Solowin (AXG) H2 2025 earnings summary

Executive summary

• Revenue for FY2025 was $2.82M, down 34% year-over-year, mainly due to a sharp decline in investment advisory fees and a reduced client base.

• Net loss widened to $8.54M in FY2025 from $4.56M in FY2024, driven by higher professional fees, office expenses, and share-based compensation.

• Corporate finance services revenue surged 733% to $999K, while virtual assets services launched and contributed $15K.

• The company reorganized into four segments: Corporate Finance, Wealth Management, Asset Management, and Virtual Assets Services.

• Top five clients accounted for 81% of total revenue in FY2025, indicating high client concentration risk.

Financial highlights

• Total revenue: $2.82M in FY2025 vs. $4.29M in FY2024; investment advisory fees fell 64% to $1.03M.

• Net loss: $8.54M in FY2025 vs. $4.56M in FY2024; loss per share: $0.53 vs. $0.33.

• Expenses rose 26% to $10.95M, mainly due to professional fees ($4.67M), office expenses, and share-based compensation ($3.31M to a consultant).

• Cash and equivalents at year-end: $3.84M, up from $2.14M; total assets: $12.3M.

• No dividends declared or paid; all earnings retained for business expansion.

Outlook and guidance

• Management expects continued operating and net losses as it invests in virtual assets and real-world asset development.

• No plans to pay dividends in the foreseeable future; focus remains on business growth and technology investment.

• Sufficient liquidity for at least 12 months, but may seek additional financing for expansion.