Stak Inc. (NASDAQ:STAK) shares were climbing by over 14% on Friday. The move follows a volatile period for the oilfield equipment manufacturer.

The Nasdaq is down 1.29% while the S&P 500 has shed 1.05%.

Investors Re-Evaluate Revenue Growth

The surge appears to be a recovery and correction. Shares fell nearly 39% in after-hours trading on Wednesday. Investors initially reacted poorly to the company’s fiscal first-half 2026 results.

However, the market is now focusing on revenue. STAK reported $19.2 million in revenue. This marks a 13.41% increase year-over-year. Higher order volumes for specialized oilfield vehicles drove this growth.

Profit Margins Under Pressure

Despite higher sales, profitability slowed. Net income fell to $1.8 million from $2 million last year. Diluted earnings per share dropped to 14 cents.

Rising production costs and promotional pricing weighed on margins. Gross margin declined to 27.24% from 30.65%. Investors are now weighing these costs against the company's expanding order book.

Management Remains Focused On Execution

Chairman and CEO Chuanbo Jiang highlighted the company’s strategy. He noted a focus on international expansion and product development.

“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.

Improved Cash Position

STAK ended December with $1.9 million in cash, up from $1 million in June. Operating cash flow also turned positive at $700,000.

The company currently holds a market capitalization of approximately $45.3 million. Retail traders continue to monitor the stock’s high volatility.

Stak Inc Short Interest Report

Short interest in Stak declined during the latest reporting period, dropping from 450,240 shares to 327,070 shares. Despite the decrease, short interest still represented 40.36% of the company's public float.

With an average daily trading volume of 115.10K shares, it would take approximately 2.84 days for short sellers to cover their positions.

STAK Stock Price Activity: Stak shares were up 14.80% at $1.01 at the time of publication on Friday, according to Benzinga Pro data.

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