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HPAI

Helport AIA
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2026-06-26
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Investor releaseQuarter not tagged2026-06-26

Helport AI Reports First Half Fiscal Year 2026 Financial Results

GlobeNewswire
First Half Fiscal Year 2026 Revenue up 7.7% to $17.7 Million Period over Period Accelerating Enterprise AI Adoption Fuels Market Expansion, Unlocking New Opportunities in AI-Powered Customer Engagement SAN DIEGO and SINGAPORE, June 26, 2026 (GLOBE NEWSWIRE) -- Helport AI Limited (NASDAQ: HPAI) (“Helport AI” or the “Company”), a global artificial intelligence (“AI”) workforce infrastructure company providing intelligent communication software and services to enterprise clients, today announced its unaudited financial results for the six months ended December 31, 2025. First Half Fiscal Year 2026 Highlights Average monthly subscribed users of AI Assist services were 37,908 for the six months ended December 31, 2025, representing an increase of 16.8% from 32,468 in the same period of 2024. Revenue for the six months ended December 31, 2025, was $17.7 million, representing an increase of 7.7% from $16.4 million in the six months ended December 31, 2024, driven by increased enterprise adoption of AI-driven solutions. Gross profit remained stable at $9.1 million for the six months ended December 31, 2025, compared to $9.0 million for the six months ended December 31, 2024. Net loss was $1.7 million for the six months ended December 31, 2025, compared to net income of $1.1 million in the six months ended December 31, 2024, primarily as a result of increased investments in research and development (“R&D”) and higher credit losses on accounts receivable. Net cash provided by operating activities was $5.0 million and $3.9 million for the six months ended December 31, 2025 and 2024, respectively, supporting business expansion and strategic initiatives. As of December 31, 2025, there were 37,430,968 ordinary shares and 18,844,987 warrants of the Company issued and outstanding. Subsequent Developments In January 2026, the Company officially launched HyprX, a “digital twin” software engine designed to replicate human expertise, communication styles, and decision-making logic for enterprise sales, training, customer engagement, and professional advisory applications. During the Company’s March 2026 “Rise of AI Labor” event in the Philippines, Helport AI demonstrated TwinX, which enables a single human expert to supervise multiple AI agents simultaneously. Conducted the Company’s annual global strategy conference in Thailand in February 2026, where management reaffirmed its…Read full document

