DarkIris Inc. Reports 27.3% Revenue Growth and Positive Operating Cash Flow for Fiscal Year 2025
Rhea-AI Summary
DarkIris (Nasdaq: DKI) reported fiscal 2025 revenue of $10.08 million, up 27.3% year-over-year, with gross profit of $2.50 million and gross margin of 24.8%. The company posted a net loss of $8.64 million and basic loss per share of $0.52.
Operating expenses rose sharply to $11.10 million, driven by $8.81 million of share-based compensation for post-IPO equity incentives; cash was $1.80 million as of September 30, 2025.
Positive
- Revenue +27.3% to $10.08M year-over-year
- Operating cash flow remained near breakeven with $0.46M net cash used in operations
- Post-IPO financing generated $5.37M net cash from financing activities
Negative
- Net loss of $8.64M in FY2025 versus net income of $1.10M in FY2024
- Operating expenses surged 499.3% to $11.10M, driven by $8.81M share-based compensation
- Gross margin compressed to 24.8% from 38.0% due to higher platform handling fees
Market Reaction
Following this news, DKI has gained 151.71%, reflecting a significant positive market reaction. Argus tracked a peak move of +354.5% during the session. Our momentum scanner has triggered 59 alerts so far, indicating high trading interest and price volatility. The stock is currently trading at $0.84. This price movement has added approximately $4M to the company's valuation. Trading volume is exceptionally heavy at 485.9x the average, suggesting very strong buying interest.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
Sector peers show mixed moves, with some gains and some declines; for example, GDC is up 8.54% while SKLZ and CTW are modestly negative. This pattern points to stock-specific factors rather than a coordinated sector move for DKI.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 21 | Listing deficiency notice | Negative | +0.6% | Nasdaq minimum bid price deficiency notice and cure period disclosure. |
| Aug 11 | Initial public offering | Positive | +2.0% | Completion of IPO at $4.00 per share raising $6.90 million. |
Limited history shows one positive reaction to the IPO and a mild upside move despite negative Nasdaq deficiency news, indicating mixed alignment between news tone and price moves.
Over the past year, DarkIris moved from its August 11, 2025 IPO, raising $6.90 million, to receiving a Nasdaq minimum bid price deficiency notice on November 21, 2025. The IPO news saw a modest positive reaction, while the deficiency letter also coincided with a slight gain, suggesting some resilience despite listing pressures. Today’s full-year 2025 results, highlighting 27.3% revenue growth and a shift to net loss, follow this backdrop of rapid public listing and compliance challenges.
Market Pulse Summary
The stock is surging +151.7% following this news. A strong positive reaction aligns with the report’s solid top-line expansion, including 27.3% revenue growth to $10.08 million, despite compressed margins and a $8.64 million net loss. Historically, DarkIris saw constructive responses to its $6.90 million IPO and even to a Nasdaq deficiency notice. Investors could later reassess valuation against persistent losses and heavy share-based compensation as initial enthusiasm normalizes.
Key Terms
initial public offering financial
AI-generated analysis. Not financial advice.
HONG KONG, Jan. 30, 2026 (GLOBE NEWSWIRE) -- DarkIris Inc. (Nasdaq: DKI) (the “Company” or “DarkIris”), a comprehensive technology enterprise engaged in the development, publishing and operating of mobile digital games through various third-party digital storefronts, today announced its financial results for the fiscal year ended September 30, 2025.
Mr. Zhifang Hong, Chief Executive Officer and Chairman of DarkIris, commented, “Fiscal year 2025 was a transformative year for DarkIris as we continued to develop, refine and iterate our games, successfully renewing and expanding our product portfolio. We delivered solid operating performance, with full-year revenue reaching
During the year, we proactively increased investments in marketing, platform partnerships and talent incentives to support our long-term growth. Notably, we continued to enhance our equity-based incentive programs to attract, motivate and retain key talents, and boosted product research and development investment to approximately
Looking ahead, we remain committed to investing in creative and innovative game development while optimizing user operations and engagement strategies to further enhance user attraction and retention. In parallel, we will continue diversifying and expanding our marketing and distribution channels. Supported by an increasingly diversified product matrix and a growing base of high-value users, we believe DarkIris is well positioned to deliver sustainable growth and gradually unlock long-term operating leverage.”
