Collab Z Inc. Reports $1.38 Million Revenue Decline and $102,195 Net Loss for Fiscal Year 2025

Collab Z Inc. reported a total revenue of $1.38 million for the fiscal year ending September 30, 2025, a decline of 25.5% from $1.85 million in the previous year. The decrease was primarily attributed to a significant drop in related party revenue, which fell to $893,628 from $1.16 million, largely due to reduced procurement and renovation management fees. In contrast, revenue from consulting services increased by $150,653, indicating a shift in the company's service focus. The company incurred a net loss of $102,195 compared to a net income of $950,420 in the prior year, reflecting increased operating expenses and a decline in revenue from its EB-5 immigration investor services.

Operationally, Collab Z has made strategic changes to its business model, emphasizing community-based property management through its proprietary Collab Platform. This platform aims to enhance tenant engagement and streamline property management processes. The company has also initiated joint ventures in Nevada, holding a 40% stake in five separate entities, which are expected to leverage the Collab Platform for local property management activities. As of September 30, 2025, Collab Z employed 14 full-time team members, a slight increase from the previous year, reflecting its commitment to scaling operations.

The company has also seen a notable increase in its general and administrative expenses, which rose to $1 million from $622,401, driven by higher personnel costs and professional services associated with its planned initial public offering (IPO). Sales and marketing expenses also increased, indicating a push to enhance brand visibility and customer acquisition. Despite these investments, the company's gross profit margin decreased to 70% from 88%, primarily due to rising costs associated with software development and system maintenance.

Looking ahead, Collab Z is focused on transitioning to a more property management-centric business model, planning to phase out its EB-5 immigration investor services, which previously accounted for a significant portion of its revenue. The company is actively seeking to raise capital through equity offerings to support its growth initiatives and operational needs. Management expressed optimism about the potential for future revenue growth, contingent on successful execution of its strategic plans and market conditions. However, the company remains heavily reliant on related party transactions, which accounted for 65% of total revenue in 2025, raising concerns about revenue sustainability and diversification.