First Half Fiscal Year 2026 Revenue up 7.7% to $17.7 Million Period over Period Accelerating Enterprise AI Adoption Fuels Market Expansion, Unlocking New Opportunities in AI-Powered Customer Engagement SAN DIEGO and SINGAPORE, June 26, 2026 (GLOBE NEWSWIRE) -- Helport AI Limited (NASDAQ: HPAI) (“Helport AI” or the “Company”), a global artificial intelligence (“AI”) workforce infrastructure company providing intelligent communication software and services to enterprise clients, today announced its unaudited financial results for the six months ended December 31, 2025. First Half Fiscal Year 2026 Highlights Average monthly subscribed users of AI Assist services were 37,908 for the six months ended December 31, 2025, representing an increase of 16.8% from 32,468 in the same period of 2024. Revenue for the six months ended December 31, 2025, was $17.7 million, representing an increase of 7.7% from $16.4 million in the six months ended December 31, 2024, driven by increased enterprise adoption of AI-driven solutions. Gross profit remained stable at $9.1 million for the six months ended December 31, 2025, compared to $9.0 million for the six months ended December 31, 2024. Net loss was $1.7 million for the six months ended December 31, 2025, compared to net income of $1.1 million in the six months ended December 31, 2024, primarily as a result of increased investments in research and development (“R&D”) and higher credit losses on accounts receivable. Net cash provided by operating activities was $5.0 million and $3.9 million for the six months ended December 31, 2025 and 2024, respectively, supporting business expansion and strategic initiatives. As of December 31, 2025, there were 37,430,968 ordinary shares and 18,844,987 warrants of the Company issued and outstanding. Subsequent Developments In January 2026, the Company officially launched HyprX, a “digital twin” software engine designed to replicate human expertise, communication styles, and decision-making logic for enterprise sales, training, customer engagement, and professional advisory applications. During the Company’s March 2026 “Rise of AI Labor” event in the Philippines, Helport AI demonstrated TwinX, which enables a single human expert to supervise multiple AI agents simultaneously. Conducted the Company’s annual global strategy conference in Thailand in February 2026, where management reaffirmed its long-term strategy of delivering enterprise-grade artificial intelligence solutions focused on measurable business outcomes. The Company highlighted continued progress across its AI+BPO, TwinX, and HyprX product lines, as well as expansion into industry verticals including insurance, consumer finance, public services, recruitment, and intelligent consumer products. Expanded the Company’s global multilingual delivery infrastructure with operational hubs now established in the Philippines, Mexico, Thailand, and Indonesia. The Company believes this network strengthens its ability to provide localized, AI-enabled customer engagement and operational support services across English-, Spanish-, Thai-, and Bahasa-language markets. Hosted the “Rise of AI Labor” enterprise partner event in the Philippines in March 2026, showcasing the Company’s AI+BPO, TwinX, and HyprX solutions to enterprise customers, business process outsourcing (“BPO”) partners, and technology leaders. The event highlighted the Company’s “Results-Oriented& Value-Sharing” operating model, which combines AI technology with operational delivery infrastructure to support enterprise adoption and measurable business outcomes. Entered new verticals including e-commerce and logistics, as well as connected devices and intelligent consumer products. The Company continued deploying industry-specific AI solutions tailored for enterprise customer workflows and operational requirements. Commercial deployments across mortgage lenders and consumer financing companies continued to advance and strengthen the Company’s foothold in Southeast Asia and North America. Entered into a strategic partnership with QuickCEP, a conversational AI and customer engagement platform, in April 2026 to jointly develop a fully managed AI agent solution for global brands and cross-border e-commerce enterprises. The partnership combines Helport AI’s proprietary “AI Labor System” infrastructure with QuickCEP’s omni-channel AI customer service SaaS platform to deliver end-to-end AI workforce solutions. Initial enterprise customers have already been onboarded, and the Company expects the partnership to support accelerated enterprise adoption and revenue generation beginning in fiscal year 2027. Advanced commercialization of the Company’s AI+BPO operating model by integrating AI-driven workflow automation with localized operational delivery teams across Southeast Asia and Latin America. The Company believes this approach supports customer onboarding, accelerates proof-of-concept deployments, and facilitates enterprise adoption across multiple industries. Increased strategic focus on deploying the Company’s “AI Labor System” infrastructure platform, designed to deliver AI workforce solutions for enterprise customers. Management believes this platform approach, which combines enterprise knowledge, AI-driven workflow execution, and performance-based monetization models, will support long-term revenue growth and operational efficiency. Executed a commercial agreement with Hong Kong Start Nine Technology Co., Limited in April 2026 for the deployment of the Company’s HyprX solution, with commercial revenue generation beginning in May 2026. Began generating revenue in May 2026 from a commercial agreement with Dreame Technology Co., Ltd., a consumer electronics company, following the execution of a commercial agreement. The Company provides overseas contact center agent services and AI technical services to Dreame. Commercially launched HyprX for Hardware in June 2026, expanding the Company’s AI Labor platform with a QR-code-based AI agent solution for consumer hardware manufacturers. Outlook for Second Half Fiscal Year 2026 & Beyond: Revenue Growth & Commercialization: The Company expects continued revenue growth driven by increasing enterprise adoption of its “AI Labor System” infrastructure platform and AI+BPO solutions across core industry verticals, including insurance, mortgage services, consumer finance, e-commerce, and customer engagement operations. Management remains focused on converting pilot programs and proof-of-concept deployments into long-term commercial customer relationships, particularly across North America and Southeast Asia. Enterprise AI Workforce Infrastructure: Following the launch of HyprX and TwinX, the Company intends to expand commercialization of its “AI Labor System” infrastructure platform. Management believes enterprise demand is increasingly shifting toward AI solutions capable of delivering measurable operational results rather than standalone software tools. Strategic Partnerships & Ecosystem Expansion: The Company expects strategic partnerships, including its recently announced collaboration with QuickCEP, to support customer acquisition and expansion into cross-border e-commerce and global brand markets. Management plans to continue pursuing enterprise partnerships and channel relationships designed to accelerate deployment scale and broaden market reach. Global Operations & Multilingual Expansion: The Company plans to further expand its multilingual global delivery network across Southeast Asia and the Americas, supporting enterprise customers through localized language capabilities, compliance frameworks, and operational infrastructure. Management believes this regional expansion strategy supports its ability to serve global customers seeking AI-enabled customer communication solutions. Product Innovation & AI Development: The Company expects to continue investing in AI research and development, including industry-specific knowledge bases, multilingual automation, AI-driven workflow management, digital twin technologies, and autonomous AI agent systems. Management believes continued product innovation will support the Company’s market position across enterprise customer engagement and operational support markets. Operational Efficiency & Margin Improvement: Management remains focused on improving operational efficiency and optimizing cloud infrastructure, AI training costs, and deployment workflows. The Company expects these initiatives to support long-term operational efficiency and improve unit economics as customer deployments and AI-enabled service volumes expand. Management Commentary “The first half of fiscal year 2026 marked a transition period for Helport AI as we continued evolving from a traditional AI software provider toward an AI workforce infrastructure platform,” said Guanghai Li, Chief Executive Officer of Helport AI. “During the period, we achieved revenue growth of 7.7% to $17.7 million while expanding our enterprise customer deployments, global operational footprint, and AI product capabilities. Average monthly subscribed seats increased to 37,908, representing an increase of 16.8% period-over-period as customers continued adopting our AI-powered solutions across customer engagement, financial services, business process outsourcing, and enterprise communication workflows.” “While profitability was impacted by increased investments in research and development, cloud infrastructure, and international expansion, we believe these investments support the Company’s long-term growth objectives. We continued scaling our AI+BPO operating model, expanded our multilingual delivery network across Southeast Asia and Latin America, and opened new operational hubs in Thailand, Mexico, and Indonesia to support increasing enterprise demand for localized AI-enabled service delivery.” “Operationally, we continued advancing commercialization of our core product suite, including unveiling TwinX and HyprX, core product offerings that we believe will be important in driving future growth and improved margins. We are also increasingly focused on developing what we refer to as our ‘AI Labor System’ infrastructure platform. We believe the enterprise AI market is moving beyond standalone software tools toward AI solutions capable of delivering measurable operational and financial results. Our strategy is designed to help enterprises deploy AI workforce capacity using proprietary knowledge bases, multilingual operational infrastructure, and performance-based delivery models aligned with customer outcomes.” “Strategic partnerships remain an important part of our growth strategy. During the period, we announced our partnership with QuickCEP to jointly develop fully managed AI agent solutions for global brands and cross-border e-commerce enterprises. We believe this partnership strengthens our position within the rapidly evolving AI-powered customer engagement market and supports future enterprise customer acquisition opportunities.” “Looking ahead to the second half of fiscal year 2026, we remain focused on expanding enterprise adoption, converting new accounts into stable recurring revenue, and scaling our TwinX and HyprX products across North America and Southeast Asia. We also intend to continue investing in product innovation, deployment automation, multilingual AI capabilities, and operational infrastructure to improve scalability and support long-term margin expansion.” “We believe our combination of AI labor, operational delivery infrastructure, and outcome-oriented monetization models enables Helport AI to address growing enterprise demand for AI adoption. Our objective remains building AI workforce infrastructure capable of delivering measurable value to enterprise customers while driving sustainable long-term growth for shareholders,” concluded Li. Financial Review for the Six Months Ended December 31, 2025 and 2024 Revenue Our revenue increased by approximately US$1.3 million, or 7.7%, from US$16.4 million for the six months ended December 31, 2024 to US$17.7 million for the six months ended December 31, 2025. Revenue from AI service increased by approximately US$0.6 million, or 3.9%, from US$16.4 million for the six months ended December 31, 2024 to US$17.0 million for the six months ended December 31, 2025. The increase was primarily attributable to growth in our user base, as average monthly subscribed users increased by 16.8% to 37,908 for the six months ended December 31, 2025, compared to 32,468 in the corresponding period of 2024. Since January 2025, we further expanded our service portfolio with the launch of our AI+BPO service, and for the six months ended December 31, 2025, revenue generated from AI+BPO service was US$0.6 million. Cost of revenue Our cost of revenue increased by approximately US$1.2 million, or 15.4%, from US$7.4 million for the six months ended December 31, 2024 to US$8.6 million for the six months ended December 31, 2025. Cost of revenue related to AI services increased by approximately US$0.8 million, or 9.5%, from US$7.4 million for the six months ended December 31, 2024 to US$8.2 million for the six months ended December 31, 2025. The increase in cost of revenue outpaced revenue growth primarily due to increased amortization of capitalized software development costs. The higher amortization expense reflects our ongoing investments in software development to expand platform capabilities, support industry-specific application scenarios, and facilitate entry into new geographic markets. These investments support the development of tailored solutions for industries such as insurance, mortgage sales, and consumer financing, as well as the localization of our platform for markets including North America and Southeast Asia. Cost of revenue related to AI+BPO services was US$0.4 million and nil for the six months ended December 31, 2025 and 2024, respectively. Gross profit and margin We recorded a gross profit of US$9.1 million and US$9.0 million for the six months ended December 31, 2025 and 2024, respectively. The reduction in gross profit margin from 54.6% to 51.4% was primarily the result of the aforementioned elevated amortization costs associated with software, which we believe are necessary for our future growth and profitability. Selling and marketing expenses Our selling expenses increased from US$528,746 for the six months ended December 31, 2024 to US$894,016 for the six months ended December 31, 2025, which was mainly due to (i) an increase of US$97,431 in office expenses related to the Philippines branch commencing operations in 2025, which is engaged in AI+BPO services, (ii) an increase in payroll expenses of US$298,720 primarily driven by growth in the number of sales personnel due to the Philippines branch commencing operations in 2025, and partially offset by (iii) a decrease in share-based compensation expense of US$62,800, which reflected the recognition of a one-time share-based compensation expense in the prior period upon achievement of certain performance targets, whereas share-based compensation in the current period is recognized over the applicable service period. General and administrative expenses Our general and administrative expenses increased by 27.5% from US$4.6 million for the six months ended December 31, 2024 to US$5.9 million for the six months ended December 31, 2025, which was primarily attributable to (i) an increase of US$2.4 million in credit losses, which was mainly driven by a higher proportion of longer-aged accounts receivable, (ii) an increase of US$0.3 million in payroll expenses resulting from the expansion of the management team’s headcount, (iii) an increase of share-based compensation expense of US$0.3 million, mainly attributable to additional share-based compensation awards granted during the period to core employees, partially offset by (iv) a decrease of US$1.5 million in professional service fees mainly due to reduced advisory expenses after initial public offering, and (v) a decrease of US$0.2 million in insurance expenses. Research and development expenses Our research and development expenses increased by US$4.3 million from US$1.4 million for the six months ended December 31, 2024 to US$5.7 million for the six months ended December 31, 2025. The increase was attributable to (i) an increase of US$4.6 million in product development fees, allowing us to better differentiate and diversify our product and service offerings with competitive technologies, (ii) an increase of US$0.2 million in payroll expenses resulting from growth in headcount of research and development personnel, partially offset by (iii) a decrease of US$0.8 million in AI training service fees, as the services previously delivered through third-party outsourcing arrangements are being progressively brought in-house and assumed by our own employees, resulting in the elimination of the related service fees. Financial expenses, net Our financial expenses, net decreased from US$312,437 for the six months ended December 31, 2024 to US$45,342 for the six months ended December 31, 2025, which was primarily attributable to a decrease of US$257,985 in foreign exchange loss mainly due to collection of accounts receivable and settlement of accounts payable, and a decrease of US$15,413 in interest expenses accrued for convertible promissory notes, which were automatically converted into the ordinary shares of the Company on August 2, 2024. Income tax (benefits)/expenses As a result of our operating loss position for the six months ended December 31, 2025 and income position for the six months ended December 31, 2024, we incurred income tax benefits of US$0.4 million and expenses of US$0.7 million for the six months ended December 31, 2025 and 2024, respectively. Net (loss)/income As a result of the foregoing, our net income decreased by US$2.8 million from net income of US$1.1 million for the six months ended December 31, 2024 to a net loss of US$1.7 million for the six months ended December 31, 2025. Liquidity and capital resources In assessing our liquidity, we monitor and analyze our cash on hand and our operating and capital expenditure commitments. To date, we have financed our working capital requirements mainly from cash flow from operations and third-party borrowings. We had a cash balance of US$688,112 and US$152,051 as of December 31, 2025 and June 30, 2025, respectively. Our positive working capital was approximately US$1.6 million and US$4.7 million as of December 31, 2025 and June 30, 2025, respectively. Our liquidity is based on our ability to enhance our operating cash flow position and obtain financing from equity and debt investors to fund our general operations and capital expenditure. Our ability to further enhance our liquidity depends on management’s ability to execute our business plan successfully, which includes optimizing accounts receivable collection and striking a balance between revenue growth and investments in R&D activities. On October 2, 2025, we entered into a subscription agreement with an investor for an aggregate purchase price of US$500,000. As of December 31, 2025, we had received the full subscription proceeds related to this agreement. On November 15, 2025, we entered into an additional subscription agreement for an aggregate purchase price of approximately US$1,240,000. As of December 31, 2025, we had received US$690,159 of the subscription proceeds under this agreement. Our future capital requirements depend on many factors, including our growth rate, the continuing market acceptance of our offerings, the timing and extent of spending on research and development, our efforts to strengthen our service capabilities, the expansion of our sales and marketing activities, and the expansion and penetration of our business into different geographies and markets. We may, however, need additional cash resources in the future if we experience changes in business conditions or other developments, or if we find and wish to pursue opportunities for investment, acquisition, capital expenditure, or similar actions. If we determine that our cash requirements exceed the amount of cash and cash equivalents we have on hand at the time, we may seek to issue equity or debt securities or obtain credit facilities. The issuance and sale of additional equity would result in further dilution to our shareholders. The incurrence of indebtedness would result in increased fixed obligations and could result in operating covenants that would restrict our operations. Our obligation to bear credit risk for certain financing transactions we facilitate may also strain our operating cash flow. Use of Non-GAAP Financial Measures We consider adjusted net income, a non-GAAP financial measure, as a supplemental measure to review and assess our operating performance. We define adjusted net income for a specific period as net income in the same period excluding share-based compensation expenses and changes in fair value of warrant liabilities. We present this non-GAAP financial measure because it is used by our management to evaluate our operating performance and formulate business plans. Accordingly, we believe that adjusted net income helps identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses that are included in net income and certain expenses that are not expected to result in future cash payments or that are non-recurring in nature. We also believe that the use of the non-GAAP financial measure facilitates investors’ assessment of our operating performance, enhances the overall understanding of our past performance and future prospects and allows for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. The non-GAAP financial measure should not be considered in isolation from or construed as an alternative to its most directly comparable financial measure prepared in accordance with GAAP. Investors are encouraged to review the historical non-GAAP financial measure in reconciliation to its most directly comparable GAAP financial measure. As the non-GAAP financial measure has material limitations as an analytical metric and may not be calculated in the same manner by all companies, such measure may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider the non-GAAP financial measure as a substitute for, or superior to, its most directly comparable financial measure prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure. The following table reconciles our adjusted net income for the periods indicated to the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, which is net income. About Helport AI Limited Helport AI (NASDAQ: HPAI) is a global AI workforce infrastructure company providing intelligent communication software and services to enterprise clients. Its core asset is the AI Labor System, an industrial-scale platform designed to manufacture, orchestrate, and deliver AI workforce capacity based on measurable business outcomes. Through its AI workforce, Helport AI helps clients drive sales, improve engagement, and reduce costs. The Company’s mission is to transform human expertise into scalable AI labor. Learn more at www.helport.ai. Forward-Looking Statements Certain statements in this announcement are forward-looking statements, including, but not limited to, HPAI’s proposed business plan and outlook, expectations regarding future revenue growth and commercialization of its “AI Labor System” infrastructure platform and AI+BPO solutions, anticipated expansion of enterprise customer deployments and conversion of pilot programs into long-term commercial relationships, plans to scale its TwinX and HyprX product offerings, expectations regarding strategic partnerships including its collaboration with QuickCEP, plans for global operational expansion across Southeast Asia and the Americas, anticipated investments in research and development including industry-specific knowledge bases, multilingual automation, digital twin technologies, and autonomous AI agent systems, expectations regarding operational efficiency and margin improvement, and anticipated future capital requirements and potential financing activities. These forward-looking statements involve known and unknown risks and uncertainties and are based on HPAI’s current expectations and projections about future events that HPAI believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions, although not all forward-looking statements contain these identifying words. HPAI undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although HPAI believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and HPAI cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in HPAI’s registration statement and other filings with the U.S. Securities and Exchange Commission. For more information, please contact: Helport AI Investor RelationsEmail: [email protected]: ir.helport.ai The accompanying unaudited condensed consolidated financial statements should be read together with the notes thereto included in the Company's Form 6-K furnished with the U.S. Securities and Exchange Commission on June 26, 2026.

