UPAY, Inc. Reports 4.3% Revenue Growth but Increases Net Loss to $1.4M

UPAY, Inc. reported a revenue increase of approximately 4.3% for the fiscal year ending February 28, 2026, generating $746,311 compared to $715,269 in the previous year. Despite this growth in revenue, the company experienced a significant net loss of $1,406,623, up from a loss of $540,062 in the prior year. This increase in net loss was primarily attributed to a $904,400 loss on the settlement of debt, alongside rising interest expenses and general administrative costs, which were partially offset by improved gross profit margins.

The company has made strategic moves to enhance its operational footprint, including the acquisition of HUNTPAL LLC, which was fully integrated into UPAY's corporate structure in June 2024. This acquisition aims to expand UPAY's digital marketplace operations in the outdoor recreation and hunting tourism sectors. Additionally, UPAY acquired a controlling interest in AML GO, a compliance software provider, further strengthening its regulatory compliance offerings in Southern Africa. The company also launched a next-generation web-based AML screening and compliance portal in October 2024, aimed at enhancing its service capabilities.

Operationally, UPAY has focused on its South African market, where it has seen growth in transactional revenue through its ACPAS loan management software platform. The company reported a working capital deficit of $266,715 as of February 28, 2026, an improvement from a deficit of $386,487 the previous year. UPAY's employee count remains stable at 16 full-time staff, with plans to hire additional personnel contingent on revenue growth. The company has also expanded its customer base, with significant revenue concentration among two customers, accounting for 24% and 9% of total revenue, respectively.

Looking ahead, UPAY is evaluating opportunities for expansion into the U.S. market, particularly for its AML GO compliance platform, with plans to launch certain services within the next six months. The company anticipates that increasing regulatory compliance requirements and the demand for automated credit management systems will support its growth strategy. However, UPAY acknowledges the challenges it faces, including the need for adequate working capital and the potential impact of economic conditions on its operations. The company has outlined estimated monthly cash needs of $70,000 for the upcoming year, which it plans to meet through its existing cash position and ongoing business activities.