Society Pass Swings to Profit on Digital Marketing, Ticketing Growth

TL;DR

**SOPA's Q2 profit swing is a green light for growth, but watch those acquisition costs closely.**

AI Summary

SOCIETY PASS INCORPORATED reported a significant turnaround in net income for the three months ended June 30, 2025, achieving a net income of $552,384 compared to a net loss of $1,943,754 in the same period of 2024. This improvement was driven by a substantial increase in total revenue, which rose to $2,501,494 for the three months ended June 30, 2025, from $1,710,510 in 2024, primarily due to growth in digital marketing sales ($2,064,909) and online ticketing and reservation sales ($431,699). For the six months ended June 30, 2025, the company still reported a net loss of $1,293,264, though this was a considerable improvement from the $4,782,978 net loss in the prior year. Total assets increased to $29,192,445 as of June 30, 2025, from $21,279,701 at December 31, 2024, largely due to a rise in deposits, prepayments, and other receivables to $12,796,555. The company's total equity shifted from a deficit of $2,412,705 at December 31, 2024, to a positive equity of $2,249,904 by June 30, 2025, bolstered by proceeds from an At-The-Market (ATM) equity offering program ($1,938,469) and issuance of convertible notes ($4,300,002). Operating expenses decreased to $1,565,647 for the three months ended June 30, 2025, from $2,619,499 in the prior year, contributing to the reduced loss from operations.

Why It Matters

This filing signals a potential turning point for Society Pass, moving from significant losses to profitability in the most recent quarter. For investors, the shift to positive equity and increased cash from financing activities suggests improved financial stability and access to capital, which could fuel further acquisitions and expansion in competitive markets like online ticketing and digital marketing. Employees may see increased job security and growth opportunities as the company expands. Customers could benefit from enhanced services and broader offerings, particularly in the digital marketing and travel sectors where the company has made strategic acquisitions. The broader market will watch if SOPA can sustain this profitability, especially given its aggressive acquisition strategy in Southeast Asia, potentially impacting regional competitors.

Risk Assessment

Risk Level: medium — While the company achieved net income for the quarter, it still reported a net loss of $1,293,264 for the six months ended June 30, 2025. Furthermore, the significant increase in 'Deposits, prepayments and other receivables' to $12,796,555 from $5,189,850, and 'Accounts payables' to $9,581,836 from $2,997,994, indicates complex financial movements and potential working capital management challenges, despite the positive equity shift.

Analyst Insight

Investors should monitor SOCIETY PASS INCORPORATED's next few quarters to confirm sustained profitability and positive cash flow from operations. While the Q2 net income is encouraging, the six-month loss and reliance on financing activities for cash suggest continued vigilance is warranted regarding operational efficiency and integration of recent acquisitions.

Financial Highlights

debt To Equity

N/A

revenue

$2,501,494

operating Margin

-6.1%

total Assets

$29,192,445

total Debt

$26,942,541

net Income

$552,384

eps

$0.09

gross Margin

56.5%

cash Position

$8,218,805

revenue Growth

+46.2%

Revenue Breakdown

Key Numbers

• $552,384 — Net Income (For the three months ended June 30, 2025, a significant turnaround from a $1,943,754 net loss in 2024.)
• $2,501,494 — Total Revenue (For the three months ended June 30, 2025, up from $1,710,510 in 2024.)
• $1,293,264 — Net Loss (For the six months ended June 30, 2025, an improvement from a $4,782,978 net loss in 2024.)
• $29,192,445 — Total Assets (As of June 30, 2025, an increase from $21,279,701 at December 31, 2024.)
• $2,249,904 — Total Equity (As of June 30, 2025, a shift from a deficit of $2,412,705 at December 31, 2024.)
• $1,938,469 — Proceeds from ATM equity offering (Contributed to cash from financing activities for the six months ended June 30, 2025.)
• $4,300,002 — Proceeds from issuance of convertible notes (Contributed to cash from financing activities for the six months ended June 30, 2025.)
• $12,796,555 — Deposits, prepayments and other receivables (As of June 30, 2025, a significant increase from $5,189,850 at December 31, 2024.)
• $9,581,836 — Accounts payables (As of June 30, 2025, a substantial increase from $2,997,994 at December 31, 2024.)
• $0.09 — Basic Net Income Per Share (For the three months ended June 30, 2025, a positive change from $(0.73) in 2024.)

