Verde Resources Reports 37.9% Revenue Growth to $133,202, Despite Increased Net Loss

Verde Resources, Inc. reported a revenue of $133,202 for the fiscal year ending June 30, 2025, marking a 37.9% increase from $96,584 in the previous year. This growth was primarily driven by a shift towards higher-margin products, particularly the Biochar Asphalt Premix, which became the main revenue contributor in 2025. The cost of revenue decreased by 17.8% to $51,789, reflecting a change in product mix, as the previous year's figures included costs associated with lower-margin raw biochar. Despite the increase in revenue, the company reported a net loss of $4,783,013, a 50% increase from the prior year's loss of $3,187,774, largely due to rising selling, general, and administrative expenses, which surged by 104.3% to $5,889,024.

In a strategic shift, Verde Resources has exited its legacy business lines unrelated to sustainable infrastructure technologies, including the sale of its Malaysian mining subsidiary, Champmark Sdn Bhd, completed in April 2023. The company has also entered into a significant licensing agreement with Ergon Asphalt & Emulsions, Inc., granting Ergon exclusive rights to use its proprietary cold mix biochar asphalt emulsifying agent, Verde V24, across North America. This partnership is expected to facilitate the commercialization of Verde's technologies and enhance revenue generation through Ergon's established distribution channels.

Operationally, Verde Resources is focused on scaling its North American operations, with plans to market and sell its proprietary road technologies through Ergon. The company anticipates that embedding its technology into Ergon's infrastructure will enable immediate scalability and revenue generation. As of October 2025, Verde Resources employed 20 individuals, including senior management and consultants, and plans to expand its workforce to support its growth initiatives.

Looking ahead, Verde Resources aims to leverage its proprietary technologies to capture a share of the growing demand for sustainable building materials and carbon removal credits. The company is positioned to benefit from increasing infrastructure investments and regulatory pressures for low-carbon construction practices. However, it faces challenges, including reliance on a single key customer, Ergon, for the majority of its revenue, and the need to secure additional capital to support its growth plans. The company’s future performance will depend on the successful adoption of its technologies by contractors and government entities, as well as the ongoing development of its product offerings.