ASX-listed technology investment and advisory firm Scalare Partners has announced a striking financial turnaround, posting a sharp quarterly revenue increase and a return to positive operating cash flow. The company attributes this momentum to its strategic acquisitions and the growing integration of its comprehensive founder support platform.
Quarterly Financial Performance Highlights Dramatic Improvement
In its quarterly update for the three months ending December 31, Scalare reported that revenue receipts surged to $4.58 million. This represents a remarkable 231 per cent increase from the $1.38 million recorded in the previous September quarter. The December period marked the first full-quarter contribution from two key acquisitions made in 2025: coworking and flexible workspace operator Tank Stream Labs and startup advisory business Planet Startup.
Operating cash flow experienced a significant reversal, swinging to a positive $2.14 million. This compares favourably against a $1.52 million outflow in the prior quarter. The business concluded the period with cash and cash equivalents standing at $867,000.
Integrated Founder Ecosystem Drives Commercial Sustainability
Scalare's Chief Executive Officer, Carolyn Breeze, stated that the quarter signifies meaningful progress toward the company's ambition of building a commercially sustainable founder economy platform. This model uniquely combines technology investment with scale-up services, accelerator programs, and ecosystem initiatives designed to support entrepreneurs from initial concept through to exit.
"For the first time, this quarter captures a full operational contribution from Tank Stream Labs and Planet Startup, enabling us to benefit from a recurring revenue base and margin uplift as these businesses are integrated into a unified commercial model," the company explained.
Synergies and Cross-Sell Opportunities Amplify Growth
The firm's hybrid model operates at the intersection of venture capital, early-stage investment, and hands-on founder services. By backing early-stage technology companies while simultaneously providing practical support across finance, operations, marketing, and governance, Scalare aims to enhance customer lifetime value, strengthen sales efficiency, and cultivate a robust pipeline of investment-ready companies within its network.
Revenue synergies across the group continued to materialise, with annualised synergy revenue now reaching $1.65 million, up substantially from the $842,000 reported in October. These synergies include Planet Startup customers expanding into Tank Stream Labs campuses as they hire and scale, while Tank Stream Labs members engage Planet Startup for virtual and fractional CFO services such as budgeting, cash flow management, and fundraising preparation.
Physical Infrastructure and Digital Community Expansion
A cornerstone of Scalare's strategy is physical infrastructure. Tank Stream Labs extended its Sydney footprint during the quarter, opening a premium campus at Level 31, Martin Place in November 2025. This location positions the company within one of Australia's primary technology and financial hubs, increasing capacity for startups, scaleups, and corporate innovation teams. An additional Sydney location at 333 Kent Street is scheduled to open in early 2026, featuring private offices, coworking spaces, meeting rooms, wellness facilities, and a large outdoor terrace.
This expanding premium workspace supply underpins future growth potential across recurring workspace revenue, community engagement, and cross-selling into advisory and acceleration services.
The Founders Union: A National Digital Platform
Scalare also highlighted the launch of The Founders Union, a digital-first community introduced in November 2025. Designed to address fragmentation across Australia's founder ecosystem, the platform provides a national resource for entrepreneurs irrespective of their geographic location.
Since its inception, The Founders Union has secured $870,000 in in-year revenue from foundation partners including MYOB, Westpac, Google, and Pinch Payments. Scalare positions the platform as both a revenue engine and an investment engine, expanding top-of-funnel demand for workspace and advisory services while simultaneously increasing the quantity and quality of vetted deal flow for investors.
Carolyn Breeze, CEO of Scalare Partners, elaborated: "The Founders Union is a new national platform designed to give founders a clearer pathway to growth, integrating access to trusted services, capital pathways, meaningful community connection, corporate and government engagement, and scalable national partnerships."
Described as AI-enabled and curated, The Founders Union aims to connect founders with relevant resources, events, and partners tailored to their specific growth stage. Profits generated through the platform are reinvested back into the ecosystem via further startup investments, supporting a circular model intended to strengthen Australia's overall innovation capacity.
Market Context and Strategic Positioning
This launch aligns with a broader national conversation about accelerating Australia's innovation economy, boosting commercialisation, and expanding founder access to resources beyond major startup hubs. For policymakers, universities, and ecosystem partners, platforms that map founder needs and connect entrepreneurs with corporate partners and investor pathways are becoming increasingly central to debates concerning jobs, productivity, and technological capability.
Scalare's update noted that its operating cash flow result was influenced by accounting treatment under AASB16, which records Tank Stream Labs office lease payments as financing rather than operating outflows. On an underlying basis, operating cash burn would have been a modest $0.28 million for the quarter, still reflecting an improvement on the prior period and underscoring the business's focus on enhanced cash conversion.
The company also disclosed related party payments totalling $124,325 during the quarter, comprising fees and salaries paid to executive and non-executive directors and their related entities.
Financial Management and Future Outlook
Scalare's quarterly cash flow report indicates the management of loan facilities totalling $803,000. These unsecured loans, provided by Tractor Ventures, finance bank guarantees covering bonds for three Tank Stream Labs offices. The loans carry an interest rate of 20.9 per cent and mature in 2027.
For retail investors and capital markets audiences, Scalare is positioning the latest quarter as evidence that a services-led venture model can build more predictable revenue alongside long-term investment returns. In a venture capital environment where later-stage funding has become more challenging and investors demand stronger fundamentals, Scalare's focus on recurring revenue, integration, and cross-selling is intended to demonstrate both resilience and commercial discipline.
As more founders engage with Scalare across premium coworking and flexible workspace, virtual and fractional CFO services, accelerator programs, and The Founders Union, the company anticipates lifting customer lifetime value and improving the efficiency of its sales engine. For the broader startup and scaleup sector, Scalare advocates an integrated approach designed to unite capital, capability, and community, helping founders accelerate their journey from idea to scale.
