H1 2026
Filed Sep 25, 2026H1 2026 revenue increased 26.8% to US$32.7 million, while gross margin declined to 10.1% and the Company withdrew FY2026 outlook.
Revenue growth was led by manpower outsourcing, operating and net losses narrowed, and the balance sheet improved following the At-The-Market equity offering. However, higher casual-worker wages compressed gross margin to 10.1%, operating cash outflow increased, and FY2026 guidance was withdrawn.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, six months ended June 30, 2026other | $32.66M | – | 26.8% |
| Cost of revenue, six months ended June 30, 2026other | $(29,359,389) | – | – |
| Gross profit, six months ended June 30, 2026other | $3.3M | – | – |
| Gross profit margin, six months ended June 30, 2026other | 10.1% | – | – |
| Other income, six months ended June 30, 2026other | $703,883 | – | – |
| Selling and marketing expenses, six months ended June 30, 2026other | $(1,152,522) | – | – |
| General and administrative expenses, six months ended June 30, 2026other | $(7,902,969) | – | – |
| Impairment loss on intangible asset, six months ended June 30, 2026other | - | – | – |
| Other expenses, six months ended June 30, 2026other | $(111,423) | – | – |
| Change in fair value of investment properties, six months ended June 30, 2026other | $(44,079) | – | – |
| Operating loss, six months ended June 30, 2026other | $5.21M | – | decreased 32.2% |
| Operating loss as a percentage of revenue, six months ended June 30, 2026other | 15.9% | – | – |
| Finance cost, six months ended June 30, 2026other | $(865,273) | – | – |
| Net loss on convertible notes designated at FVTPL, six months ended June 30, 2026other | $(2,617,807) | – | – |
| Net gain on warrant liabilities, six months ended June 30, 2026other | $1,726,802 | – | – |
| Loss before tax, six months ended June 30, 2026other | $(6,963,541) | – | – |
| Income tax expenses, six months ended June 30, 2026other | $(99,272) | – | – |
| Loss for the period, six months ended June 30, 2026other | $7.06M | – | decreased 13.8% |
| Total comprehensive loss for the period, six months ended June 30, 2026other | $(7,878,119) | – | – |
| Loss attributable to equity owners of the Company, six months ended June 30, 2026other | $(7,170,893) | – | – |
| Loss attributable to non-controlling interests, six months ended June 30, 2026other | $108,080 | – | – |
| Basic loss per share, six months ended June 30, 2026other | US$13.62 | – | – |
| Diluted loss per share, six months ended June 30, 2026other | US$13.62 | – | – |
| Non-IFRS gross profit, six months ended June 30, 2026non-GAAP | $3,650,261 | – | – |
| Non-IFRS operating loss, six months ended June 30, 2026non-GAAP | approximately US$2.74 million | – | – |
| Non-IFRS loss for the period, six months ended June 30, 2026non-GAAP | approximately US$3.29 million | – | – |
| Non-IFRS loss attributable to equity owners of the Company, six months ended June 30, 2026non-GAAP | $(3,400,835) | – | – |
| YY Circle App downloads (cumulative), June 30, 2026other | 998,575 | – | – |
| YY Circle App monthly active users, June 30, 2026other | 35,743 | – | – |
| Job fulfillment rate, June 30, 2026other | 92 % | – | – |
| Number of Employers, June 30, 2026other | 212 | – | – |
| IFM Services number of customers, June 30, 2026other | 218 | – | – |
| IFM Services average revenue per customer, June 30, 2026other | 73,682 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Manpower outsourcingStronger customer demand in Singapore and Malaysia and contributions from Hong Kong and Thailand subsidiaries. | $15.55M | – | increased 62.4% |
| Integrated facility management (IFM)New contract wins, renewals of existing projects and full-period contributions from Property Facility Services Pte. Ltd. and Uniforce Security Services Pte. Ltd. | $16.06M | – | increased 11.1% |
What drove it
- Manpower outsourcing revenue growth was attributed to stronger customer demand in Singapore and Malaysia and contributions from Hong Kong and Thailand subsidiaries.
- IFM growth was supported by new contract wins, renewals and full-period contributions from subsidiaries acquired in 2025.
- Gross profit margin declined primarily because higher labor costs, including higher hourly wage rates for casual workers, exceeded billing-rate growth.
- The operating-loss reduction primarily reflected the absence of a US$4.06 million impairment loss on intangible asset recognized in the first half of 2025.
- AI, automation and robotics initiatives did not contribute materially to revenue during the six months ended June 30, 2026.
Concerns
- Gross profit margin was approximately 10.1%, compared with 16.6% in the prior-year period.
- Hourly wages for casual workers rose faster than billing rates.
- Net cash used in operating activities was approximately US$10.99 million, compared with US$0.63 million in the prior-year period.
- First-half 2026 results included a US$2.62 million net loss related to convertible notes.
- The Company withdrew the fiscal year 2026 outlook issued on March 12, 2026.
