TNL Mediagene (NASDAQ: TNMG) Announces First Half Fiscal Year 2025 Unaudited Financial Results
TOKYO, Oct. 7, 2025 /PRNewswire/ -- TNL Mediagene (Nasdaq: TNMG) (the "Company"), a Tokyo-based next-generation digital media and data group in Asia, today announced its unaudited financial results for the six months ended June 30, 2025 ("H1 2025").
H1 2025 Financial Highlights
H1 2025 Strategic and Operational Highlights
Launch and Expansion of Media Properties in New Language Markets
Utilizing New AI Technology to Enhance Performance
Expanding Content Commerce Initiatives Through Strategic Partnerships and New Channels
Focused and Enhanced Talent Through Key Hires, Promotions, and Streamlining
Increased Public Visibility and Investor Relations Initiatives
Subsequent Strategic and Operational Highlights
Management Commentary
"We had an active and transformative H1 2025 as a newly listed public company and are happy to announce that our H1 2025 financial results outperformed our H1 2024 results in terms of revenue, operating margin, and net loss," said Joey Chung, Co-Founder and Chief Executive Officer. "Our H1 2025 cost of revenue increased on the Japan side of the business, driven primarily by unfavorable Japanese yen movements, as a significant portion of our Japan headquarters costs are denominated in U.S. dollars, as well as higher labor costs in Japan. However, we were able to offset most of that impact through SG&A efficiencies and lower transaction-related professional services fees compared to H1 2024. H1 2025 Adjusted EBITDA declined as compared to H1 2024 as a direct result of the newly incurred public company costs that come with being a Nasdaq-listed company, which amounted to $1.8 million in H1 2025. Normalizing for these public company costs, our Management Adjusted EBITDA improved slightly year-over-year, highlighting the strength of our underlying business."
"Revenue growth in H1 2025 was driven by our Technology business unit as we continue to roll out our high-margin technology and data products, along with continued strength in our Digital Studio business unit," Mr. Chung continued. "As is typical for businesses operating in our sector, a large portion of annual revenue is generated in the second half of the year—particularly in the fourth quarter—as holiday marketing spend is deployed. We expect this pattern to continue in 2025."
"Subsequent to H1 2025, we have maintained strong momentum with new media and product launches, notably the September launch of Business Insider Taiwan, our continued focus on high-value content commerce initiatives, and the ongoing development and rollout of innovative technology products," Mr. Chung added. "On the cost side, our integration and reorganization efforts post-listing, together with our continued cost-discipline initiatives—including AI-based efficiency programs and a leaner overall headcount—have positioned us to better absorb normal-course public company costs. We continue to evaluate professional service providers and cost structures to identify further opportunities for savings going forward."
"In new strategic developments, we recently announced plans to modernize our cash management and treasury capabilities through a digital asset treasury strategy, alongside the formation of a Digital Asset Treasury Advisory Group comprising highly accomplished experts across digital assets, Web3, blockchain and technology fields such as trading, investment, asset management, product development and regulatory engagement." Mr. Chung concluded. "On the capital structure side, our outstanding debt has been reduced by approximately $5.0 million since fiscal year end 2024, and our current cash balance stands at approximately $1.8 million. The majority of our current outstanding debt is low-interest rate debt held with local relationship banks in Taiwan and Japan, which we view as strategic to maintaining our banking relationships in those markets."
Financial Results for the Six Months Ended June 30, 2025
Revenue
Total revenues increased by 5.7% to $21.8 million in H1 2025 as compared to $20.6 million in H1 2024
Cost of Revenue
Cost of revenue increased by 19.1% to $14.8 million (67.9% margin) in H1 2025 as compared to $12.4 million in H1 2024 (60.3% margin). The increase was driven primarily due to the weaker Japanese yen—since a significant portion of Japan headquarters costs are denominated in U.S. dollars—and rising labor costs amid a tighter labor market in Japan.
Gross Profit
Gross profit declined 14.6% to $7.0 million (32.1% margin) in H1 2025 as compared to $8.2 million (39.7% margin) in H1 2024.
Operating Expenses
Total operating expenses declined 8.2% to $12.6 million (58.0% of revenue) in H1 2025 as compared to $13.8 million (66.8% of revenue) in H1 2024, due to a reduction in one-time professional service fees associated with the Company's Nasdaq listing.
Operating Loss
Operating loss increased 1.2% to a loss of $5.6 million (-25.9% margin) in H1 2025 as compared to a loss of $5.6 million (-27.0% margin) in H1 2024, reflecting a decline in gross profit offset by reduction in SG&A expenses.
