Waton Financial (WTF) Q2 2026 earnings summary

Executive summary

• Revenue grew 106.3% year-over-year to $6.10 million for the six months ended September 30, 2025, driven by strong brokerage and commission income amid heightened trading activity in the Hong Kong market.

• Despite revenue growth, net loss widened to $8.37 million, mainly due to increased staff compensation, share-based compensation, and IPO-related professional fees.

• Cash and cash equivalents plus cash segregated under regulatory requirements rose 115.0% to $29.88 million, reflecting IPO proceeds.

Financial highlights

• Brokerage and commission income surged 223.1% year-over-year to $4.17 million, reflecting increased trading volumes.

• Interest income rose 83.8% to $0.96 million, supported by expanded margin financing.

• Software licensing and support services income fell 42.3% to $0.66 million due to fewer customers.

• Operating loss increased to $7.71 million from $0.92 million year-over-year, driven by higher compensation and IPO costs.

• Adjusted net loss (excluding $6.10 million share-based compensation) was $2.26 million, up from $1.15 million.

Segment performance

• Brokerage and commission segment was the primary growth driver, offsetting declines in software licensing.

• Software licensing and support services segment revenue declined significantly due to reduced customer base.