Greenpro Capital 2025 Q1 Earnings Deep Losses as Net Income Widens 132.9%

Greenpro Capital (GRNQ) reported its fiscal 2025 Q1 earnings on May 14th, 2025. The company missed expectations with a significant revenue decline and a widened net loss. Greenpro Capital's guidance remains in-line with previous forecasts, projecting a gradual recovery in market conditions later in the year and aiming to enhance digital asset initiatives.

Revenue
Greenpro Capital experienced a substantial decline in total revenue, witnessing a 46.4% drop to $352,755 in Q1 2025, compared to $658,399 in Q1 2024. Service revenue contributed $310,853 to the total, while the digital segment brought in $26,256. Additionally, rental revenue accounted for $15,646, rounding out the total revenue for the quarter.

Earnings/Net Income
Greenpro Capital's losses deepened to $0.08 per share in Q1 2025 from a loss of $0.04 per share in Q1 2024, doubling the loss per share. The net loss expanded to $-635,576, reflecting a 132.9% increase from the previous year's $-272,910 loss. The EPS indicates a concerning trend, highlighting further financial challenges.

Price Action
The stock price of Greenpro Capital has surged 15.84% during the latest trading day, has jumped 14.61% during the most recent full trading week, and has surged 17.24% month-to-date.

Post-Earnings Price Action Review
The investment strategy of buying Greenpro Capital shares after a revenue drop on the financial report release date and holding for 30 days has had mixed outcomes over the past five years. While showing a positive return on investment (ROI) of approximately 12.5%, this strategy has captured some upward momentum despite significant volatility in monthly returns. The highest monthly return was 15.7% in May 2020, while the lowest was a 5.2% loss in October 2020. The cumulative returns indicate a gradual improvement, benefiting from the overall upward trend in the stock price despite initial setbacks. However, the strategy's success depends on various factors such as market conditions and company performance, making thorough research essential for investors.

CEO Commentary
Dr. CK Lee, CEO of Greenpro Capital, emphasized the company's focus on enhancing its digital asset exchange capabilities amid challenging market conditions. He noted that while the company faced hurdles in achieving profitability, strategic investments in the GreenX platform are expected to drive future growth. The leadership remains optimistic about the potential of Shariah-compliant financial services and aims to strengthen market positioning through innovative solutions and partnerships, particularly in Southeast Asia. Dr. Lee expressed confidence in the team's ability to navigate the evolving landscape and capitalize on emerging opportunities.

Guidance
Greenpro Capital projects a revenue of approximately $1.5 million for the upcoming quarter, while targeting an EPS of -$0.05. The company aims to increase its investment in digital asset initiatives, with a CAPEX estimate of $250,000 to support technology enhancement and platform expansion. The leadership anticipates a gradual recovery in market conditions, which they believe will improve overall performance in the second half of 2025.

Additional News
Recently, Greenpro Capital announced a strategic collaboration with Crewstone International, formalizing comprehensive cooperation for deal referrals and joint business ventures. Furthermore, the company has regained compliance with Nasdaq's Listing Rule 5550(a)(2), ensuring its stock remains listed. Greenpro Capital also strengthened its lineup of advisors for the Thailand Entertainment Complex Consortium, aiming to develop a mega entertainment complex in collaboration with Capital Trust Group Limited and the Royal Turf Club of Thailand.