DFNN Revenue Jumps in 2025 as Higher Costs Deepen Loss

DFNN Inc reported a wider net loss for full-year 2025, even as revenue more than doubled, driven by stronger third-party contract values and higher sales of goods. The Philippine information technology firm posted a net loss of PHP411.0 million, or US$6.7 million, up 36.3% from a year earlier, according to a filing to the Philippine Stock Exchange.

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Revenue for the year rose 112.5% to PHP63.6 million. According to the company, the increase was justified by the value of contracts with external parties in 2025, which increased by 518.7% to PHP42.5 million compared to the previous year. Sales of products also rose from PHP5.4 million to PHP35.9 million.

Revenue Growth And Business Mix

The sharp rise in revenue reflects a stronger contribution from third-party contracts across the year. DFNN said these contracts were the main driver behind the improvement, while goods sales also added to the higher top line.

The company has subsidiaries that hold licences for electronic gaming machines, a sports betting exchange, and digit and pari-mutuel games with the Philippine Amusement and Gaming Corp. That business structure places DFNN across several regulated gaming-related segments, even as the latest results show continued pressure on its bottom line.

The company’s annual figure succeeded in increasing turnover significantly, yet it did not help to cover the cost growth. The bottom line is that revenues were growing, yet profitability suffered.

Costs Continue To Climb

DFNN said the cost of sales and services declined slightly in 2025, but general and administrative expenses increased by 73.9% year-on-year to PHP137.3 million. The company attributed the rise to higher personnel costs, outside services, representation costs, and sales, marketing, and project operating expenses.

That cost structure appears to have weighed heavily on the full-year outcome. Even with stronger revenue, the increase in operating expenses was enough to keep the company in a deeper loss position than in the previous year.

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The filing suggests that DFNN’s business expansion was accompanied by heavier spending across several areas. Those costs appear to have more than absorbed the benefits of higher contract values and improved sales of goods during the year.

Debt Conversion Plan

In March, DFNN said it would convert up to PHP600 million of existing liabilities owed to various creditors into up to 500 million common shares and 100 million preferred shares. The company said the debt-to-equity conversion would be used to retire existing debts.

The common shares are to be issued from a planned increase in the group’s authorised capital stock to PHP2.00 billion. The 100 million preferred shares will be issued from the corporation’s existing unissued capital stock.

The move points to a broader effort by the company to manage its balance sheet while continuing to operate across its gaming-related businesses. The conversion plan provides a route for settling liabilities while also reshaping the company’s capital structure.

Annual Result In Focus

From the analysis of DFNN’s 2025 results, it becomes clear that the company experienced a significant increase in its turnover but failed to use it to earn profits. As a result, due to the growth in contract values and goods sales, the company’s income increased significantly, while high administrative expenses were putting pressure on the company.

With the debt-to-equity conversion being completed, the company faces the year ahead with higher revenues but no profit.

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Source: GGR Asia