The Company’s first half 2026 financial results primarily reflect its established revenue base and the earlier-stage commercialization of
Management remains focused on converting the technology, regulatory coverage, banking relationships, settlement capabilities, and compliance infrastructure built over the past several years into recurring enterprise payment activity.
Recent
The following developments occurred after
- Cumulative volume across the Company's full payment platform continued to build. Across the OwlPay platform, spanning both fiat and stablecoin payments, cumulative processed payment volume has surpassed
US$700 million , up from more thanUS$600 million as ofJune 30, 2026 . This measure covers the full platform and is not limited to activity on Harbor.2
The Company has set a target for cumulative processed payment volume across the OwlPay platform to exceedUS$1 billion byDecember 31, 2026 . Cumulative processed payment volume is an operating measure and is not a measure of revenue; the target does not constitute revenue guidance.
- Payment volume on
OwlPay Harbor continued to accelerate following period-end. Based on payment activity during the trailing 30 days as ofAugust 20, 2026 , annualized payment volume was approximatelyUS$160 million . This compares with approximatelyUS$130 million based on the trailing 30 days as ofAugust 13, 2026 , and with approximatelyUS$96 million based on payment volume duringJuly 2026 .3
Harbor entered commercial scaling approximately six months ago, following more than five years of investment in payment technology, regulatory infrastructure, banking and settlement relationships, and compliance capabilities. - Monthly volume growth on Harbor continued through July. July payment volume increased 107.6% month over month, and transaction count increased 109.5%, marking the sixth consecutive month of sequential payment volume growth. Enterprise clients increased to 79 as of
July 31, 2026 , from 67 as ofJune 30, 2026 , and remain at varying stages of integration, activation and production.4 OwlPay Harbor continued to expand across global payment corridors. For the seven months endedJuly 31, 2026 , more than 90% of payment value involved stablecoins converted into fiat, with payments settled into more than 40 countries and territories and approximately two-thirds of payout value going to corporate recipients. More than 60% of cross-border payout value settled through the Circle Payments Network, withBrazil andNigeria among the largest sending markets.5- OwlPay is exploring expansion of its payment infrastructure in
Taiwan . The Company is in preliminary discussions with Taiwanese banks and other financial institutions regarding potential collaborations to connect local enterprises with OwlPay’s cross-border payment, on- and off-ramp, liquidity and settlement infrastructure. No definitive agreements have been entered into, and any such collaboration would be subject to applicableTaiwan regulatory requirements and approvals. There can be no assurance that any collaboration will be concluded or that any service will be launched inTaiwan . - Visa Direct integration is progressing toward commercialization. The core technical integration was substantially completed during the first half of 2026.6 The Company is now focused on completing remaining operational, onboarding and compliance requirements before commercial deployment. Timing remains subject to completion of those requirements and to the approvals of the Company's partners.
First Half 2026 Operational Highlights
U.S . regulatory coverage expanded during the period. InJune 2026 , the Company obtained a Money Transmitter License from theState of Ohio , bringing itsU.S . regulatory coverage to 42 states. The Company also maintains a VASP registration inPoland and an Electronic Payment Intermediary Service Provider registration inJapan . In addition, the Company is pursuing further regulatory approvals, including an EMI license and CASP registration under MiCAR in the EU, a fund transfer service license and stablecoin-related regulatory approvals inJapan , and other global markets, subject to applicable regulatory review and approval.7- Banking and settlement activity flow exceeded
US$1.4 billion . Gross activity across the Company's banking and settlement infrastructure has exceededUS$1.4 billion since inception as ofJune 30, 2026 , reflecting the increasing scale of the banking layer supporting OwlPay. These flows include activity associated with liquidity positioning, prefunding, treasury movement, and settlement support across the Company's banking relationships and payment infrastructure. Banking activity flow is distinct from processed payment volume and should not be interpreted as customer payment volume or revenue.8 - Launched OwlPay Agent Wallet for AI-initiated payments. In
May 2026 , the Company launched OwlPay Agent Wallet, a self-custody digital wallet designed for authorized AI agents to send, receive, and manage stablecoins on behalf of users. The Wallet supports transactions across the Ethereum ecosystem, Stellar, and Solana and forms part of OwlTing’s broader payment infrastructure for emerging agentic-commerce use cases.9
Management Commentary
“For more than five years, we have invested in the technology, regulatory capabilities, banking and settlement relationships and compliance infrastructure required to support a global payment platform. Harbor entered commercial scaling only approximately six months ago, and we are now beginning to see that infrastructure translate into measurable transaction activity.”
