DarkIris Inc. Reports 13.9% Revenue Growth for the First Half of Fiscal Year 2026
Rhea-AI Summary
DarkIris (Nasdaq: DKI) reported unaudited results for the six months ended March 31, 2026. Revenue rose 13.9% year over year to $5.93 million, driven by new game launches, an increase in monthly paying gamers from 70,866 to 79,608, and higher average revenue per paying gamer from $20.50 to $22.38.
Gross profit increased 20.9% to $1.76 million and gross margin improved to 29.6%. However, total operating expenses surged 718.3% to $3.67 million, mainly from $2.13 million of game enhancement costs and higher selling expenses, leading to a net loss of $1.90 million versus prior net income of $0.91 million and a basic and diluted loss per share of $1.51. Cash declined to $0.47 million and working capital was about $0.4 million. In April 2026, DarkIris completed a $3.8 million PIPE financing at $0.35 per share, following a $472,424 capital contribution received in March 2026.
Positive
- Revenue +13.9% YoY to $5.93 million for six months ended March 31, 2026
- Gross profit +20.9% YoY to $1.76 million; gross margin up to 29.6%
- Paying gamers up from 70,866 to 79,608; ARPPU increased from $20.50 to $22.38
- PIPE financing $3.8 million completed in April 2026 at $0.35 per share
- Intangible assets, net increased to $2.23 million from $0.68 million, reflecting ongoing game development
Negative
- Net income swung to loss: $1.90 million net loss vs $0.91 million net income prior year
- Operating expenses +718.3% YoY to $3.67 million, driven by $2.13 million game enhancement costs and higher selling expenses
- Loss per share of $1.51 vs prior basic and diluted earnings per share of $0.91
- Cash balance down to $0.47 million from $1.80 million as of September 30, 2025
- Net cash used in operations of $0.49 million vs net cash provided of $0.73 million in prior-year period
- Total assets declined to $7.18 million from $8.45 million; shareholders’ equity fell to $4.88 million from $6.78 million
News Explained
In April, the completed PIPE issued 9,400,000 Class A and 1,428,571 Class B ordinary shares at
News Market Reaction – DKI
In the Aug 13 session, DKI gained 0.96%, reflecting a mild positive market reaction. Argus tracked a trough of -12.9% from its starting point during tracking. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. Trading volume was exceptionally heavy at 12.2x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 29 | AIGC platform launch | Positive | -7.1% | Commercial launch of globally available AIGC video platform integrating Seedance 2.0 |
| May 07 | Share consolidation | Neutral | -14.3% | Announced 1-for-16 share consolidation to address Nasdaq listing standards |
| Apr 24 | PIPE financing acquisition | Positive | +12.5% | Closed $3.8 million PIPE and approximately $800,000 content asset acquisition |
| Apr 09 | Singapore R&D expansion | Positive | +142.7% | Established Singapore headquarters to accelerate AIGC development |
| Feb 17 | Chairman shareholder letter | Positive | -4.9% | Reported 2025 revenue growth and outlined AIGC business targets |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The selected history showed positive announcements with both aligned and divergent reactions, including a -7.09% reaction after the AIGC launch and a 142.67% reaction after the Singapore R&D announcement.
Key Terms
aigc technical
pipe financing financial
gross margin financial
intangible assets under construction financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
HONG KONG, Aug. 13, 2026 (GLOBE NEWSWIRE) -- DarkIris Inc. (Nasdaq: DKI) (the “Company” or “DarkIris”), an innovative technology provider in the digital media and entertainment sector, today announced its unaudited financial results for the six months ended March 31, 2026.
Mr. Zhifang Hong, Chief Executive Officer and Chairman of DarkIris, commented, “We are encouraged by the continued momentum across our business in the first half of fiscal year 2026. Revenue increased by
“This performance was supported by contributions from newly launched titles, sustained engagement across our existing game portfolio, and year-over-year growth in both our paying user base and average revenue per paying gamer. Importantly, despite the removal of one of our legacy titles, our newer games continued to attract and monetize users, reinforcing our confidence in the resilience and scalability of our product portfolio.
“During the period, we also made strategic expenditures to strengthen our products and support the Company’s next stage of development. These included approximately
“Building on this foundation, we are increasingly pursuing a dual-engine growth strategy across gaming and AI-driven digital media. We expanded our AI and content capabilities through the commercial launch of our AIGC video platform and the acquisition of a portfolio of film and television intellectual property titles. We believe these initiatives broaden our opportunities across AI-assisted content creation, digital entertainment and IP-driven commercialization while complementing our established gaming business.
