FingerMotion, Inc. (FNGR)·Q2 2026 Earnings Summary

Executive Summary

• Revenue of $8.65M grew 2% YoY; gross profit fell 87% YoY to $38,740 as cost of revenue rose to $8.61M; operating expenses fell 23% YoY to $1.53M, narrowing net loss by 9% to $1.54M .
• Segment dynamics: Telecommunications Products & Services remained the core ($8.64M, up 3% YoY); DaGe Platform showed early traction ($6,898 vs $4,789 YoY); Command & Communication was largely paused ($585 vs $28,730 YoY); Big Data began to monetize ($147 vs $0 YoY) .
• Management emphasized operational efficiencies and strategic diversification (Qingling Motors collaboration on smart vehicle solutions), but provided no formal guidance in the 8‑K/press release .
• No earnings call transcript or additional Q2 press releases were located in the filings repository; consensus estimates via S&P Global were unavailable for EPS and revenue, so comparisons to Street are not possible this quarter (S&P Global data unavailable).

What Went Well and What Went Wrong

What Went Well

• Telecommunications Products & Services delivered stable growth with $8.64M revenue, up 3% YoY, reinforcing the core cash engine .
• Early traction in DaGe Platform revenue ($6,898 vs $4,789 YoY), tied to collaboration with Qingling Motors Co. Ltd. on intelligent vehicle solutions .
• Operating expenses declined 23% YoY to $1.53M, contributing to a 9% narrower net loss ($1.54M) .
• Quote: “Operational efficiencies improved our income statement… we’re optimistic about opportunities in mobile data, big data insights, and integrated services” — Martin Shen, CEO .

What Went Wrong

• Gross profit compressed sharply (–87% YoY to $38,740) as cost of revenue climbed to $8.61M, indicating materially weaker gross margins vs last year .
• Command & Communication revenue dropped to $585 vs $28,730 YoY, reflecting a “temporary revenue adjustment due to resource optimization” .
• Big Data’s revenue is nascent ($147), and overall profitability remains negative (loss per share –$0.03), highlighting ongoing scale/margin challenges .

Financial Results

Consolidated P&L vs Prior Periods

Segment Revenue Breakdown

Balance Sheet / KPIs

YoY Indicators (Q2 2026 vs Q2 2025)

• Revenue +2% YoY .
• Gross profit –87% YoY .
• Operating expenses –23% YoY .
• Net loss –9% YoY .

Actual vs Wall Street Consensus (Q2 2026)

*Consensus values retrieved from S&P Global were unavailable.

Guidance Changes

No formal guidance was provided in the Q2 2026 8‑K or press release .

Earnings Call Themes & Trends

No Q2 2026 earnings call transcript was found in the filings repository; themes below reflect press release commentary and prior quarter releases .

Management Commentary

• “Operational efficiencies improved our income statement, while our strong balance sheet, a working capital surplus and solid stockholders’ equity gives us the flexibility to pursue strategic initiatives. We’re optimistic about opportunities in mobile data, big data insights, and integrated services” — Martin Shen, CEO .
• “While topline revenue showed modest movement, with margin pressure driven by evolving business dynamics, we are encouraged by the initial revenue contribution from our Command and Communication platform, as well as the steady buildout of the DaGe and Big Data businesses” — Martin Shen, CEO .
• “We are well‑positioned to capitalize on new growth opportunities as we expand our presence in the new Command and Communications segment and accelerate the monetization of partnerships within our Big Data Business” — Martin Shen, CEO .

Q&A Highlights

No Q&A section this quarter; an earnings call transcript was not available in the filings repository .

Estimates Context

• S&P Global consensus estimates were unavailable for Q2 2026 EPS and revenue; therefore, no beat/miss analysis vs Street can be provided (S&P Global data unavailable).
• Given the 87% YoY decline in gross profit and continued negative EPS, any future Street coverage would likely focus on gross margin recovery drivers (cost of revenue dynamics) and Opex discipline trend lines .

Key Takeaways for Investors

• Core Telecom remains resilient ($8.64M, +3% YoY), offering predictable scale even as newer segments fluctuate .
• Margin compression is the central issue (gross profit –87% YoY; cost of revenue $8.61M), overshadowing modest revenue growth; near‑term stock narrative hinges on evidence of gross margin stabilization .
• Opex discipline is improving (–23% YoY), narrowing net loss (–9% YoY) and supporting the path toward breakeven; maintaining this trajectory is key .
• Command & Communication pullback (to $585) reflects resource optimization; investors should watch for redeployment milestones and profitability thresholds before volume ramps .
• DaGe’s early traction (Qingling Motors collaboration) and Big Data’s nascent revenue signal potential optionality, but both remain too small to offset margin pressure today .
• Balance sheet flexibility exists (working capital $8.3M; equity $15.1M), but cash is tight ($0.22M), making working capital management and potential financing events relevant to trading decisions .
• With no formal guidance and no consensus estimates, the near‑term setup is driven by operational updates and margins; monitor segment mix, cost of revenue drivers, and any announcements around platform monetization or partnerships .