HWH International Reports Q2 2025 Financial Results with Revenue Decline but Net Income Turnaround

HWH International Inc. reported its financial results for the second quarter of 2025, revealing a revenue of $310,391, a decrease from $334,882 in the same period of 2024. For the first half of 2025, total revenue was $605,588, down from $620,992 year-over-year. The company's cost of revenue also saw a decline, totaling $161,501 for the three months ended June 30, 2025, compared to $169,969 in the prior year. Despite the drop in revenue, HWH International achieved a net income of $75,977 for the quarter, a significant turnaround from a net loss of $403,641 in the same quarter of 2024. For the six-month period, the net loss narrowed to $410,995 from $1,740,160 in the previous year.

The company’s financial position showed a slight increase in total assets, which rose to $10,602,700 as of June 30, 2025, compared to $10,522,422 at the end of 2024. Current liabilities decreased to $7,146,791 from $7,424,974, reflecting improved management of operational costs. HWH International's stockholders' equity increased to $3,320,523, up from $2,877,199, driven by a successful public offering that raised approximately $1.76 million in gross proceeds.

Strategically, HWH International has been active in expanding its business operations. The company completed the acquisition of L.E.H. Insurance Group LLC in February 2025, which was part of its strategy to diversify its offerings. Additionally, HWH has launched the Hapi Marketplace, a business-to-consumer platform that aims to expand its product range and customer base, with plans for geographic expansion into South Korea and Hong Kong. The company also operates three cafés in Singapore and South Korea, which are integral to its business model.

Operationally, HWH International has focused on enhancing its customer engagement and product adoption rates. The company reported a significant increase in its customer base following the opening of a new café in Singapore in April 2024. However, it also closed one café in June 2024 due to unsustainable revenue levels, indicating a strategic shift towards more profitable ventures. The company’s employee headcount remains stable, supporting its operational needs as it navigates through its growth phase.

Looking ahead, HWH International expressed optimism about its future, citing available cash reserves and anticipated cash flows from operations as sufficient to support its growth plans for at least the next 12 months. The company aims to continue expanding its café locations and enhance its product offerings through the Hapi Marketplace. However, it acknowledged the inherent risks associated with early-stage growth and the need for effective management of operational expenses to ensure long-term sustainability.