DarkIris Inc (DKI)

DKI, art works studio ? Funny: https://www.darkiris.com/#/home

DKI.........................https://stockcharts.com/sc3/ui/?s=DKI&p=w&b=5&g=0&id=p86431144783

$DKI : Party time here.......... now $0.80

Nice lil pick me up on that Late breaking Friday news


GO $DKI

*********************************************************************************

DarkIris Inc. Reports 27.3% Revenue Growth and Positive Operating Cash Flow for Fiscal Year 2025
By DarkIris Inc. | January 30, 2026, 4:05 PM

Share
DKI
-7.73%
Darkiris Inc
HONG KONG, Jan. 30, 2026 (GLOBE NEWSWIRE) -- DarkIris Inc. (Nasdaq: DKI) (the “Company” or “DarkIris”), a comprehensive technology enterprise engaged in the development, publishing and operating of mobile digital games through various third-party digital storefronts, today announced its financial results for the fiscal year ended September 30, 2025.

Mr. Zhifang Hong, Chief Executive Officer and Chairman of DarkIris, commented, “Fiscal year 2025 was a transformative year for DarkIris as we continued to develop, refine and iterate our games, successfully renewing and expanding our product portfolio. We delivered solid operating performance, with full-year revenue reaching $10.08 million, representing a year-over-year increase of 27.3%. This growth was primarily driven by sustained contributions from games launched in 2024, as well as the successful rollout of new titles in 2025. Despite higher costs associated with promotional activities and third-party revenue sharing, our core operating metrics maintained on a positive trajectory. We strengthened our base of Monthly Paying Users (MPUs) and recorded a meaningful increase in Average Revenue per Paying User (ARPPU), reflecting enhanced monetization capability and deeper engagement from mid- to high-value users.

During the year, we proactively increased investments in marketing, platform partnerships and talent incentives to support our long-term growth. Notably, we continued to enhance our equity-based incentive programs to attract, motivate and retain key talents, and boosted product research and development investment to approximately $0.90 million to enrich our game portfolio and enhance gameplay quality. Excluding the impact of non-recurring equity incentives, the Company actually generated an operating profit of approximately $0.17 million. These initiatives further reinforced our product pipeline and strengthened our competitive positioning. While such investments exerted short-term pressure on profitability, the launch of new games and intensified operational activities drove a notable rebound in Daily Active Users (DAUs) and Monthly Download Users (MDUs) in the fourth quarter, underscoring our strong resilience in user acquisition and positive momentum in both user scale and engagement.

Looking ahead, we remain committed to investing in creative and innovative game development while optimizing user operations and engagement strategies to further enhance user attraction and retention. In parallel, we will continue diversifying and expanding our marketing and distribution channels. Supported by an increasingly diversified product matrix and a growing base of high-value users, we believe DarkIris is well positioned to deliver sustainable growth and gradually unlock long-term operating leverage.”

Fiscal Year 2025 Financial Summary

Revenue was $10.08 million in fiscal year 2025, an increase of 27.3% from $7.92 million in fiscal year 2024.
Gross profit was $2.50 million in fiscal year 2025, compared to $3.01 million in fiscal year 2024.
Gross margin was 24.8% in fiscal year 2025, compared to 38.0% in fiscal year 2024.
Net loss was $8.64 million in fiscal year 2025, compared to net income of $1.10 million in fiscal year 2024.
Basic and diluted loss per share were $0.52 in fiscal year 2025, compared to basic and diluted earnings per share of $0.07 in fiscal year 2024.
Fiscal Year 2025 Financial Results

Revenues

Revenue was $10.08 million in fiscal year 2025, an increase of 27.3% from $7.92 million in fiscal year 2024. The increase was mainly attributable to continuing revenue contribution from five games launched in March 2024 which increased revenue by approximately $5.04 million and the launch of a new game in 2025 which increased revenue by $0.25 million. The increase was partially offset by a decrease in contribution of $2.92 million of six old games. In fiscal year 2025, the Company continued to engage with two third-party digital platforms. These third-party digital platforms assisted the Company in promoting the games, encouraging gamers to make in-game purchases, therefore, contributing to the increase in revenues by approximately $5.04 million.

Cost of Revenues

Cost of revenue was $7.58 million in fiscal year 2025, an increase of 54.2% from $4.91 million in fiscal year 2024.

