FingerMotion 2026 Q1 Earnings Misses Targets as Net Loss Widens 22%

FingerMotion (FNGR) reported its fiscal 2026 Q1 earnings on Jul 15th, 2025. The company recorded a total revenue increase of 1.0% to $8.46 million, compared to $8.37 million in the same quarter last year. Despite the revenue rise, the financial results fell short of expectations due to a widening net loss, indicating ongoing profitability challenges. The company did not adjust its guidance, maintaining its current outlook. FingerMotion remains focused on its strategic roadmap, targeting improved margins and operational efficiencies.

Revenue

The total revenue of FingerMotion increased by 1.0% to $8.46 million in Q1 2026, up from $8.37 million in Q1 2025. The Telecommunications Products & Services segment generated $8.31 million, reflecting a slight decrease from the previous year. Emerging business segments showed early traction, with the DaGe Platform contributing $10,938, the Command & Communication segment adding $109,241, and the Big Data business generating $27,310.

Earnings/Net Income

FingerMotion's losses deepened, reporting a loss of $0.04 per share in Q1 2026, compared to a loss of $0.03 per share in Q1 2025. The company's net loss widened to $-2.02 million in Q1 2026, a 22.2% increase from the $-1.66 million loss recorded the previous year. The EPS reflects continued financial challenges.

Price Action

The stock price of FingerMotion edged down 1.56% during the latest trading day, dropped 5.03% during the most recent full trading week, and plummeted 16.00% month-to-date.

Post-Earnings Price Action Review

The strategy of buying FingerMotion shares after its revenue increase on the financial report release date and holding for 30 days has shown favorable results over the past three years. Historical data indicates significant revenue growth, with FingerMotion demonstrating substantial revenue growth, achieving a 50% year-over-year increase. Following revenue releases, the stock experienced a 42% surge in share price. Holding FingerMotion shares for 30 days after the revenue announcement resulted in a 93% total shareholder return over one year, outperforming the market return of approximately 19% in the same period. Although longer-term returns have been negative compared to three years ago, short-term and annual performance indicate strong potential in FingerMotion. This strategy capitalized on the positive market reaction to FingerMotion's revenue growth, resulting in significant short-term and annual returns, highlighting the potential of investing in companies with strong revenue performance, even if it doesn't translate to long-term sustained profitability.

CEO Commentary

“While topline revenue showed modest movement, with margin pressure driven by evolving business dynamics, we are encouraged by the initial revenue contribution from our Command and Communication platform, as well as the steady buildout of the DaGe and Big Data businesses,” said Martin Shen, CEO of FingerMotion. He emphasized the company’s commitment to building higher-margin, data-driven business lines and refining operations to ensure long-term scalable growth, aiming to provide solid value for shareholders.

Guidance

FingerMotion anticipates continued growth in its Command and Communication and DaGe platforms, contributing to overall revenue. The company remains focused on executing its strategic roadmap, targeting improved margins and operational efficiencies. While specific quantitative targets were not provided, the leadership is optimistic about expanding market penetration and enhancing service offerings in the upcoming quarters.

Additional News

FingerMotion's subsidiary, JiuGe Technology, has recently partnered with Qingling Motors Group to develop next-generation intelligent vehicle solutions for the logistics and emergency response sectors. This collaboration aims to leverage Qingling Motors' expertise in vehicle design and JiuGe Technology's system integration capabilities to create adaptive platforms for commercial mobility. Another notable collaboration involves JiuGe Technology forming a strategic partnership with Zhejiang Jincheng Automotive to co-develop advanced emergency response vehicles, focusing on communication and command units. Furthermore, FingerMotion has announced its entry into the Indonesian market with the launch of an AI-powered insurance risk platform, marking a significant strategic expansion in the region.