“Annualized payment volume on Harbor was approximately
“What matters most to us is the consistency of the trend as more clients move into production and existing clients increase their activity. Our focus for the second half is to bring more enterprise clients into recurring production, increase utilization, expand settlement capacity and add additional payment corridors.”
“Our first-half financial statements largely reflect the Company’s historical revenue base and the earlier investment, onboarding and activation phase of
“The increase in reported net loss during the first half was primarily driven by non-cash share-based compensation, higher finance costs associated with our convertible note, and the non-recurrence of a foreign exchange gain recorded in the prior-year period. Excluding share-based compensation from cost of revenue, adjusted gross margin improved to 15.3% from 12.5%, while adjusted operating expenses increased only 6.6% year over year. This reflects disciplined cost management even as the business accelerates and expands.”
“A significant portion of the infrastructure and operating base required to support OwlPay has already been established. As payment activity scales, we believe this infrastructure can support greater transaction volume without a proportionate increase in the underlying operating cost base, creating the potential for operating leverage over time.”
First Half 2026 Financial Results
Unless otherwise indicated, all amounts are presented in
Revenue
Total revenue was
- Revenue from payment services was
US$2.11 million in the first half of 2026, compared withUS$2.17 million in the first half of 2025, a decrease of approximately 2.8%. Revenue contribution from the Company’s newer OwlPay products and services continued to increase during the period, partially offsetting a modest decline in the legacy payment gateway business. This shift toward newer products carrying higher underlying margins contributed to the improvement in Adjusted gross margin. Payment services represented 54.5% of total revenue in the first half of 2026 compared with 56.5% in the prior-year period. - Revenue from hospitality services increased approximately 11.0% to
US$1.54 million in the first half of 2026 fromUS$1.39 million in the same period last year. Hospitality-related software services revenue increased approximately 23.9% toUS$0.80 million fromUS$0.64 million , driven by continued growth in OwlNest subscription revenue and room-fee collection volume. Hospitality platform services remained broadly stable at approximatelyUS$0.74 million . - Revenue from the e-commerce platform was approximately
US$0.22 million in the first half of 2026, compared withUS$0.29 million in the same period last year, a decrease of approximately 22.2%, reflecting the Company’s continued strategic reallocation of internal resources toward higher-growth business lines, particularly its payment infrastructure platform.
The underlying revenue schedule shows
Cost of Revenue
Cost of revenue in the first half of 2026 was
Gross Profit
Gross profit in the first half of 2026 was
Adjusted gross profit, defined as gross profit excluding non-cash share-based compensation recognized within cost of revenue, increased to approximately
Operating Expenses
Operating expenses totaled
- Adjusted operating expenses, which exclude approximately
US$10.1 million of non-cash share-based compensation, wereUS$7.24 million in the first half of 2026 compared withUS$6.79 million in the same period last year, an increase of approximately 6.6%. - Marketing and sales expenses were
US$1.98 million , compared withUS$0.95 million in the same period last year. The increase reflected, among other items, share-based compensation and investments supporting OwlPay product launches, marketing activity, corporate communications and brand visibility. - General and administrative expenses were
US$10.95 million , compared withUS$4.53 million in the same period last year, primarily reflecting share-based compensation, ongoing public-company costs and additional personnel. - Research and development expenses were
US$4.41 million , compared withUS$1.31 million in the same period last year, reflecting share-based compensation as well as continued investment in theOwlPay Harbor platform, corridor integrations, scalability and compliance systems.
Net Loss
Net loss was
The year-over-year change in net loss was substantially attributable to non-cash and financing items rather than underlying operating activity. Of the approximately
Adjusted net loss, excluding share-based compensation and convertible-note finance costs, was approximately
Liquidity and Capital Resources
Operating cash outflows totaled
As of
Conference Call Information
Management has pre-recorded an earnings call to discuss the Company’s first half 2026 financial results and recent business developments.
