Treasure Global 2025 Q3 Earnings Net Income Surges 173.5%

Treasure Global (TGL) reported its fiscal 2025 Q3 earnings on May 15th, 2025. The company exceeded expectations with its impressive net income turnaround, achieving a 173.5% increase from the previous year. The strategic focus on high-margin operations has led to significant profitability improvements. Guidance remains positive, with expectations of sustained growth in profitability and a focus on high-margin verticals and digital innovation. Treasure Global maintains confidence in its strategic direction, positioning for long-term sustainable growth.

Revenue

Treasure Global's total revenue for 2025 Q3 declined by 58.2% to $666,521 from $1.60 million in 2024 Q3. The revenue breakdown includes $25,786 from gift card or "E-voucher" sales, $2,808 from loyalty programs, and $35,321 from transaction revenue. Customized software development services accounted for the bulk of the revenue at $602,606, highlighting a strategic shift towards higher-margin business segments.

Earnings/Net Income

Treasure Global achieved a substantial turnaround with an EPS of $1.09 in 2025 Q3, reversing a prior loss of $116.03 per share in 2024 Q3. The company's net income reached $1.26 million, marking a significant recovery from a net loss of $1.71 million in the prior year. This EPS improvement signals a positive outlook.

Price Action

The stock price of Treasure Global has experienced notable fluctuations, dropping 3.19% during the latest trading day, while jumping 9.64% over the most recent full trading week and tumbling 13.74% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing Treasure Global shares following revenue increases post-earnings report and holding for 30 days has resulted in significant losses. Over the past five years, this approach yielded a total return of -96.50%, starkly underperforming compared to the S&P 500's 26.17% return. This suggests the strategy is not profitable, highlighting the need for a more robust investment approach. Investors should reassess their strategies to align with the company's evolving business model and market conditions. The company's recent restructuring and strategic focus on high-margin operations might provide a better foundation for future investment strategies, though caution remains warranted due to historical underperformance.

CEO Commentary

"Our third-quarter results reflect a significant improvement in profitability driven by our strategic shift toward higher-margin operations and disciplined cost management," said Carlson Thow, Chief Executive Officer of Treasure Global Inc. He highlighted the challenges of transitioning away from low-margin offerings, impacting revenue, but emphasized the achievement of substantially higher gross margins and a return to net profitability. Thow noted that the net income this quarter includes a $1.78 million non-cash gain from the revaluation of derivative liabilities, which contributed meaningfully to reported EPS. He committed to continuing the streamlining of operations and focusing on high-margin opportunities to sustain and build on this turnaround.

Guidance

Treasure Global anticipates continued growth in profitability as it maintains its focus on high-margin verticals and digital innovation. The company has outlined strategic priorities that include enhancing its AI-powered e-commerce infrastructure and expanding its enterprise software development services. Management expressed confidence in the potential for greater scalability and recurring revenue, positioning the company for long-term sustainable growth while deepening strategic partnerships across Southeast Asia.

Additional News

Treasure Global Inc. has recently announced a strategic expansion into Malaysia's FMCG and e-commerce markets by acquiring a 51% stake in Tien Ming Distribution Sdn Bhd. This acquisition is intended to strengthen supply chain capabilities and support a broader digital ecosystem. Additionally, the company has secured exclusive distribution rights for Mezzofy's digital coupon platform in Malaysia, aiming to generate USD2-4 million in recurring annual revenue. Furthermore, Treasure Global has unveiled plans to develop advanced AI cloud infrastructure in Malaysia, positioning itself among Southeast Asia's leading AI computing environments, with applications across multiple sectors such as healthcare and logistics.