Revenue Performance: FingerMotion’s revenue of $8.46 million demonstrated a modest sequential increase over Q1 2025. However, compared to Q2 2024, the revenue dropped by 8.84% indicating difficulties in growth areas.
Cost Structure: The cost of revenue at $8.16 million largely constrained gross profit to a mere $301,028. Notably, the gross profit margin has worsened significantly to 3.56%, demonstrating challenges in cost management and pricing power.
Operating Losses: Operating loss increased slightly with operating income at -$1.69 million. This continues a trend of negative operating income ratios, raising concerns about operating efficiency.
Cash Flow Insights: Cash used in operating activities was significant at -$1.49 million, reflecting cash flow challenges tied to operations. The overall cash position decreased from $1.06 million at the beginning of the quarter to $810,284, indicating liquidity concerns as working capital shifts.