Youxin Technology Ltd Reports Financial Results for Fiscal Year 2025
Rhea-AI Summary
Youxin Technology (Nasdaq: YAAS) reported fiscal 2025 results: revenue $0.54M (+3% YoY), gross profit $0.18M, gross margin 33% (vs 66% prior), and net loss $9.65M. Cash rose to $9.91M after IPO and follow-on offerings. The company completed the acquisition of Celnet Technology on October 29, 2025, and integrated AI into its PaaS platform to expand multi-industry clients.
Management cited one-time offering-related fees, warrant and investment losses as drivers of the larger net loss and targets operating breakeven in fiscal 2026.
Positive
- Cash balance increased to $9.91M as of September 30, 2025
- Revenue grew to $0.54M, a 3% increase year-over-year
- Acquisition of Celnet Technology on October 29, 2025 to bolster international Salesforce capabilities
- Integration of AI models into PaaS platform improving development efficiency and multi-industry appeal
Negative
- Net loss widened to $9.65M in fiscal 2025 from $1.28M in fiscal 2024
- Gross margin declined to 33% from 66% year-over-year
- General and administrative expenses rose 454% to $2.75M, driven by IPO and follow-on professional fees
- Total net other expense of $6.79M due to $2.74M investment loss and warrant-related charges
News Market Reaction
On the day this news was published, YAAS declined 6.08%, reflecting a notable negative market reaction. Argus tracked a peak move of +3.4% during that session. Argus tracked a trough of -15.0% from its starting point during tracking. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $367K from the company's valuation, bringing the market cap to $6M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
YAAS showed a -5.73% move versus peers where PET, MYSZ, FRGT, AUUD, and TGL all had notable single‑day swings; FRGT appeared in momentum scans up 5.51%, underscoring stock‑specific rather than synchronized sector behavior for YAAS.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jul 14 | H1 2025 earnings | Negative | -3.5% | Revenue growth but sharp gross margin decline and wider net loss. |
| Jan 30 | FY 2024 earnings | Positive | +1.3% | Improved gross margin and reduced net loss despite revenue decline. |
Earnings releases have coincided with modest but directionally aligned price moves, with widening losses and margin pressure tending to weigh on the stock.
Recent history shows a shift from FY2024’s cost control and improved 66% gross margin with a reduced $1.28M net loss toward FY2025’s mixed earnings profile, where earlier H1 FY2025 results already signaled margin compression to 37% and a wider $1.7M loss. Both prior earnings events produced relatively moderate price reactions, suggesting that financial updates have driven but not dramatically shocked trading.
Historical Comparison
In the past year, YAAS posted 2 earnings releases with an average move of ±2.42%. Today’s pre‑announcement move of -5.73% sits outside that typical range, suggesting a comparatively stronger reaction to the latest full‑year figures.
Across FY2024 and H1 FY2025, results showed revenue shifts with improving then compressing margins and widening losses linked to listing costs; the new FY2025 report extends this trajectory with much higher net loss alongside a materially stronger cash position.
Market Pulse Summary
The stock moved -6.1% in the session following this news. A negative reaction despite management highlighting liquidity gains fits a pattern where earnings updates with widening losses and weaker margins weighed on YAAS. FY2025 shows net loss expanding to $9.65M and gross margin falling to 33%, while the share price sat 99.75% below its 52‑week high pre‑release. With past earnings moves averaging about ±2.42%, a -5.73% decline may reflect heightened sensitivity to dilution history and warrant‑related expenses.
Key Terms
software as a service ("saas") technical
platform as a service ("paas") technical
customer relationship management (crm) technical
gross margin financial
net loss financial
warrant liabilities financial
equity incentive plan financial
AI-generated analysis. Not financial advice.
