Stakk’s Big Leap: Partnering with Robinhood, But Does the Business Have Staying Power?

When a small-cap stock surges by hundreds of per cent in a single day, it commands attention. That’s exactly what happened with Stakk Ltd (ASX: SKK), formerly Douugh, after announcing a partnership with U.S. trading giant Robinhood Markets. Shares surged more than 300 per cent intraday, with Stockhead reporting a 267 per cent gain in morning trade. For some, it looked like the long-awaited breakthrough; for others, a case of speculative over-exuberance. The tie-up validates Stakk’s technology but also sets a tough test: can the company turn a headline partnership into lasting revenue, or has the market priced in too much too quickly?

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The Dramatic Jump & What It Signalled

The Robinhood deal announcement triggered a sharp re-rating of Stakk’s value almost overnight. Shares spiked more than 300 per cent intraday, with Stockhead reporting a 267 per cent gain in morning trade. Some coverage cited gains above 300 per cent. That kind of market reaction is rarely about fundamentals; it reflects a surge of investor enthusiasm and speculative buying momentum. The connection with Robinhood, a globally recognised name in retail investing, gave Stakk instant credibility in the eyes of traders.
This reaction revealed how hungry the market is for credible fintech growth stories. The Australian market has seen its fair share of fintech start-ups struggle for traction, with many unable to secure meaningful partnerships abroad. The fact that Robinhood saw value in Stakk’s offering was enough for the market to re-rate the stock. Yet while such a rally highlights the power of sentiment, it also underlines the speculative nature of investing in microcaps. Without sustained news flow and revenue confirmation, the price can fall back just as quickly.
This surge also demonstrates the leverage of perception in financial markets. For Stakk, the endorsement from Robinhood acted as a “stamp of legitimacy”. For investors, it created the sense that if a major U.S. player trusted Stakk’s platform, then perhaps the market had underestimated the company’s prospects. Whether that sentiment proves justified will depend on the months ahead.

Business Model: What Does Stakk Actually Do?

Stakk positions itself as a B2B embedded finance provider. Instead of competing with banks or neobanks for consumer deposits, it focuses on providing the infrastructure that allows financial institutions to integrate services like payments, credit, and authentication directly into their offerings. In practical terms, this means supplying technology such as image capture, transaction processing, and identity verification, critical tools for institutions building digital-first banking products.
The company’s shift from a B2C app model to a B2B infrastructure reflects both necessity and opportunity. Stakk’s earlier consumer-facing ventures struggled to scale, a fate common to many small fintechs trying to win customers directly from incumbents. By pivoting to embedded finance, Stakk moved into a segment where its technology could be monetised more efficiently. Instead of spending heavily on customer acquisition, it now earns recurring fees from institutions that use its software. This strategy also positions it as “the plumbing” of modern financial systems, a role that may not be glamorous but can be lucrative if scaled successfully.
Financial results show this transition is beginning to pay off. In FY25, Stakk posted A$1.24 million in revenue, up 158 per cent from the prior year, and A$2.07 million on a pro forma basis once new contracts are included. The company claims to service more than 200 banks, credit unions, and fintechs across Australia and the U.S. Importantly, it secured a three-year, A$3.05 million contract with Sharetec Systems, worth about A$1 million annually. These wins support the case that Stakk is no longer just a speculative start-up but a growing player in embedded finance.

Deal Details: Robinhood Partnership & Embedded Finance Moves

The Robinhood partnership is undoubtedly the most eye-catching development. Under a two-year Master Services Agreement, Stakk will provide core technology for Robinhood’s upcoming banking initiative, covering transaction processing, authentication, and related services. The contract is renewable after the initial term, suggesting potential longevity if the partnership performs well. For Stakk, the deal offers exposure to one of the largest retail investor platforms in the world.
However, it is important to stress that the deal’s revenue potential is not guaranteed. Earnings depend on the uptake of Robinhood’s new banking product. If adoption is strong, transaction volumes could deliver meaningful income to Stakk. If the rollout underwhelms or stalls, revenue will remain limited. This dependency introduces both opportunity and risk. Investors are right to be excited, but they should also be cautious about assuming that headline partnerships automatically translate into cash flow.
Alongside Robinhood, the Sharetec partnership provides a more predictable revenue stream. Worth A$3.05 million over three years, it underpins Stakk’s recurring revenue base and demonstrates its ability to close enterprise contracts. Taken together, these agreements show that Stakk is serious about its B2B model. Yet they also highlight concentration risk: the company’s fortunes are now heavily tied to a handful of clients. Diversification of contracts will be essential for reducing volatility.