Investor releaseQuarter not tagged2025-11-18

Helport AI Reports Fiscal Year 2025 Financial Results

GlobeNewswire
Fiscal Year 2025 Revenue increases 18% Year over Year to $34.9 Million Strong Enterprise AI Adoption Across Industry Sectors and Global Expansion Fueled by Leading AI-Powered Software SINGAPORE and SAN DIEGO, Nov. 18, 2025 (GLOBE NEWSWIRE) -- Helport AI Limited (NASDAQ: HPAI) (“We,” “Helport AI,” or the “Company”), an artificial intelligence (“AI”) technology company serving enterprise clients with intelligent customer communication software and services, today announced financial results for its fiscal year ended June 30, 2025. Fiscal Year 2025 Highlights: Average monthly subscribed seats were 40,935 for the fiscal year ended June 30, 2025, representing an increase of 41.49% % from 28,932 in the fiscal year ended June 30, 2024. Revenue for the fiscal year ended June 30, 2025, was $34.9 million, representing an increase of 17.9% from $29.6 million in the fiscal year ended June 30, 2024, driven by increased enterprise adoption of AI-driven solutions. Gross profit for fiscal year ended June 30, 2025 was $19.1 million, representing an increase of 3.0% from $18.6 million in the fiscal year ended June 30, 2024, as a result of continued investment in AI infrastructure and product innovation. Net income was $1.9 million for fiscal year ended June 30, 2025, compared to $7.4 million in fiscal year ended June 30, 2024, representing a decrease of 74.8%, primarily due to increased investments in international expansion, research and development (R&D), and general and administrative expenses associated with operating as a public company. Net cash provided by operating activities was $9.1 million for the fiscal year ended June 30, 2025, which is intended to be used in part to support business expansion and strategic initiatives. As of June 30, 2025, there were 37,430,968 ordinary shares and 18,844,987 warrants issued and outstanding of the Company. Second Half of Fiscal Year 2025 & Subsequent Operational Highlights Partnerships The Company’s U.S. mortgage business has grown with 15 new enterprise customers since June 30, 2025, all of whom are using the AI+business process outsourcing (“BPO”) model, whereby AI-enabled contact center agents deliver outbound sales calls. A new commercial partnership with Best Life & Co., a cloud-based real estate brokerage firm in Michigan, has been announced to deploy Helport AI’s AI-powered sales platform across its mortgage operations. Ex…Read full document

