Corporate services income increased significantly by 112.1% YoY to US$2.9M on new client momentum
Net profit reached US$1.2M, reflecting a return to profitability
Enigmatig Limited (NYSE American: EGG) (“Enigmatig” or the “Company”), an international consultancy firm providing one-stop cross-border licensing solutions and related services, today announced its unaudited financial results for the first six months of fiscal year 2025, ended March 31, 2025.
First Six Months of Fiscal Year 2025 Financial Highlights
- Total corporate services income increased by 112.1% to US$2.9 million for the six months ended March 31, 2025, compared with US$1.4 million in the same period of fiscal year 2024.
- Cost of sales remained stable at US$0.7 million for the six months ended March 31, 2025, compared with US$0.6 million in the same period of fiscal year 2024.
- Gross profit increased by 192.1% to US$2.2 million for the six months ended March 31, 2025, compared with US$0.7 million in the same period of fiscal year 2024.
- Profit from operations was US$1.2 million for the six months ended March 31, 2025, marking a significant turnaround from a loss of US$0.2 million in the same period of fiscal year 2024.
- Net profit was US$1.2 million for the six months ended March 31, 2025, marking a significant turnaround from a net loss of US$0.1 million in the same period of fiscal year 2024.
Business Updates
- In June 2025, the Company completed its initial public offering on the NYSE American, raising gross proceeds of approximately US$15.0 million, including proceeds from the partial exercise of the underwriters’ over-allotment option.
- As of March 31, 2025, the Company has established a presence across key international markets, with four offices located in Singapore, Hong Kong, Shanghai, and London, as well as a representative desk in Bangkok. These locations support the Company’s global operations and enhance its ability to serve a diverse and growing client base.
- During the six months ended March 31, 2025, the Company consistently expanded its client roster for regtech services (“RegTech”), including KYC, AML and transaction monitoring functions, which are integrated into the Company’s proprietary CRM platform. As of March 31, 2025, the Company had completed onboarding for five RegTech services clients, following the initial rollout of these services in late 2024. The Company is actively marketing its RegTech offerings to both new and existing clients, positioning RegTech as a strategic growth pillar for the future.
Desmond Foo, Founder and CEO of Enigmatig, commented, “We are incredibly encouraged by our performance in the first half of fiscal 2025, particularly as we navigated a dynamic and fast-evolving business environment. Our successful listing on the NYSE American in June marked a pivotal milestone, not just in terms of capital markets access, but as a strong reaffirmation of Enigmatig’s long-term vision for bold, global expansion. With this solid foundation, we are advancing our strategic priorities with clarity and conviction: expanding our international footprint, deepening our value proposition through innovation and technology, pursuing selective M&A opportunities, and investing in global talent to better serve our diverse, growing client base.”
Mingwen Teo, the Company’s Director and CFO, added, “We delivered a strong financial performance in the first six months of fiscal 2025, with revenue more than doubling year-on-year and profitability significantly improving across all key metrics. Our operating leverage is beginning to materialize, as demonstrated by gross margin expansion driven by more efficient absorption of fixed costs over a larger revenue base. Following our IPO, we also strengthened our capital position, providing the financial flexibility to invest in future growth, accelerate development of our technology platforms, and create long-term value for our shareholders.”
First Six Months of Fiscal Year 2025 Financial Results
Corporate Services Income
Corporate services income grew by 112.1% year-on-year to US$2.9 million for the six months ended March 31, 2025, up from US$1.4 million in the same period of fiscal year 2024. The increase was driven by strong momentum in both license application and renewal services and corporate secretarial and other services.
The table below sets forth the breakdown of our corporate services income for the periods indicated:
- License application and renewal services. Income from license application and renewal services increased by 158.0% to US$1.1 million, compared to US$0.4 in the prior-year period. The growth was primarily driven by a higher number of projects, supported by an expanding client base.
- Corporate secretarial and other services. Income from corporate secretarial and other services rose by 90.2% to US$1.8 million from US$0.9 million in the same period of fiscal year 2024. This was mainly attributable to increased new client engagements, particularly from larger accounts with higher average revenue contributions.
Cost of Sales
Cost of sales was US$0.7 million for the six months ended March 31, 2025, compared to US$0.6 million in the same period of fiscal year 2024. The Company’s cost of sales primarily comprises staff costs, license application and renewal services costs, and corporate secretarial and related services costs. While total costs increased year-over-year, the Company benefited from economies of scale, with fixed costs more efficiently absorbed across a larger revenue base.
Gross Profit
Gross profit jumped by 192.1% to US$2.2 million from US$0.7 million in the prior-year period. Gross margin for the first half of fiscal year 2025 expanded significantly to 74.8%, compared to 54.3% in the same period of fiscal year 2024, reflecting improved operating leverage and enhanced service efficiency.
Operating Expenses
Operating expenses totaled US$0.9 million, in line with US$0.9 million in the same period of fiscal year 2024, despite the inclusion of the professional service fees associated with the Company’s initial public offering.
Profit from Operations
Profit from operations reached US$1.2 million, a substantial turnaround from an operating loss of US$0.2 million in the corresponding period of fiscal year 2024.
Other Income
Other income totaled US$0.2 million, compared to US$0.02 million in the prior-year period. The increase was primarily driven by one-off income of US$0.1 million and unrealized foreign exchange gains of US$0.06 million.
Net Profit
The Company reported net profit of US$1.2 million for the six months ended March 31, 2025, marking a return to profitability from a net loss of US$0.1 million in the same period of fiscal year 2024.
Cash and Cash Equivalents
As of March 31, 2025, the Company had cash and cash equivalents of US$3.4 million, compared with US$1.6 million as of September 30, 2024, strengthening its financial position following its successful IPO.