“Looking ahead, we remain focused on scaling our game portfolio, advancing our AI-driven content capabilities and pursuing new monetization opportunities across both gaming and digital media. We believe the investments we are making today will position DarkIris to build a more diversified, technology-driven and sustainable growth platform for our shareholders.”
First Half of Fiscal Year 2026 Financial Highlights
- Revenue was
$5.93 million for the first half of fiscal year 2026, an increase of13.9% from$5.20 million for the same period of last fiscal year. - Gross profit was
$1.76 million for the first half of fiscal year 2026, an increase of20.9% from$1.45 million for the same period of last fiscal year. - Gross margin was
29.6% for the first half of fiscal year 2026, an increase of 1.7 percentage points from27.9% for the same period of last fiscal year. - Net loss was
$1.90 million for the first half of fiscal year 2026, compared to net income of$0.91 million for the same period of last fiscal year. - Basic and diluted loss per share was
$1.51 for the first half of fiscal year 2026, compared to basic and diluted earnings per share of$0.91 for the same period of last fiscal year.
First Half of Fiscal Year 2026 Financial Results
Revenue
Revenue was
Cost of Revenue
Cost of revenue was
The following table sets forth the breakdown of cost of revenue for the first half of fiscal year 2026 and 2025, respectively:
| For the Six Months Ended March 31, | Variance | |||||||||||||||
| 2026 | 2025 | Amount | % | |||||||||||||
| Platform handling fees | $ | 3,328,844 | $ | 3,032,345 | $ | 296,499 | 9.8 | % | ||||||||
| Revenue sharing with game developers | 834,137 | 679,034 | 155,103 | 22.8 | % | |||||||||||
| Cloud server costs | 10,149 | 41,076 | (30,927 | ) | (75.3 | )% | ||||||||||
| Stamp duty and value-added tax surcharge | 34 | 72 | (38 | ) | (52.8 | )% | ||||||||||
| Total cost of revenues | $ | 4,173,164 | $ | 3,752,527 | $ | 420,637 | 11.2 | % | ||||||||
Platform Handling Fees
Platform handling fees were
Revenue Sharing with Game Developers
Revenue sharing with game developers was
Cloud Server Costs
Cloud server costs were
Gross Profit and Gross Profit Margin
Gross profit was
Gross profit margin was
Operating Expenses
Total operating expenses were
- Selling expenses were
$0.80 million for the first half of fiscal year 2026, compared to nil for the same period of last fiscal year. The increase was mainly attributable to incurrence of advertising and promotional expenses for launching of new games. - General and administrative expenses were
$2.87 million for the first half of fiscal year 2026, an increase of539.1% from$0.45 million for the same period of last fiscal year. The increase was mainly attributable to game enhancement costs of$2.13 million for two games, which were expensed as incurred.
Net (loss) Income
Net loss was
Basic and Diluted Loss per Share
Basic and diluted loss per share were
Financial Condition
As of March 31, 2026, the Company had cash of
Net cash used in operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
About DarkIris Inc.
DarkIris Inc. (Nasdaq: DKI) is an innovative, growth-oriented public company focused on AI-driven digital media and content production technologies. Through advanced production capabilities, including its artificial intelligence platform, aideptus.com, the Company aims to provide creators, studios, and developers with generative AI solutions designed to streamline creative workflows and enhance digital content production experiences. For more information, please visit the Company’s website at www.darkiris.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission ("SEC").
For investor and media inquiries, please contact:
DarkIris Inc.
Investor Relations Department
Email: dki@darkiris.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1 646-932-7242
Email: investors@ascent-ir.com
| DarkIris Inc. Condensed Consolidated Balance Sheets | ||||||||
| As of | As of | |||||||
| March 31, | September 30, | |||||||
| 2026 | 2025 | |||||||
| (unaudited) | (audited) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 472,948 | $ | 1,800,202 | ||||
| Accounts receivable | 1,594,366 | 2,617,164 | ||||||
| Prepaid expenses and other current assets | 673,353 | 341,105 | ||||||
| Total current assets | 2,740,667 | 4,758,471 | ||||||
| Non-current assets: | ||||||||
| Intangible assets under construction | 2,200,000 | 2,700,000 | ||||||
| Intangible assets, net | 2,228,733 | 679,133 | ||||||
| Security deposits | - | 300,000 | ||||||
| Property and equipment, net | 13,731 | 9,294 | ||||||
| Total non-current assets | 4,442,464 | 3,688,427 | ||||||
| Total assets | $ | 7,183,131 | $ | 8,446,898 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 172,313 | 44,863 | ||||||
| Contract liabilities | 1,333,787 | 1,401,978 | ||||||
| Share capital subscription | 472,424 | - | ||||||
| Taxes payable | 155,911 | 174,329 | ||||||
| Accrued expenses | 167,131 | 42,929 | ||||||
| Total current liabilities and total liabilities | 2,301,566 | 1,664,099 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity: | ||||||||
| Class A ordinary shares ( | 1,468 | 1,468 | ||||||
| Class B ordinary shares ( | 545 | 545 | ||||||
| Additional paid-in capital | 19,129,328 | 19,129,328 | ||||||
| Accumulated deficits | (14,248,033 | ) | (12,348,542 | ) | ||||
| Accumulated other comprehensive loss | (1,743 | ) | - | |||||
| Total shareholders’ equity | 4,881,565 | 6,782,799 | ||||||
| Total liabilities and shareholders’ equity | $ | 7,183,131 | $ | 8,446,898 | ||||
* Retrospectively restated for the effect of a 1-for-16 reverse share split on May 11, 2026.
