Ankam, Inc. (ANKM)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 marked a sharp inflection to profitability: revenue rose to $0.165M and net income to $0.056M, driven by subscription sales growth and reduced operating expenses; management also highlighted successful expansion into Hong Kong and Taiwan as a strategic driver .
• Sequentially vs Q1 2025, revenue more than doubled ($0.075M → $0.165M) and EBITDA improved from ~$0.003M to ~$0.069M, reflecting higher gross profit and lower operating costs *.
• Year-over-year vs Q2 2024, revenue increased more than 10x ($0.015M → $0.165M) and the company swung from a net loss to a net profit, primarily due to higher subscription revenues and lower director/professional fees .
• No formal guidance or earnings call was published; near-term stock catalysts hinge on continued subscription traction, capital structure improvement, and execution of Asian expansion initiatives .

What Went Well and What Went Wrong

What Went Well

• Subscription-led revenue growth: “we have generated total revenue of $165,000 … primarily due to the increase in revenue from subscription sales” in Q2 2025 .
• Operating expense discipline: director fees and professional fees declined to $0 in the quarter; total OpEx fell to $46,313 vs $87,213 YoY, aiding margin expansion .
• Strategic expansion: “successfully expanded … into key Asian markets, including Hong Kong, Taiwan,” aligning with growth strategy and contributing to profits; management emphasized strategic alignment and competitiveness .

What Went Wrong

• Ongoing balance sheet constraints: stockholders’ deficit remained negative at $(279,003), with total liabilities ($649,707) exceeding total assets ($370,704), underscoring financing risk .
• Dependence on related-party financing: advances from director totaled $449,338; the company notes going-concern risk absent external capital .
• Elevated server costs persist: server expense was $31,479 in Q2 2025 (vs $44,898 YoY), remaining the largest OpEx line and a focus area for cost control .

Financial Results

Notes:

• EBITDA ($USD): $2,589 (Q1 2025), $68,858 (Q2 2025); values retrieved from S&P Global*.
• No Q2 2025 consensus estimates available from S&P Global (EPS/Revenue/Target Price coverage not present)*.

Values with asterisks retrieved from S&P Global.

KPIs and Balance Sheet Items

Guidance Changes

No formal guidance was provided in Q2 2025 (revenue, margins, OpEx, OI&E, tax rate, segment guidance, or dividends) .

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript was published in the period; themes synthesized from 8‑K and 10‑Q filings .

Management Commentary

• “Ankam, Inc. … announced its financial results … reporting significant profits, reversing prior expectations of losses. The improved performance is primarily attributed to the successful execution of the Company’s expansion into the Asian software development market” .
• “The Company successfully expanded its software development operations into key Asian markets, including Hong Kong, Taiwan … aligns with the Company’s strategic initiatives to capitalize on high-growth regions, improve global competitiveness, and enhance shareholder value” .

Q&A Highlights

No earnings call transcript available; therefore no Q&A themes or clarifications were published for Q2 2025 .

Estimates Context

• S&P Global consensus estimates for ANKM’s Q2 2025 EPS, revenue, and target price were unavailable; only actuals are recorded by S&P for revenue and EBITDA (EBITDA Q2 2025: $68,858; Q1 2025: $2,589)*.
• Given the absence of published consensus, estimate revisions are not applicable; investor focus should remain on realized traction in subscription revenue and operating cost normalization *.

Values marked with asterisks are retrieved from S&P Global.

Key Takeaways for Investors

• Inflection to profitability is real but small-scale: Q2 2025 net income $0.056M and EBITDA ~$0.069M, supported by subscription growth and lower director/professional fees; sustainability hinges on recurring revenue and cost control *.
• Sequential momentum is strong: revenue more than doubled QoQ ($75k → $165k) with gross margin expanding (46.7% → 61.8%) as cost of revenue scaled below revenue growth .
• Balance sheet risk persists: liabilities exceed assets and stockholders’ deficit remains negative; reliance on related-party financing underscores financing risk and potential dilution if equity capital is sought .
• Cash generation improved: operating cash flow of $152k in the six months ended May 31, 2025, driven by profit, AP increase, and deferred revenue; watch for normalization of working capital effects as AR declines .
• Cost concentration: server expenses remain the largest OpEx line; further optimization here can bolster margins and accelerate path to durable profitability .
• Strategic expansion: early evidence that HK/TW expansion supports growth; concrete customer wins or products launched in Asia would be a key catalyst to extend the revenue ramp .
• Trading implications: in the absence of guidance and consensus coverage, price discovery may be event-driven; monitor filings for capital raises, product milestones, and recurring revenue metrics to gauge durability of Q2 inflection .