FingerMotion, Inc. reported a significant decline in its financial performance for the fiscal year ending February 28, 2026, with total revenue of $24.1 million, a decrease of 32% from $35.6 million in the previous year. The decline was primarily driven by a 32% drop in revenue from its telecommunications products and services segment, which accounted for approximately 99.2% of total revenue. The company also experienced a net loss attributable to stockholders of $7.0 million, compared to a loss of $5.1 million in the prior year, reflecting a 37% increase in losses.
In terms of operational changes, FingerMotion has been focusing on expanding its technology-driven platform offerings. The company launched the JiuGe Procurement Platform and continued to develop the DaGe Platform, which connects automotive owners with service providers. Despite these initiatives, revenue from the DaGe Platform decreased significantly, from $80,592 to $25,037, indicating challenges in scaling this new service. The company also reported a notable increase in credit impairment losses, which rose to $1.2 million, reflecting a higher allowance for expected credit losses.
FingerMotion's strategic developments included the issuance of a senior secured convertible note worth $5 million in May 2026, aimed at bolstering its working capital. The company’s cash reserves dwindled to $68,596 by the end of the fiscal year, down from $1.1 million the previous year, highlighting ongoing liquidity challenges. The company’s total liabilities increased to $45.7 million, up from $35.2 million, driven by higher accounts payable and accrued expenses.
The company’s workforce remained stable, with 48 employees as of February 28, 2026, and it continues to rely heavily on its relationships with major telecommunications operators in China, particularly China Unicom and China Mobile, which accounted for a significant portion of its revenue. The company’s future outlook remains uncertain, as it faces challenges related to market conditions, regulatory compliance, and the need for additional financing to support its operations and growth initiatives.
Looking ahead, FingerMotion aims to enhance its operational efficiency and expand its technology platforms while navigating the complexities of the Chinese regulatory environment. The company’s ability to achieve profitability will depend on its success in executing its growth strategies and managing its financial resources effectively.
About FingerMotion, Inc.
FingerMotion, Inc. is a US-based holding company specializing in mobile data, telecommunications services, and value-added solutions. It operates through subsidiaries and contractual VIE arrangements in China, offering mobile payments, recharge services, SMS/MMS messaging, big data analytics, and smart mobility platforms. The company leverages data integration, satellite communications, and AI to serve telecom, financial, healthcare, and automotive markets, focusing on innovative, technology-driven communication and data solutions.
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