Net Loss
Net loss narrowed 27.2% to a loss of $4.3 million in H1 2025 as compared to a loss of $5.9 million in H1 2024, due primarily to the recognition of a financial liability valuation gain resulting from the decline in the Company's share and warrant price, relating to share-based contingent consideration from prior M&A activities and outstanding warrants.
Adjusted EBITDA and Margin
Our Adjusted EBITDA in H1 2025 declined to a loss of $3.2 million from a loss of $1.4 million in H1 2024, and our Adjusted EBITDA margin also declined to (14.7%) in H1 2025 as compared to (6.7%) in H1 2024, reflecting the impact of approximately $1.8 million of newly incurred public company compliance and related costs in H1 2025 following our Nasdaq listing at the end of 2024. By comparison, H1 2024 included $2.6 million of non-recurring transaction-related expenses associated with the listing, which were adjusted out in the calculation of Adjusted EBITDA. Please see "Use and Reconciliation of Non-IFRS Financial Measures" and "Reconciliation of Non-IFRS Financial Measures – Adjusted EBITDA Calculation (Unaudited)" below, as they relate to our Adjusted EBITDA and margin.
Management Adjusted EBITDA and Margin
Our Management Adjusted EBITDA, a non-IFRS financial measure used to evaluate underlying operational performance excluding public company costs, was a loss of $1.4 million in H1 2025 after adjusting for $1.8 million of newly incurred public company compliance and related costs in H1 2025 following our Nasdaq listing at the end of 2024. We did not incur any such costs in H1 2024 and Management Adjusted EBITDA in H1 2024 was also a loss of $1.4 million. Our Management Adjusted EBITDA margin improved to (6.5%) in H1 2025 from (6.7%) in H1 2024. Please see "Use and Reconciliation of Non-IFRS Financial Measures" and "Reconciliation of Non-IFRS Financial Measures – Adjusted EBITDA Calculation (Unaudited)" below, as they relate to our Adjusted EBITDA and margin.
Liquidity and Capital Resources
As of June 30, 2025, cash and cash equivalents were $1.6 million, down $2.0 million when compared to $3.6 million as of December 31, 2024. The decrease was primarily attributable to repayment of outstanding debt and contractual obligations, including the repayment of the outstanding balance under the 3i Note (as defined below) and outstanding professional and service fees associated with the business combination with Blue Ocean Acquisition Corp. and the listing on the Nasdaq in December 2024. As of September 30, 2025, cash and cash equivalents were $1.8 million.
Our audited consolidated financial statements for the year ended December 31, 2024 include disclosure regarding substantial doubt about our ability to continue as a going concern, and the Company's unaudited condensed consolidated financial results as of and for the six months ended June 30, 2025 have also been prepared on the same basis.
For the six months ended June 30, 2025, our loss for the period was $4.3 million and net cash used in operating activities for the same period amounted to $1.8 million. These conditions raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern depends on its ability to improve operating conditions and raise additional capital through equity offerings or debt financings. Our management's business plans consider, among others, cost management, the issuance of equity, promissory notes and renewal of its loan facilities with financial institutions. Our management has prepared cash flow projections and considered the funding requirements for a period including 12 months from the date of approval of these interim financial results. Based on this review, and assuming that operations continue as currently planned, it was projected that additional financing would be required prior to the second quarter of 2026. To support our ongoing liquidity, we currently have in place an equity line of credit ("ELOC") with Tumim Stone Capital LLC, which provides us the flexibility to sell ordinary shares from time to time and receive cash proceeds to fund working capital and operational needs. However, there is no assurance that the ELOC can be utilized to the extent required for working capital and operational needs. In addition, we continue to evaluate a range of potential financing options, including debt and equity instruments, that may offer more attractive terms and strengthen our long-term capital structure. Such options are subject to negotiation and agreement with counterparties, and there is no guarantee that they will be successfully executed. Although the Company's management continues to pursue these plans, there can be no assurance that it will be successful in obtaining sufficient funding on terms acceptable to it to fund continuing operations.
Status of Certain Financings
The Company reports further details on the status of the 3i Note (as defined below) and Tumim ELOC (as defined below) since June 30, 2025 to the date of this press release.
The Company issued a convertible note in the aggregate principal amount of $4.7 million to 3i, LP ("3i") on December 13, 2024 (the "3i Note"). As of June 30, 2025, the outstanding balance, including accrued interest, under the 3i Note was $2.6 million. Since June 30, 2025, we have repaid approximately $2.2 million of the outstanding balance, including accrued interest, under the 3i Note. The remaining balance, including accrued interest, under the 3i Note as of the date of this press release is approximately $0.3 million.