Fiscal Year 2025 Revenue increases 18% Year over Year to $34.9 Million Strong Enterprise AI Adoption Across Industry Sectors and Global Expansion Fueled by Leading AI-Powered Software SINGAPORE and SAN DIEGO, Nov. 18, 2025 (GLOBE NEWSWIRE) -- Helport AI Limited (NASDAQ: HPAI) (“We,” “Helport AI,” or the “Company”), an artificial intelligence (“AI”) technology company serving enterprise clients with intelligent customer communication software and services, today announced financial results for its fiscal year ended June 30, 2025. Fiscal Year 2025 Highlights: Average monthly subscribed seats were 40,935 for the fiscal year ended June 30, 2025, representing an increase of 41.49% % from 28,932 in the fiscal year ended June 30, 2024. Revenue for the fiscal year ended June 30, 2025, was $34.9 million, representing an increase of 17.9% from $29.6 million in the fiscal year ended June 30, 2024, driven by increased enterprise adoption of AI-driven solutions. Gross profit for fiscal year ended June 30, 2025 was $19.1 million, representing an increase of 3.0% from $18.6 million in the fiscal year ended June 30, 2024, as a result of continued investment in AI infrastructure and product innovation. Net income was $1.9 million for fiscal year ended June 30, 2025, compared to $7.4 million in fiscal year ended June 30, 2024, representing a decrease of 74.8%, primarily due to increased investments in international expansion, research and development (R&D), and general and administrative expenses associated with operating as a public company. Net cash provided by operating activities was $9.1 million for the fiscal year ended June 30, 2025, which is intended to be used in part to support business expansion and strategic initiatives. As of June 30, 2025, there were 37,430,968 ordinary shares and 18,844,987 warrants issued and outstanding of the Company. Second Half of Fiscal Year 2025 & Subsequent Operational Highlights Partnerships The Company’s U.S. mortgage business has grown with 15 new enterprise customers since June 30, 2025, all of whom are using the AI+business process outsourcing (“BPO”) model, whereby AI-enabled contact center agents deliver outbound sales calls. A new commercial partnership with Best Life & Co., a cloud-based real estate brokerage firm in Michigan, has been announced to deploy Helport AI’s AI-powered sales platform across its mortgage operations. Expanded partnership with Atome, one of Southeast Asia’s leading digital finance platforms, after delivering strong results using Helport AI’s AI+BPO model. Technology & Launch Updates Unveiled “HyperX,” a digital agent platform that transforms enterprise knowledge into action. Trained on companies’ proprietary data, HyperX enables one-click deployment of expert AI agents capable of understanding complex operations, executing tasks, and interacting with users across digital environments. Launched AI+BPO service offering, combining turn-key, in-house AI technology paired with contact center agents, aimed to accelerate new customer acquisition and enable proof of concept. This integrated software-and-services model is expected to drive revenue growth across international markets. Launched “HelportGo”, the Company’s flagship mobile application designed to improve productivity for on-the-go professionals. Extending enterprise-grade AI capabilities directly to individual users on demand, HelportGo aims to offer immediate, transformative call assistance to facilitate conversion of conversations into structured, actionable business intelligence. Introduced “Helport Remote”, a workforce monitoring and management tool designed to support the evolving needs of remote contact centers. Engineered specifically for large-scale, multinational contact center operations, Helport Remote aims to empower management teams to achieve greater visibility, control, and efficiency in an increasingly decentralized workforce environment. Launched the specialized version of AI-powered software tailored for the consumer financing industry, a step forward in Helport AI’s mission to transform financial services through automation, real-time intelligence, and regulatory compliance. Launched the latest upgraded version of “Helport AI Insurance Edition”, an AI-powered solution designed specifically for the insurance sector. Operational Updates Opened new offices in Mexico, Bolivia, Indonesia, and Thailand to serve demand from current customers in these regions. Opened new office in the Philippines in January 2025, establishing a “Global Center of Excellence” to drive AI operations and service offerings in the BPO industry. The Philippines office now employs approximately 265 personnel, including 200 billable AI-enabled agents in debt collection and 46 in mortgage accounts as part of the Company’s AI+BPO operations. Appointed Hiu-Yu “Vanessa” Chan as chief commercial officer (“CCO”) of the Company, an experienced executive who previously worked for Google LLC and ServiceNow, Inc., to lead commercial expansion, strategic partnerships, and revenue acceleration initiatives in North America. Appointed Di Shen, the secretary of the Company, to serve as the interim Chief Financial Officer and a Director of the Company. Outlook for First Half Fiscal Year 2026 & Beyond Revenue Growth: Accelerating revenue materialization from a robust pipeline of customers in the Company’s core sectors of BPO contact centers, mortgage sales, insurance, and consumer financing. Undertaking further expansion in the U.S. and Southeast Asia through enterprise partnerships and focused execution in these core industries. Profitability & Cost Optimization: Improving AI training efficiency and cloud infrastructure to enhance margins over time. AI+BPO Monetization: Expanding in-house AI + human service delivery model to facilitate new customer acquisition and accelerate revenue realization. Leveraging this software plus service offering to scale user base and revenue generation across global markets. Continued R&D Innovation: Investing in AI capabilities, including HyperX optimization, multilingual automation, and industry-specific integrations. Management Commentary “Fiscal year 2025 delivered revenue growth of 17.9% on continued enterprise adoption of AI-powered software in verticals including BPO contact centers, consumer financing, and mortgage sales,” said Guanghai Li, chief executive officer of Helport AI. “To support this growth, we continued to make investments in mobile applications, technology improvements, industry-tailored software and cloud infrastructure. We also increased R&D, as well as the build-out of our sales and marketing teams as part of our international expansion. Although these critical initiatives to scale our platform and expand into new markets temporarily impacted gross margins and profitability, we continued to maintain profitability during the year. Our AI-powered customer contact software platform is now transforming how a wide variety of enterprises are engaging with their customers by addressing communication challenges and automating workflows.” “Partnerships with enterprise customers grew substantially in 2025, specifically in North America and Southeast Asia. In the U.S., a new commercial partnership with Best Life & Co. is transforming the mortgage value chain through automation, intelligence, and scale. By combining Best Life & Co.’s outbound sales teams with Helport AI’s AI-enabled remote agents, the partnership has already shown positive results – pre-approved loan applications have doubled since rollout began in July, resulting in more leads for Best Life’s loan officers.” “In the Philippines, we partnered with Atome in May 2025, launching AI-enabled support teams to train and onboard Atome contact center agents. By June, one Helport AI team was already showing standout performance, achieving strong results within just a month. By July, Helport teams continued to perform exceptionally well in Atome’s regional scorecards, reflecting the growing strength of the partnership. Our discussion are ongoing to explore potential expansion of this program with Atome. “On the technology front, the second half of fiscal year 2025 delivered multiple new products and updates. Our new HelportGo mobile app brings enterprise-grade AI call assistance directly to mobile professionals, delivering a comprehensive suite of AI-driven client services and customer relationship management features. HelportGo includes purpose-built, plug-and-play templates, each tailored to verticals such as real estate, insurance, and financial services.” “We also launched updated versions of our AI-powered software tailored for the consumer financing, mortgage, and insurance industries. These updates demonstrate our ability to provide smart, domain-specific AI applications for our growing customer base across multiple industry sectors.” “Operationally, we maintained our focus on strategic investments in both our team and infrastructure, enhancing our capabilities and extending our global presence. In addition to expanding our offices in the Philippines and the U.S., we opened new offices in Mexico, Bolivia, Indonesia, and Thailand to serve demand from current customers in these regions. We also welcomed Hiu-Yu “Vanessa” Chan as the Company’s COO. Vanessa brings over 23 years of enterprise leadership experience across AI, SaaS, and strategic expansion, having held senior roles at Google Cloud, SAP, ServiceNow, and McKinsey. As CCO, she is leading commercial expansion and revenue acceleration initiatives across North America. In addition, we appointed the secretary of the Company, Di Shen, as our interim Chief Financial Officer and also as a Director of the Company.” “Looking ahead to the fiscal year ending June 30, 2026, we are leveraging our technology platform to focus on accelerating revenue growth and improving profitability. We are expanding our presence in high-growth markets including North America and Southeast Asia. Customer successes across the consumer financing and mortgage sectors highlight how we are customizing our AI-driven solutions to meet specific industry needs and driving greater adoption among small and medium sized businesses in the financial services sector. Moving forward, we remain committed to investing in R&D and developing next-generation, enterprise AI products that further distinguish Helport AI in the marketplace. At the same time, we are sharpening our focus on cost optimization as we endeavor to reduce AI training expenses, streamline cloud infrastructure, and enhance unit economics across deployments to strengthen profitability and deliver sustained, long-term value for our shareholders,” concluded Li. Financial Review for the Fiscal Year Ended June 30, 2025 Revenue Our revenues increased by approximately US$5.28 million, or 17.86%, from US$29.58 million for the fiscal year ended June 30, 2024 to US$34.86 million for the fiscal year ended June 30, 2025. Revenues from AI service increased by approximately US$5.07 million, or 17.14%, from US$29.58 million for the fiscal year ended June 30, 2024 to US$34.64 million for the fiscal year ended June 30, 2025. Since January 2025, we have refined our settlement terms, in which the basis for settlement has been revised from subscribed seats to subscribed users, with a corresponding adjustment to the unit sales price. The revenue growth was primarily driven by the expansion of our core customer base: six key customers recorded positive growth in user numbers, with two top-tier customers achieving a growth rate exceeding 50%. The increase in average monthly subscribed users was driven by (i) our efforts in optimization and development in our service offerings and software platform, (ii) our abilities to improve overall cost performance for customers in their business management process, and (iii) the growing demand for AI software in the professional technology services market. During 2025, we entered the U.S. market and secured several customers, demonstrating initial business traction and expansion potential. Since January 2025, we further expanded our service portfolio in the launch of our AI+BPO service and for the fiscal year ended June 30, 2025, revenue generated from AI+BPO service was US$212,604. Cost of Revenue Our cost of revenues increased by approximately US$4.73 million, or 43.05%, from US$11.00 million for the fiscal year ended June 30, 2024 to US$15.73 million for the fiscal year ended June 30, 2025. Cost of revenues related to AI services increased by approximately US$4.55 million, or 41.34%, from US$11.00 million for the fiscal year ended June 30, 2024 to US$15.54 million for the fiscal year ended June 30, 2025, mainly due to the corresponding rise in outsourced operation costs as revenue increased. The growth rate of cost of revenue is proportionally higher than that of revenue, primarily driven by the increased amortization of software, a fixed cost, resulting from our higher investments in software to serve new markets and application scenarios. These investments are expected to enable us to enhance our product and service offerings with differentiated, competitive technology - particularly through the development of industry-specific application scenarios. These tailored solutions are essential for entering new sectors, such as insurance, mortgage sales, and government services, as well as for localizing our platform to meet the regulatory and operational demands of new geographic regions like North America and Southeast Asia. Cost of revenues related to AI+BPO services were US$187,436 and nil for the fiscal years ended June 30, 2025 and 2024. Gross Profit As a result of the foregoing, we recorded a gross profit of US$19.12 million and US$18.58 million for the fiscal years ended June 30, 2025 and 2024, respectively. This reduction of gross profit margin from 62.81% to 54.87% was the result of the aforementioned elevated amortization costs from software and increased outsourcing operation fees, which we believe are necessary for our future growth and profitability. Selling and Marketing Expenses Our selling expenses increased from US$97,984 for the fiscal year ended June 30, 2024 to US$1.15 million for the fiscal year ended June 30, 2025, which was mainly due to (i) an increase of payroll expenses of US$0.74 million, primarily driven by the establishment and ramp-up of dedicated sales and marketing teams in our U.S. subsidiary and Philippines office; and (ii) an increase of share-based compensation expense of US$0.18 million, resulting from share grants under the Company’s 2024 Equity Incentive Plan. The U.S. team expansion is part of our broader international growth strategy, aimed at strengthening our presence in North America—a key strategic market. As part of this effort, we expanded our U.S. office presence, increasing headcount to support go-to-market execution, client onboarding, business development, and marketing in the region. In February 2024, we established the U.S. team, and by June 2025, it had expanded to 27 staff, among whom, 11 were engaged in selling and marketing activities. General and Administrative Expenses Our general and administrative expenses increased by 78.89% from US$4.98 million for the fiscal year ended June 30, 2024 to US$8.91 million for the fiscal year ended June 30, 2025, which was primarily attributable to (i) an increase of US$1.74 million in professional service fees such as advisory fees, audit fees and legal fees associated with the closing of the business combination in August, 2024, (ii) an increase of US$0.53 million in payroll expenses resulting from the expansion of the management team’s headcount, (iii) an increase of US$0.5 million in withholding tax incurred from 10% withholding tax on AI services provided to our customers in China, (iv) an increase of share-based compensation expense of US$0.40 million to award the core employee and executives, as well as certain strategic external consultants, and (v) an increase of US$0.40 million in insurance expenses. R&D Expenses Our R&D expenses increased by US$2.01 million from US$4.30 million for the fiscal year ended June 30, 2024 to US$6.32 million for the fiscal year ended June 30, 2025. The increase was attributable to (i) an increase of US$3.59 million in product development fees, allowing us to better differentiate and diversify our product and services offerings with competitive technologies, especially as they relate to the development of industry-specific application scenarios, and (ii) an increase of US$0.81 million in technology service consulting fees for further improvement in our system development and platform optimization, and offset by a decrease of US$2.58 million in AI training service fees, as the AI model development during the fiscal year ended June 30, 2024 had already met short-term application scenarios, thereby reducing the related service fees. Financial Expenses, net Our financial expenses, net decreased from US$0.23 million in financial expenses, net for the fiscal year ended June 30, 2024 to US$0.11 million for the fiscal year ended June 30, 2025, which was primarily attributable to a decrease of US$0.07 million in interest expenses accrued for convertible promissory notes, which were automatically converted into the ordinary shares of the Company on August 2, 2024, and a decrease of US$0.06 million in foreign exchange gain. Income Tax Expenses As a result of our operating income position for the fiscal years ended June 30, 2025 and 2024, we incurred income tax expenses of US$0.54 million and US$1.60 million for the fiscal years ended June 30, 2025 and 2024, respectively. Net Income As a result of the foregoing, our net income decreased by US$5.51 million from US$7.37 million for the fiscal year ended June 30, 2024 to US$1.86 million for the fiscal year ended June 30, 2025. Liquidity and Capital Resources We had a cash balance of US$152,051 and US$2,581,086 as of June 30, 2025 and June 30, 2024, respectively. Our working capital was approximately US$4.68 million and US$10.63 million as of June 30, 2025 and June 30, 2024, respectively. We usually grant our customers a credit term between 180 days and 365 days in payment arrangements. Our days sales outstanding was 234 days, 221 days and 244 days, for the fiscal years ended June 30, 2025, 2024 and 2023, respectively, which remained stable in the past three years. About Helport AI Helport AI (NASDAQ: HPAI) is a global technology company serving enterprise clients with intelligent customer communication software and services. Its flagship product, “AI Assist”, acts as a real-time co-pilot for customer contact teams, delivering smart guidance and tools to drive sales, improve engagement, and reduce costs. The Company’s mission is to empower everyone to work like an expert — using AI to elevate, not replace, human capability. Learn more at www.helport.ai. Forward-Looking Statements Certain statements in this announcement are forward-looking, including, but not limited to, Helport AI’s business strategies, expansion plans, and anticipated results. These statements involve risks and uncertainties based on current expectations and projections. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions, although not all forward-looking statements contain these identifying words. Helport AI undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although Helport AI believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and Helport AI cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in Helport AI’s registration statements and other filings with the U.S. Securities and Exchange Commission. Investor Relations Contact: Helport AI Investor Relations Email: [email protected] Website: ir.helport.ai External Investor Relations Contact: Chris Tyson Executive Vice President MZ North America Direct: 949-491-8235 [email protected] www.mzgroup.us

