UPAY, Inc. Reports Revenue Growth in Q3 but Decline for Nine-Month Period, Faces Significant Net Loss

UPAY, Inc. reported its financial results for the three and nine months ended November 30, 2025, revealing a revenue increase for the quarter but a decline for the nine-month period compared to the previous year. The company generated $184,587 in revenue for the third quarter, up from $150,366 in the same period last year, marking a 22.8% increase. However, for the nine months ending November 30, 2025, total revenue was $543,948, down from $575,686 in the prior year, reflecting a decrease of 5.5%. The gross profit for the quarter was $130,043, compared to $105,967 in the prior year, while the gross profit for the nine-month period increased to $401,619 from $347,576.

Despite the revenue growth in the latest quarter, UPAY reported a significant net loss of $1,032,123 for the three months ended November 30, 2025, compared to a loss of $159,184 in the same quarter of 2024. The nine-month net loss also widened to $1,291,361 from $501,185 year-over-year. The increase in losses was primarily attributed to a substantial loss on the settlement of debt amounting to $904,400 during the quarter. Total expenses for the quarter decreased to $243,433 from $256,788, largely due to reduced general and administrative costs.

In terms of strategic developments, UPAY completed the acquisition of Rent Pay (Pty) Ltd on November 4, 2025, in exchange for 200,000 shares of common stock. This acquisition is part of UPAY's strategy to expand its operations in South Africa, where Rent Pay primarily operates. The company also reported a significant increase in its common stock issuable, which rose to $206,250 from $103,500, indicating ongoing efforts to manage its capital structure.

Operationally, UPAY's cash and cash equivalents increased to $67,418 as of November 30, 2025, from $55,362 at the end of February 2025. The company reported a negative working capital of $199,281, an improvement from a deficit of $386,487 at the end of the previous fiscal year. The company’s total liabilities decreased slightly to $698,196 from $703,005, while the stockholders' deficit widened to $486,351 from $468,856. UPAY's management indicated that they plan to continue funding operations through equity financing arrangements, although there is no assurance of success in this endeavor.

Looking ahead, UPAY faces challenges related to its ability to generate sufficient revenue to support its business plan. The company is focused on expanding its software services in South Africa and potentially into other markets, but it acknowledges the risks associated with economic conditions and competition. Management has expressed that while they believe in the potential for growth, actual results may differ materially from projections due to various uncertainties.