EpicQuest Education Stock Soars 81.95% on Revenue Surge

EpicQuest Education's stock surged by 81.95% in pre-market trading on August 22, 2025, marking a significant rise that has caught the attention of investors and analysts alike.

EpicQuest Education recently announced its financial results for the first half of fiscal year 2025, revealing a 29.1% increase in revenue to $5.37 million. This growth was primarily driven by increased enrollment in international programs, highlighting the company's successful globalization strategy. The company's gross profit also improved, reaching $3.42 million with a gross margin of 63.7%.

Despite the positive revenue growth, EpicQuest Education continues to operate at a loss. However, the company has made significant progress in reducing its net loss to $0.16 million, a dramatic improvement from $3.52 million in the previous year. This reduction in net loss is attributed to a 17.9% decrease in operating expenses and a 52.7% improvement in operating loss. The company's working capital position showed improvement with negative working capital of $3.96 million and a current ratio of 0.57 as of March 31, 2025. Stockholders' equity increased by 3.5% to $5.35 million.

While the company's financial performance shows promising signs, there are still concerns about its liquidity position. Cash and equivalents have declined by 71.3% to just $0.33 million, and the company still operates with negative working capital. The current ratio of 0.57 indicates potential short-term liquidity challenges. The company has been funding operations partly through asset sales, having generated $1.50 million from real estate disposals. However, this strategy is not sustainable long-term, and the absence of new financing during this period raises questions about the company's ability to fund continued expansion without additional capital.