Enigmatig Reports First Half Fiscal 2026 Results Following Transition to Cost-Plus Billing Model
Rhea-AI Summary
Enigmatig (NYSE American: EGG) reported unaudited results for the first half of fiscal 2026, ended March 31, 2026, reflecting a transition to a cost-plus billing model implemented on October 1, 2025.
Corporate services income fell 59.1% year over year to US$1.19 million, with license application and renewal services down 36.9% to US$0.72 million and corporate secretarial and other services down 73.4% to US$0.47 million. Cost of sales rose 59.6% to US$1.16 million, reducing gross profit to US$21,738 and gross margin to 1.8%, from US$2.17 million and 74.8% a year earlier.
Operating expenses increased to US$2.29 million from US$0.92 million, driven mainly by higher payroll, new office leases in London and Hong Kong, and higher professional and other costs. Enigmatig recorded a loss from operations of US$2.27 million and a net loss of US$1.96 million, versus net profit of US$1.23 million in the prior-year period. Cash and cash equivalents were stable at US$13.2 million, and operating cash flow was US$0.5 million.
Positive
- Corporate services income US$1.19 million for six months ended March 31, 2026
- Positive operating cash flow of US$0.5 million in first half 2026
- Cash and cash equivalents stable at US$13.2 million as of March 31, 2026
- Other income, net increased to US$333,248, including US$0.4 million interest income
- Global footprint expanded to six offices plus a representative desk in Bangkok
Negative
- Corporate services income down 59.1% year over year to US$1.19 million
- Gross profit dropped to US$21,738; gross margin fell to 1.8% from 74.8%
- Swing to US$2.27 million loss from operations from US$1.25 million profit
- Net loss of US$1.96 million versus US$1.23 million net profit a year earlier
- Operating expenses rose to US$2.29 million from US$0.92 million, led by payroll and leases
- Net cash from operating activities declined to US$0.5 million from US$2.1 million
- Total shareholders’ equity decreased to US$14.03 million from US$15.99 million
News Explained
As of March 31, 2026, the model change reduced reported revenue and margin, while issued share counts were unchanged and equity was lower.
Enigmatig has reported unaudited first-half fiscal 2026 results for the six months ended
The company also discontinued its proprietary CRM platform and related application, ending that platform as part of its disclosed operations.
The balance sheet lists 12,255,200 Class A and 15,750,000 Class B shares issued and outstanding at both
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 21 | Film investment announcement | Positive | -4.4% | Investment in Singapore-Canada film co-production using virtual production technology |
| Jun 08 | Trading activity statement | Neutral | +16.4% | Company addressed unusual share trading without identifying undisclosed material developments |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Both prior news events showed price movements that diverged from the apparent direction or informational content of the announcements.
Key Terms
cost-plus billing model financial
contract assets financial
right-of-use assets financial
foreign currency translation adjustment financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
SINGAPORE, Aug. 21, 2026 (GLOBE NEWSWIRE) -- Enigmatig Limited (NYSE American: EGG) ("Enigmatig" or the "Company"), a global business enabler supporting companies expanding across borders, announced on August 7, 2026, its unaudited financial results for the first six months of fiscal year 2026, ended March 31, 2026.
First Half Fiscal Year 2026 Financial Snapshot
- Total corporate services income was US
$1.2 million for the six months ended March 31, 2026, compared with US$2.9 million in the same period of fiscal year 2025, primarily reflecting the Company’s transition to a cost-plus billing model, which naturally reduces reported revenue. - Cost of sales was US
$1.2 million for the six months ended March 31, 2026, compared with US$0.7 million in the same period of fiscal year 2025. - Gross profit was US
$21,738 for the six months ended March 31, 2026, compared with US$2.2 million in the same period of fiscal year 2025. - Loss from operations was US
$2.3 million for the six months ended March 31, 2026, compared with profit from operations of US$1.2 million in the same period of fiscal year 2025. - Net loss was US
$2.0 million for the six months ended March 31, 2026, compared with net profit of US$1.2 million in the same period of fiscal year 2025. - Cash and cash equivalents were US
$13.2 million as of March 31, 2026, essentially unchanged from September 30, 2025. Net cash provided by operating activities was US$0.5 million for the six months ended March 31, 2026.
