STAK Inc (STAK) Stock Plunges Nearly 39% After Hours Despite Revenue Growth: Here's Why

Stak Inc. (NASDAQ: STAK)  shares fell sharply in after-hours trading on Wednesday after the company reported fiscal first-half 2026 financial results that showed slowing profitability despite higher revenue growth.

STAK develops and manufactures specialized production and maintenance equipment used by oilfield services firms.

STAK shares dropped 38.56% to $1.45 in after-hours trading on Wednesday after closing the regular session up 16.26% at $2.36. The stock remains up 8.76% over the past year and has traded between $0.29 and $3.97 over the last 52 weeks.

Revenue Rises, Margins Slip

STAK reported first-half fiscal 2026 revenue of $19.2 million, up 13.41% year-over-year from $17 million, driven by higher order volumes and pricing for specialized oilfield vehicles.

However, net income declined to $1.8 million from $2 million a year earlier, while diluted earnings per share fell to $0.14 from $0.20. Gross profit remained relatively flat at $5.2 million as rising production costs and promotional pricing weighed on margins. Gross margin declined to 27.24% from 30.65% a year ago.

Chairman and CEO Chuanbo Jiang said the company continued executing its strategy amid evolving market conditions while prioritizing product development and international expansion.

"We remain committed to our existing business strategy, with a clear focus on translating our blueprints into effective execution, measurable performance, and tangible operational achievements," Jiang said.

Cash Position Improves, Stock Volatility Remains High

STAK ended December 2025 with cash and cash equivalents of approximately $1.9 million, compared with about $1 million at the end of June 2025. Operating cash flow also improved to positive $0.7 million from negative $1 million a year earlier.

STAK currently has a market capitalization of approximately $45.3 million.

Benzinga Edge Stock Rankings indicate STAK shares currently maintain positive short, medium and long-term price trends.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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