OFA Group (OFAL) investor relations material

Executive summary

• Revenue for the quarter ended June 30, 2026, decreased 21.5% year-over-year to $14,879, mainly due to lower design and fit-out services, partially offset by higher application and project management revenue.

• Net loss widened to $1,901,151 from $1,727,777 in the prior-year quarter, reflecting higher operating expenses, especially depreciation and amortization from new intangible assets.

• Gross profit increased 74.2% to $10,902, with gross margin rising to 73.3% from 33.0%, driven by a shift to higher-margin services and reduced project staff costs.

• The company is transitioning from a project-based to a subscription-based model, expanding into AI-driven design and blockchain tokenization services, and growing its international presence.

Financial highlights

• Revenue: $14,879 (down 21.5% YoY); gross profit: $10,902 (up 74.2% YoY); gross margin: 73.3%.

• Operating expenses rose 10.1% to $1,915,125, mainly due to $924,586 in depreciation and amortization.

• Net loss: $1,901,151 (vs. $1,727,777 prior year); basic and diluted net loss per share (Class A): $(0.72).

• Cash and restricted cash at quarter-end: $1,858,057; working capital deficit: $4,577,805.

Outlook and guidance

• Management expects revenue growth from a backlog of $569,840 to be recognized by March 2027 and is optimistic about new contracts and international expansion.

• The company is focused on cost control, liquidity preservation, and leveraging new AI and blockchain platforms for future growth.