Valuation & Financial Health

Following the share price surge, Stakk’s market capitalisation moved into the tens of millions of dollars. Reports suggest it peaked closer to the A$20–30 million range during intraday trade. With annualised revenue of around A$2 million, this implies a price-to-sales multiple in the 10–15x range. These ratios underline that investors are not valuing the company on current earnings but on the expectation of future growth. For long-term holders, that creates both risk and potential reward.
Financially, Stakk is still loss-making. FY25 receipts from operations were about A$1 million, while payments to suppliers and employees approached A$2 million. Stakk reported government grants of about A$0.95 million in FY25, which helped reduce net cash burn but did not fully cover operating shortfalls. Cost-cutting, including closing its consumer app operations, has lowered expenses. However, the company remains loss-making and may require additional capital in the future, though no raise has yet been confirmed.

Risks: Why the Hype Might Be Fragile

The Robinhood deal may have ignited enthusiasm, but the risks facing Stakk are significant. The first is sentiment risk. A 300 per cent surge is unsustainable without fundamental follow-through. If investors fail to see tangible revenue updates, the share price could retrace sharply as momentum traders exit.
Second, there is a concentration risk. With major contracts like Robinhood and Sharetec representing the bulk of Stakk’s growth pipeline, the company is vulnerable to delays or cancellations. A setback with even one partner could have an outsized impact on revenue. This is common in early-stage fintechs but must be weighed carefully by investors.
Third, Stakk faces execution and compliance risks. Scaling embedded finance means navigating complex U.S. regulations, ensuring robust cybersecurity, and maintaining seamless technical performance. Any misstep, whether a system outage or a regulatory issue, could damage its reputation and limit new opportunities. Finally, capital risk remains ever-present. Without a stronger revenue base, Stakk will likely need more funding, creating potential dilution for shareholders. For a company still in the proof-of-concept stage, this is unavoidable but worth monitoring closely.

What’s Next / Key Catalysts to Watch

For Stakk to prove staying power, the next 12–18 months will be critical. The most important catalyst will be adoption metrics from Robinhood. Investors will want to see evidence that Robinhood’s banking initiative is gaining traction and that Stakk’s technology is generating recurring fees. Without hard numbers, the market’s patience may wane.
Equally important will be new contracts. While Robinhood and Sharetec are promising, Stakk must diversify its client base to reduce dependency. Additional deals with U.S. or international institutions would show that the platform has broader appeal. For investors, each new contract will help de-risk the story.
Lastly, financial discipline will be key. If the company can grow revenue faster than costs and raise capital on favourable terms, confidence will build. Investors should also keep an eye on regulatory progress and technical milestones, as these will play a major role in Stakk’s ability to scale. In short, the company has captured attention, but now it must prove it can deliver.

Investor Takeaway: High Risk, High Potential

For aggressive investors willing to embrace risk, Stakk offers a compelling speculative story. The Robinhood partnership is the kind of deal that can transform a microcap into a growth story, especially if it leads to follow-on contracts with other large players. Given its small market capitalisation, even a modest increase in annualised revenue could justify a significantly higher share price. For more conservative investors, however, caution is warranted. The current valuation already prices in a significant amount of future success, and the company remains reliant on a narrow base of clients. Until there is clear evidence of sustained revenue growth and improved margins, Stakk may be best viewed as a speculative satellite position rather than a core holding.
It suggests that the next year will determine whether Stakk can convert hype into substance. If it executes well, scales revenue from Robinhood and other clients, and strengthens its balance sheet, the company could evolve into a serious fintech infrastructure player. If not, the dramatic surge in its share price could prove to be nothing more than a fleeting moment of market enthusiasm.

FAQs

• What exactly does Stakk do?

  Stakk provides embedded finance solutions that allow banks, credit unions, and fintechs to integrate services like payments, credit, and transaction processing into their own platforms. It operates on a vendor model, earning recurring fees rather than holding deposits.

• Why did Stakk’s share price jump so dramatically?

  The stock soared after Stakk announced a partnership with Robinhood to provide technology for a new banking initiative. Investors saw this as validation of Stakk’s technology and a potential revenue catalyst, sparking a sharp re-rating.

• Will the Robinhood deal guarantee revenue for Stakk?

  No. Revenue from the Robinhood deal depends on the success and adoption of Robinhood’s banking product. If uptake is strong, Stakk could benefit materially. If adoption is weak, revenue may remain limited.

• How financially healthy is Stakk?

  Stakk reported just over A$1.2 million in FY25 revenue and remains loss-making. It relies on government grants and small borrowings to fund operations and will likely need further capital to scale. This creates dilution risk for shareholders.

• What are the biggest risks for investors?

  Key risks include over-hyped sentiment, reliance on a few clients, execution challenges in scaling embedded finance, strong competition, and the likelihood of future capital raisings. Any setback in these areas could pressure the share price.