FingerMotion (FNGR) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was $8.37 million, down 31% year-over-year, mainly due to a strategic shift from Telecommunication Products & Services to higher-margin SMS & MMS business, which saw significant growth.

• Net loss attributable to shareholders increased to $1.66 million from $1.27 million year-over-year, primarily due to higher general and administrative expenses.

• Gross profit rose 3% to $681,889, reflecting improved margins from the business mix shift.

• The company is focusing on expanding its Da Ge app, Insuretec partnerships, and Sapientus big data platform to drive future growth.

Financial highlights

• Revenue: $8.37 million (down 31% year-over-year).

• Gross profit: $681,889 (up 3% year-over-year).

• Net loss: $1.66 million (vs. $1.27 million loss year-over-year).

• Loss per share: $0.03 (vs. $0.02 year-over-year).

• Cash and cash equivalents: $1.06 million as of May 31, 2024; working capital: $10.73 million.

Outlook and guidance

• Management expects increased revenue and improved margins for the remainder of fiscal 2025, driven by growth in cloud-based services, lifestyle app, and expanded use of the Da Ge app.

• The company plans to seek additional capital to support growth and increase deposits with telecom partners.

• The company aims to move closer to profitability through these initiatives.