickly. So they're certainly friendly continue to support us.

I think this question is about risk, but whose tech infrastructure keeps record? Is it ours or is it the customers?

A bit of both. Obviously, customer data is very sensitive. So typically, we're not holding program customer data. We're getting passed through so we can decision for a lot of these customers. And as you can imagine, there's very strict SLAs. Our biggest fear, if you ask me what keeps me awake at night, is that a downstream provider like an AWS, which actually has gone down twice this year. Thankfully, we've been with Microsoft Azure. If we have a downstream provider go down, obviously, that has a direct impact on our programs. And they're obviously quite upset if the solution is not working. So everything we are focused on is protecting customer data where we need to and ensuring close to 100% uptime 24/7.

Who is Stakk's main distribution partner in the U.S.?

Look, I don't really want to talk specifically about who our core distribution partners are, and that's partly because of protecting us against competitors. I think I've mentioned before, we really see that as core to our moat. And these relationships have been cultivated over a long time. So we're very private around who those partners are because it's a huge competitive advantage for us. But look, I can say we've aligned ourselves with some of the biggest processes and core banking solution providers in the U.S. market today that specifically serves fintechs and Tier 2 banks, credit unions predominantly with core banking technology. And we're really, if you like, a complementary solution for all of these providers to help them better service end customers. But in most cases, we get direct introductions. We're not effectively reselling through these providers. We do get introduced by these providers, and we have direct MSAs with our programs.

I think we can probably finish up there. And if there's any sort of closing comments you'd like to make?

Look, all I'd like to say, everyone is thank you so much for your support. I know it's been really challenging bearing with us as we've gone through this transition. Successfully pivoting the business was really hard. And obviously, losing momentum with the consumer business by pulling out the U.S. really put us in a difficult position. As I've said before, momentum is everything, and we have it now, and it's compounding quickly. So whilst 2025 has been a landmark year, we're very confident 2026 will be even better. And the Board -- on behalf of the Board and the management team, we're committed to really ramping up value here as quickly as possible. So thanks again. Have a great Christmas and look forward to speaking to you all in the New Year.