CTOS Digital (CTOS) Q2 2025 earnings summary

Executive summary

• 1H 2025 revenue grew 5% year-over-year to RM155.1 million, led by Direct-to-Consumer and International segments with 48% and 10% YoY growth, respectively.

• Profit after tax for 1H 2025 declined 23.2% to RM35.4 million due to higher operational expenses and depreciation.

• Associates' contribution increased 43% YoY to RM11.7 million, with JurisTech net profit more than doubling YoY.

• RAM's asset disposal completed in June 2025, with RM32 million dividend received in July.

• Right sizing exercise completed in 2Q 2025, incurring a one-off cost of RM0.8 million and identified annual cost savings of ~RM10 million.

Financial highlights

• 2Q 2025 revenue rose 4% quarter-over-quarter to RM79.0 million; gross profit was RM52.8 million, down 1% QoQ.

• Gross profit for 1H 2025 was RM106.1 million, a 2.3% decrease year-over-year.

• PATAMI for 2Q 2025 was RM21.2 million, up 46% QoQ; normalised PATAMI was RM22.0 million, up 49% QoQ.

• Earnings per share for the six months was 1.5 sen, down from 2.0 sen in the prior year.

• Cash and cash equivalents at period end were RM22.97 million, up from RM14.21 million a year earlier.

Outlook and guidance

• FY2025 internal management targets: revenue RM315–325 million, EBITDA RM110–120 million, normalised PATAMI RM85–90 million.

• Management remains cautiously optimistic for 2025, focusing on product innovation, operational efficiencies, and regional expansion.

• New product launches and partnerships expected to drive growth and margin improvement in 2H 2025.

• International segment expected to continue positive contributions, with ambitions to lead ASEAN in alternative credit solutions.

• Indonesia operations projected to be profitable by 4Q 2025.