UPAY, Inc. Reports 32.8% Revenue Growth but Net Loss Improves in Latest Quarter

UPAY, Inc. reported its financial results for the three months ending May 31, 2026, revealing a revenue of $226,347, a 32.8% increase from $170,414 in the same period last year. The company achieved a gross profit of $166,942, up from $127,830, primarily driven by increased revenue from software development and transactional activities in the credit industry. Despite the rise in revenue, UPAY recorded a net loss of $115,440, which is an improvement compared to the net loss of $141,986 reported for the same quarter in 2025.

Total expenses for the quarter increased to $269,811 from $258,432, reflecting a rise in general and administrative costs. The company’s working capital position deteriorated, with negative working capital of $380,139 as of May 31, 2026, compared to negative working capital of $266,715 at the end of the previous fiscal year. Cash used in operating activities decreased to $74,222 from $130,676, while cash provided by financing activities was $75,000, down from $120,000 in the prior year.

In terms of strategic developments, UPAY has continued to expand its operations, including the incorporation of a wholly-owned subsidiary, Huntpal LLC, and the acquisition of a controlling interest in Miway Finance Inc. The company has also made efforts to enhance its service offerings, which contributed to the increase in customer engagement and revenue generation. As of May 31, 2026, UPAY had 17,615,211 shares of common stock outstanding, reflecting a slight increase from 17,595,211 shares at the end of February 2026.

The company’s financial health remains a concern, as indicated by its substantial liabilities totaling $807,428, up from $741,267 in the previous period. This includes significant amounts due to related parties and notes payable, some of which are in default. UPAY's management has acknowledged the challenges posed by market conditions and the need for adequate working capital to support its business plan. The company plans to continue funding operations through equity financing arrangements, although there is no assurance of success in these efforts.

Looking ahead, UPAY's management remains cautious, noting that the company’s ability to adapt its software systems for markets outside South Africa and to generate interest in its offerings will be critical for future growth. The company is also focused on addressing its operational inefficiencies and increasing competitive pressures. As it navigates these challenges, UPAY aims to stabilize its financial position and enhance its market presence in the credit provider industry.