SOPA earnings analysis
What we found in SOPA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Society Pass (SOPA) reported strong Q2 (three months ended June 30, 2025) operational improvement: revenue rose to $2,501,494 (vs $1,710,510 year-ago; vs prior quarter $1,473,504), gross margin expanded to 56.5% and the Company recorded net income attributable to Society Pass of $479,008 (basic EPS $0.09; diluted $0.10). Operating loss narrowed to $(152,589) (operating margin -6.1%) and the balance sheet shows rising liquidity with cash and cash equivalents $8,218,805. However, operating cash use remains elevated (net cash used in operating activities $(5,804,617) for the six months) and current liabilities increased, leaving negative working capital of $(3,911,131).
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue beat and large YoY/QoQ increase
- Total revenue for the quarter was $2,501,494, up $790,984 (+46.3%) vs Q2 2024 revenue $1,710,510 and up $1,027,990 (+69.8%) vs the prior quarter (Q1 2025 revenue $1,473,504).
- Gross margin expanded materially
- Gross income was $1,413,058, implying gross margin of 56.5% (1,413,058 / 2,501,494) vs gross income $464,305 (27.1% margin) in Q2 2024 and vs Q1 2025 margin 31.6%.
- Profitability swing to positive net income
- Net income attributable to Society Pass was $479,008 (basic EPS $0.09; diluted $0.10) vs a loss attributable of $(1,938,343) in Q2 2024 and vs prior quarter net loss $(1,841,088) — an improvement of $2,320,096 vs the prior quarter.
- Strong segment drivers: Digital marketing and ticketing
- Digital marketing revenue was $2,064,909 (largest segment) and online ticketing and reservation revenue was $431,699; these increased vs Q2 2024 by $536,736 and $254,666, respectively.
- Cash and financing improved liquidity
- Cash and cash equivalents increased to $8,218,805 (from $7,630,079 at Dec 31, 2024); financing proceeds in the period included $1,938,469 from ATM share issuance and $4,300,002 from convertible notes (cash flows).
- Deposits/prepayments and receivables rose (balance sheet buffer)
- Deposits, prepayments and other receivables increased to $12,796,555 from $5,189,850 (increase of $7,606,705), supporting current asset growth to $22,584,634.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Negative working capital remains
- Current assets $22,584,634 minus current liabilities $26,495,765 yields negative working capital of $(3,911,131), although improved from $(8,754,740) at Dec 31, 2024.
- Large increase in accounts payable
- Accounts payables rose to $9,581,836 from $2,997,994 at Dec 31, 2024 (increase of $6,583,842), indicating reliance on payables to fund operations.
- Operating cash outflow persists
- Net cash used in operating activities for the six months ended June 30, 2025 was $(5,804,617), resulting in computed free cash flow of approximately $(5,808,712) (operating cash flow $(5,804,617) less capex $4,095).
- Concentration in digital marketing
- Digital marketing accounted for $2,064,909 of $2,501,494 total revenue (82.6% of the quarter), creating concentration risk if that segment softens.
- Foreign currency translation headwind in period
- Foreign currency translation adjustment in Q2 was a negative $490,642 (recorded in equity), contributing to accumulated other comprehensive loss of $(380,449) as of June 30, 2025.
- Equity near listing threshold (potential liquidity/listing risk)
- Total equity (deficit) reported $2,249,904 and equity attributable to Society Pass $2,448,429 as of June 30, 2025 — close to Nasdaq’s $2,500,000 listing standard and therefore sensitive to small changes.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.1
- Gross margin
- 56.5%
- Operating margin
- -6.1%
- Segment
- Digital marketing: $2,064,909 (Q2 2025 vs $1,528,173 in Q2 2024)
- Segment
- Online ticketing and reservation: $431,699 (Q2 2025 vs $177,033 in Q2 2024)
- Segment
- Online ordering: $4,719 (Q2 2025 vs $3,701 in Q2 2024)
- Segment
- Data: $167 (Q2 2025 vs $177 in Q2 2024)
- Segment
- Software sales: $0 (Q2 2025 vs $1,426 in Q2 2024)
What they said about what is next.
The 10‑Q contains no explicit numeric forward guidance. Management funded the business during the period (ATM proceeds $1,938,469; convertible notes proceeds $4,300,002) but did not provide an earnings or revenue outlook in Item 2 MD&A text included in this filing; numerical guidance is deferred to future earnings releases/calls.
The filing reads better than the one before it.
What came before.
- 10-K · April 16, 2025
- Society Pass (SOPA) presents a strategy to build a SEA-focused ecommerce/fintech loyalty ecosystem (loyalty, lifestyle, telecom, digital media, travel) through acquisitions and partnerships and is rolling out its…
- 10-K · April 15, 2024
- Society Pass (SOPA) continues to execute a roll-up strategy across Southeast Asia, operating five core verticals (loyalty, lifestyle, telecommunications, digital media and travel) and plans to launch its cross-platform…
- 10-Q · August 10, 2023
- Q2 revenue strengthened to $2,187,232 (up from $499,062 a year earlier) driven primarily by digital marketing ($1,510,960) and online ticketing ($556,042), producing positive gross income of $577,159. Despite top-line…
- 10-Q · May 11, 2023
- Revenue rose to $2,042,580 in the quarter (from $445,090 a year earlier) driven by new digital marketing ($1,283,774) and online ticketing ($486,707) streams, producing positive gross income of $686,237. Despite…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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