Mag Mile Capital Reports 24.4% Revenue Growth but Increased Net Loss in Q2 2026

Mag Mile Capital, Inc. reported significant financial developments in its latest 10-Q filing for the second quarter of 2026, showcasing a notable increase in revenue and a shift towards profitability. For the three months ended June 30, 2026, the company generated revenue of $879,050, a 24.4% increase from $706,875 in the same period of 2025. The six-month revenue figures also reflected substantial growth, reaching $3,261,425, up 119.3% from $1,487,375 year-over-year. This surge in revenue was primarily driven by heightened deal activity, particularly in the Commercial Mortgage-Backed Securities (CMBS) market.

Despite the revenue growth, the company reported a net loss of $163,258 for the second quarter of 2026, compared to a loss of $65,584 in the prior year. The increase in net loss was attributed to a significant rise in related-party commission expenses, which soared to $305,500 from $49,500, reflecting a greater number of transactions originated by the company's Chairman and CEO. Gross profit for the quarter decreased to $229,938, down 21.5% from $293,074 in the previous year, largely due to the increased commission expenses.

Operationally, Mag Mile Capital has made strides in managing its expenses. Total operating expenses for the second quarter increased to $391,003 from $356,465, but payroll expenses decreased by 26.1% to $102,943, indicating improved payroll management. The company also recognized $40,391 in bad debt expense related to its draw receivable accounts, a new expense category for the current period. The overall increase in operating expenses was offset by a decrease in non-related-party commission expenses, which contributed to the company's ongoing efforts to enhance profitability.

In terms of strategic developments, Mag Mile Capital has been focusing on expanding its market presence and enhancing its operational capabilities. The company operates as a full-service commercial real estate mortgage banking firm with a national platform, leveraging diverse sources of capital and extensive experience in real estate financing. The firm has also developed a commercial real estate origination software platform named CapLogiq, aimed at increasing efficiency in the loan closing process. Looking ahead, the company plans to invest in sales and marketing to attract new customers and explore strategic acquisition opportunities, contingent on market conditions and capital availability.

As of June 30, 2026, Mag Mile Capital reported cash reserves of approximately $613,000 and a working capital deficit of $57,551. The company generated $98,983 in cash from operating activities during the first half of 2026, a decrease from $342,906 in the same period of 2025. The management has expressed concerns regarding its ability to continue as a going concern, emphasizing the need for ongoing profitable operations and potential financing to meet obligations. The company’s future performance will depend on its ability to sustain revenue growth and manage expenses effectively in a competitive market environment.