Pony Group Inc. Reports 83.7% Revenue Growth but Incurred $38.4 Million Net Loss in Latest Quarter

Pony Group Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company generated revenues of $44.6 million for the three months ended June 30, 2025, a 83.7% increase from $24.3 million in the same period last year. For the first half of 2025, revenues reached $74.8 million, up from $36.2 million in the prior year, marking a 107% increase. The growth in revenue was primarily attributed to the addition of new clients, including Benfu Development, Ltd., which contributed $15.4 million in revenue during the quarter.

Despite the increase in revenue, Pony Group reported a net loss of $38.4 million for the three months ended June 30, 2025, compared to a loss of $28.0 million in the same period of 2024. For the six months, the net loss was $87.8 million, slightly higher than the $84.6 million loss reported in the first half of 2024. The increase in losses was largely due to rising operating expenses, which totaled $54.5 million for the quarter, up from $38.9 million a year earlier, driven by higher salary payments for new employees and increased general and administrative costs.

Operationally, Pony Group's total current assets increased to $23.5 million as of June 30, 2025, compared to $17.1 million at the end of 2024. The company’s cash and cash equivalents also rose to $21.7 million from $10.9 million during the same period. However, total liabilities increased to $813.0 million, up from $692.5 million, reflecting a growing working capital deficit of $789.5 million. The company’s accumulated deficit reached $976.3 million, raising concerns about its ability to continue as a going concern without additional financing.

Pony Group continues to focus on expanding its service offerings and geographic reach. The company operates primarily in Guangdong Province and Hong Kong, providing car services through its "Let's Go" mobile application, which has been enhanced to support multiple languages. The company plans to further develop its app to attract international travelers and expand its service offerings. Management is actively seeking additional capital through equity sales and other financing options to support its operations and growth strategy.

Looking ahead, Pony Group's management acknowledges the challenges posed by its current financial condition, including the need for substantial cash flow improvements and additional capital resources. The company is exploring various avenues for funding, including potential collaborations and strategic alliances, but there is no assurance that these efforts will be successful. The outlook remains cautious as the company navigates its operational and financial hurdles while aiming for profitability in the future.