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Waton Financial Limited Reports Unaudited Financial Results for the First Six Months of Fiscal Year 2026

globenewswire.com
WTF The company reported a significant increase in net loss to $8.37 million from $1.15 million, and adjusted net loss also widened. Despite revenue growth, operating costs and expenses more than tripled, leading to a substantial increase in loss from operations.

HONG KONG, Jan. 28, 2026 (GLOBE NEWSWIRE) -- Waton Financial Limited (NASDAQ: WTF) (“Waton” or the “Company”), a provider of securities brokerage and financial technology services, today announced its unaudited financial results for the first six months ended September 30, 2025, representing the first half of fiscal year 2026.

Management Commentary

“We are pleased with our revenue growth in the first half of fiscal 2026, particularly in our core brokerage operations, which benefited from investor interest in the Hong Kong market,” said ZHOU Kai, Chairman of the Board and Chief Technology Officer of the Company. “While we continue to invest in talent, technology, and compliance to support our and long-term expansion, including potential enhancements in virtual assets and AI-driven services as outlined in our recent Form 20-F filing, we remain focused on driving sustainable profitability and shareholder value amid evolving market dynamics.”

First Six Months of Fiscal Year 2026 Financial Highlights

First Six Months of Fiscal Year 2026 Financial Results

Revenue

Revenue increased by 106.3% to $6.10 million for the six months ended September 30, 2025, from $2.96 million for the six months ended September 30, 2024. The increase in revenue was mainly driven by the increase in brokerage and commission income:

Operating Costs and Expenses

Total operating costs and expenses increased to $13.81 million for the six months ended September 30, 2025, from $3.88 million for the six months ended September 30, 2024. The increase was mainly due to an increase in staff compensation and benefits (including share-based compensation) as a result of our business expansion.

Loss from Operations

Loss from operations increased to $7.71 million for the six months ended September 30, 2025, from $0.92 million for the six months ended September 30, 2024, primarily attributable to the increase in operating costs and expenses described above.

Other Expense

The total other expense, net increased to $0.66 million during the six months ended September 30, 2025, from total other expense, net of $0.30 million for the six months ended September 30, 2024, which was primarily attributable to the decrease in loss from the equity method investment to $0.03 million and an increase from changes in net asset value, or NAV, of investment securities to $0.74 million during the period.

Net Income (Loss)

Net loss increased to $8.37 million for the six months ended September 30, 2025, from the net loss of $1.15 million for the six months ended September 30, 2024, due to the above-referenced reasons.

Adjusted Net Loss

Our adjusted net loss, which excludes share-based compensation expenses of $6.10 million and its related income tax effects for the six months ended September 30, 2025 (2024: nil), was approximately $2.26 million for the six months ended September 30, 2025, as compared to the adjusted net loss of approximately $1.15 million for the six months ended September 30, 2024.

Basic and Diluted Loss per Share

Basic and diluted loss per share increased to $0.17 for the six months ended September 30, 2025, from loss per share of $0.03 for the six months ended September 30, 2024 due to the above-referenced reasons.

Financial Condition

As of September 30, 2025, cash and cash equivalents, plus cash segregated under regulatory requirements, increased by 115.0% to $29.88 million as of September 30, 2025, from $13.90 million as of March 31, 2025.

Non-GAAP Financial Measures and Forward-Looking Statements

This press release contains certain non-GAAP financial measures, including Adjusted Net Loss, that are used by management to evaluate our operating performance and to provide investors with additional insight into the Company’s underlying results. These non-GAAP measures should not be considered in isolation, as a substitute for, or superior to financial information prepared in accordance with U.S. GAAP. They may differ from similarly titled measures used by other companies.

We believe the presentation of these non-GAAP measures provides useful supplemental information for investors by facilitating period-to-period comparisons of our operating performance. A reconciliation of each non-GAAP measure to the most directly comparable GAAP measure is included in the accompanying financial tables. To the extent that forward-looking non-GAAP measures are provided, such measures are presented without reconciliation to the most directly comparable GAAP measures because such reconciliations are not available without unreasonable efforts.

This press release also contains certain “forward-looking statements” within the meaning of federal securities laws, including, but not limited to statements regarding plans, objectives, strategies, future events, performance, and underlying assumptions and other statements that are not historical facts. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events, which may affect the Company's financial condition, operating results, business strategy, and capital needs. Investors can identify these forward-looking statements by words such as “believe,” “plan,” “expect,” “intend,” “should,” “seek,” “estimate,” “will,” “target,” “anticipate,” or similar expressions. Except as required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances or changes in its expectations. While the Company believes the expectations reflected in these forward-looking statements are reasonable, it cannot guarantee these expectations will prove correct and cautions investors that actual results may differ materially from anticipated results, and encourages investors to review the Company’s registration statements and other filings with the U.S. Securities and Exchange Commission for additional factors that could affect its future performance.

CONTACTS

Media Inquiries

pr@waton.com

Investor Relations

ir@waton.com

Waton Financial Limited