Dalrada Technology Group Reports $4.4 Million Net Loss, Sees Revenue Growth in Climate and Manufacturing Divisions

Dalrada Technology Group, Inc. reported a net loss of $4.4 million for the three months ended December 31, 2025, a decrease from a loss of $6.7 million in the same period the previous year. For the six months ended December 31, 2025, the company recorded a net loss of $10.5 million, down from $13.5 million in the prior year. Total revenues for the latest quarter were $3.26 million, a slight increase from $3.11 million year-over-year, while revenues for the six-month period fell to $7.36 million from $9.15 million. The decrease in revenue for the six months was primarily attributed to limited working capital affecting growth in the Genefic division, which saw a 43.4% decline in revenue.

The company’s financial position showed a decline in total assets, which decreased to $17.59 million as of December 31, 2025, from $18.36 million at the end of June 2025. Current liabilities surged to $22.51 million, up from $15.74 million, leading to a working capital deficit of $15.34 million. This increase in liabilities was largely due to rising accounts payable and related party notes. The company’s cash and cash equivalents also fell to $70,074 from $172,787, indicating tightening liquidity.

Strategically, Dalrada has been active in expanding its operations, particularly through its subsidiaries. The company reported significant growth in its Dalrada Climate Technology division, which saw a revenue increase of 52.8% due to expanding residential development opportunities. Additionally, the Dalrada Precision Manufacturing division experienced a remarkable revenue increase of 539.2%, attributed to the completion of projects by its Deposition Technology subsidiary. However, the overall operational performance was hampered by increased costs and a shift in sales pipelines, particularly in the Genefic division.

Looking ahead, Dalrada's management has expressed concerns regarding its ability to continue as a going concern, emphasizing the need for substantial capital to fund operations and growth initiatives. The company plans to rely on related party financing and is exploring additional funding options to support its business plans. The successful execution of these plans remains uncertain, and management has indicated that the continuation of operations will depend on securing necessary financing and achieving profitable operations from its subsidiaries.