Gross margins have collapsed from 99.4% in 2023Q4 to a marginal 2.7% in 2026Q2, signaling a fundamental loss of pricing power.
| Sales/Revenue | 1.32M | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - |
| Gross Profit | 501.31K | 275.5K | 538.82K | 562.59K | 237.4K | 103.83K |
| Gross Margin % | 37.95% | 76.16% | 98.25% | 99.03% | 56.76% | 68.16% |
| Gross Profit Growth % | - | -48.87% | -4.23% | 136.98% | 128.63% | - |
| Operating Expenses | 3.13M | 1.32M | 1.1M | 398.28K | 359.05K | 153.62K |
| OpEx % of Revenue | - | 364.63% | 201.49% | 70.11% | 85.84% | 100.85% |
| Selling, General & Admin | 0 | 0 | 0 | 0 | 0 | 0 |
| SG&A % of Revenue | - | - | - | - | - | - |
| Research & Development | 0 | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - |
| Operating Income | -2.62M | -1.04M | -566.17K | 164.31K | -121.65K | -49.79K |
| Operating Margin % | -198.72% | -288.47% | -103.24% | 28.92% | -29.08% | -32.68% |
| Operating Income Growth % | - | -84.31% | -444.57% | 235.07% | -144.34% | - |
| EBITDA | -2.55M | -1.03M | -562.34K | 166.61K | -119.21K | -48.24K |
| EBITDA Margin % | -193.3% | -284.96% | -102.54% | 29.33% | -28.5% | -31.67% |
| EBITDA Growth % | -1175.47% | -83.3% | -437.52% | 239.76% | -147.11% | - |
| D&A (Non-Cash Add-back) | 71.58K | 12.7K | 3.83K | 2.3K | 2.44K | 1.55K |
| EBIT | -2.42M | -1.09M | -562.46K | 172.09K | -96.35K | -42.44K |
| Net Interest Income | 48.12K | 9.11K | 20.06K | 0 | -29.29K | -40.5K |
| Interest Income | 48.76K | 9.75K | 20.06K | 0 | 128 | 258 |
| Interest Expense | 643 | 642 | 0 | 0 | 29.42K | 40.76K |
| Other Income/Expense | 0 | - | - | - | - | - |
| Pretax Income | -2.42M | -1.09M | -562.46K | 172.09K | -125.76K | -83.2K |
| Pretax Margin % | -183.15% | -302.2% | -102.56% | 30.29% | -30.07% | -54.61% |
| Income Tax | 11.01K | 2.44K | 19.81K | 0 | 0 | 0 |
| Effective Tax Rate % | -0.46% | -0.22% | -3.52% | 0% | 0% | 0% |
| Net Income | -2.43M | -1.1M | -582.27K | 172.09K | -125.76K | -83.2K |
| Net Margin % | -183.96% | -302.87% | -106.18% | 30.29% | -30.07% | -54.61% |
| Net Income Growth % | -1063.07% | -88.16% | -438.35% | 236.84% | -51.16% | - |
| Net Income (Continuing) | -2.43M | -1.1M | -582.27K | 172.09K | -125.76K | -83.2K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 16K | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.03 | -0.07 | -0.02 | 0.01 | -0.00 | -0.00 |
| EPS Growth % | -912.87% | -221.8% | - | - | - | - |
| EPS (Basic) | - | -0.07 | -0.02 | 0.01 | -0.00 | -0.00 |
| Diluted Shares Outstanding | 70.5M | 16.13M | 27.59M | 27.59M | 27.59M | 27.59M |
| Basic Shares Outstanding | 70.5M | 16.13M | 27.59M | 27.59M | 27.59M | 27.59M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Unsustainable operating burn rate
As indicated by the historical income statement data, AXG's revenue trajectory remains highly erratic, with recent quarterly figures like the $747.7K peak failing to establish a consistent growth trend, ultimately suggesting that the firm's core brokerage and underwriting activities lack the necessary scale for long-term viability.
The lack of sequential revenue growth suggests that AXG is struggling to capture meaningful market share within the competitive Hong Kong financial services landscape. Investors should monitor whether the firm can transition from project-based, one-time fees to a more predictable, recurring revenue model, as current fluctuations appear tied to sporadic market activity rather than organic client acquisition.
Based on the provided financial records, AXG's gross margin has experienced significant degradation, falling from near-perfect levels of 99.4% in 2023Q4 to a mere 2.7% in 2026Q2, which highlights a concerning inability to maintain pricing power or cost efficiency in its core service offerings.
This sharp contraction in gross profitability suggests that the direct costs associated with executing trades or maintaining the Solomon VA+ platform are rising relative to the revenue generated. Such a trend warrants further investigation into whether the firm is being forced to subsidize client activity to remain relevant in a crowded market.
According to the reported income statements, AXG's operating leverage is currently non-existent, as the firm has consistently posted negative operating income in seven of the last nine quarters, with the most recent period showing an operating margin of -79.6% that underscores severe structural inefficiencies.
The inability to scale operating income alongside gross profit suggests that the firm's fixed-cost base, likely driven by regulatory compliance and IT infrastructure, is far too heavy for its current revenue volume. Without a substantial increase in assets under management, the firm appears trapped in a cycle of high overhead that continues to erode shareholder value.
While some market participants may view AXG as a strategic 'regulatory option' due to its SFC licenses, the financial data suggests a more precarious reality, as the firm's persistent net losses and shrinking revenue base indicate that the cost of maintaining these licenses may outweigh their current utility.
Short-term investors should be wary of the assumption that these licenses provide an inherent floor to the valuation, as the cash burn rate suggests that the firm may soon require dilutive financing to survive. The disconnect between the firm's theoretical potential as a crypto-bridge and its actual financial performance warrants a skeptical view of its long-term operational sustainability.
Quick answers to the most common questions about buying AXG stock.
Solowin Holdings Ordinary Share (AXG) reported a net loss of $1.1M for the fiscal year ending 2025.
Solowin Holdings Ordinary Share (AXG) reported an operating income of $-1.0M, resulting in an operating profit margin of -288.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Solowin Holdings Ordinary Share (AXG) generated $0.3M in gross profit for the year, representing a gross profit margin of 76.2%. This demonstrates the company's core pricing power and production efficiency.