Date and time:
Webcast link: https://events.zoom.us/ev/Ai0D9W0QAlHdxUC8tE8oJ9DEGyQJ4GXdAeP2PH_4AYQ0LIn4avcO~AtHUrN_b8ge1mLVv_kKNGoLzdCw-plMU1zvxQjtuTQEDmbiL7S-LBm1VrQ
A live and archived webcast of the conference call will be available on the Company's Investor Relations website at https://investors.owlting.com/.
About OBOOK Holdings Inc.
OBOOK Holdings Inc. (NASDAQ: OWLS) is a global fintech company building regulated payment infrastructure, operating globally through its flagship brand OwlTing Group. Headquartered in Taiwan with subsidiaries across the U.S., Japan, Poland, Singapore, Hong Kong, Thailand, and Malaysia, the Company delivers innovative solutions, including its fiat and digital currency hybrid payment platform, OwlPay, to empower businesses in the expanding digital economy. Recognized for rapid growth and industry leadership, OwlTing was ranked No. 226 on the Financial Times and Statista “High-Growth Companies Asia-Pacific 2026” list with a 42% CAGR, and named among the key global players in the “Enterprise & B2B” category by CB Insights. For more information, visit www.owlting.com/portal/?lang=en.
Forward-Looking Statements
This announcement contains forward-looking statements within the meaning of applicable securities laws, including statements regarding the Company's expected commercial scaling, client activation, future payment volume trends, platform utilization, future profitability, geographic expansion, regulatory and licensing initiatives, and the Company's target for cumulative processed payment volume across the OwlPay platform. These statements relate to future events or the Company’s future financial or operating performance and involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such statements. Forward-looking statements can often be identified by words such as “may,” “will,” “expect,” “anticipate,” “plan,” “intend,” “believe,” “estimate,” “target,” or similar expressions. These forward-looking statements are based on the Company’s current expectations and assumptions and speak only as of the date of this announcement. Any targets represent management's objectives, are not projections, forecasts or guidance, and may not be achieved. The Company undertakes no obligation to update any forward-looking statements, except as required by law. Investors are cautioned not to place undue reliance on these statements and are encouraged to review the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission.
Non-IFRS Financial Measures
This announcement presents certain non-IFRS financial measures, including non-IFRS cost of revenue, non-IFRS gross profit, non-IFRS gross margin, non-IFRS marketing and sales expenses, non-IFRS general and administrative expenses, and non-IFRS research and development expenses, which exclude share-based compensation expenses recognized in connection with restricted share units (RSUs) and restricted share awards (RSAs) granted under the Company's Share Incentive Plan. These non-IFRS financial measures are not prepared in accordance with IFRS Accounting Standards and should not be considered in isolation from, or as a substitute for, financial information presented in accordance with IFRS. Other companies may calculate similarly titled measures differently, which reduces their usefulness as comparative measures. A reconciliation of each non-IFRS financial measure to its most directly comparable IFRS measure is set forth in the accompanying financial tables.
The Company believes these non-IFRS financial measures provide useful information to investors by (i) isolating the cash component of the Company's operating expenses, separate from the non-cash impact of equity-based incentives; (ii) providing a more meaningful comparison of the Company's operational performance from period to period; and (iii) reflecting the underlying trends in the Company's business operations independent of the recognition of share-based compensation.