Fiscal Year 2025 Financial Summary
- Revenue was
$10.08 million in fiscal year 2025, an increase of27.3% from$7.92 million in fiscal year 2024. - Gross profit was
$2.50 million in fiscal year 2025, compared to$3.01 million in fiscal year 2024. - Gross margin was
24.8% in fiscal year 2025, compared to38.0% in fiscal year 2024. - Net loss was
$8.64 million in fiscal year 2025, compared to net income of$1.10 million in fiscal year 2024. - Basic and diluted loss per share were
$0.52 in fiscal year 2025, compared to basic and diluted earnings per share of$0.07 in fiscal year 2024.
Fiscal Year 2025 Financial Results
Revenues
Revenue was
Cost of Revenues
Cost of revenue was
The following table sets forth the breakdown of cost of revenues for fiscal year 2025 and fiscal year 2024, respectively:
| For the Years Ended September 30, | Variance | |||||||||||||||
| 2025 | 2024 | Amount | % | |||||||||||||
| Platform handling fees | $ | 6,191,175 | $ | 3,517,961 | $ | 2,673,214 | 76.0 | % | ||||||||
| Revenue sharing with game developers | 1,328,701 | 1,267,754 | 60,947 | 4.8 | % | |||||||||||
| Cloud server costs | 56,033 | 126,296 | (70,263 | ) | (55.6 | )% | ||||||||||
| Stamp duty and value-added tax surcharge | 140 | 270 | (130 | ) | (48.1 | )% | ||||||||||
| Total cost of revenues | $ | 7,576,049 | $ | 4,912,281 | $ | 2,663,768 | 54.2 | % | ||||||||
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 Margin
Gross profit was
Gross margin was
Operating Expenses
Total operating expenses were
- Selling expenses were
$9.30 million in fiscal year 2025, an increase of797.9% from$1.04 million in fiscal year 2024. The increase was mainly attributable to share-based compensation of approximately$8.81 million related to post-IPO equity incentive programs designed to attract and retain key talents. - Research and development expenses were
$0.90 million in fiscal year 2025, an increase of100% from nil in fiscal year 2024. The increase was primarily attributable to art production costs for a mobile digital game “Alchemy and Magic” which should be expensed. - General and administrative expenses were
$0.90 million in fiscal year 2025, an increase of9.7% from$0.82 million in fiscal year 2024. The increase was mainly attributed to professional service fees incurred for the initial public offerings.
Net (loss) Income
Net loss was
Basic and Diluted Loss per Share
Basic and diluted loss per share were
Financial Condition
As of September 30, 2025, 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
Recent Development
On August 11, 2025, the Company completed its initial public offering (the “Offering”) of 1,725,000 Class A ordinary shares at a public offering price of
About DarkIris Inc.