What to watch
- Progress in repricing contracts at renewal, renegotiating or exiting engagements that no longer cover cost, and reducing unbilled hours through scheduling.
- Whether gross profit margin restoration, identified by management as the priority for the second half of 2026, is reflected in full-year results.
- The updated outlook the Company expects to provide with full-year 2026 results.
- Liquidity needs for existing operations, working capital requirements and contractual obligations.
- Commercial progress of service-robot pilots, agentic AI workflows, the AI training data lab, and smart facility management technology.
Balance sheet and cash flow
- Cash was approximately US$3.08 million as of June 30, 2026, compared with $1,511,760 as of December 31, 2025.
- Total assets were $38,021,116 as of June 30, 2026, compared with $34,341,601 as of December 31, 2025.
- Total equity was approximately US$25.36 million as of June 30, 2026, compared with US$13.61 million as of December 31, 2025.
- Total liabilities were approximately US$12.66 million as of June 30, 2026, compared with US$20.73 million as of December 31, 2025.
- Working capital was US$11.9 million, compared with a deficit of US$1.7 million at the end of 2025.
- Net cash used in operating activities was approximately US$10.99 million for the first half of 2026, compared with US$0.63 million in the prior-year period.
- Net cash provided by financing activities was approximately US$16.29 million during the first half of 2026.
- The Company received approximately US$18.55 million from the issuance of Class A ordinary shares in connection with its At-The-Market equity offering.
Analysis
YYForce reported H1 2026 revenue of US$32.66 million, up 26.8% from US$25.75 million in H1 2025. Growth was led by manpower outsourcing, where revenue increased 62.4% to US$15.55 million, while IFM revenue increased 11.1% to US$16.06 million. Management attributed manpower growth to stronger demand in Singapore and Malaysia and contributions from Hong Kong and Thailand subsidiaries. IFM growth reflected contract wins, renewals and full-period contributions from subsidiaries acquired in 2025.
The principal negative was profitability at the gross-profit level. Gross profit declined to US$3.30 million from US$4.27 million and gross profit margin fell to 10.1% from 16.6%. Management stated that higher labor costs across IFM and manpower outsourcing, including higher hourly wage rates for casual workers, drove the decline. The CFO said wages rose faster than billing rates, and outlined contract repricing, contract renegotiation or exits, tighter scheduling and productivity technology as the remediation plan.
Operating loss narrowed 32.2% to approximately US$5.21 million from US$7.68 million, and operating loss as a percentage of revenue improved to approximately 15.9% from 29.8%. This improvement principally reflected the absence of the US$4.06 million intangible-asset impairment recognized in H1 2025, rather than an improvement in gross margin. Net loss decreased 13.8% to approximately US$7.06 million from US$8.20 million, while the period also included a US$2.62 million net loss on convertible notes and a US$1.73 million net gain on warrant liabilities.
Liquidity and the capital structure improved following financing activity. Cash was approximately US$3.08 million at June 30, 2026, total equity was approximately US$25.36 million, and total liabilities were approximately US$12.66 million. The Company cited approximately US$18.55 million in At-The-Market equity-offering proceeds, working capital of US$11.9 million compared with a deficit of US$1.7 million at year-end 2025, and a 39% reduction in total liabilities. These improvements were offset by approximately US$10.99 million of operating cash use, primarily from the operating loss and settlement of trade and other payables.
Management withdrew its FY2026 outlook because of first-half labor-cost pressures and expects to issue updated guidance with full-year 2026 results. The Company stated that AI, automation and robotics initiatives did not contribute materially to H1 revenue. The next reported milestones are margin recovery in the second half, cash requirements for existing operations and working capital, and evidence that planned technology, automation and robotics initiatives can be deployed with limited upfront capital commitments through partnerships, leasing arrangements and customer pilot programs.
Management, verbatim
We delivered year-over-year revenue growth of 26.8% in the first half of 2026, led by a 62.4% increase in manpower outsourcing revenue and continued expansion of our IFM operations.
Mike Fu, CEO of YYForce
This period’s revenue growth came with margin pressure. Hourly wages for casual workers rose faster than our billing rates. As a result, our gross profit margin narrowed to 10.1% from 16.6%.
Jason Phua, CFO of YYForce
Restoring gross profit margin is our priority for the second half of 2026, and we will report our progress with our full-year results.
Jason Phua, CFO of YYForce
Not in the filing
stated, not guessed- Prior FY2026 outlook figures were not provided in the supplied prior-release material, so no comparison of actual results with prior guidance is available.
- Updated FY2026 revenue, gross margin, operating-expense, tax-rate and other quantitative guidance were not provided because the Company withdrew its FY2026 outlook.
- Free cash flow was not reported.
- Cash used for investing activities was not reported.
- No dividends, share repurchases or other capital-return amounts were reported.
- Quarterly results and sequential quarterly comparisons were not reported.
- A tax rate was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.