### Revenue Performance
FingerMotion recorded total revenues of $8,458,743 in Q1 2026, which marks a 3.11% increase YoY but a 0.88% decrease QoQ. This slight downturn reflects the challenges in maintaining revenue momentum amid evolving market conditions in telecommunications.
### Profitability Analysis
The company reported a gross profit of $152,521, leading to a gross profit margin of just 1.8%, a drastic decline of 78.28% YoY and 65.62% QoQ. Furthermore, the operating income plunged to -$1,988,930, reflecting a steep -317.08% decrease YoY and a -23.22% decrease QoQ.
### Balance Sheet Health
Cash and cash equivalents stand at $2,863,238 with significant total liabilities of $39,506,569, indicating a leverage ratio that could raise liquidity concerns. The retained earnings position shows a notable deficit of -$36,195,940.
### Cash Flow Position
Net cash used by operating activities amounted to -$1,204,217, indicating ongoing cash burn. Meanwhile, financing activities showed positive inflow of $2,956,615 from common stock issuance, thereby bolstering liquidity for operational necessities.