FingerMotion (FNGR) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was $8.46M, down 9% year-over-year, with a net loss of $1.69M, a significant increase from the prior year's $134K loss.

• Six-month revenue was $16.83M, down 22% year-over-year, with a net loss of $3.34M, up 139% from the prior year.

• Gross profit declined 84% to $301K due to a less favorable product mix and absence of higher-margin cloud business.

• CEO highlighted growth in higher-margin Cloud services and a positive product mix shift.

• Recent developments include national certification for the Command & Communication platform and a new private placement raising $1.64M.

Financial highlights

• Q2 revenue: $8.46M (down 9% year-over-year); six-month revenue: $16.83M (down 22%).

• Q2 net loss: $1.69M (vs. $134K loss prior year); six-month net loss: $3.34M (vs. $1.4M loss prior year).

• Q2 gross profit: $301K (down 84% year-over-year); six-month gross profit: $983K (down 61%).

• Cash and equivalents at August 31, 2024: $810K; working capital at $9.71M.

• Operating expenses for six months: $4.35M (up 12% year-over-year).

Outlook and guidance

• Management expects cloud-based services and Command & Communication to drive revenue growth for the rest of fiscal year.

• Focus remains on optimizing business mix toward higher-margin segments and expanding big data and insurtech initiatives.

• Plans to seek further funding through equity or debt offerings and private placements.