OBOOK Holdings Inc. Investor Relations
ir@owlting.com
OBOOK Holdings Inc. Media Relations
pr_office@owlting.com
The Blueshirt Group, Investor Relations
OwlTing@BlueshirtGroup.co
Unaudited Condensed Consolidated Statements of Financial Position (Expressed in | |||||||
2026 | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash | $ | 10,190,162 | 7,493,875 | ||||
| Restricted cash | 1,672,123 | 1,860,930 | |||||
| Accounts receivable | 391,094 | 400,941 | |||||
| Other receivables | 53,052 | 47,070 | |||||
| Current tax assets | 9,586 | 7,047 | |||||
| Prepayment | 447,485 | 648,064 | |||||
| Other financial assets - current | 5,576,751 | 7,100,069 | |||||
| Other current assets | 459,499 | 95,955 | |||||
| Total current assets | 18,799,752 | 17,653,951 | |||||
| Non-current assets: | |||||||
| Property, plant and equipment | 786,801 | 926,596 | |||||
| Right-of-use assets | 2,871,413 | 3,453,417 | |||||
| Other intangible assets | 854,875 | 421,814 | |||||
| Other financial assets - non-current | 711,042 | 675,134 | |||||
| Other non-current assets | 31,966 | 20,769 | |||||
| Total non-current assets | 5,256,097 | 5,497,730 | |||||
| Total assets | $ | 24,055,849 | 23,151,681 | ||||
| Liabilities and Equity | |||||||
| Current liabilities: | |||||||
| Financial liabilities at fair value through profit or loss | $ | 5,845,622 | - | ||||
| Contract liabilities - current | 1,924,021 | 1,869,172 | |||||
| Accounts payable | 1,837,582 | 1,851,494 | |||||
| Other payables | 2,587,992 | 3,711,946 | |||||
| Other payables to related parties | 3,588,983 | 2,465,324 | |||||
| Current tax liabilities | 1,324 | 5,888 | |||||
| Current provisions | 74,171 | 74,595 | |||||
| Lease liabilities - current | 1,035,784 | 1,126,510 | |||||
| Long-term borrowings, current portion | 651,699 | 832,233 | |||||
| Convertible note | 4,948,810 | - | |||||
| Other current liabilities - receipts under custody | 11,293,333 | 11,705,838 | |||||
| Other current liabilities | 122,705 | 130,333 | |||||
| Total current liabilities | 33,912,026 | 23,773,333 | |||||
Unaudited Condensed Consolidated Statements of Financial Position (Expressed in | |||||||
2026 | |||||||
| Non-current liabilities: | |||||||
| Long-term borrowings | $ | - | 2,810 | ||||
| Lease liabilities - non-current | 2,241,156 | 2,780,453 | |||||
| Other non-current liabilities | 154,301 | 172,860 | |||||
| Total non-current liabilities | 2,395,457 | 2,956,123 | |||||
| Total liabilities | 36,307,483 | 26,729,456 | |||||
| Equity attributable to owners of parent: | |||||||
| Share capital | $ | 88,408 | 88,408 | ||||
| Capital surplus | 130,456,061 | 130,456,061 | |||||
| Accumulated deficit | (111,290,417 | ) | (92,468,883 | ) | |||
| Other equity | (31,034,806 | ) | (41,549,740 | ) | |||
| (471,179 | ) | (104,515 | ) | ||||
| Equity attributable to owners of the parent | (12,251,933 | ) | (3,578,669 | ) | |||
| Non-controlling interest | 299 | 894 | |||||
| Total Equity | (12,251,634 | ) | (3,577,775 | ) | |||
| Total liabilities and equity | $ | 24,055,849 | 23,151,681 | ||||
Unaudited Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income (Loss) For the six months ended (Expressed in | ||||||
| For the six months ended | ||||||
| 2026 | 2025 | |||||
| Revenue | $ | 3,870,097 | 3,840,984 | |||
| Costs of revenue | (3,622,830 | ) | (3,360,935 | ) | ||
| Gross profit | 247,267 | 480,049 | ||||
| Operating expenses: | ||||||
| Marketing and sales | (1,975,968 | ) | (954,260 | ) | ||
| General and administrative | (10,948,427 | ) | (4,524,458 | ) | ||
| Research and development | (4,410,072 | ) | (1,312,137 | ) | ||
| Total operating expenses | (17,334,467 | ) | (6,790,855 | ) | ||
| Net operating loss | (17,087,200 | ) | (6,310,806 | ) | ||
| Non-operating income and expense: | ||||||
| Interest income | 47,852 | 25,113 | ||||
| Foreign currency exchange gains | 118,803 | 2,473,289 | ||||
| Foreign currency exchange losses | (138,133 | ) | (1,144 | ) | ||
| Gain (loss) on financial liabilities at fair value through profit or loss | 837,286 | (8,815 | ) | |||
| Other losses | (5,666 | ) | (3,288 | ) | ||