Business Updates
- Effective October 1, 2025, the Company implemented a cost-plus billing model for certain client engagements.
- The Company expanded its global footprint to six offices, comprising two in Singapore, two in London, one in Hong Kong and one in Shanghai, together with a representative desk in Bangkok, Thailand.
- Following a review of the underlying technology framework, the Company discontinued its proprietary CRM platform and the related application, having determined that the costs of upgrading and maintaining the system would outweigh the expected economic benefits.
Management Quotes
“The first six months of fiscal 2026 were a period of deliberate structural change at Enigmatig,” said Desmond Foo, Enigmatig’s Founder and CEO. “While this naturally reduces reported revenue and compresses margin, the work we deliver under it will help stabilize our revenue base for the longer term. With a larger team and footprint in place, we are well positioned to continue strengthening our geographic reach to build long-term value for our shareholders.”
“Our first-half results primarily reflect the transition to a cost-plus billing model effective October 1, 2025, as well as a one-time bonus, salary increments and an increase in headcount,” said Mingwen Teo, Enigmatig’s Director and CFO. “This period’s margin reset represents a new baseline, though we do expect operating leverage to improve as we scale. Our capital position is intact, with cash and cash equivalents of US
First Half Fiscal Year 2026 Financial Results
Corporate Services Income
Corporate services income was US
The table below sets forth the breakdown of our corporate services income for the periods indicated:
| For the Six Months Ended March 31, | ||||||
| 2025 | 2026 | |||||
| US$ | % | US$ | % | |||
| Corporate services income: | ||||||
| License application and renewal services | 1,138,270 | 717,919 | ||||
| Corporate secretarial and other services | 1,761,746 | 468,774 | ||||
| Total | 2,900,016 | 100.0 | 1,186,693 | 100.0 | ||
- License application and renewal services. Income from license application and renewal services was US
$0.7 million , compared with US$1.1 million in the prior-year period, a decrease of36.9% . The segment’s contribution to total corporate services income was60.5% , compared with39.3% in the prior-year period. - Corporate secretarial and other services. Income from corporate secretarial and other services was US
$0.5 million , compared with US$1.8 million in the same period of fiscal year 2025, a decrease of73.4% . The segment represented39.5% of total corporate services income, compared with60.7% in the prior-year period.
Cost of Sales
Cost of sales was US
Gross Profit
Gross profit was US
Operating Expenses
Operating expenses totaled US
Loss from Operations
Loss from operations was US
Other Income
Other income, net totaled US
Net Loss
The Company reported a net loss of US
Cash and Cash Equivalents
As of March 31, 2026, the Company had cash and cash equivalents of US
About Enigmatig Limited
Enigmatig is a global business enabler supporting companies in achieving their international ambitions. Since 2010, we have provided regulatory, corporate, and technology-driven solutions to help businesses operate and scale across borders. Headquartered in Singapore, with a presence in Bangkok, Hong Kong, Jakarta, Shanghai, London, Taipei and Tokyo, Enigmatig serves a diverse and growing international client base.
For more information, please visit: https://enigmatig.com
Safe Harbor Statement
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 identify these forward-looking statements by words or phrases such as “may,” “could,” “will,” “should,” “would,” “expect,” “plan,” “aim,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “is/are likely to,” “potential,” “project” or “continue” or the negative of these terms or other comparable or similar terminology. 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 SEC, which are available for review at www.sec.gov.