Investor releaseQuarter not tagged2025-04-05

Helport AI First Half 2025 Earnings: EPS: US$0.03 (vs US$0.21 in 1H 2024)

Simply Wall St.

Revenue: US$16.4m (up 13% from 1H 2024). Net income: US$1.07m (down 83% from 1H 2024). Profit margin: 6.5% (down from 43% in 1H 2024). The decrease in margin was driven by higher expenses. EPS: US$0.03 (down from US$0.21 in 1H 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period Helport AI shares are up 15% from a week ago. It's necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Helport AI (at least 1 which is a bit unpleasant) , and understanding these should be part of your investment process. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Investor releaseQuarter not tagged2025-04-01

Helport AI Reports First Half Fiscal Year 2025 Financial Results

GlobeNewswire
First Half Fiscal Year 2025 Revenue up 13.1% to $16.4 Million Period over Period Accelerating Enterprise AI Adoption Fuels Market Expansion, Unlocking New Opportunities in AI-Powered Customer Engagement Management to Host Conference Call Today, March 31, 2025 at 4:30 PM ET SINGAPORE and SAN DIEGO, March 31, 2025 (GLOBE NEWSWIRE) -- Helport AI Limited (NASDAQ: HPAI) (“Helport AI” or the “Company”), an AI technology company serving enterprise clients with intelligent customer communication software and services, today announced financial results for the six months ended December 31, 2024. First Half Fiscal Year 2025 Highlights Average monthly subscribed seats were 6,469 for the six months ended December 31, 2024, representing an increase of 29.1% from 5,011 in the same period of 2023. Revenue for the six months ended December 31, 2024, was $16.4 million, representing an increase of 13.1% from $14.5 million in the six months ended December 31, 2023, driven by increased enterprise adoption of AI-driven solutions. Gross profit for the first half of fiscal year 2025 was $9.0 million, representing a decrease of 7.7% from $9.7 million in the first half of fiscal year 2024, as a result of continued investment in AI infrastructure and product innovation. Net income was $1.1 million in the first half of fiscal year 2025, compared to $6.2 million in the first half of fiscal year 2024, representing a decrease of 82.9%, as a result of our increased investments in R&D, public company regulatory compliance costs, and global expansion expenses. Net cash provided by operating activities was $3.9 million for the six months ended December 31, 2024, supporting business expansion and strategic initiatives. As of December 31, 2024, there were 37,132,968 ordinary shares and 18,845,000 warrants issued and outstanding. Subsequent Operational Milestones As of December 2024, Helport AI Assist software is officially approved and available on Google Cloud Marketplace, allowing businesses across sectors to access Helport's AI-driven software. Successful rollout of partnership with Google by delivering AI-driven software and services to one of its US west coast government accounts. First phase completed with further collaboration underway. In December 2024, Helport AI formed a strategic partnership with a US wholesale mortgage lender to offer Helport AI Assist software to its network of ov…Read full document

