Wrkr Ltd (ASX:WRK) offers compliance solutions for Australian superannuation contributions and payroll including member onboarding, super payments, messaging and employee validation. WRK’s Q3 FY25 activities report demonstrates a continued balance of cost management (up just 3% against Q3 FY24) against lumpy cash receipts (down 6% against Q3 FY24 but up 39% on Q2 FY25) amidst continued milestone/project work, which should drive revenue in FY26. This quarter saw the receipt of a $328k R&D tax credit but also a record capitalised IP spend of $985k as new product development and systems integration continues. The net result was a $500k reduction in cash at bank to $6.7m, which represents nine quarters of cash burn at current all-in spend rates. There are no changes to our assumptions around key client onboarding, with REST (~1.4m members) expected to begin in H1 FY26, representing the first in a number of RaaS forecast step-change revenue events over coming years. Our DCF valuation is unchanged at $0.078/share.