| Other income | 34,720 | 48,509 | ||||
| Finance costs | (2,628,246 | ) | (125,513 | ) | ||
| Total non-operating income and expenses | (1,733,384 | ) | 2,408,151 | |||
| Loss before tax | (18,820,584 | ) | (3,902,655 | ) | ||
| Income tax expenses | (1,572 | ) | (6,098 | ) | ||
| Net loss | $ | (18,822,156 | ) | (3,908,753 | ) | |
| Other comprehensive income (loss): | ||||||
| Components of other comprehensive income (loss) that will be reclassified to profit or loss | ||||||
| Exchange differences on translation of foreign financial statements | 76,035 | (3,083,737 | ) | |||
| Components of other comprehensive income (loss) that will be reclassified to profit or loss | 76,035 | (3,083,737 | ) | |||
| Other comprehensive income (loss) | 76,035 | (3,083,737 | ) | |||
| Total comprehensive loss | $ | (18,746,121 | ) | (6,992,490 | ) | |
| Loss attributable to: | ||||||
| Owners of the parent | $ | (18,821,534 | ) | (3,908,305 | ) | |
| Non-controlling interests | (622 | ) | (448 | ) | ||
| $ | (18,822,156 | ) | (3,908,753 | ) | ||
| Total comprehensive loss attributable to: | ||||||
| Owners of the parent | $ | (18,745,526 | ) | (6,992,115 | ) | |
| Non-controlling interests | (595 | ) | (375 | ) | ||
| $ | (18,746,121 | ) | (6,992,490 | ) | ||
| Loss per share | ||||||
| Basic and diluted loss per share | $ | (0.23 | ) | (0.05 | ) | |
Unaudited Condensed Consolidated Statements of Changes in Equity For the six months ended (Expressed in | |||||||||||||||||||||
| Equity attributable to owners of parent | |||||||||||||||||||||
| Share capital | Other equity | ||||||||||||||||||||
| Ordinary shares | Capital collected in advance | Capital surplus | Accumulated deficit | Exchange differences on translation of foreign financial statements | Unearned share-based compensation | Total | Total | Non- controlling interest | Total equity | ||||||||||||
| Balance at | 2,000,000 | 51,678,353 | (60,612,910) | 2,555,649 | - | 2,555,649 | - | (4,298,042) | 3,462 | (4,294,580) | |||||||||||
| Net Loss for the period | - | - | - | (3,908,305) | - | - | - | - | (3,908,305) | (448) | (3,908,753) | ||||||||||
| Other comprehensive income (loss) for the period | - | - | - | - | (3,083,810) | - | (3,083,810) | - | (3,083,810) | 73 | (3,083,737) | ||||||||||
| Comprehensive income (loss) for the period | - | - | - | (3,908,305) | (3,083,810) | - | (3,083,810) | - | (6,992,115) | (375) | (6,992,490) | ||||||||||
| Advance receipts for share capital | - | 2,959,000 | - | - | - | - | - | - | 2,959,000 | - | 2,959,000 | ||||||||||
| Balance at | 4,959,000 | 51,678,353 | (64,521,215) | (528,161) | - | (528,161) | - | (8,331,157) | 3,087 | (8,328,070) | |||||||||||
| Balance at | - | 130,456,061 | (92,468,883) | 1,714,154 | (43,263,894) | (41,549,740) | (104,515) | (3,578,669) | 894 | (3,577,775) | |||||||||||
| Net Loss for the period | - | - | - | (18,821,534) | - | - | - | - | (18,821,534) | (622) | (18,822,156) | ||||||||||
| Other comprehensive income (loss) for the period | - | - | - | - | 76,008 | - | 76,008 | - | 76,008 | 27 | 76,035 | ||||||||||
| Comprehensive income (loss) for the period | - | - | - | (18,821,534) | 76,008 | - | 76,008 | - | (18,745,526) | (595) | (18,746,121) | ||||||||||
| Share-based payment expenses recognized | - | - | - | - | - | 10,438,926 | 10,438,926 | - | 10,438,926 | - | 10,438,926 | ||||||||||
| Acquisition of treasury share | - | - | - | - | - | - | - | (366,664) | (366,664) | - | (366,664) | ||||||||||
| Balance at | - | 130,456,061 | (111,290,417) | 1,790,162 | (32,824,968) | (31,034,806) | (471,179) | (12,251,933) | 299 | (12,251,634) | |||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows For the six months ended (Expressed in | ||||||
| For the six months ended | ||||||
| 2026 | 2025 | |||||
| Cash flows from operating activities: | ||||||
| Loss for the year | $ | (18,822,156 | ) | (3,908,753 | ) | |
| Adjustments for: | ||||||
| Depreciation expense | 716,525 | 689,281 | ||||
| Amortization expense | 69,436 | 47,247 | ||||
| Expected credit impairment gain | (70,163 | ) | - | |||
