STAK shares jump 59.596% after hours as company returns to annual profit
Key Facts
STAK shares rose 59.596% in after-hours trading on October 21, 2026, as the company announced a return to profitability in its annual results. The stock traded at $1.58 at 4:59:33 p.m. Eastern Time, according to ChartExchange data timestamped at that time. The company announced results for the fiscal year ended June 30, 2026, in a statement dated October 21, also the date the earnings announcement was filed with the U.S. Securities and Exchange Commission. It said in the announcement that net income reached $0.4 million in fiscal 2026, compared with a net loss of $5.7 million in fiscal 2025. The return to profitability came as revenue grew and operating expenses declined, while the gross margin narrowed and operating cash flow remained negative.
STAK's revenue rose to $28.2 million in fiscal 2026 from $24.9 million in fiscal 2025, according to the annual earnings announcement filed with the U.S. regulator. Annual revenue growth was 13.21%, with higher sales accompanying the company's swing from a loss to a profit. On costs, total operating expenses fell to $6.4 million from $10.8 million a year earlier. But revenue growth and lower operating expenses coincided with a contraction in the gross margin, which measures the profit remaining from sales before those expenses are taken into account. The company said in its announcement: "The gross margin was 26.43% in fiscal 2026, compared with 30.86% in fiscal 2025." The return to net profit thus came alongside a decline in gross profit as a share of revenue, despite higher annual sales.
On liquidity, operating activities continued to use cash in fiscal 2026, according to the company's announcement, despite a net profit on the income statement. Net cash used in operating activities totaled $2.7 million, compared with $2.9 million in fiscal 2025, indicating a smaller cash outflow from operations that nevertheless remained negative. Earlier half-year results showed the company had posted net income of $1.8 million in the first half of fiscal 2026. The company compared that with net income of $2.0 million in the first half of fiscal 2025, according to the half-year earnings announcement filed with the U.S. regulator. First-half profit was therefore higher than net income for fiscal 2026 as a whole, while the full-year comparison was against a loss in the previous year.
STAK develops, manufactures and sells specialized oilfield production and maintenance equipment, according to its business description in an official filing with the U.S. Securities and Exchange Commission. Its activities include research and development of this equipment, as well as manufacturing and sales. As part of its earlier financing, the company received net proceeds of approximately $2.2 million from its January 2026 offering, after deducting offering expenses payable by the company, according to the announcement of the offering's closing. The company's plans also include establishing a U.S. subsidiary for power generation solutions, according to an earlier disclosure on the project. The company said in that disclosure: "The establishment of the subsidiary remains subject to the signing of definitive agreements and the satisfaction of customary closing conditions," leaving the step contingent on completing those requirements.