Mr. Shaozhang Lin, Chief Executive Officer of Youxin Technology Ltd, commented, "In fiscal year 2025, we successfully completed our initial public offering and a follow-on offering, which substantially improved the Company's liquidity and strengthened financial foundation. A key part of the R&D progress was the successful integration of AI models into our PaaS platform, enabling the generation of complex customized code through natural language and conversational interaction, which significantly enhanced development efficiency and user experience. With AI-enhanced solutions, we have already attracted clients from a broader range of industries, including cosmetics and cruise lines, and have reinforced the scalability of our platform. In parallel, by serving customers across multiple industries, we continued to expand the functionality of our PaaS platform and build multi-industry service capabilities, laying a solid foundation for a potential performance inflection in fiscal year 2026."
Mr. Lin added, "Fiscal year 2025 marked a year of execution and capability building. Total revenues reached
Mr. Lin continued, "The successful acquisition of Celnet Technology Co., Ltd. on October 29, 2025 advanced our internationalization strategy and enhanced our ability to serve multinational and large domestic enterprises through its extensive Salesforce implementation experience, further improving the practicality and enterprise readiness of our PaaS platform. Looking ahead, we plan to fully commercialize our R&D achievements and aim to achieve operating breakeven by fiscal year 2026. We will continue to promote our PaaS and SaaS solutions across various sectors and, together with our partners, pursue opportunities to expand into international markets, positioning the Company to support customers' overseas expansion and sustainable growth in 2026 and beyond."
Fiscal Year 2025 Financial Overview
- Revenue was
$0.54 million 3% from$0.52 million - Gross profit was
$0.18 million $0.34 million - Gross margin was
33% in fiscal year 2025, compared to66% in fiscal year 2024. - Net loss was
$9.65 million $1.28 million - Cash was
$9.91 million $0.02 million
Fiscal Year 2025 Financial Results
Revenues
Total revenues were
For the years ended September 30, | ||||||||||||||||||||||||
2025 | 2024 | |||||||||||||||||||||||
($) | Revenue | Cost of | Gross | Revenue | Cost of | Gross | ||||||||||||||||||
Professional services | 515,684 | 356,807 | 31 % | 275,314 | 158,880 | 42 % | ||||||||||||||||||
Payment channel services | 21,590 | - | 100 % | 206,526 | - | 100 % | ||||||||||||||||||
Others | 2,200 | 2,702 | (23) % | 39,401 | 20,768 | 47 % | ||||||||||||||||||
Total | 539,474 | 359,509 | 33 % | 521,241 | 179,648 | 66 % | ||||||||||||||||||
Revenue from professional services was
- Revenue from customized CRM system development services was
$0.29 million - Revenue from the additional function development services was
$38,808 9% from$42,758 - Revenue from subscription services was
$0.19 million 18% from$0.23 million
Cost of Revenues
Cost of revenues was
Gross Profit
Gross profit was
Gross margin was
Operating Expenses
Operating expenses were
- Selling expenses were
$0.13 million 38% from$0.09 million $25,661 270% was primarily due to an increase in putting effort to the business promotion to expand customer base for fiscal year 2025, compared to fiscal year 2024. - General and administrative expenses were
$2.75 million 454% from$0.50 million - Research and development expenses were
$0.16 million 86% from$1.14 million $0.90 million 94% for fiscal year 2025 compared to fiscal year 2024.
Other Income (Expense), Net
Total net other expense was
Net Loss
Net loss was
Basic and Diluted Loss per Share
Basic and diluted loss per share was
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
About Youxin Technology Ltd
Youxin Technology Ltd is a SaaS and PaaS provider committed to helping retail enterprises digitally transform their businesses using its cloud-based SaaS product and PaaS platform to develop, use and control business applications without the need to purchase complex IT infrastructure. Youxin Technology provides a customized, comprehensive, fast-deployment omnichannel digital solutions that unify all aspects of commerce with store innovations, distributed inventory management, cross-channel data integration, and a rich set of ecommerce capabilities that encompass mobile applications, social media, and web-based applications. The Company's products allow mid-tier brand retailers to use offline direct distribution to connect the management team, distributors, salespersons, stores, and end customers across systems, apps, and devices. This provides retailers with a comprehensive suite of tools to instantly address issues using real-time sales data. For more information, please visit the Company's website: https://ir.youxin.cloud.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Company's product development and business prospects, and can be identified by the use of words such as "may," "will," "expect," "project," "estimate," "anticipate," "plan," "believe," "potential," "should," "continue" or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the security laws of
For more information, please contact:
Youxin Technology Ltd.