| Gain (loss) on financial liabilities at fair value through profit or loss | (837,286 | ) | 8,815 | |||
| Share-based compensation costs | 10,438,926 | - | ||||
| Impairment loss on intangible assets | 1,825 | 1,325 | ||||
| Impairment loss on property, plant and equipment | - | 860 | ||||
| Finance costs | 2,628,246 | 125,513 | ||||
| Interest income | (47,852 | ) | (25,113 | ) | ||
| Government subsidy income | - | (76 | ) | |||
| Income tax expense | 1,572 | 6,098 | ||||
| (5,920,927 | ) | (3,054,803 | ) | |||
| Change in operating assets and liabilities: | ||||||
| Decrease (increase) in accounts receivable | 7,347 | (152,560 | ) | |||
| Decrease (increase) in other receivables | 66,681 | (215,083 | ) | |||
| Decrease in prepayment | 200,579 | 1,810,460 | ||||
| Decrease (increase) in other current assets | (363,544 | ) | 19,976 | |||
| Increase in contract liabilities | 54,849 | 243,899 | ||||
| Increase (decrease) in accounts payable | (13,912 | ) | 117,461 | |||
| Increase (decrease) in other payables | 48,643 | (38,814 | ) | |||
| Increase (decrease) in provisions | (424 | ) | 7,924 | |||
| Decrease in other payables from related parties | (1,819 | ) | (9,833 | ) | ||
| Decrease in other current liabilities | (7,628 | ) | 50,923 | |||
| Cash used in operations | (5,930,155 | ) | (1,220,450 | ) | ||
| Interest received | 47,852 | 25,113 | ||||
| Interest paid | (178,598 | ) | (111,419 | ) | ||
| Income taxes refunded (paid) | (8,743 | ) | 14,819 | |||
| Net cash flows used in operating activities | (6,069,644 | ) | (1,291,937 | ) | ||
| Cash flows from investing activities: | ||||||
| Acquisition of property, plant and equipment | (18,317 | ) | (403,479 | ) | ||
| Acquisition of intangible assets | (7,337,436 | ) | (19,716 | ) | ||
| Disposal of intangible assets | 6,829,825 | - | ||||
| Increase in guarantee deposits paid | (50,525 | ) | (7,555 | ) | ||
| Decrease in guarantee deposits paid | 6,527 | 84,560 | ||||
| Prepaid equipment costs | (11,674 | ) | (7,424 | ) | ||
| Net cash flows used in investing activities | (581,600 | ) | (353,614 | ) | ||
Unaudited Condensed Consolidated Statements of Cash Flows For the six months ended (Expressed in | ||||||
| For the six months ended | ||||||
| 2026 | 2025 | |||||
| Cash flows from financing activities: | ||||||
| Proceeds from issuance of convertible note | 10,000,000 | - | ||||
| Payments for transaction costs attributable to the issuance of convertible note | (875,000 | ) | - | |||
| Repayment of long-term borrowings | (172,970 | ) | (172,235 | ) | ||
| Proceeds from non-current financial liabilities at fair value through profit or loss | - | 2,550,000 | ||||
| Repayment of preference share liabilities | - | (203,184 | ) | |||
| Repayments of installment payables | (8,174 | ) | (7,880 | ) | ||
| Decrease in other payables | (1,150,000 | ) | - | |||
| Increase in other payables from related parties | 1,169,592 | 113,035 | ||||
| Increase (decrease) in other current liabilities - receipts under custody | 1,110,813 | (495,115 | ) | |||
| Increase in guarantee deposits received | 3,865 | 4,121 | ||||
| Decrease in guarantee deposits received | (5,541 | ) | (3,434 | ) | ||
| Payment of lease liabilities | (612,416 | ) | (571,605 | ) | ||
| Advance receipts for share capital | - | 2,959,000 | ||||
| Acquisition of treasury share | (366,664 | ) | - | |||
| Net cash flows from financing activities | 9,093,505 | 4,172,703 | ||||
| Effect of exchange rate changes on cash and restricted cash | 65,219 | (3,093,891 | ) | |||
| Net increase (decrease) in cash and restricted cash | 2,507,480 | (566,739 | ) | |||
| Cash and restricted cash at beginning of year | 9,354,805 | 8,721,758 | ||||
| Cash and restricted cash at end of year | $ | 11,862,285 | 8,155,019 | |||
Special Note Regarding Share-Based Compensation Adjustment
The following tables present supplemental financial information illustrating the impact of share-based compensation expenses recognized in connection with restricted share units (RSUs) and restricted share awards (RSAs) granted under our Share Incentive Plan (the “SBC Adjustment”).