Key Players & Entities

• SOCIETY PASS INCORPORATED (company) — Registrant
• Nasdaq Stock Market LLC (company) — Exchange where SOPA is registered
• Maxim Group LLC (company) — Underwriter for IPO
• NextGen Retail Inc. (company) — Wholly-owned subsidiary of Society Pass
• Story-I Ltd. (company) — Australian corporation involved in acquisition
• PT Inetindo Infocom (company) — Indonesian company acquired by Society Pass subsidiary
• New Retail Experience Incorporated (company) — Acquired subsidiary
• Gorilla Networks Pte Ltd (company) — Acquired subsidiary
• Mangan PH Food Delivery Service Corp. (company) — Acquired subsidiary
• Nusatrip International Pte Ltd. (company) — Acquired subsidiary

FAQ

Risk Factors

• Reliance on Financing Activities [medium — financial]: The company's positive equity position as of June 30, 2025, ($2,249,904) was significantly bolstered by proceeds from an At-The-Market (ATM) equity offering ($1,938,469) and the issuance of convertible notes ($4,300,002). This reliance on external financing indicates a potential vulnerability if future financing becomes difficult or unfavorable.
• High Level of Current Liabilities [medium — financial]: As of June 30, 2025, total current liabilities stood at $26,495,765, a substantial increase from $23,230,652 at December 31, 2024. This is largely driven by a significant rise in accounts payables to $9,581,836 from $2,997,994. Managing these short-term obligations will be critical.
• Dependence on Digital Marketing and Ticketing [medium — operational]: Revenue is heavily concentrated in digital marketing ($2,064,909) and online ticketing/reservation ($431,699) for the three months ended June 30, 2025. Any disruption or downturn in these specific sectors could disproportionately impact overall financial performance.
• Accumulated Deficit [high — financial]: Despite the recent turnaround in quarterly net income, the company still carries a substantial accumulated deficit of $111,488,907 as of June 30, 2025. This indicates a history of losses that needs to be overcome for long-term financial health.
• Increase in Deposits, Prepayments, and Other Receivables [low — financial]: Deposits, prepayments, and other receivables increased significantly to $12,796,555 as of June 30, 2025, from $5,189,850 at December 31, 2024. While this contributes to total assets, the nature and collectibility of these items warrant scrutiny.
• Competitive Landscape [medium — market]: The company operates in dynamic digital marketing, online ticketing, and reservation markets, which are highly competitive. Sustaining growth and profitability will depend on the ability to innovate and maintain a competitive edge against established and emerging players.

Industry Context

Society Pass Incorporated operates within the competitive digital marketing, online ticketing, and reservation sectors. These industries are characterized by rapid technological advancements, evolving consumer preferences, and a fragmented market with numerous players. Growth in these areas is often driven by increased internet penetration, mobile usage, and the demand for convenient online services.

Regulatory Implications

As a publicly traded company, Society Pass must adhere to SEC reporting requirements, including timely filing of 10-Q and 10-K reports. Compliance with accounting standards and disclosure regulations is crucial to maintain investor confidence and avoid penalties. The company's operations may also be subject to data privacy regulations depending on the jurisdictions it serves.

What Investors Should Do

1. Monitor the sustainability of revenue growth, particularly in digital marketing and online ticketing, to ensure the recent quarterly performance is not an anomaly.
2. Analyze the composition and collectibility of 'Deposits, prepayments and other receivables,' which have grown substantially.
3. Evaluate the company's strategy for managing its high current liabilities, especially the significant increase in accounts payable.
4. Assess the company's long-term strategy for addressing the accumulated deficit and achieving sustainable profitability.

Key Dates

• 2025-06-30: Quarterly Period Ended — Reported a significant turnaround in net income to $552,384 from a net loss of $1,943,754 in the prior year, driven by increased revenue and decreased operating expenses.
• 2025-06-30: Balance Sheet Date — Total assets increased to $29,192,445, and total equity shifted from a deficit to a positive $2,249,904, largely due to financing activities.
• 2025-06-30: Six Months Ended — Reported a net loss of $1,293,264, an improvement from $4,782,978 in the prior year, indicating progress towards profitability over a longer period.

Glossary

At-The-Market (ATM) equity offering

A type of public offering where a company sells its stock directly to the public over a period of time, typically through an exchange or broker, at prevailing market prices. (The company raised $1,938,469 through this program, which significantly contributed to improving its equity position.)

Convertible notes

Debt instruments that can be converted into a predetermined amount of the issuer's equity (stock) at certain times or under certain conditions. (The issuance of $4,300,002 in convertible notes was a key factor in strengthening the company's equity.)

Accumulated deficit

The total cumulative net losses of a company since its inception, minus any cumulative net income. (The company still has a substantial accumulated deficit of $111,488,907, highlighting its historical unprofitability despite recent quarterly improvements.)

Deposits, prepayments and other receivables

Amounts owed to the company that are not yet recognized as revenue, which may include advance payments from customers or other short-term assets. (This account saw a significant increase to $12,796,555, contributing substantially to the rise in total assets.)