Investor Relations Department
Email: ir@youxin.cloud
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
YOUXIN TECHNOLOGY LTD | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
AS OF SEPTEMBER 30, 2025 and 2024 | ||||||||
(Expressed in | ||||||||
September 30, 2025 | September 30, 2024 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash | $ | 9,912,327 | $ | 18,372 | ||||
Restricted cash | 24,298 | 24,649 | ||||||
Accounts receivable, net | 213,772 | 176,607 | ||||||
Deferred contract costs | 13,103 | - | ||||||
Amount due from a related party | 17,486 | - | ||||||
Prepaid expenses and other current assets | 295,559 | 122,676 | ||||||
Total current assets | 10,476,545 | 342,304 | ||||||
NON-CURRENT ASSETS | ||||||||
Property and equipment, net | 2,518 | 3,948 | ||||||
Deferred offering costs | - | 478,108 | ||||||
Operating lease right-of-use assets | 78,862 | 123,170 | ||||||
Other non-current assets | 10,457 | 10,608 | ||||||
Prepayment for acquisition | 210,704 | - | ||||||
Total non-current assets | 302,541 | 615,834 | ||||||
TOTAL ASSETS | $ | 10,779,086 | $ | 958,138 | ||||
LIABILITIES | ||||||||
CURRENT LIABILITIES | ||||||||
Short-term bank loan | $ | 318,865 | $ | 323,472 | ||||
Accounts payable | 34,190 | 31,350 | ||||||
Contract liabilities | 30,024 | 215,768 | ||||||
Amount due to related parties | - | 1,067,119 | ||||||
Operating lease liabilities - current | 46,190 | 42,277 | ||||||
Payroll payable | 1,134,532 | 1,869,436 | ||||||
Warrant liabilities | 902,287 | - | ||||||
Accrued expenses and other current liabilities | 87,439 | 40,299 | ||||||
Total current liabilities | 2,553,527 | 3,589,721 | ||||||
Operating lease liabilities - non-current | 35,306 | 82,674 | ||||||
Total non-current liabilities | 35,306 | 82,674 | ||||||
TOTAL LIABILITIES | $ | 2,588,833 | $ | 3,672,395 | ||||
COMMITMENTS AND CONTINGENCIES (NOTE 17) | ||||||||
SHAREHOLDERS' EQUITY (DEFICIT) | ||||||||
Class A ordinary shares, ( | 18,604 | 2,230 | ||||||
Class B ordinary shares, ( | 895 | 895 | ||||||
Share subscription receivables | - | (3,125) | ||||||
Additional paid-in capital | 32,614,603 | 12,154,929 | ||||||
Accumulated deficit | (25,065,907) | (15,419,765) | ||||||
Accumulated other comprehensive income | 622,058 | 550,579 | ||||||
Total shareholders' equity (deficit) | 8,190,253 | (2,714,257) | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) | $ | 10,779,086 | $ | 958,138 | ||||
(1) | All per share amounts and shares outstanding for all periods have been retroactively adjusted to reflect the 80-for-1 |
YOUXIN TECHNOLOGY LTD | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||||||
FOR THE YEARS ENDED SEPTEMBER 30, 2025, 2024 and 2023 | ||||||||||||
(Expressed in | ||||||||||||
2025 | 2024 | 2023 | ||||||||||
Years Ended September 30, | ||||||||||||
2025 | 2024 | 2023 | ||||||||||
REVENUES | $ | 539,474 | $ | 521,241 | $ | 895,978 | ||||||
COST OF REVENUES | (359,509) | (179,648) | (352,676) | |||||||||
GROSS PROFIT | 179,965 | 341,593 | 543,302 | |||||||||
OPERATING EXPENSES | ||||||||||||
Selling expenses | (130,792) | (94,481) | (225,926) | |||||||||
General and administrative expenses | (2,746,298) | (496,006) | (589,372) | |||||||||
Research and development expenses | (158,190) | (1,139,922) | (2,152,602) | |||||||||
Total operating expenses | (3,035,280) | (1,730,409) | (2,967,900) | |||||||||