The Company entered into an ordinary share purchase agreement for an equity line of credit (the "Tumim ELOC") with Tumim Stone Capital LLC ("Tumim") on November 25, 2024, which was amended on June 13, 2025 and September 14, 2025.
During the six months ended June 30, 2025, the Company sold 1,117,000 ordinary shares pursuant to the Tumim ELOC for gross proceeds of $690,223. The ordinary shares were sold at prices calculated using the volume weighted average trading prices, for an average price per share of $0.6179. Pursuant to the terms of the 3i Note, $172,556 of the aggregate gross proceeds raised was used to repay the outstanding balance under the 3i Note.
During the period from July 1, 2025 to the date of this press release, the Company sold 5,735,000 ordinary shares pursuant to the Tumim ELOC for gross proceeds of $1,583,633. The ordinary shares were sold at prices calculated using the volume weighted average trading prices, for an average price per share of $0.2761. Pursuant to the terms of the 3i Note, $182,764 of the aggregate gross proceeds raised was used to repay the outstanding balance under the 3i Note.
The Company is using the net proceeds raised from the Tumim ELOC sales during the period from July 1, 2025 to the date of this press release for general working capital and repayment of its obligations.
About TNL Mediagene
Headquartered in Tokyo, TNL Mediagene was formed in May 2023 through the merger of Taiwan's The News Lens Co., Ltd. and Japan's Mediagene Inc., two of the region's leading independent digital media groups. The company's operations span original and licensed media brands in Japanese, Chinese, and English, covering topics such as news, business, technology, science, food, sports, and lifestyle. It also offers AI-driven advertising services, marketing technology platforms, e-commerce, and innovative solutions tailored to the needs of advertising agencies. Known for its political neutrality, appeal to younger audiences, and high-quality content, TNL Mediagene has approximately 500 employees across Asia, with offices in Japan, Taiwan, and Hong Kong.
https://www.tnlmediagene.com/
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on beliefs and assumptions and on information currently available to TNL Mediagene. Forward-looking statements generally relate to future events or TNL Mediagene's future financial or operating performance. In some cases, you can identify forward-looking statements by the following words: "may," "will," "could," "would," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue," "ongoing," "target," "seek" or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, although not all forward-looking statements contain these words. Forward-looking statements in this communication include, but are not limited to, statements about TNL Mediagene's future business plan and growth strategies and statements by TNL Mediagene's management. Any statements that refer to expectations, projections or other characterizations of future events or circumstances, including strategies or plans, are also forward-looking statements. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. Forward-looking statements in this communication or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for TNL Mediagene to predict these events or how they may affect TNL Mediagene. In addition, risks and uncertainties are described in TNL Mediagene's filings with the Securities and Exchange Commission, including the risks and uncertainties set forth under the heading "Risk Factors" in TNL Mediagene's Annual Report on Form 20-F filed on April 30, 2025, as may be supplemented or amended by the TNL Mediagene's Reports of a Foreign Private Issuer on Form 6-K. These filings may identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. TNL Mediagene cannot assure you that the forward-looking statements in this communication will prove to be accurate. There may be additional risks that TNL Mediagene presently does not know or that TNL Mediagene currently does not believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by TNL Mediagene, its directors, officers or employees or any other person. Except as required by applicable law, TNL Mediagene does not have any duty to, and does not intend to, update or revise the forward-looking statements in this communication or elsewhere after the date of this communication. You should, therefore, not rely on these forward-looking statements as representing the views of TNL Mediagene as of any date subsequent to the date of this communication.
Use and Reconciliation of Non-IFRS Financial Measures
In this press release, we have included Adjusted EBITDA, Management Adjusted EBITDA and their respective margins, non-IFRS financial measures, which are key measures used by our management and board of directors in evaluating our operating performance.
Adjusted EBITDA and Management Adjusted EBITDA are our preferred metrics for profitability because we believe they facilitate operating performance and profit performance comparisons on a period-to-period basis and exclude items that we do not consider to be indicative of our core operating performance. These non-IFRS financial measures have limitations as an analytical tool, and you should not consider any of them in isolation or as a substitute for analysis of our results as reported under IFRS. Some of these limitations are:
To calculate our Adjusted EBITDA, we adjust, (i) non-cash items such as depreciation expenses, amortization expenses and stock-based compensation expenses and (ii) extraordinary items associated with one-time events and transactions, such as one-time transaction-related expenses not eligible for capitalization, to operating profit (loss) for the period.