Accounts payables

Money owed by a company to its suppliers for goods or services purchased on credit. (This liability increased substantially to $9,581,836, a key component of the rise in current liabilities.)

Non-controlling interest

The portion of equity in a subsidiary that is not attributable to the parent company. (The company reports a negative non-controlling interest of $198,525 as of June 30, 2025, which impacts total equity.)

Year-Over-Year Comparison

Compared to the prior year, Society Pass Incorporated has demonstrated a significant financial turnaround in the three months ended June 30, 2025, with net income shifting from a loss of $1,943,754 to a profit of $552,384. This was driven by a 46.2% increase in total revenue to $2,501,494 and a substantial reduction in operating expenses by 40.2%. Total assets have grown by $7,912,744 to $29,192,445, and importantly, total equity has moved from a deficit of $2,412,705 to a positive $2,249,904, largely due to successful financing activities. However, the six-month period still shows a net loss, albeit reduced, indicating ongoing efforts to achieve consistent profitability.

Key Financial Figures

• $0.0001 — ch registered Common Stock, par value $0.0001 per share SOPA The Nasdaq Stock Mar
• $1 — ates, January 24, 2019 IP Licensing US$1 100 % SOPA Cognitive Analytics Priva
• $2,000 — January 7, 2022 Investment holding US$2,000 100 % Gorilla Networks Pte. Ltd. Si
• $2,620,000 — eptember 3, 2019 Investment holding US$2,620,000 and SGD 730,000 100 % Gorilla Mobile
• $10 — tes June 28,2022 Investment holding US$10 89.89 % Thoughtful (Thailand) Co. Lt
• $1,929.1938 — , 2010 Digital marketing Preferred: US$1,929.1938 Common: US$4,032.7871 100 % PT Tunas
• $4,032.7871 — ing Preferred: US$1,929.1938 Common: US$4,032.7871 100 % PT Tunas Sukses Mandiri Indon
• $0.10 — 22, 2023 Investment holding Common: US$0.10 100 % Nusatrip Incorporated United

Filing Documents

• form10-q.htm (10-Q) — 2900KB
• ex31-1.htm (EX-31.1) — 16KB
• ex31-2.htm (EX-31.2) — 16KB
• ex32-1.htm (EX-32.1) — 10KB
• 0001641172-25-023454.txt ( ) — 14267KB
• sopa-20250630.xsd (EX-101.SCH) — 82KB
• sopa-20250630_cal.xml (EX-101.CAL) — 93KB
• sopa-20250630_def.xml (EX-101.DEF) — 427KB
• sopa-20250630_lab.xml (EX-101.LAB) — 611KB
• sopa-20250630_pre.xml (EX-101.PRE) — 531KB
• form10-q_htm.xml (XML) — 3267KB

SIGNATURES

SIGNATURES 57 i SOCIETY PASS INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2025 AND DECEMBER 31, 2024 (Currency expressed in United States Dollars ("US$")) June 30, 2025 December 31, 2024 (Unaudited) (Audited) ASSETS Current assets: Cash and cash equivalents $ 8,218,805 $ 7,630,079 Restricted cash 50,000 53,900 Accounts receivable, net 1,064,164 1,111,161 Inventories 127,843 157,734 Contract assets 327,267 333,188 Deposits, prepayments and other receivables 12,796,555 5,189,850 Total current assets 22,584,634 14,475,912 Non-current assets: Intangible assets, net 5,311,177 5,504,047 Goodwill 81,849 81,849 Property, plant and equipment, net 347,106 407,871 Right of use assets, net 809,329 751,672 Deferred tax assets 58,350 58,350 Total non-current assets 6,607,811 6,803,789 TOTAL ASSETS $ 29,192,445 $ 21,279,701 LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payables $ 9,581,836 $ 2,997,994 Contract liabilities 951,228 1,426,901 Accrued liabilities and other payables 15,492,850 18,323,527 Due to related parties 12,739 8,568 Operating lease liabilities 432,842 360,621 Loan 24,270 113,041 Total current liabilities 26,495,765 23,230,652 Non-current liabilities Operating lease liabilities 377,776 392,754 Deferred tax liabilities 69,000 69,000 Total non-current liabilities 446,776 461,754 TOTAL LIABILITIES 26,942,541 23,692,406 COMMITMENTS AND CONTINGENCIES - - Convertible preferred shares; $ 0.0001 par value, 5,000,000 shares authorized, 4,766,500 and 4,766,500 shares undesignated as of June 30, 2025 and December 31, 2024, respectively - - Series A shares: 10,000 shares designated; 0 and 0 Series A shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively — — Series B shares: 10,000 shares designated; 0 and 0 Series B shares issued and outstanding as of

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View this 10-Q filing on SEC EDGAR