NET LOSS FROM OPERATIONS | (2,855,315) | (1,388,816) | (2,424,598) | |||||||||
OTHER (EXPENSE) INCOME | ||||||||||||
Other income | 539 | 134,802 | 99,053 | |||||||||
Other expense | (24,271) | (21,435) | (17,693) | |||||||||
Loss from investments | (2,736,514) | - | - | |||||||||
Issuance costs allocated to warrant liabilities | (876,282) | - | - | |||||||||
Loss on issuance of warrant liabilities | (5,802,241) | - | - | |||||||||
Change in fair value of warrant liabilities | 2,647,942 | - | - | |||||||||
Total other (expense) income, net | (6,790,827) | 113,367 | 81,360 | |||||||||
NET LOSS BEFORE TAXES | (9,646,142) | (1,275,449) | (2,343,238) | |||||||||
Income tax expense | - | (5,212) | - | |||||||||
NET LOSS | (9,646,142) | (1,280,661) | (2,343,238) | |||||||||
Accretion to redeemable preferred equity | - | - | (326,837) | |||||||||
Net loss attributable to ordinary shareholders | (9,646,142) | (1,280,661) | (2,670,075) | |||||||||
NET LOSS | (9,646,142) | (1,280,661) | (2,343,238) | |||||||||
Other comprehensive income (loss) | ||||||||||||
Foreign currency translation income (loss) | 71,479 | (72,056) | (212,292) | |||||||||
TOTAL COMPREHENSIVE LOSS | $ | (9,574,663) | $ | (1,352,717) | $ | (2,555,530) | ||||||
Basic and diluted loss per share (1)(2) | $ | (1.04) | $ | (0.14) | $ | (0.29) | ||||||
Weighted average number of ordinary shares outstanding - basic | 9,311,589 | 9,224,116 | 9,224,116 | |||||||||
(1) | All per share amounts and shares outstanding for all periods have been retroactively adjusted to reflect the 80-for-1 reverse | |
(2) | Giving retroactive effect to the issuance of ordinary shares effected on April 21, 2023. |
YOUXIN TECHNOLOGY LTD | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
FOR THE YEARS ENDED SEPTEMBER 30, 2025, 2024 and 2023 | ||||||||||||
(Expressed in | ||||||||||||
2025 | 2024 | 2023 | ||||||||||
Years Ended September 30 | ||||||||||||
2025 | 2024 | 2023 | ||||||||||
Cash flows from operating activities | ||||||||||||
Net loss | $ | (9,646,142) | $ | (1,280,661) | $ | (2,343,238) | ||||||
Adjustments to reconcile net loss to cash used in operating activities: | ||||||||||||
Loss (gain) on disposal of property and equipment | - | 572 | (357) | |||||||||
Amortization of right-of-use assets | 42,002 | 101,888 | 204,715 | |||||||||
Loss from Investments, net | 2,814,514 | - | - | |||||||||
Change in fair value of warrant liabilities | (2,647,942) | - | - | |||||||||
Issuance costs allocated to warrants liabilities | 876,282 | - | - | |||||||||
Loss on issuance of warrant liabilities | 5,802,241 | - | - | |||||||||
Depreciation | 1,355 | 6,816 | 12,293 | |||||||||
Credit loss provision | - | 4,664 | - | |||||||||
Loss from termination of right-of-use assets | - | 183 | 369 | |||||||||
Changes in operating assets and liabilities | ||||||||||||
Accounts receivable | (39,166) | 52,210 | 94,595 | |||||||||
Prepaid expenses and other current assets | (172,366) | 18,020 | 69,605 | |||||||||
Deferred contract costs | (13,103) | - | 30,192 | |||||||||
Amount due from a related party | (17,260) | - | - | |||||||||
Other non-current assets | - | 16,950 | 28,368 | |||||||||
Accounts payable | 2,840 | (21,098) | (14,007) | |||||||||
Operating lease liabilities | (43,455) | (100,073) | (207,881) | |||||||||
Payroll payable | (734,904) | 404,216 | 102,096 | |||||||||
Accrued expenses and other current liabilities | 47,096 | 19,107 | (18,026) | |||||||||
