Verde Resources Reports Q2 2025 Financial Results with Revenue Increase and Strategic Licensing Agreement

Verde Resources, Inc. reported its financial results for the second quarter of fiscal year 2025, revealing a net revenue of $4,679 for the three months ended December 31, 2025, compared to $2,423 for the same period in the previous year. For the six months ending December 31, 2025, the company generated $6,948 in revenue, a significant decline from $127,993 in the prior year. The gross profit for the quarter was $3,793, a recovery from a loss of $7,129 in the same quarter last year. However, the company reported a net loss of $934,076 for the quarter, an improvement from a loss of $2,694,329 in the prior year.

The company’s total assets increased slightly to $39.31 million as of December 31, 2025, up from $39.10 million at the end of June 2025. Current assets rose to $3.49 million, primarily driven by an increase in cash and cash equivalents, which reached $2.03 million, compared to $1.02 million in the previous period. Total liabilities decreased significantly to $1.25 million from $1.73 million, reflecting a reduction in current liabilities, which fell from $1.63 million to $1.18 million.

Strategically, Verde Resources has focused on advancing its biochar asphalt technology, which aims to enhance sustainability in road construction. The company has entered into a licensing agreement with Ergon Asphalt & Emulsions, Inc., allowing Ergon to use Verde's proprietary cold mix biochar asphalt emulsifying agent, Verde V24, in North America, Canada, and Mexico. This agreement is expected to facilitate market entry and product adoption, with an initial fifteen-month go-to-market period without minimum purchase requirements. Additionally, Verde has been actively involved in performance testing at the National Center for Asphalt Technology (NCAT), which has yielded positive results regarding the durability and efficiency of its products.

Operationally, Verde Resources has made significant strides in its market presence and product development. The company has been recognized as a Carbon Removal Credit supplier by Puro.earth, which could open new revenue streams through the generation of carbon removal credits. The company is also exploring opportunities for geographic expansion, particularly in Malaysia, where discussions with local highway operators indicate a growing demand for its biochar products. As of December 31, 2025, Verde's employee headcount remained stable, supporting its ongoing projects and strategic initiatives.

Looking ahead, Verde Resources aims to successfully commercialize its biochar-asphalt technology in North America and expand its operations into international markets. The company is optimistic about the potential for increased revenue through its licensing agreements and the generation of carbon removal credits. However, it acknowledges the inherent risks and uncertainties associated with its business model and market conditions, which could impact future performance.