First Half Fiscal Year 2025 Revenue up 13.1% to $16.4 Million Period over Period Accelerating Enterprise AI Adoption Fuels Market Expansion, Unlocking New Opportunities in AI-Powered Customer Engagement Management to Host Conference Call Today, March 31, 2025 at 4:30 PM ET SINGAPORE and SAN DIEGO, March 31, 2025 (GLOBE NEWSWIRE) -- Helport AI Limited (NASDAQ: HPAI) (“Helport AI” or the “Company”), an AI technology company serving enterprise clients with intelligent customer communication software and services, today announced financial results for the six months ended December 31, 2024. First Half Fiscal Year 2025 Highlights Average monthly subscribed seats were 6,469 for the six months ended December 31, 2024, representing an increase of 29.1% from 5,011 in the same period of 2023. Revenue for the six months ended December 31, 2024, was $16.4 million, representing an increase of 13.1% from $14.5 million in the six months ended December 31, 2023, driven by increased enterprise adoption of AI-driven solutions. Gross profit for the first half of fiscal year 2025 was $9.0 million, representing a decrease of 7.7% from $9.7 million in the first half of fiscal year 2024, as a result of continued investment in AI infrastructure and product innovation. Net income was $1.1 million in the first half of fiscal year 2025, compared to $6.2 million in the first half of fiscal year 2024, representing a decrease of 82.9%, as a result of our increased investments in R&D, public company regulatory compliance costs, and global expansion expenses. Net cash provided by operating activities was $3.9 million for the six months ended December 31, 2024, supporting business expansion and strategic initiatives. As of December 31, 2024, there were 37,132,968 ordinary shares and 18,845,000 warrants issued and outstanding. Subsequent Operational Milestones As of December 2024, Helport AI Assist software is officially approved and available on Google Cloud Marketplace, allowing businesses across sectors to access Helport's AI-driven software. Successful rollout of partnership with Google by delivering AI-driven software and services to one of its US west coast government accounts. First phase completed with further collaboration underway. In December 2024, Helport AI formed a strategic partnership with a US wholesale mortgage lender to offer Helport AI Assist software to its network of over 100,000 loan officers nationwide. Opened new office in the Philippines in January 2025, establishing a ‘Global Center of Excellence’ to drive artificial intelligence operations and service offerings in the business process outsourcing (BPO) industry. In less than three months, headcount has grown to more than 100 workers, reflecting strong demand from customers in the region. Appointed Amy Fong as President, Director, and Interim Chief Financial Officer, bringing over 25 years of experience as a seasoned professional across multiple industries, including banking, private equity, management consulting, and the not-for-profit sector. Progress in the debt collection space since January 2025, having secured partnerships with three consumer financing companies in Southeast Asia, two of which are publicly listed in the U.S. Since February 2025, the Company has signed partnerships with seven U.S. insurance agencies to pilot Helport AI Assist software. Company to host “Investor/Analyst Day” at its North America HQ in San Diego in Q2 of 2025. Outlook for Second Half Fiscal Year 2025 & Beyond: Revenue Growth: Accelerating revenue materialization from a robust pipeline of customers in our core sectors of insurance, mortgage sales, BPO call centers, consumer financing, and government services. Driving further expansion in the U.S. and Southeast Asia through enterprise partnerships and focused execution in these core industries. Profitability & Cost Optimization: Improving AI training efficiency and cloud infrastructure to enhance margins over time. AI+BPO Monetization: Expanding in-house AI + human service delivery model to facilitate new customer acquisition and rapid proof of concept. Leveraging this software plus service offering to efficiently scale user base and revenue generation across global markets. Continued R&D Innovation: Investing in AI capabilities, including voice cloning, multilingual automation, and industry-specific integrations. Management Commentary “The first half of fiscal year 2025 delivered revenue growth of 13.1%, which was driven by continued enterprise adoption of AI-powered software, technology improvements, and the scaling of our international sales and operations teams,” said Guanghai Li, Chief Executive Officer of Helport AI. “During this time, we made significant investments in product development, cloud infrastructure, and international expansion, which temporarily impacted gross margins and profitability. However, we believe that these investments are essential to scaling our platform and expanding into new markets, and we maintained profitability despite these investments. Moreover, we have seen our enterprise customers increasingly leverage our AI-powered BPO solutions to drive cost efficiencies and improve customer engagement, helping differentiate ourselves as a market leader in the AI-driven customer contact space.” “On the technology front, our products are now comprehensively integrated with large language models (LLMs), which has been shown to enhance their ability to digest raw, unstructured information and provide smart, domain-specific applications for our growing customer base. We have also built new industry-specific knowledge bases, achieving major milestones for the Company across key sectors. Demonstrating this ability to penetrate new industries where we see vast growth potential, we have partnered with U.S.-based LendSure Mortgage Corp. (“LendSure”), a wholesale lender with a network of over 100,000 loan officers, as well as with seven insurance agencies across multiple US states. These scalable seeds represent early traction across multiple industry sectors, each of which represents significant market opportunities.” “Operationally, we continued to make strategic investments in our team and infrastructure to strengthen and expand our capabilities and global reach. We have established offices in the Philippines and the U.S. and are in the process of opening additional offices in North America and Southeast Asia to execute on both existing and potential demand in these regions. We also welcomed Amy Fong as President, Director, and Interim CFO. Amy is a seasoned executive who is now overseeing our finance functions, leading strategy across capital markets, partner and customer development, and global operations.” “Looking ahead to the second half of fiscal year 2025, we are building on our foundation and doubling down on strategic initiatives to accelerate revenue growth and enhance profitability. We are deepening penetration in what we anticipate will be high-growth markets, specifically North America and Southeast Asia. As demonstrated with our recent customer acquisitions across mortgage, insurance, and debt collection, we are tailoring our AI-powered solutions for industry-specific needs, aiming to expand adoption among BPOs, financial services, and public sector industries. We are driving monetization and acceleration of our AI+BPO offering, which has seen noteworthy demand in new segments such as consumer financing, which we expect will allow us to capture greater market share in AI-driven customer engagement solutions.” “We will continue to prioritize R&D investments and building next-generation AI products that further differentiate Helport AI in the market. We are also focusing on cost efficiencies, including optimizing AI training costs and cloud infrastructure, and improving unit economics per deployment, to strengthen profitability and deliver long-term value to our shareholders,” concluded Li. Financial Review for the Six Months Ended December 31, 2024 and 2023 Revenue During the six months ended December 31, 2024 and 2023, all of our revenue was derived from AI services. Revenue increased by approximately US$1.9 million, or 13.1%, from US$14.5 million for the six months ended December 31, 2023 to US$16.4 million for the six months ended December 31, 2024. The increase was primarily attributable to the average monthly subscribed seats, which grew from 5,011 for the six months ended December 31, 2023 to 6,469 for the six months ended December 31, 2024. The growth was driven by (i) our efforts in continuous optimization and development in our service offerings and software platform, (ii) our abilities to improve overall cost performance for customers in their business management process, and (iii) the growing demand for AI software in the professional technology services market. During the first half of FY2025, the Company entered the U.S. market and secured several customers, demonstrating initial business traction and expansion potential. Cost of Revenue Cost of revenue primarily consists of amortization of software, payments to a third-party service provider for outsourced operations, as well as cloud infrastructure costs. Cost of revenue related to AI services increased by approximately US$2.6 million, or 55.2%, from US$4.8 million for the six months ended December 31, 2023 to US$7.4 million for the six months ended December 31, 2024, mainly due to the corresponding rise in outsourced operation costs as revenue increased. The growth rate of cost of revenue is proportionally higher than that of revenue, primarily due to investments required to serve new markets and customers. These investments enable us to enhance our product and service offerings with differentiated, competitive technology—particularly through the development of industry-specific application scenarios. These tailored solutions are essential for entering new sectors such as insurance, mortgage sales, and government services, as well as for localizing our platform to meet the regulatory and operational demands of new geographic regions like North America and Southeast Asia. Gross Profit As a result of the foregoing, we recorded gross profit of US$9.0 million and US$9.7 million for the six months ended December 31, 2024 and 2023, respectively. This reduction of gross profit margin from 67.0% to 54.6% is the result of the aforementioned elevated amortization costs from software R&D, increased outsourcing operation fees, and expanded cloud infrastructure, which we believe are necessary for our future growth and profitability. Selling and Marketing Expenses Our selling and marketing expenses increased by 953.0% from US$50,214 for the six months ended December 31, 2023 to US$528,746 for the six months ended December 31, 2024, which was mainly due to (i) the increase of payroll expenses of US$303,050, primarily driven by the establishment and ramp-up of dedicated sales and marketing teams in our U.S. subsidiary; and (ii) the increase of share-based compensation expense of US$121,800, resulting from share grants under the Company’s 2024 Equity Incentive Plan. The U.S. team expansion is part of our broader international growth strategy, aimed at strengthening our presence in North America—a key strategic market. As part of this effort, we significantly expanded our U.S. office presence, increasing headcount to support go-to-market execution, client onboarding, business development, and marketing in the region. In February 2024, we established the U.S. team, and by December 2024, it had expanded to twenty-two staff, among whom eight were engaged in selling and marketing activities. General and Administrative Expenses Our general and administrative expenses increased by 125.2% from US$2.0 million for the six months ended December 31, 2023 to US$4.6 million for the six months ended December 31, 2024, which was primarily attributable to: (i) an increase of US$1.5 million in professional service fees such as advisory fees, audit fees and legal fees for overseas listing; (ii) an increase of US$0.4 million in insurance expenses; (iii) an increase of US$0.2 million in payroll expenses resulting from the expansion of the management team’s headcount; and (iv) an increase of US$0.2 million in withholding tax incurred from 10% withholding tax on AI services provided to our customers in China. Research and Development Expenses Our research and development expenses increased by US$1.3 million from US$78.8 thousand for the six months ended December 31, 2023 to US$1.4 million for the six months ended December 31, 2024. The increase was attributable to an additional US$0.8 million in AI training service fees and US$0.3 million in product development fees incurred during the six months ended December 31, 2024, allowing us to better differentiate and diversify our product and services offerings with competitive technologies, especially as they relate to the development of industry-specific application scenarios. Financial Expenses, net Our financial expenses, net increased from US$19,162 for the six months ended December 31, 2023 to US$312,437 for the six months ended December 31, 2024, primarily due to an increase in foreign exchange loss of US$266,669 and the increase in interest expenses accrued for convertible promissory notes and the loan from a third party of US$22,139. Income Tax Expenses As a result of our operating income position for the six months ended December 31, 2024 and 2023, we incurred income tax expenses of US$0.7 million and US$1.3 million for the six months ended December 31, 2024 and 2023, respectively. Net Income As a result of the foregoing, our net income decreased by US$5.1 million, or 82.9%, from US$6.2 million for the six months ended December 31, 2023 to US$1.1 million for the six months ended December 31, 2024. The decrease in net income was mainly due to a US$2.6 million increase in general and administrative expenses, a US$1.4 million increase in research and development expenses, and a US$0.7 million decrease in gross profit. Liquidity and Capital Resources Cash was $0.9 million as of December 31, 2024, as compared to $0.1 million on December 31, 2023. We had a positive working capital of $7.6 million and $10.6 million as of December 31, 2024 and June 30, 2024, respectively. Our liquidity is based on our ability to enhance our operating cash flow position and obtain financing from equity and debt investors to fund our general operations and capital expenditure. Our ability to further enhance our liquidity depends on management’s ability to execute our business plan successfully, which includes optimizing accounts receivable collection and striking a balance between revenue growth and investments in R&D activities. Use of Non-GAAP Financial Measures We consider adjusted net income, a non-GAAP financial measure, as a supplemental measure to review and assess our operating performance. We define adjusted net income for a specific period as net income in the same period excluding share-based compensation expenses and changes in fair value of warrant liabilities. We present this non-GAAP financial measure because it is used by our management to evaluate our operating performance and formulate business plans. Accordingly, we believe that adjusted net income helps identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses that are included in net income and certain expenses that are not expected to result in future cash payments or that are non-recurring in nature. We also believe that the use of the non-GAAP financial measure facilitates investors’ assessment of our operating performance, enhances the overall understanding of our past performance and future prospects and allows for greater visibility with respect to key metrics used by our management in its financial and operational decision making. The non-GAAP financial measure should not be considered in isolation from or construed as an alternative to its most directly comparable financial measure prepared in accordance with GAAP. Investors are encouraged to review the historical non-GAAP financial measure in reconciliation to its most directly comparable GAAP financial measure. As the non-GAAP financial measure has material limitations as an analytical metric and may not be calculated in the same manner by all companies, such measure may not be comparable to other similarly titled measure used by other companies. In light of the foregoing limitations, you should not consider the non-GAAP financial measure as a substitute for, or superior to, its most directly comparable financial measure prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure. The following table reconciles our adjusted net income for the periods indicated to the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, which is net income. First Half Fiscal Year 2025 Financial Results Conference Call Guanghai Li, Chief Executive Officer, and Amy Fong, President and Interim Chief Financial Officer, will host the conference call, followed by a question-and-answer session. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of the Company’s website here. To access the call, please use the following information: Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact MZ Group at 1-949-491-8235. The conference call will be broadcast live and available for replay at https://viavid.webcasts.com/starthere.jsp?ei=1712485&tp_key=f52524cadf and via the investor relations section of the Company's website here. A replay of the webcast will be available after 9:30 p.m. Eastern Time through July 1, 2025. About Helport AI Limited We are a global AI technology company serving enterprise clients with intelligent customer communication software and services. Our proprietary software offering, Helport AI Assist (“AI Assist”), is a real-time, AI-driven “co-pilot” providing intelligent guidance for customer contact professionals across business settings. In addition, we provide AI+BPO (Business Process Outsourcing) services to facilitate customer engagement, helping clients grow sales, improve customer service, and reduce operational costs. Forward-Looking Statements Certain statements in this announcement are forward-looking statements, including, but not limited to, HPAI’s business plan and outlook. These forward-looking statements involve known and unknown risks and uncertainties and are based on HPAI’s current expectations and projections about future events that HPAI believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions, although not all forward-looking statements contain these identifying words. HPAI undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although HPAI believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and HPAI cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in HPAI’s registration statement and other filings with the U.S. Securities and Exchange Commission. For more information, please contact: Helport AI Investor Relations: Website: https://ir.helport.ai Email: [email protected] External Investor Relations Contact: Chris Tyson Executive Vice President MZ North America Direct: 949-491-8235 [email protected] www.mzgroup.us

TranscriptFY2025 Q22025-03-31

FY2025 Q2 earnings call transcript

Earnings source - 38 paragraphs
Operator

Greetings and welcome to Helport AI's first half fiscal year 2025 financial and business update conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to hand the call over to Ethan Devine, Helport AI's Director of Investor Relations. Please go ahead, sir.

