CIMG Inc. Swings to $19.4M Net Loss in Q1 FY2026 Despite Revenue Surge

CIMG Inc., a Nevada-incorporated company, posted a net loss of $19.4 million for the three months ending December 31, 2025, compared to a net loss of $1.5 million in the same quarter of the prior year. The loss widened despite a dramatic revenue increase, as the company burned through cash and reported substantial non-operating charges. Read more earnings reports.

Revenue for the quarter jumped to $15.8 million from $22,853 in the year-earlier period, marking a nearly 69,000% increase. Cost of revenue climbed to $15.7 million from $7,374, leaving gross profit at $87,416 compared to $15,479 a year earlier.

Operating expenses totaled $2.1 million in the quarter, up from $1.5 million a year ago. The company reported an operating loss of $2.0 million, compared to an operating loss of $1.5 million in the prior-year quarter. However, the net loss figure of $19.4 million suggests substantial non-operating charges that were not fully detailed in the income statement data.

Cash and cash equivalents dropped sharply to $45,356 as of December 31, 2025, down from $137,287 three months earlier. The company reported negative operating cash flow of $8.5 million for the quarter, compared to negative operating cash flow of $1.3 million in the year-earlier period. Cash from financing activities provided $8.5 million during the quarter.

Total assets fell to $67.4 million as of December 31, 2025, from $74.2 million at September 30, 2025. Current assets declined to $3.4 million from $17.1 million, driven primarily by an inventory reduction to $157 from $11.9 million. Accounts receivable increased to $1.4 million from $55,258.

Total liabilities decreased to $10.9 million from $27.6 million over the same three-month span. Accounts payable rose to $1.8 million from $429,322. Stockholders' equity increased to $55.7 million from $45.7 million, while the accumulated deficit widened to $106.7 million from $87.2 million.

Common shares outstanding increased to 15.5 million from 9.8 million during the quarter. The company reported a loss per share of $1.43 on both a basic and diluted basis, compared to a loss per share of $3.42 in the prior-year quarter. The weighted average share count for the current quarter was 13.6 million shares, up substantially from 449,134 shares a year earlier.

Financial Summary