How did FNGR's revenue and expenses shift in Q3 2025?

FingerMotion, Inc. (FNGR) experienced notable shifts in its revenue and expense profiles during Q3 2025, reflecting both opportunities and challenges in its operational and market adjustments.

1. **Revenue Shifts**:
- **Growth in Telecommunications Products & Services**: The core business of Telecommunications Products & Services saw a robust increase, reporting revenue of $8.53 million, up by $2.39 million or 39% compared to Q3 of fiscal 2024. This growth was primarily driven by a $2.36 million or 39% rise in revenue from this segment, indicating strong performance and market traction.
- **Steady SMS & MMS Business**: The SMS & MMS business maintained its steady performance, reporting revenue of $44,457, an increase from $7,900 in Q3 of fiscal 2024. This suggests a stable and growing segment within the company's service offerings.
- **Decline in Big Data Revenue**: In contrast, the Big Data segment experienced a significant drop, with revenue reported at $0, down from $5,584 in Q3 of fiscal 2024. This decline might reflect strategic shifts or market conditions affecting the monetization of data services.

|code|Ticker|Name|Date|Total Revenue|Total Expenses|market_code|
|---|---|---|---|---|---|---|
|FNGR|FNGR.O|FingerMotion|2024 Q4|8203282|0|186|
|FNGR|FNGR.O|FingerMotion|2025 Q1|8373983||186|
|FNGR|FNGR.O|FingerMotion|2025 Q2|8458763||186|
|FNGR|FNGR.O|FingerMotion|2025 Q3|8534079||186|

2. **Expense Shifts**:
- **Cost of Revenue Increase**: The cost of revenue rose by 47% to $8.09 million, up from $5.5 million in Q3 of fiscal 2024. This substantial increase outpaced the revenue growth, potentially compressing profit margins.
- **Gross Profit Decline**: As a result, the gross profit decreased by 30% to $0.44 million, down from $0.63 million in the previous year's Q3. This decline indicates challenges in managing costs and maintaining profitability.
- **Marketing and Administrative Adjustments**: There were notable adjustments in expense categories, with general and administrative expenses decreasing by 30%. However, marketing costs increased by 243%, and share compensation expenses rose by 66%. These changes suggest efforts to streamline administrative costs but also reflect increased investment in marketing and talent retention.
3. **Financial Position and Challenges**:
- FingerMotion's financial position as of November 30, 2024, showed $164,600 in cash, a working capital surplus of $9.43 million, and total assets of $31.94 million, with total liabilities at $22.36 million. The company's focus remains on expanding its user base, aiming to serve over 1 billion users in the China market and eventually other regional markets.
- Despite the revenue growth, the company reported a quarterly loss of $1.66 million, a decrease of 15% from the previous year, but the loss per share improved from $0.04 to $0.03. This improvement was largely due to cost-cutting measures in general and administrative expenses rather than operational efficiencies.

In conclusion, FingerMotion's Q3 2025 financial results demonstrate a company grappling with growth pains, where revenue expansion is accompanied by intensified cost management and strategic adjustments in expense categories to navigate towards profitability.