Ethan Devine

Thank you, Operator. Before we begin the formal presentation, I would like to remind everyone that statements made on the call and webcast may include predictions, estimates, or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to update, revise, or publicly release the results of any revision to these forward-looking statements in light of new information or future events. Throughout today's discussion, we will attempt to present some important factors relating to our business that may affect our predictions.

Ethan Devine

We should also review our most recent Form 6-K and other public filings with the U.S. Securities and Exchange Commission for a more complete discussion of these factors and other risks, particularly under the heading Risk Factors. Your hosts today, Guanghai Li, Chief Executive Officer, and Amy Fong, President and Interim Chief Financial Officer, will present results of operations for the six months ended December 31st, 2024, as well as some more recent post-first half operational highlights. A press release detailing these results was issued earlier today and is available in the Investor Relations section of our company's website, ir.helport.ai. At this time, I will turn the call over to Helport AI Chief Executive Officer, Guanghai Li.

Guanghai Li

Thank you, Ethan. Good afternoon, everyone. It's an honor to welcome you to today's first half fiscal year 2025 financial result and business update conference call. Before I begin, I want to take this opportunity to introduce my colleague, President and Board Member, as well as our Interim CFO, Amy Fong, who just joined us in January this year. Amy?

Amy Fong

Thank you, Guanghai. I'm very glad to be joining my first earnings call with Helport AI today. This is especially meaningful as I've had the chance to be intimately working with the company and the team for three months after observing them from the sidelines since last August when the company went public. It took me four months to check them out and do my due diligence and finally deciding to join after being convinced of their potential. The last three months have given me even more confidence as I've watched our pipeline grow and seen firsthand how powerful our software is. As a new joiner, I'm keenly aware of how new customers and new investors may need an explanation to fully understand what our products are, what they do, and how they serve customers.

Amy Fong

I'm aware there are quite a few newcomers to our joint earnings call today, so let me quickly give an overview. First off, our product is not a bot. It doesn't aim to replace humans. It aims to empower them. It is designed for call centers and similar environments, and our product empowers all contact agents to perform at the level of the organization's best agents. You would ask, why is this distinction important? I will share a recent Harvard study that found 30%-50% of participants participating in the research study prefer to wait anywhere from two hours to two years for a human response or simply have their experience read by a person rather than receive an immediate AI reply. This highlights the strong value that people place on human empathy and connection, even at a significant time cost.

Amy Fong

This is exactly why our product came to be. It is designed to empower and encourage human empathy, giving people the tools to perform as experts while preserving that human touch. I'll now hand the call back over to our CEO, Guanghai.

Guanghai Li

Yeah, thank you, Amy, for joining us and also for a reminder of why Helport AI's product is different and necessary in the world of AI and why our customers find it useful in serving their customers. This has translated into the great business progress we have made since our listing on Nasdaq on August 6, 2024. First, let's look at our global market expansions. As a profitable company with three consecutive years of earning growth, we went public with a clear objective to scale our proven software product in key international markets, especially in the U.S. and Southeast Asia. We remain firmly committed to this objective. Our U.S. and Philippines operations are already seeing measurable and very promising traction, and we are actively expanding our footprint in North America and Southeast Asia to capitalize on surging demand both from existing clients and untapped markets.

Guanghai Li

Let me provide an update on our technological advancement. On the technology front, we have successfully harnessed the power of large language models, significantly leveraging their ability to digest the raw, unconstructed information. We do not just rely on large language models. We create domain-specific small language models and knowledge bases, which are optimized for specific sectors as customer use cases. These small language models and knowledge bases offer advantages in accuracy, response time, cost, and contextual relevance. We are continuing to roll out new product capabilities that support our customers' needs. This includes more domain-specific language models, introducing voice cloning capabilities, and offering multilingual versions of our software to further solidify our position in the AI-driven customer contact space.

Guanghai Li

We have invented our own tools and know-how in building and training a client AI software very quickly, usually within a few weeks, by working with customers and using their proprietary knowledge, materials, and processes so as to ensure our customers can harness the true power of AI. Our in-house AI training and operation capabilities remain cornerstones of our competitive advantage. As we expand into new regions and verticals, we are significantly increasing investment in these core capabilities to deliver even faster client onboarding and accelerated time to value. Next, let me give you an update of our recent progress in serving new market segments. First, in December, we formed a strategic partnership with U.S.-based LendSure Mortgage Corporation, a wholesale lender with a network of over 100,000 loan officers.

Guanghai Li

Our AI-driven software is expected to equip loan officers with the tools they need to effectively communicate with borrowers and facilitate enhanced promotion of LendSure's products. Second, in the insurance sector, more recently, we have secured partnerships with seven leading insurance agencies across the U.S. with successful initial deployment and positive market feedback. These first use cases serve as a strong foundation for continued expansion and large-scale growth potential. Third, in the consumer financing market, since January, we've also made rapid progress in the debt collection space, securing partnerships with three major consumer financing companies in Southeast Asia, two of which are listed in the U.S. Lastly, we have also achieved important milestones in the public service sector. Our technology passed Google's stringent security standard, and we successfully supported Google in delivering service to one of its key U.S. government accounts on the West Coast.

Guanghai Li

We have already entered into the next phase of collaboration with that client, laying a solid foundation for future growth in the public sector and further cooperation with Google Cloud. Our successful entry into these new markets, coupled with our growing operational expertise, which has seen us rapidly deploy our software across these high-growth verticals, makes us optimistic as we look toward the future. What are our strategy priorities? Since the end of our previous fiscal year on June 30, 2024, Helport AI has achieved remarkable progress. Looking ahead, we are focused on four high-impact strategy priorities. First, we are doubling down our international expansion effort in North America and Southeast Asia with a focus on scaling operations and accelerating revenue realization in the high-growth markets. Second, we are continuing to expand and further monetize our AI plus BPO service model.

Guanghai Li

Under this model, new customers can quickly see ROI by using our in-house AI-enabled customer contact agent. This approach provides a low-risk, rapid proof of concept for customers and has been instrumental in gaining a foothold of new markets such as consumer financing. Third, we will continue to invest in R&D and innovation to further strengthen our technological leadership and competitive edge. Our industry is at the critical juncture in which enterprises are actively looking for AI solutions to automate tasks, gain productivity, lower cost, and drive revenue. Our unwavering commitment to our customers is based on our ability to continuously innovate. Finally, we will focus our resources and prioritize expansion in five high-growth verticals: BPO contact centers, insurance, mortgage sales, consumer financing, and public sector.

Guanghai Li

By tailoring our AI solutions to each vertical, including knowledge base generation, AI training, and IT integration, we aim to build category leadership and accelerate adoption in these high-potential markets, which are primed for disruptive technologies such as ours. As we look ahead to the remainder of fiscal year 2025, these four strategy priorities reflect our focus on execution, scalability, and technology leadership. We believe these initiatives will position Helport AI for sustainable long-term growth across both developed and emerging markets. I thank you for your attention. I will now pass it over to our President and Interim Chief Financial Officer, Amy, for our financial overview. Amy.

Amy Fong

Thank you, Guanghai. As a newcomer to Helport AI, I'm glad to see the continuous and consecutive revenue growth on a half-yearly basis since 2023. This healthy trajectory gives me confidence that we have a solid product and proven ability to track further progress in the future. Now, let me walk you through our financial performance for the first half of fiscal year 2025. For the six months ended December 31st, 2024, Helport AI recorded a revenue of $16.4 million, reflecting a 13.1% period-over-period increase. This growth was driven by continued demand for our AI-powered communication tools, particularly within enterprise sales and contact centers. We also saw a 29.1% increase in average monthly subscribe fees, what we see as a clear signal that our platform continues to resonate with customers seeking scalable, intelligent AI solutions. I know many of you on the call are experts in SaaS business models.

Amy Fong

Indeed, while our company has a demonstrated track record of success in Asia for a number of years, our deliberate pivot to global markets since last year requires us to power through sales cycles with new customers that typically need at least six months and sometimes more with larger customers. What attracts me to this company is its SaaS model, which has already demonstrated strong revenue stickiness in Asia. In the U.S., we are now seeing green sprouts growing with more and more pilots and proof of concepts happening with new customers. While the revenue contributions are still small, they are promising and represent important steps towards the build-up of a robust long-term SaaS model. On the earnings front, we remain profitable during the period with net income of $1.1 million and non-GAAP adjusted net income of $1.6 million.

Amy Fong

Gross margin came in at 54.6%, reflecting elevated amortization costs from software R&D, increased outsourcing operation fees, and expanded cloud infrastructure spending. Of course, this is not the same profit level as we saw previously. As a growing AI tech company, we're strategically prioritizing expansion into new markets and investing in additional R&D, as well as in our sales team and G&A to support our continued growth. We believe that these efforts are crucial in helping us compete effectively and capitalize on our technological strengths. Since I joined in January, I've been talking to many large potential customers across industries as well as across geographic regions. What excites me tremendously is the receptiveness and enthusiasm for our products. Time and again, after seeing our demo in action, the prospective customers ask for a second meeting with us together with their technology team.

