Treasure Global Inc. Reports 121.8% Revenue Growth but Faces $11.1 Million Net Loss

Treasure Global Inc. (TGL) reported a significant increase in total revenues for the fiscal year ending June 30, 2026, reaching approximately $5.17 million, a 121.8% rise from $2.33 million in the previous year. This growth was primarily driven by a substantial increase in product and loyalty program revenue, which surged by 732% to $5.16 million, largely due to heightened demand for e-voucher products. However, the company experienced a sharp decline in transaction revenue, which fell by 90.4% to $12,187, attributed to reduced merchant usage on the ZCITY platform. The absence of member subscription revenue and customized software development service revenue further impacted overall financial performance.

In terms of profitability, TGL reported a net loss of approximately $11.1 million for the year, a decrease from a loss of $23.4 million in the prior year. The reduction in losses was influenced by a significant decrease in long-lived asset impairment charges, which dropped from $19.5 million to $3.0 million. Despite this improvement, the company continues to face challenges, including an accumulated deficit of $72.5 million and substantial cash outflows from operating activities, raising concerns about its ability to continue as a going concern.

Operationally, TGL's user engagement metrics showed a decline, with registered users increasing marginally to 2.71 million, while active users decreased to 3,054, reflecting a 21.8% drop over the last five quarters. The company attributed this decline to reduced e-voucher purchases and cuts in marketing spending aimed at enhancing operational profitability. As of June 30, 2026, TGL had 2,027 registered merchants on its platform, indicating stability in its merchant base despite the challenges in user engagement.

Strategically, TGL has made several significant moves, including the acquisition of Tazte Technology Sdn. Bhd. to enhance its digital ecosystem and the development of partnerships for software enhancements and AI solutions. The company also entered into various financing arrangements, raising approximately $11.6 million through equity offerings during the fiscal year. However, TGL's management has expressed substantial doubt about its ability to continue operations without additional capital, emphasizing the need for ongoing equity financing to support working capital requirements.

Looking ahead, TGL aims to leverage its technological capabilities and expand its market presence in Southeast Asia and Japan. The company plans to continue investing in user engagement strategies and product offerings while addressing its financial challenges. Despite the positive trajectory in revenue growth, the ongoing losses and operational hurdles underscore the need for effective management and strategic execution to ensure long-term sustainability.