Waton Financial (WTF) investor relations material

Executive summary

• Revenue increased 48.8% to $11.1M for the year ended March 31, 2026, after a 25.9% decline in the prior year; net loss widened to $15.2M from $12.0M in 2025, compared to net income of $2.5M in 2024.

• Brokerage and commission income rose 63.8% to $7.1M, driven by higher trading volume and IPO subscriptions, while bond distribution income fell sharply.

• Software licensing and related support services income decreased 26.6% to $1.3M due to fewer customers; margin financing interest income grew to $2.1M.

• Adjusted net loss (excluding share-based compensation and related tax effects) was $8.1M, up from $3.2M in 2025.

Financial highlights

• Total revenues: $11.1M (2026), $7.4M (2025), $10.1M (2024).

• Net loss: $15.2M (2026), $12.0M (2025), net income $2.5M (2024).

• Brokerage and commission income: $7.1M (2026), $4.4M (2025), $8.2M (2024).

• Margin financing interest income: $2.1M (2026), $1.2M (2025), $1.2M (2024).

• Software licensing and related support services: $1.3M (2026), $1.8M (2025), $1.4M (2024).

• Operating costs and expenses: $25.6M (2026), $18.1M (2025), $7.1M (2024).

• Cash and cash equivalents: $10.4M (2026), $7.7M (2025), $4.9M (2024).

Outlook and guidance

• Management expects current cash and forecasted net cash flows to be sufficient for working capital and capital expenditures over the next twelve months.

• Plans include expanding the customer base for software licensing, enhancing asset management, and launching AI-driven trading solutions.

• Focus on product and technology innovation, including AI and virtual asset-related services.