For investor and media inquiries, please contact:
investors@enigmatig.com / cindy@enigmatig.com
| ENIGMATIG LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETS (In U.S. dollars, except for share and per share data, or otherwise noted) | ||||||
| As of March 31, 2026 | As of September 30, 2025 | |||||
| (Unaudited) | ||||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 13,207,803 | $ | 13,206,006 | ||
| Accounts receivable, net | 897,829 | 1,237,290 | ||||
| Contract assets | 185,005 | 46,347 | ||||
| Other current assets | 607,518 | 578,783 | ||||
| Due from related party | 525,967 | 29,733 | ||||
| Total current assets | 15,424,122 | 15,098,159 | ||||
| Non-current assets | ||||||
| Property and equipment, net | 251,348 | 218,450 | ||||
| Right-of-use assets, net | 838,354 | 721,176 | ||||
| Deposits | 208,029 | 2,179,519 | ||||
| Total non-current assets | 1,297,731 | 3,119,145 | ||||
| TOTAL ASSETS | $ | 16,721,853 | $ | 18,217,304 | ||
| LIABILITIES | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 408,147 | $ | 334,923 | ||
| Accrual and other liabilities | 260,606 | 122,783 | ||||
| Contract liabilities | 1,019,149 | 765,229 | ||||
| Amount due to shareholder | 23,915 | - | ||||
| Operating lease liabilities, current | 359,899 | 300,824 | ||||
| Income taxes payable | 150,884 | 293,088 | ||||
| Total current liabilities | 2,222,600 | 1,816,847 | ||||
| Non-current liabilities | ||||||
| Operating lease liabilities, non-current | 465,132 | 407,622 | ||||
| Total non-current liabilities | 465,132 | 407,622 | ||||
| TOTAL LIABILITIES | 2,687,732 | 2,224,469 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||
| SHAREHOLDERS’ EQUITY | ||||||
| Class A ordinary shares, US | 25 | 25 | ||||
| Class B ordinary shares, US | 31 | 31 | ||||
| Additional paid in capital | 13,801,234 | 13,801,234 | ||||
| Retained earnings | 115,485 | 2,078,949 | ||||
| Accumulated other comprehensive income | 117,346 | 112,596 | ||||
| Total shareholders’ equity | 14,034,121 | 15,992,835 | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 16,721,853 | $ | 18,217,304 | ||
| ENIGMATIG LIMITED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In U.S. dollars, except for share and per share data, or otherwise noted) | ||||||||
| For the Six Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Corporate services income | $ | 1,186,693 | $ | 2,900,016 | ||||
| Cost of sales | (1,164,955 | ) | (729,724 | ) | ||||
| Gross profit | 21,738 | 2,170,292 | ||||||
| Operating expenses | ||||||||
| Payroll and employee benefits | (1,202,209 | ) | (217,665 | ) | ||||
| Depreciation expenses | (35,110 | ) | (8,273 | ) | ||||
| Operating lease expenses | (191,793 | ) | (38,662 | ) | ||||
| Other operating expenses | (859,199 | ) | (659,126 | ) | ||||
| Total operating expenses | (2,288,311 | ) | (923,726 | ) | ||||
| Profit / (loss) from operations | (2,266,573 | ) | 1,246,566 | |||||
| Other income | ||||||||
| Other income, net | 333,248 | 244,337 | ||||||
| Total other income | 333,248 | 244,337 | ||||||
| Profit / (loss) before income tax expense | (1,933,325 | ) | 1,490,903 | |||||
| Income tax expense | (30,139 | ) | (257,343 | ) | ||||
| Net profit / (loss) | (1,963,464 | ) | 1,233,560 | |||||
| Other comprehensive income / (loss) | ||||||||
| Foreign currency translation adjustment | 4,750 | (98,747 | ) | |||||
| Total comprehensive income / (loss) | $ | (1,958,714 | ) | $ | 1,134,813 | |||
| Net Income (loss) per share attributable to ordinary shareholders | ||||||||
| Basic and diluted | $ | (0.07 | ) | $ | 0.05 | |||
| Weighted average number of ordinary shares used in computing net income per share | ||||||||
| Basic and diluted | 28,005,200 | 25,000,000 | ||||||