To calculate our Management Adjusted EBITDA, we further adjust public company compliance and related costs to Adjusted EBITDA for the period.
Our management does not consider Adjusted EBITDA or Management Adjusted EBTIDA (or their respective margins) in isolation or as an alternative to financial measures determined in accordance with IFRS. The principal limitation of these non-IFRS measures is that they exclude significant expenses that are required by IFRS to be recorded in our financial statements. In addition, these non-IFRS measures are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining such non-IFRS financial measures.
For reconciliation of Adjusted EBITDA, Management Adjusted EBITDA and their respective margins to IFRS financial measures, see "Reconciliation of Non-IFRS Financial Measures – Adjusted EBITDA Calculation (Unaudited)."
TNL MEDIAGENE AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Financial Position
as of December 31, 2024 and June 30, 2025
(Expressed in United States dollars)
December 31,
2024
June 30,
202 5
Assets
Current assets
Cash and cash equivalents
$
3,646,756
$
1,614,272
Current financial assets at amortized cost
46,596
284,652
Current contract assets
3,980,380
1,626,222
Notes receivable, net
-
26,380
Accounts receivable, net
8,241,352
4,935,241
Other receivables
172,695
220,710
Current income tax assets
21,057
34,904
Inventories
87,828
80,831
Prepayments
1,320,329
1,579,940
Other current assets
207,041
45,743
December 31,
2024
June 30,
202 5
Total current assets
$
17,724,034
10,448,895
Non-current assets
Non-current financial assets at fair value through other comprehensive income
$
148,925
161,485
Non-current financial assets at amortized cost
544,861
683,959
Property, plant and equipment, net
430,809
423,498
Right-of-use assets
5,182,528
5,091,306
Investment properties
2,389,864
2,612,838
Goodwill
33,960,053
34,730,937
Intangible assets
30,978,581
30,248,379
Deferred tax assets
556,812
508,837
Other non-current assets
998,610
1,140,048
Total non-current assets
75,191,043
75,601,287
Total assets
92,915,077
86,050,182
Liabilities
Current liabilities
Short-term borrowings
1,075,904
2,663,939
Current financial liabilities at fair value through profit or loss
7,869,087
3,899,158
Current financial liabilities at amortized cost
-
273,038
Current contract liabilities
578,219
831,975
Notes payable
127,063
-
Accounts payable
4,897,884
3,268,584
Accounts payable－related parties
922
-
Other payables
9,039,084
6,157,673
Other payables－related parties
841,270
1,450,318
Income tax payable
38,385
67,486
Long-term borrowings, current portion
4,188,088
4,983,715
Current lease liabilities
891,804
774,867
Other current liabilities
3,447,177
3,247,120
Total current liabilities
32,994,887
27,617,873
Non-current liabilities
Non-current financial liabilities at fair value through profit or loss
1,431,000
1,431,000
Non-current financial liabilities at amortized cost
1,829,826
1,774,744
Long-term borrowings
4,843,107
4,789,791
Deferred tax liabilities
10,345,287
10,165,447
Non-current lease liabilities
4,111,749
4,147,269
Provisions
403,834
438,701
Other non-current liabilities
551,627
822,463
Total non-current liabilities
23,516,430
23,569,415
Total liabilities
56,511,317
51,187,288
Equity
Equity attributable to equity holders of the Company
Ordinary share
2,613
2,996
Capital surplus
154,703,137
158,320,045
Accumulated deficit
(117,208,018)
(121,525,677)
Other equity interest
(1,098,596)
(1,935,001)
Equity attributable to equity holders of the Company
36,399,136
34,862,363
Non-controlling interests
4,624
531
Total equity
36,403,760
34,862,894
Total liabilities and equity
92,915,077
86,050,182
TNL MEDIAGENE AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Comprehensive Income
For the Six Months Ended June 30, 2024 and 2025
(Expressed in United States dollars)
For the six months ended
June 30,
2024
June 30,
202 5
Revenue
20,605,425
21,785,004
Cost of revenue
(12,418,454)
(14,795,880)
Gross profit
8,186,971
6,989,124
Sales, general and administrative expenses
(12,257,199)
(10,911,769)