The following table sets forth the breakdown of cost of revenues for fiscal year 2025 and fiscal year 2024, respectively:

For the Years Ended
September 30, Variance
2025 2024 Amount %
Platform handling fees $ 6,191,175 $ 3,517,961 $ 2,673,214 76.0 %
Revenue sharing with game developers 1,328,701 1,267,754 60,947 4.8 %
Cloud server costs 56,033 126,296 (70,263 ) (55.6 )%
Stamp duty and value-added tax surcharge 140 270 (130 ) (48.1 )%
Total cost of revenues $ 7,576,049 $ 4,912,281 $ 2,663,768 54.2 %

Platform Handling Fees

Platform handling fees were $6.19 million in fiscal year 2025, an increase of 76.0% from $3.52 million in fiscal year 2024. The increase was primarily attributable to the revenue contribution from two platforms and, as a result, revenue sharing with these two platforms synchronous increased. In fiscal year 2024 and fiscal year 2025, the Company continued to engage with two third-party digital platforms which assist the Company in promoting the games. Revenue generated from game players are shared between the platforms and the Company, typically ranging from 15% to 60%. These third-party digital platforms have been successful in promoting the games, attracting gamer to make in-game purchase and game revenues increased from approximately $7.92 million in fiscal year 2024 to approximately $10.08 million in fiscal year 2025, resulting in a synchronous increase in revenue sharing with these platforms.

Revenue Sharing with Game Developers

Revenue sharing with game developers was $1.33 million in fiscal year 2025, an increase of 4.8% from $1.27 million in fiscal year 2024. Revenue sharing with game developers was typically ranging from 10% to 20% of the revenue generated from their licensed games. The increase in revenue sharing with game developers was minimal as revenue from self-developed games increased significantly while the increase in revenue from licensed games by the game developers was minimal.

Cloud Server Costs

Cloud server costs were $0.06 million in fiscal year 2025, a decrease of 55.6% from $0.13 million in fiscal year 2024. The decrease in cloud server costs was primarily attributable to the increase in using above-mentioned third-party digital platforms. Certain third-party digital platforms absorbed cloud server costs for the Company.

Gross Profit and Gross Margin

Gross profit was $2.50 million in fiscal year 2025, compared to $3.01 million in fiscal year 2024.

Gross margin was 24.8% in fiscal year 2025, compared to 38.0% in fiscal year 2024. The decrease in gross profit margin was mainly attributable to the significant increase in platform handling fees.

Operating Expenses

Total operating expenses were $11.10 million in fiscal year 2025, an increase of 499.3% from $1.85 million in fiscal year 2024.

Selling expenses were $9.30 million in fiscal year 2025, an increase of 797.9% from $1.04 million in fiscal year 2024. The increase was mainly attributable to share-based compensation of approximately $8.81 million related to post-IPO equity incentive programs designed to attract and retain key talents.
Research and development expenses were $0.90 million in fiscal year 2025, an increase of 100% from nil in fiscal year 2024. The increase was primarily attributable to art production costs for a mobile digital game “Alchemy and Magic” which should be expensed.
General and administrative expenses were $0.90 million in fiscal year 2025, an increase of 9.7% from $0.82 million in fiscal year 2024. The increase was mainly attributed to professional service fees incurred for the initial public offerings.
Net (loss) Income

Net loss was $8.64 million in fiscal year 2025, compared to net income of $1.10 million in fiscal year 2024.

Basic and Diluted Loss per Share

Basic and diluted loss per share were $0.52 in fiscal year 2025, compared to basic and diluted earnings per share of $0.07 in fiscal year 2024.

Financial Condition

As of September 30, 2025, the Company had cash of $1.80 million, compared to $0.31 million as of September 30, 2024.

Net cash used in operating activities was $0.46 million in fiscal year 2025, compared to net cash provided by operating activities of $0.05 million in fiscal year 2024.

Net cash used in investing activities was $3.42 million in fiscal year 2025, compared to $0.01 million in fiscal year 2024.

Net cash provided by financing activities was $5.37 million in fiscal year 2025, compared to net cash used in financing activities of $0.20 million in fiscal year 2024.

Recent Development

On August 11, 2025, the Company completed its initial public offering (the “Offering”) of 1,725,000 Class A ordinary shares at a public offering price of $4.00 per share. The gross proceeds were $6.90 million, before deducting underwriting discounts and commissions, and other expenses. The Company’s Class A ordinary shares began trading on the Nasdaq Capital Market on August 8, 2025, under the ticker symbol “DKI.”

