DFP Holdings Swings to $226,397 Net Loss as Q1 FY2026 Revenue Plunges 73%

DFP Holdings Limited swung to a net loss of $226,397 for the three months ending December 31, 2025, a sharp reversal from net income of $29,750 in the year-ago quarter. The Nevada-based company saw revenue fall 73% to $120,890 from $442,777 a year earlier. Read more earnings reports.

Operating expenses surged to $153,709 from $125,043 in the prior-year period, while cost of goods sold declined to $97,627 from $122,932. The company posted an operating loss of $232,001 compared to operating income of $64,225 a year earlier.

Gross profit turned negative in the quarter, with the company reporting a gross profit of $23,263 compared to $319,845 in the same quarter of fiscal 2025. Cost of revenue as a percentage of sales rose significantly during the period.

Cash Position and Balance Sheet

Cash and cash equivalents stood at $1,322,102 as of December 31, 2025, down from $1,363,759 at the end of the prior quarter on September 30, 2025. The company burned $109,546 in operating cash during the quarter, a reversal from positive operating cash flow of $73,727 in the year-ago period.

Total assets increased to $2,085,584 from $1,680,193 at the end of the prior quarter. Current assets rose to $1,524,793 from $1,453,126.

Total liabilities jumped to $735,600 from $283,663 in the prior quarter, driven by an increase in current liabilities to $687,882 from $220,273. Stockholders' equity declined to $1,330,307 from $1,396,530 as of September 30, 2025.

Financing and Investing Activity

The company generated $70,340 in cash from financing activities during the quarter, compared to $2,777 in the year-ago period. Cash used in investing activities totaled $1,342, down from $23,684 a year earlier.

Depreciation and amortization expenses climbed to $37,684 from $4,984 in the prior-year quarter. The company reported 216,779,700 common shares outstanding as of December 31, 2025, unchanged from the prior quarter.

Retained deficit widened to $2,461,330 from $2,234,933 at the end of September 2025. Loss per share was reported at negative $0.00 on both a basic and diluted basis.