Amy Fong

Within weeks, they're often ready for a pilot. This has translated into a strong and robust pipeline so far. The challenge now is to guide many of our customers through this phase quickly and effectively, accelerating the path to revenue conversion. Simply put, our focus going forward is clear: execute with determination, scale responsibly, and deliver sustained growth. In the second half of fiscal year 2025, we aim to build on the foundation already laid in the fiscal first half by emphasizing three focus areas. One, turning pipeline into performance, particularly in North America and Southeast Asia. Two, improving profitability through operational efficiency and margin discipline. Three, investing in long-term value, including further development of our product and operations. With growing customer engagement, support from strategic partners, and our expanding international presence, we see meaningful tailwinds heading into the second half.

Amy Fong

I'm sure many of you on today's call are curious about our 2025 remaining of the year's outlook. While I'm extremely excited about the promising developments in our technology partnerships and customers, many of the contributions from recently signed partnerships and penetration in the U.S. and Southeast Asia are just beginning to materialize. With that in mind, we're forecasting 15%-20% top-line growth for the full fiscal year. Growth, margin, and net income will remain under pressure in the short term as we continue to execute on our international expansion efforts and invest in our core technology, which is essential for us to stay competitive in enterprise AI. Looking ahead, we remain focused on balancing top-line growth with profitability to set ourselves up for innovation, leadership, and success long-term. That concludes our financial update.

Amy Fong

Before we move to the Q&A section, I'd like to take this opportunity to welcome investors, analysts, and our shareholders to visit us in San Diego, experience a live product demo, and get a closer look at what's ahead. It's an exciting time at Helport AI, and we're thrilled to have you with us on this journey. We'll now open the floor for questions. Thank you.

Operator

Thank you, Ms. Fong. Ladies and gentlemen, at this time, for any questions over the phone, please press star one. If you find your question has been addressed, you may remove yourself from the queue by pressing star two. Once again, star one for questions, and we'll pause for just a moment. Ladies and gentlemen, I have nothing coming in over the phones at this time. It appears we have no further questions over the phone. Mr. Holub, I'll turn the call to you for any webcast questions.

Larry Holub

Our first webcast question asks, "It appears that your top-line growth has slowed compared to previous periods. Why are you confident in your future growth?

Amy Fong

Thank you. That's a great question. As we mentioned when we went public last August, we aspire to becoming a leading global company, tapping into high-growth new markets such as North America and Southeast Asia. To that end, we have intentionally shifted efforts and resources to these new markets away from where we used to generate the bulk of our revenues. While we have sold seats in the new markets, as you can imagine, we need to work through a normal sales cycle, which is typically six months and longer with larger customers. This has translated into slower revenue growth for the time being, as expected. We believe this is a necessary transitional phase of our company's evolution as we prove ourselves with new customers in new markets.

Amy Fong

There is certainly a trade-off in terms of short-term revenue, but we believe such trade-offs are necessary for us to tap into bigger market opportunities globally. Most importantly, we're now seeing some very promising early signs from our efforts. Truly, we're very pleased with our success working with Google within a few months of meeting them, signing up more and more users such as large insurance brokers and mortgage brokers such as LendSure in the U.S., as well as large consumer lending companies in Southeast Asia doing debt collection. Time and again, these new customers have told us that our mature and easily deployable product is best in class. As evidence, their endorsements are substantiated by the robust pipeline that we are seeing, which is very encouraging. Now, the challenge for us is to power through this phase of proof of concepts pilots to convert these into sustainable revenues.

Amy Fong

Given our track record in doing so in our original market, we're confident that we can replicate that success in these markets, especially given these promising signs.

Larry Holub

The next question asks, "This is more of a macro question. There are so many AI companies out there with more appearing almost daily. How are you different?

Amy Fong

I'm glad you asked this question. That was also my question when I considered joining this company. Indeed, there's a proliferation of AI companies out there, each offering a different proposition to customers hungry for AI solutions. As you and I know, many of them do not yet have a product and are still in a product development stage. We're different. We have a proven product, a SaaS application, which has already been deployed with over 30,000 users. We also have a proven SaaS business model, already revenue-generating and profitable for a few years. Our founding team has worked together for decades for call center businesses, knowing intimately the challenges and pain points of call centers, therefore developed the product that is highly fit for purpose, immediately usable by call agents. We're not everything to everyone.

Amy Fong

Our product is focused on call center and call center-like settings, giving call agents the tools to do their jobs effectively and accurately, and allowing their supervisors to do their job efficiently and in full compliance with relevant rules and regulations. We do not replace humans, but empower humans. We're also very focused on specific sectors such as insurance, mortgage, consumer finance, and public sector. This allows us to be laser-focused on developing in-depth knowledge in these sectors, which will ultimately be the barrier of entry to new competitors, which we have yet to see in the future. We have a clear idea of who we are, what we provide, and who we aim to serve, allowing us to focus deeply on what we do best. I believe this is what sets us apart from other companies out there.

Larry Holub

Our next question asks, "You mentioned some of your new U.S. customers like LendSure and insurance brokerages. Why do you think these accounts are promising and helpful for your long-term growth?

Amy Fong

North America is the world's largest customer contact market. We know this market's high purchasing power and widespread SaaS and AI adoption makes it a prime market for scalable, rapid growth of our product and services. Within this large market, there are particularly attractive verticals like mortgage sales and insurance sales, where AI-driven sales tools can deliver maximum impact. These are highly regulated sectors with large numbers of workers and acute needs for productivity, compliance, and revenue growth, requirements that our products address perfectly. Knowing how these sectors work will allow us to build a long-term barrier of entry, giving us an advantage vis-à-vis our competition in the long run. Of course, the relatively high value of the products being sold, mortgages and insurance, is very attractive. This means our software's ability to drive outbound sales can yield meaningful gains in revenue for customers and for ourselves.

Larry Holub

Our next question asks, "GAAP net income really took a hit. What was the main component? R&D, cost of being a public company, global expansion? What drove these declines?

Amy Fong

There are four components that significantly affect our GAAP net income: the increase in amortization of intangible assets, software R&D, global expansion efforts, which saw a significant jump in headcount, particularly in sales, marketing, operations, and management as we opened new offices in overseas markets, highly outsourced operation fees, and elevated expenses, legal accounting from being a public company. How should we think about net income going forward and the balance of fiscal year 2025? These investments will continue in the long-short term as they're critical to our R&D and expansion efforts. As such, we expect net income to remain under pressure for the balance of fiscal year 2025. As revenue begins to materialize from our pipeline in North America and Southeast Asia, we expect our profitability to rebound.

Larry Holub

Last webcast question. "Based on cash available and reduction in net cash provided by operating activities in the first half, it seems the company may need to raise additional capital.

Amy Fong

Yes. Cash was $0.9 million as of December 31, 2024, as compared to $0.1 million a year earlier. However, this figure does not fully reflect the cash position available to the company. $2 million of additional cash is held on the company's behalf by a contracted third-party entity that collects payments from customers. This amount is recorded as prepaid expenses and other receivables on the balance sheet. When we adjust for these funds, the company's total available cash is $2.9 million. That being said, the company is certainly open to partnering with right strategic investors to bolster our balance sheet and to provide additional cash to scale our sales and operations, invest in R&D, and pursue opportunistic M&A transactions.

Larry Holub

That concludes our webcast Q&A.

Operator

Thank you, Mr. Holub. Again, ladies and gentlemen, it appears we have no further questions over the phone at this time. Mr. Li, I'd like to turn things back to you for any closing comments.

Guanghai Li

Thank you, Operator. I would like to thank each of you for joining our financial results and business update conference call and look forward to continuing to update you on our ongoing progress and growth. If we were unable to answer any of your questions, please reach out to our IR firm, MZ Group, who would be more than happy to assist. This concludes our update for this past half year. Thank you.

Operator

Thank you, Mr. Li. Again, ladies and gentlemen, that will conclude today's Helport AI's first half fiscal year 2025 financial and business update call. Again, thanks so much for joining us, everyone, and we wish you all a great day. Goodbye.

Investor releaseQuarter not tagged2025-03-28

Helport AI to Host First Half Fiscal Year 2025 Financial Results Conference Call on Monday, March 31, 2025 at 4:30 p.m. Eastern Time

GlobeNewswire

SINGAPORE and SAN DIEGO, March 28, 2025 (GLOBE NEWSWIRE) -- Helport AI Limited (NASDAQ: HPAI) (“Helport AI” or the “Company”), an AI technology company serving enterprise clients with intelligent customer communication software and services, will hold a conference call on Monday, March 31, 2025, at 4:30 p.m. Eastern Time to discuss its results for the first half of fiscal year 2025 ended December 31, 2024, ongoing initiatives, and recent milestones. A press release detailing these results will be issued prior to the call. Chief Executive Officer and Chairman Guanghai Li, and President and Interim Chief Financial Officer Amy Fong, will host the conference call, followed by a question-and-answer session. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of the Company’s website here. To access the call, please use the following information: Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact MZ Group at 1-949-491-8235. The conference call will be broadcast live and available for replay at https://viavid.webcasts.com/starthere.jsp?ei=1712485&tp_key=f52524cadf and via the investor relations section of the Company's website here. A replay of the webcast will be available after 9:30 p.m. Eastern Time through July 1, 2025. About Helport AI Helport AI (NASDAQ: HPAI) is an AI technology company dedicated to optimizing customer communication through its digital platform and intelligent software solutions. Offering enterprise-level customer contact services, Helport AI’s mission is to empower everyone to work as an expert. Learn more at www.helport.ai. Helport AI Investor Relations: Website: https://ir.helport.ai/ Email: [email protected] External Investor Relations Contact: Chris Tyson Executive Vice President MZ North America Direct: 949-491-8235 [email protected] www.mzgroup.us

As of 2026-06-27 • Updated weeklySource: Earnings sourceIngestion runbook