HWH International Inc. reported a significant decline in financial performance for the third quarter of 2025, with revenues of $206,778, down 40% from $345,523 in the same period of 2024. For the nine months ending September 30, 2025, total revenue was $812,366, a decrease of 16% compared to $966,515 in the prior year. The company also recorded a net loss of $299,618 for the third quarter, an improvement from a loss of $537,143 in the same quarter of 2024. However, the nine-month net loss was $710,613, compared to $2,277,303 for the same period last year, indicating a substantial reduction in losses.
The decline in revenue is attributed to the closure of several underperforming cafes in Singapore and South Korea, which the company deemed unsustainable. Operating expenses also decreased significantly, from $487,394 in Q3 2024 to $369,978 in Q3 2025, primarily due to reduced general and administrative costs. The company reported a gross profit of $123,582 for the third quarter of 2025, down from $159,869 in the previous year, reflecting the impact of lower sales.
In terms of strategic developments, HWH International has been focusing on expanding its product offerings and geographic reach. The company is in the process of launching Hapi Marketplace, a business-to-consumer platform, and Hapi Wealth Builder, an educational program aimed at wealth-building strategies. Both initiatives are being rolled out in phases, with plans for expansion into South Korea and Hong Kong. Additionally, the company has made organizational changes, including the resignation of CEO John Thatch and the appointment of Chan Heng Fai as the new CEO.
Operationally, HWH International's total assets decreased to $5,184,394 as of September 30, 2025, down from $6,408,722 at the end of 2024. Current liabilities also saw a reduction, falling from $3,311,274 to $2,252,884, indicating improved financial management. The company’s cash reserves decreased to $2,897,972 from $4,341,746, but it maintains that available cash and anticipated cash from operations will support its operations for at least the next 12 months.
Looking ahead, HWH International aims to continue its expansion plans, including the acquisition of additional Hapi Cafes and the development of its marketplace and educational programs. However, the company acknowledges the challenges it faces, including the need for additional financing and the ability to attract skilled personnel. The management remains optimistic about the potential for growth and the strategic direction of the company, despite the recent operational setbacks.
About HWH International Inc.
HWH International Inc. operates in food and beverage, hospitality, and e-commerce sectors, with businesses including cafes, online marketplaces, and membership programs. It serves consumers in Asia and the U.S., offering products, community experiences, and educational services. The company leverages memberships, retail sales, and location-based cafes to build a community-focused value proposition, supported by strategic investments and expansion into new markets.
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