| DarkIris Inc. Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income | ||||||||
| For the Six Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| (unaudited) | (unaudited) | |||||||
| Revenues | $ | 5,928,589 | $ | 5,204,659 | ||||
| Cost of revenues | (4,173,164 | ) | (3,752,527 | ) | ||||
| Gross profit | 1,755,425 | 1,452,132 | ||||||
| Operating expenses: | ||||||||
| Selling expenses | (804,466 | ) | - | |||||
| General and administrative expenses | (2,868,124 | ) | (448,805 | ) | ||||
| Total operating expenses | (3,672,590 | ) | (448,805 | ) | ||||
| (Loss) income from operations | (1,917,165 | ) | 1,003,327 | |||||
| Other income: | ||||||||
| Government subsidy income | - | 839 | ||||||
| Interest income | 2,188 | 465 | ||||||
| Other income | 15,548 | 18,014 | ||||||
| Total other income, net | 17,736 | 19,318 | ||||||
| (Loss) income before income taxes | (1,899,429 | ) | 1,022,645 | |||||
| Income tax expenses | (62 | ) | (115,253 | ) | ||||
| Net (loss) income | (1,899,491 | ) | 907,392 | |||||
| Other comprehensive (loss) income: | ||||||||
| Foreign currency translation loss | (1,743 | ) | 15,252 | |||||
| Comprehensive (loss) income | ($ | 1,901,234 | ) | $ | 922,644 | |||
| (Loss) earnings per share | ||||||||
| Basic and diluted | ($ | 1.51 | ) | $ | 0.91 | |||
| Weighted average shares outstanding | ||||||||
| Basic and diluted * | 1,257,813 | 1,000,000 | ||||||
* Retrospectively restated for the effect of a 1-for-16 reverse share split on May 11, 2026.
| DarkIris Inc. Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||
| For the Six Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| (unaudited) | (unaudited) | |||||||
| Cash flows from operating activities: | ||||||||
| Net (loss) income | $ | (1,899,491 | ) | $ | 907,392 | |||
| Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||||||
| Depreciation expense | 2,463 | 4,985 | ||||||
| Loss on disposal of property and equipment | - | 502 | ||||||
| Amortization of intangible assets | 250,400 | 1,467 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 1,022,798 | (628,001 | ) | |||||
| Prepaid expenses and other current assets | (180,627 | ) | 327,759 | |||||
| Security deposit | 150,000 | - | ||||||
| Accounts payable | 127,324 | (147,653 | ) | |||||
| Contract liabilities | (68,913 | ) | 125,259 | |||||
| Taxes payable | (18,425 | ) | 116,406 | |||||
| Accrued expenses | 122,222 | 22,722 | ||||||
| Net cash (used in) provided by operating activities | (492,249 | ) | 730,838 | |||||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | (6,794 | ) | (5,113 | ) | ||||
| Proceeds from disposal of property and equipment | - | 874 | ||||||
| Intangible assets under construction | (1,300,000 | ) | (790,000 | ) | ||||
| Net cash used in investing activities | (1,306,794 | ) | (794,239 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from capital contribution | 472,424 | 570,000 | ||||||
| Advances from shareholders | - | 967,649 | ||||||
| Repayments to shareholders | - | (1,191,185 | ) | |||||
| Deferred initial public offering costs | - | (537,948 | ) | |||||
| Net cash provided by (used in) financing activities | 472,424 | (191,484 | ) | |||||
| Effect of exchange rate changes on cash | (635 | ) | (360 | ) | ||||
| Net decrease in cash | (1,327,254 | ) | (255,245 | ) | ||||
| Cash, beginning of period | 1,800,202 | 313,735 | ||||||
| Cash, end of period | $ | 472,948 | $ | 58,490 | ||||
| Supplemental disclosure information: | ||||||||
| Cash paid for income tax | 18,816 | - | ||||||
| Cash paid for interest | - | - | ||||||
