NextTrip Reports 27% Revenue Decline and Significant Operating Loss Amid Strategic Acquisitions

NextTrip, Inc. reported a revenue of $138,827 for the three months ended May 31, 2025, a decrease of 27% compared to $188,793 in the same period of the previous year. The decline in revenue was attributed to limited marketing expenditures due to cash flow constraints. The company's cost of revenue also decreased significantly, falling 42% to $99,921 from $173,581 year-over-year. Despite the reduction in costs, NextTrip incurred a substantial operating loss of $4,639,737, compared to a loss of $1,952,401 in the prior year, primarily driven by increased operating expenses, which surged by 138% to $4,678,643.

The company has undergone significant strategic changes, including the acquisition of FSA Travel, LLC, which was completed on April 9, 2025, for a total consideration of $1 million. This acquisition is expected to enhance NextTrip's offerings in group travel and further integrate its travel technology solutions. Additionally, NextTrip acquired the assets of Journy.tv for $415,200, which is anticipated to bolster its media capabilities and drive traffic to its booking platform. The company also reported a notable increase in stock-based compensation, which rose to $138,325 from $16,394, reflecting the impact of new stock options granted to employees.

Operationally, NextTrip's total assets increased to $10,955,216 as of May 31, 2025, up from $9,936,153 at the end of February 2025. This growth was primarily due to the recognition of goodwill and intangible assets from recent acquisitions. However, the company reported a working capital deficit of $1,142,891, indicating ongoing liquidity challenges. The total liabilities also rose significantly to $4,285,298, compared to $2,571,086 in the previous quarter, largely due to increased borrowings and deferred revenue.

Looking ahead, NextTrip's management has expressed concerns about its ability to continue as a going concern, citing the need for additional funding to support ongoing operations and marketing efforts. The company estimates it will require at least $5.5 million over the next twelve months to maintain operations and fulfill its business plans. The management is actively seeking equity or debt financing to address these needs, but there is no assurance that such funding will be secured. The company’s future performance will depend on its ability to generate revenue from its travel and media platforms and to effectively manage its operational costs.