DarkIris Inc. is a comprehensive technology enterprise based in Hong Kong, engaged in the development, publishing and operating of mobile digital games through various third-party digital storefronts. The Company conducts its business through its subsidiaries, Quantum Arts Co., Limited and Hongkong Stellar Wisdom Co., Limited. The Company’s activities include game design, programming and graphics, as well as the distribution and operation of mobile games across multiple platforms. DarkIris leverages (i) the innovative, creative and technical expertise of Hong Kong’s gaming industry community, and (ii) the multicultural environment and diverse interests of mobile game players in the regions. The Company’s goal is to create and promote a broader array of engaging, immersive, and captivating mobile game genres for a global audience. The Company is committed to consistently showcasing exceptional strength and unique allure across diverse gaming sectors, leading the way in pioneering advancements within the industry. For more information, please visit the Company’s website: 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 prospectus. 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. CONSOLIDATED BALANCE SHEETS (Expressed in U.S. Dollars) | ||||||||
| As of | As of | |||||||
| September 30, | September 30, | |||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 1,800,202 | $ | 313,735 | ||||
| Accounts receivable | 2,617,164 | 1,349,808 | ||||||
| Prepayment for game development | - | 44,000 | ||||||
| Deferred initial public offering costs | - | 28,542 | ||||||
| Prepaid expenses and other current assets | 341,105 | 477,740 | ||||||
| Total current assets | 4,758,471 | 2,213,825 | ||||||
| Non-current assets: | ||||||||
| Prepayment for game development | 2,700,000 | - | ||||||
| Intangible assets, net | 679,133 | - | ||||||
| Security deposits | 300,000 | - | ||||||
| Property and equipment, net | 9,294 | 16,651 | ||||||
| Total non-current assets | 3,688,427 | 16,651 | ||||||
| Total assets | $ | 8,446,898 | $ | 2,230,476 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 44,863 | 206,661 | ||||||
| Contract liabilities | 1,401,978 | 705,801 | ||||||
| Due to a related party | - | 243,788 | ||||||
| Taxes payable | 174,329 | 98,158 | ||||||
| Accrued expenses | 42,929 | 41,074 | ||||||
| Total current liabilities and total liabilities | 1,664,099 | 1,295,482 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity: | ||||||||
| Class A ordinary shares ( | 1,468 | 1,055 | ||||||
| Class B ordinary shares ( | 545 | 545 | ||||||
| Additional paid-in capital | 19,129,328 | 4,701,748 | ||||||
| Accumulated deficits | (12,348,542 | ) | (3,706,377 | ) | ||||
| Accumulated other comprehensive loss | - | (61,977 | ) | |||||
| Total shareholders’ equity | 6,782,799 | 934,994 | ||||||
| Total liabilities and shareholders’ equity | $ | 8,446,898 | $ | 2,230,476 | ||||
| DARKIRIS INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Expressed in U.S. Dollars) | ||||||||||||
| For the Years Ended September 30, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Revenues | $ | 10,078,798 | $ | 7,920,461 | $ | 3,951,074 | ||||||
| Cost of revenues | (7,576,049 | ) | (4,912,281 | ) | (1,551,295 | ) | ||||||
| Gross profit | 2,502,749 | 3,008,180 | 2,399,779 | |||||||||
| Operating expenses: | ||||||||||||
| Selling expenses | (9,304,000 | ) | (1,036,243 | ) | (2,734,324 | ) | ||||||
| Research and development expenses | (900,000 | ) | - | - | ||||||||
| General and administrative expenses | (895,060 | ) | (815,723 | ) | (924,188 | ) | ||||||
| Total operating expenses | (11,099,060 | ) | (1,851,966 | ) | (3,658,512 | ) | ||||||
| (Loss) income from operations | (8,596,311 | ) | 1,156,214 | (1,258,733 | ) | |||||||
| Other income: | ||||||||||||
| Government subsidy income | 842 | 498 | 1,994 | |||||||||
| Interest income | 550 | 1,174 | 549 | |||||||||
| Loss on disposal of subsidiary | (52,697 | ) | - | - | ||||||||
| Other income (expenses) | 81,622 | 37,077 | (1,634 | ) | ||||||||
| Total other income, net | 30,317 | 38,749 | 909 | |||||||||
