Damon 2025 Q3 Earnings Misses Targets as Net Loss Widens Significantly

Damon (DMN) reported its fiscal 2025 Q3 earnings on May 19th, 2025. Damon fell short of expectations for the third quarter of fiscal year 2025. The company’s net loss widened significantly, reflecting ongoing financial challenges. Despite strategic shifts and diversification efforts, the company did not adjust its guidance, maintaining focus on operational excellence and overcoming current obstacles. The results underscore Damon's ongoing transition beyond motorcycles, with an eye on long-term growth and sustainability.

Revenue
Damon's total revenue surged by 21.9% to $81,411 in Q3 2025, compared to $66,775 in Q3 2024. The company's scientific software products and services contributed the entirety of the revenue, underlining a singular focus in this segment. This growth signals a strategic emphasis on software and services, overshadowing other potential areas.

Earnings/Net Income
Damon's losses intensified, with the company reporting a net loss of $0.50 per share in Q3 2025, a sharp decline from a loss of $0.01 per share in Q3 2024. The net loss widened dramatically to $-25.16 million in Q3 2025, marking a 62421.0% increase from the $-40248 loss in Q3 2024. The EPS reflects ongoing financial difficulties.

Price Action
The stock price of Damon has plummeted 52.78% during the latest trading day, has plummeted 77.33% during the most recent full trading week, and has plummeted 45.16% month-to-date.

Post-Earnings Price Action Review
Investing in Damon (DMN) shares on the day of its quarterly earnings release and holding for 30 days yielded a 5-year annualized return of 19.60%, outperforming the market by 4.58%. This strategy capitalized on Damon’s growth and market movements, demonstrating its effectiveness in generating solid returns. Though faced with challenges, the average annual return for DMN was significant over the five-year period, suggesting that investors who employed this strategy benefited from both Damon's growth and broader market trends. With an initial $1000 investment 5 years ago, the value would have grown to $2,371.19 by the latest reporting period. This underscores the compound returns achievable with such a strategy. In conclusion, buying DMN shares upon earnings release and holding for 30 days has proven profitable, highlighting the importance of aligning investment decisions with company performance metrics like earnings to seize growth opportunities.

CEO Commentary
Dominique Kwong, CEO of Damon, expressed confidence in the company's progress, stating, "we believe we have made tremendous progress in strengthening Damon's financial foundation while diversifying our business model." He emphasized that Damon is transitioning beyond being merely a motorcycle company, focusing on sustainability and intelligent data solutions. Despite recent challenges, Kwong remains optimistic, viewing them as temporary setbacks. He highlighted the company's strategic roadmap, commitment to operational excellence, and the implementation of an asset-light business model through partnerships, which he believes positions Damon strongly for long-term value creation in the evolving market.

Guidance
Damon anticipates accelerated revenue generation through its diversified business model and strategic initiatives, aiming for significant growth in its four core revenue verticals. The company expects to maintain an asset-light approach, optimizing operational efficiency while advancing its mission in mobility innovation and data intelligence. Specific quantitative targets were not disclosed, but the focus remains on overcoming current challenges and achieving operational excellence to strengthen its market position.

Additional News
Damon Inc. announced its decision to forego appealing Nasdaq's determination to delist its shares, facilitating a transition to the OTC Pink Current Market starting May 20, 2025. This strategic shift away from Nasdaq is aimed at fostering trading on alternative markets, although it may limit institutional investor access due to reduced prestige. The company has also signed a partnership with Engines Engineering to develop the HyperSport Race Motorcycle, anticipating delivery within 12 months. These moves highlight Damon's pivot towards diversified revenue streams and sustainable mobility solutions, leveraging its proprietary technologies and strategic partnerships.