Treasure Global Inc. Reports 58.2% Revenue Decline but Achieves Net Income Turnaround

Treasure Global Inc. reported a significant decline in financial performance for the three and nine months ended March 31, 2025, compared to the same periods in the previous year. The company generated revenues of $666,521 for the three months ended March 31, 2025, a decrease of 58.2% from $1,596,129 in the prior year. For the nine months, revenues fell to $1,175,790 from $21,773,829, marking a 94.6% decline. The decrease was primarily attributed to a substantial drop in product and loyalty program revenue, which fell by 98.2% to $378,598, as the company streamlined its product offerings and reduced marketing expenditures.

Despite the overall revenue decline, the company reported a net income of $1,259,965 for the three months ended March 31, 2025, a turnaround from a net loss of $1,713,315 in the same period last year. This improvement was largely driven by a new revenue stream from customized software development services, which contributed $602,606 to total revenues. The gross profit for the three months increased to $486,283, up 124.1% from $217,006 in the prior year, reflecting a gross margin improvement from 13.6% to 73.0%.

Operationally, the company has made strategic changes, including the disposal of its food distribution operations and a focus on enhancing its ZCITY platform. As of March 31, 2025, the ZCITY platform had 2,707,965 registered users and 2,027 participating merchants. However, the number of active users decreased significantly, with only 10,647 active users reported, down from 41,458 a year earlier. This decline is attributed to reduced e-voucher purchases and a strategic reduction in customer rewards and marketing spending.

In terms of financial health, Treasure Global's total assets surged to $30,417,481 as of March 31, 2025, compared to $4,278,585 a year earlier, primarily due to increased cash and investments in marketable securities. The company has also raised capital through various offerings, including a public offering that generated approximately $3.5 million in net proceeds. However, management expressed concerns about the company's ability to meet its working capital requirements and debt obligations, indicating substantial doubt about its ability to continue as a going concern.

Looking ahead, Treasure Global plans to focus on enhancing its technology capabilities and expanding its service offerings to drive revenue growth. The company is also exploring equity financing options to support its working capital needs. Despite the challenges, management remains optimistic about the potential of its ZCITY platform and the new revenue streams from customized software development services.