Contract liabilities | (185,744) | 49,140 | (268,907) | |||||||||
Net cash used in operating activities | (3,913,752) | (728,066) | (2,310,183) | |||||||||
Cash flows from investing activities | ||||||||||||
Proceeds from dispose of property and equipment | - | 360 | 815 | |||||||||
Purchase of short-term investment | (3,800,000) | - | - | |||||||||
Redemption of short-term investment | 979,031 | - | - | |||||||||
Prepayment for acquisition | (207,972) | - | - | |||||||||
Net cash (used in) provided by investing activities | (3,028,941) | 360 | 815 | |||||||||
Cash flows from financing activities | ||||||||||||
Loan from related parties | - | 792,283 | 284,292 | |||||||||
Repayment to related parties | (1,038,283) | - | - | |||||||||
Repayment of short-term bank loan | (314,731) | (315,090) | - | |||||||||
Proceeds from short-term bank loan | 314,731 | 315,090 | 321,834 | |||||||||
Proceeds from issuance of ordinary shares upon initial public offering, net of | 9,097,000 | - | - | |||||||||
Proceeds from issuance of units upon follow-on offering, net of underwriting | 5,270,064 | - | - | |||||||||
Proceeds from issuance of ordinary shares upon exercise of Series A Warrants | 4,486,999 | - | - | |||||||||
Proceeds from issuance of ordinary shares upon exercise of Series B Warrants | 731 | - | - | |||||||||
Payment of offering costs | (1,028,932) | (360,893) | (121,248) | |||||||||
Collection of subscription receivable | 3,125 | - | - | |||||||||
Net cash provided by financing activities | 16,790,704 | 431,390 | 484,878 | |||||||||
Effect of exchange rates on cash and restricted cash | 45,593 | (59,713) | 5,194 | |||||||||
Net increase (decrease) in cash and restricted cash | 9,893,604 | (356,029) | (1,819,296) | |||||||||
Cash and restricted cash at beginning of year | 43,021 | 399,050 | 2,218,346 | |||||||||
Cash and restricted cash at end of year | $ | 9,936,625 | $ | 43,021 | $ | 399,050 | ||||||
Cash | $ | 9,912,327 | $ | 18,372 | $ | 399,050 | ||||||
Restricted cash | $ | 24,298 | $ | 24,649 | $ | - | ||||||
Cash and restricted cash at end of year | $ | 9,936,625 | $ | 43,021 | $ | 399,050 | ||||||
Supplemental disclosure of cash flow information | ||||||||||||
Cash paid for interest expenses | $ | 9,377 | $ | 10,237 | $ | 257 | ||||||
Cash paid for income tax | $ | 264 | $ | - | $ | - | ||||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||||||
Accretion to redeemable preferred equity | $ | - | $ | - | $ | 326,837 | ||||||
Exchange redeemable preferred equity with Class A ordinary shares | $ | - | $ | - | $ | 12,154,929 | ||||||
Operating lease right-of-use assets obtained in exchange for operating lease | $ | - | $ | 140,844 | $ | - | ||||||
Deferred offering costs charged against additional paid-in capital | $ | 478,108 | $ | - | $ | - | ||||||
View original content:https://www.prnewswire.com/news-releases/youxin-technology-ltd-reports-financial-results-for-fiscal-year-2025-302674333.html
SOURCE Youxin Technology Ltd
FAQ
What were Youxin Technology's fiscal 2025 revenues and cash balance (YAAS)?
Why did Youxin Technology (YAAS) report a $9.65M net loss in fiscal 2025?
How did gross margin and operating costs change for Youxin Technology (YAAS) in 2025?
What strategic moves did Youxin Technology (YAAS) make to support growth in 2026?
How did product and service revenue mix shift for Youxin Technology (YAAS) in fiscal 2025?