For purposes of the tables below, certain financial measures are presented both as reported in accordance with IFRS Accounting Standards and after excluding the applicable share-based compensation expenses. This presentation is intended to provide additional information regarding the impact of share-based compensation on our financial results and operating performance for the periods presented.
The financial measures excluding share-based compensation are not prepared in accordance with IFRS Accounting Standards and should not be considered in isolation from, or as a substitute for, the corresponding financial measures prepared in accordance with IFRS. Other companies may calculate similar measures differently, which may limit their usefulness for comparative purposes.
The following tables set forth the impact of the SBC Adjustment on the relevant financial measures for the periods indicated:
Adjusted Costs of Revenue
| 2026 | 2025 | |||||
| Costs of revenue | (3,623 | ) | (3,361 | ) | ||
| SBC Adjustment | 344 | — | ||||
| Adjusted costs of revenue | (3,279 | ) | (3,361 | ) | ||
| Adjusted gross profit | 591 | 480 | ||||
| Adjusted gross profit margin | 15.3 | % | 12.5 | % | ||
Adjusted Marketing and Sales Expenses
| 2026 | 2025 | |||||
| Marketing and sales | (1,976 | ) | (954 | ) | ||
| SBC Adjustment | 789 | — | ||||
| Adjusted marketing and sales | (1,187 | ) | (954 | ) | ||
Adjusted General and Administrative Expenses
| 2026 | 2025 | |||||
| General and administrative | (10,948 | ) | (4,524 | ) | ||
| SBC Adjustment | 6,379 | — | ||||
| Adjusted general and administrative | (4,569 | ) | (4,524 | ) | ||
| 2026 | 2025 | |||||
| Research and development | (4,410 | ) | (1,312 | ) | ||
| SBC Adjustment | 2,927 | — | ||||
| Adjusted research and development | (1,483 | ) | (1,312 | ) | ||
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1 All money transmission services in
2 Cumulative processed payment volume represents the aggregate value of payments processed across the OwlPay platform since inception, including both fiat and stablecoin payment flows and net of transaction reversals. It is unaudited and derived from the Company's internal records. It is an operating measure, is not a measure of revenue, and is not reconcilable to any IFRS measure. The Company previously disclosed that cumulative processed payment volume had surpassed
3 Annualized payment volume is a point-in-time operating measure calculated by dividing completed payment volume on
4 Operating metrics are unaudited and derived from the Company's internal records. Monthly figures reflect transactions completed within the applicable calendar month.
5 Corridor, destination and payment-mix statistics are unaudited and derived from the Company's internal records, are calculated by payment value rather than transaction count, as previously disclosed. See “OwlTing Group (NASDAQ: OWLS)
6 The Visa Direct collaboration was previously disclosed. See “OwlTing Group (NASDAQ: OWLS) Expands Visa Collaboration to Support
7 The expanded
8 Banking activity flow represents the gross value of funds movements recorded across the Company's banking and settlement infrastructure, including activity associated with liquidity positioning, prefunding, treasury movement and settlement support. Because a single underlying payment may give rise to more than one funds movement, the same underlying funds may be reflected more than once in this measure. Banking activity flow is unaudited, is derived from the Company's internal records, and is distinct from processed payment volume. It is not a measure of customer payment volume, transaction volume or revenue, is not reconcilable to any IFRS measure, and should not be used to estimate the Company's revenue or results of operations for any period.
9 The OwlPay Agent Wallet launch was previously disclosed. See “OwlTing Group (NASDAQ: OWLS) Launches OwlPay Agent Wallet, Targeting the Emerging Multi-Trillion-Dollar Agentic Commerce Economy,” issued
