Galaxy Payroll Group (GLXG) Q4 2025 earnings summary

Executive summary

• Revenue for FY2025 declined 9% year-over-year to HKD27.4 million (US$3.5 million), with a net loss of HKD27.6 million (US$3.5 million) compared to a net income of HKD5.5 million (US$0.7 million) in FY2024, driven by higher costs and R&D expenses.

• The company completed its IPO in September 2024, raising gross proceeds of US$8.05 million, and listed on Nasdaq under the symbol GLXG.

• A 1-for-10 reverse share split and reclassification into Class A and Class B shares were completed in 2025.

Financial highlights

• FY2025 revenue: HKD27.4 million (US$3.5 million), down from HKD30.1 million (US$3.9 million) in FY2024.

• Net loss: HKD27.6 million (US$3.5 million) in FY2025 vs. net income of HKD5.5 million (US$0.7 million) in FY2024.

• Cost of revenues increased 13% to HKD15.7 million (US$2.0 million), and selling, general & administrative expenses rose 130% to HKD20.8 million (US$2.7 million).

• Research and development expenses were HKD18.7 million (US$2.4 million) in FY2025, up from nil in FY2024.

• Cash and cash equivalents at year-end: HKD32.2 million (US$4.1 million).

Outlook and guidance

• Management plans to focus on expanding payroll outsourcing and employment services in the PRC and Hong Kong, with an emphasis on IT system enhancements and marketing to direct end-users.

• No specific quantitative guidance provided for FY2026.