Research and development expenses
(1,503,392)
(1,716,627)
Operating loss
(5,573,620)
(5,639,272)
Interest income
9,530
9,706
Other income
12,956
98,221
Other gains and losses
(142,598)
1,579,000
Finance costs
(181,531)
(414,555)
Loss before income tax
(5,875,263)
(4,366,900)
Income tax benefit
(58,864)
44,965
Loss for the period
$
(5,934,127)
$
(4,321,935)
TNL MEDIAGENE AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2024 and 2025
(Expressed in United States dollars)
For the six months ended
June 30,
2024
June 30,
202 5
Cash flows from operating activities
Loss before income tax
$
(5,875,263)
$
(4,366,900)
Adjustments to reconcile profit (loss)
Depreciation & amortization
1,609,066
1,626,295
Interest expense & Interest income (net)
172,001
404,849
Expected credit losses (gain)
67,291
-
Gain on disposal of property, plant and equipment, net
(39)
-
Losses (gain) on valuation of financial liabilities at fair value through profit or loss
4,146
(1,469,151)
Share-based payment transactions
200,912
818,500
Changes in operating assets and liabilities
Current contract assets
2,056,926
2,354,158
Accounts and notes receivable
3,333,893
3,279,731
Other receivables
(54,875)
(24,836)
Inventories
(20,048)
6,997
Prepayments
2,419,253
(372,111)
Other current assets
(1,633)
161,298
Other non-current assets
47,954
(43,855)
Current contract liabilities
(416,585)
253,756
Accounts and notes payable
(2,988,382)
(1,757,285)
Other payables
(742,603)
(2,290,730)
Other current liabilities
(17,239)
(200,057)
Provisions
(53,201)
34,867
Other non-current liabilities
(483,551)
56,136
Cash used in operations
(741,977)
(1,528,338)
Interest received
9,530
9,706
Interest paid
(170,743)
(275,969)
Income tax paid
(12,876)
(42,755)
Net cash used in operating activities
(916,066)
(1,837,356)
Cash flows from investing activities
Acquisition of financial assets at amortized cost
(64,069)
(7,575,343)
Proceeds from repayments of financial assets at amortized cost
-
7,292,928
Acquisition of property, plant and equipment
(52,536)
(40,058)
Proceeds from disposal of property, plant and equipment
575
1,017
Acquisition of intangible assets
(143,207)
(166,443)
Net cash generated from (used in) investing activities
(259,237)
(487,899)
Cash flows from financing activities
Increase in short-term borrowings
(571,070)
2,826,915
Repayments of short-term borrowings
-
(1,387,615)
Increase in long-term borrowings
2,242,463
2,064,739
Repayments of long-term borrowings
(1,625,230)
(2,379,094)
Payments on bonds payable
(169,819)
-
Payment on lease liabilities
(517,250)
(550,070)
Proceeds from issuance of financial liabilities at fair value through profit or loss
1,475,471
50,000
Payment on financial liabilities at fair value through profit or loss
-
(1,097,678)
Proceeds from issuance of ordinary shares
-
667,045
Share-based payments
4,260
-
Proceeds from guarantee deposits
565,008
214,700
Payment of transaction costs
(4,490)
-
Net cash generated from financing activities
1,399,343
408,942
Effect of foreign exchange rate changes
(117,783)
(116,171)
Net increase (decrease) in cash and cash equivalents
106,257
(2,032,484)
Cash and cash equivalents at beginning of year
3,030,298
3,646,756
Cash and cash equivalents at end of year
$
3,136,555
$
1,614,272
Reconciliation of Non-IFRS Financial Measures – Adjusted EBITDA Calculation (Unaudited)
Adjusted EBITDA
For the s ix months ended
June 30, 2024
June 30, 2025
Operating loss
$
(5,573,620)
$
(5,639,272)
Add:
Depreciation expenses
564,701
592,712
Amortization expenses
1,044,365
1,033,583
Stock-based compensation expenses
-
818,500
One-time transaction-related expenses (2)
2,593,882
-
Adjusted EBITDA
(1,370,672)
(3,194,477)
Revenue
20,605,425
21,785,004
Adjusted EBITDA Margin (%)
-6.65 %
-14.66 %
Management Adjusted EBITDA
For the s ix months ended
June 30, 2024
June 30, 2025
Adjusted EBITDA
$
(1,370,672)
$
(3,194,477)
Add:
Ongoing public company costs
-
1,775,567
Management Adjusted EBITDA
(1,370,672)
(1,418,910)
Revenue
20,605,425
21,785,004
Management Adjusted EBITDA Margin (%)
-6.65 %
-6.51 %
SOURCE TNL Mediagene