| (Loss) income before income taxes | (8,565,994 | ) | 1,194,963 | (1,257,824 | ) | |||||||
| Income tax expenses | (76,171 | ) | (98,158 | ) | - | |||||||
| Net (loss) income | (8,642,165 | ) | 1,096,805 | (1,257,824 | ) | |||||||
| Other comprehensive income (loss) : | ||||||||||||
| Foreign currency translation gain (loss) | 61,977 | (50,668 | ) | 55,652 | ||||||||
| Comprehensive (loss) income | $ | (8,580,188 | ) | $ | 1,046,137 | $ | (1,202,172 | ) | ||||
| (Loss) earnings per share | ||||||||||||
| Basic and diluted | $ | (0.52 | ) | $ | 0.07 | $ | (0.08 | ) | ||||
| Weighted average shares outstanding | ||||||||||||
| Basic and diluted | 16,527,261 | 16,000,000 | 16,000,000 | |||||||||
| DARKIRIS INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars, except for the number of shares) | ||||||||||||
| For the Years Ended September 30, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net (loss) income | $ | (8,642,165 | ) | $ | 1,096,805 | $ | (1,257,824 | ) | ||||
| Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||||||||||
| Prepaid expenses written off | 69,463 | - | - | |||||||||
| Depreciation expense | 8,116 | 8,346 | 7,383 | |||||||||
| Loss on disposal of property and equipment | 12,233 | - | - | |||||||||
| Amortization of intangible assets | 24,867 | - | - | |||||||||
| Loss on disposal of a subsidiary | 52,697 | - | - | |||||||||
| Share-based compensation | 8,808,000 | - | - | |||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | (1,270,348 | ) | (915,209 | ) | (344,297 | ) | ||||||
| Prepayment for game development | - | (44,000 | ) | - | ||||||||
| Prepaid expenses and other current assets | (12,188 | ) | (431,812 | ) | 13,697 | |||||||
| Security deposit | (300,000 | ) | - | - | ||||||||
| Accounts payable | (81,950 | ) | (108,444 | ) | 161,316 | |||||||
| Contract liabilities | 736,507 | 375,842 | 80,603 | |||||||||
| Taxes payable | 77,453 | 98,158 | - | |||||||||
| Accrued expenses | 59,380 | (26,019 | ) | 7,438 | ||||||||
| Net cash (used in) provided by operating activities | (457,935 | ) | 53,667 | (1,331,684 | ) | |||||||
| Cash flows from investing activities: | ||||||||||||
| Purchase of property and equipment | (5,125 | ) | (12,148 | ) | (2,766 | ) | ||||||
| Proceeds from disposal of property and equipment | 876 | - | - | |||||||||
| Prepayment for game development | (2,700,000 | ) | - | - | ||||||||
| Purchase of intangible assets | (704,000 | ) | - | - | ||||||||
| Disposal of subsidiary, net of cash | (15,090 | ) | - | - | ||||||||
| Net cash used in investing activities | (3,423,339 | ) | (12,148 | ) | (2,766 | ) | ||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from capital contribution | 570,000 | 2,741,925 | 406,793 | |||||||||
| Proceeds from issuance of ordinary shares | 5,049,993 | - | - | |||||||||
| Advances from shareholders | 970,077 | 1,478,653 | 5,605,046 | |||||||||
| Repayments to shareholders | (1,221,773 | ) | (3,992,925 | ) | (4,970,289 | ) | ||||||
| Deferred initial public offering costs | - | (28,542 | ) | - | ||||||||
| Net cash provided by financing activities | 5,368,297 | 199,111 | 1,041,550 | |||||||||
| Effect of exchange rate changes on cash | (556 | ) | (7,759 | ) | (11,125 | ) | ||||||
| Net increase (decrease) in cash | 1,486,467 | 232,871 | (304,025 | ) | ||||||||
| Cash, beginning of year | 313,735 | 80,864 | 384,889 | |||||||||
| Cash, end of year | $ | 1,800,202 | $ | 313,735 | $ | 80,864 | ||||||
| Supplemental disclosure information: | ||||||||||||
| Cash paid for income tax | - | - | - | |||||||||
| Cash paid for interest | - | - | - | |||||||||
| Supplemental non-cash activities: | ||||||||||||
| Share-based compensation | $ | 8,808,000 | - | - | ||||||||
FAQ
What were DarkIris (DKI) fiscal 2025 revenues and year-over-year growth?
Why did DarkIris (DKI) report a large net loss in fiscal 2025?
How did DarkIris (DKI) gross margin and cost structure change in fiscal 2025?
What is DarkIris (DKI) cash position and cash flow status after fiscal 2025?
How did DarkIris (DKI) attribute its revenue growth sources in fiscal 2025?
