Mag Mile Capital Reports 44.1% Revenue Decline and Net Loss in Q2 2025

Mag Mile Capital, Inc. reported a significant decline in financial performance for the second quarter of 2025, as detailed in its latest 10-Q filing. The company generated revenue of $706,875 for the three months ended June 30, 2025, a decrease of 44.1% compared to $1,264,300 in the same period of 2024. For the first half of 2025, revenue totaled $1,487,375, down 17.2% from $1,796,893 in the prior year. The decline in revenue is attributed to sustained higher interest rates and lower deal activity, with expectations that several large loans will close in the third quarter.

Despite the drop in revenue, commission expenses remained relatively stable, with a slight increase from $364,288 to $364,301 for the three months ended June 30, 2025. However, commission expenses related to a related party decreased significantly, from $165,990 to $49,500, reflecting fewer deals originated by the Chairman and CEO. The company's gross profit also fell sharply, from $734,022 in Q2 2024 to $293,074 in Q2 2025, indicating the impact of reduced revenue on profitability.

Operating expenses increased during the same period, with payroll expenses rising by 58.1% to $139,369, primarily due to bonuses and salary adjustments. General and administrative expenses also grew by 47.9% to $193,030, driven by increased travel and client relations costs, as well as a non-cash consulting expense of $46,250. As a result, Mag Mile Capital reported a net loss of $65,584 for the second quarter of 2025, a stark contrast to the net income of $480,863 recorded in the same quarter of the previous year.

The company's balance sheet as of June 30, 2025, showed total assets of $946,548, up from $713,218 at the end of 2024, primarily due to increased cash reserves. However, total liabilities also rose significantly to $1,168,996, compared to $879,796 at the end of the previous fiscal year, leading to a stockholders' equity deficit of $222,448. The working capital deficit stood at $93,704, raising concerns about the company's ability to meet its obligations.

Looking ahead, Mag Mile Capital aims to enhance its growth strategies by investing in sales and marketing and pursuing strategic acquisitions. The company plans to leverage its public status to attract talent and explore acquisition opportunities. However, the management has expressed concerns regarding its ability to continue as a going concern, emphasizing the need for future profitable operations or financing to meet its obligations. The company is also addressing internal control weaknesses, which could impact its financial reporting and operational effectiveness.