SOLOWIN HOLDINGS Reports Record Revenue Growth Amid Global Expansion Efforts

Overview of SOLOWIN HOLDINGS Performance

SOLOWIN HOLDINGS (Nasdaq: AXG) has announced its unaudited financial results for the first half of fiscal year 2026, showcasing an extraordinary revenue growth of 453%, reaching $5.84 million compared to $1.06 million in the same period last year. This exceptional performance highlights the effectiveness of its strategy that blends traditional finance with innovative digital assets.

Key Financial Highlights

CEO Mr. Ling Ngai Lok expressed pride in the company's achievements, as the results underscore significant milestones in their strategic vision. Assets under management (AUM) on SOLOWIN's platform have soared to $820 million. Additionally, the firm has seen a 110% rise in institutional clients, reaching a total of 120, while active user numbers increased to 16,000. The successful introduction of groundbreaking products such as the Real Yield Token (RYT) and the Tokenization-as-a-Service solutions have fortified SOLOWIN's market position as a leader in integrated financial services. The firm reported that trading volumes of stablecoins and fiat currencies reached a substantial $86 million during this period.

Strategic Expansion Initiatives

Guided by its dual-engine strategy of organic growth and strategic acquisitions, SOLOWIN is expanding its global footprint. Noteworthy milestones include entering the Saudi Arabian market through a partnership with CITIC, launching an operational center in Dubai, and acquiring a Major Payment Institution (MPI) license in Singapore. A significant highlight is the $350 million acquisition of AlloyX, aimed at enhancing SOLOWIN's global financial network and regulatory licenses, particularly in fast-growing markets like stablecoins.

Detailed Financial Results

Revenue Breakdown

The company reported a dramatic increase in revenue derived from virtual assets related services, which surged to $5.18 million, representing 88% of the total revenue. In contrast, revenue from traditional financial services, including securities brokerage commissions and investment advisory fees, saw declines. Specifically, income from securities brokerage commissions dropped to $13,000, while investment advisory fees fell by 50% to $159,000, primarily due to a shrinking client base and decreased trading activity in the U.S. market.

Expense Overview

Total expenses surged to $10.49 million, up from $7.35 million year-over-year, attributed largely to increased general and administrative costs, as well as the operational expenses associated with SOLOWIN's virtual assets services. Marketing expenses decreased, reflecting fewer significant marketing events than in previous periods. The decrease in employee benefits expenses can be linked to the impact of SOLOWIN's 2023 Equity Incentive Plan, with no similar costs recorded in the latest reporting period.

Operational Insights

The loss from operations narrowed to $4.64 million from $6.26 million year-on-year, indicating improved efficiency despite rising costs. Similarly, the net loss decreased to $4.63 million compared to $6.26 million in the previous year, suggesting effective measures taken to address financial strain. Basic and diluted loss per share also improved, dropping to $0.07 from $0.39.

Future Directions

Looking ahead, SOLOWIN aims to continue enhancing its global payments infrastructure and improve its institutional-grade digital asset services. The company believes that its growing portfolio of international licenses will significantly bridge the gap between traditional finance and emerging digital asset markets. This approach is anticipated to provide sustainable, long-term value for both shareholders and clients.

Company Background

Founded in 2016, SOLOWIN HOLDINGS is a prominent financial technology firm focused on merging traditional finance with digital currency payments and asset tokenization. It has built a secure and efficient digital financial infrastructure, offering integrated services for global investors and institutions. The company is committed to establishing itself as a market leader in digital asset financial platforms, achieving a seamless integration between established finance and the burgeoning digital asset ecosystem.

For more information, visit SOLOWIN HOLDINGS or its investor relations page here.