About DarkIris Inc.

DarkIris Inc. is a comprehensive technology enterprise based in Hong Kong, engaged in the development, publishing and operating of mobile digital games through various third-party digital storefronts. The Company conducts its business through its subsidiaries, Quantum Arts Co., Limited and Hongkong Stellar Wisdom Co., Limited. The Company’s activities include game design, programming and graphics, as well as the distribution and operation of mobile games across multiple platforms. DarkIris leverages (i) the innovative, creative and technical expertise of Hong Kong’s gaming industry community, and (ii) the multicultural environment and diverse interests of mobile game players in the regions. The Company’s goal is to create and promote a broader array of engaging, immersive, and captivating mobile game genres for a global audience. The Company is committed to consistently showcasing exceptional strength and unique allure across diverse gaming sectors, leading the way in pioneering advancements within the industry. For more information, please visit the Company’s website: www.darkiris.com.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," or other similar expressions in this prospectus. The Company 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 the Company 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 the Company 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 the Company's registration statement and other filings with the U.S. Securities and Exchange Commission ("SEC").

For investor and media inquiries, please contact:

DarkIris Inc.

Investor Relations Department
Email: dki@darkiris.com

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com


DARKIRIS INC.
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. Dollars)


As of As of
September 30, September 30,
2025 2024
ASSETS
Current assets:
Cash $ 1,800,202 $ 313,735
Accounts receivable 2,617,164 1,349,808
Prepayment for game development - 44,000
Deferred initial public offering costs - 28,542
Prepaid expenses and other current assets 341,105 477,740
Total current assets 4,758,471 2,213,825

Non-current assets:
Prepayment for game development 2,700,000 -
Intangible assets, net 679,133 -
Security deposits 300,000 -
Property and equipment, net 9,294 16,651
Total non-current assets 3,688,427 16,651

Total assets $ 8,446,898 $ 2,230,476

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable 44,863 206,661
Contract liabilities 1,401,978 705,801
Due to a related party - 243,788
Taxes payable 174,329 98,158
Accrued expenses 42,929 41,074
Total current liabilities and total liabilities 1,664,099 1,295,482

Commitments and contingencies

Shareholders’ equity:
Class A ordinary shares ($0.0001 par value, 450,000,000 shares authorized, 14,675,400 and 10,550,400 shares issued and outstanding as of September 30, 2025 and 2024, respectively) 1,468 1,055
Class B ordinary shares ($0.0001 par value, 50,000,000 shares authorized, 5,449,600 shares issued and outstanding as of September 30, 2025 and 2024, respectively) 545 545

Additional paid-in capital 19,129,328 4,701,748
Accumulated deficits (12,348,542 ) (3,706,377 )
Accumulated other comprehensive loss - (61,977 )
Total shareholders’ equity 6,782,799 934,994

Total liabilities and shareholders’ equity $ 8,446,898 $ 2,230,476



DARKIRIS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Expressed in U.S. Dollars)

For the Years Ended September 30,
2025 2024 2023

Revenues $ 10,078,798 $ 7,920,461 $ 3,951,074
Cost of revenues (7,576,049 ) (4,912,281 ) (1,551,295 )
Gross profit 2,502,749 3,008,180 2,399,779
Operating expenses:
Selling expenses (9,304,000 ) (1,036,243 ) (2,734,324 )
Research and development expenses (900,000 ) - -
General and administrative expenses (895,060 ) (815,723 ) (924,188 )
Total operating expenses (11,099,060 ) (1,851,966 ) (3,658,512 )

(Loss) income from operations (8,596,311 ) 1,156,214 (1,258,733 )

Other income:
Government subsidy income 842 498 1,994
Interest income 550 1,174 549
Loss on disposal of subsidiary (52,697 ) - -
Other income (expenses) 81,622 37,077 (1,634 )
Total other income, net 30,317 38,749 909

(Loss) income before income taxes (8,565,994 ) 1,194,963 (1,257,824 )
Income tax expenses (76,171 ) (98,158 ) -
Net (loss) income (8,642,165 ) 1,096,805 (1,257,824 )
Other comprehensive income (loss) :
Foreign currency translation gain (loss) 61,977 (50,668 ) 55,652
Comprehensive (loss) income $ (8,580,188 ) $ 1,046,137 $ (1,202,172 )

(Loss) earnings per share
Basic and diluted $ (0.52 ) $ 0.07 $ (0.08 )
Weighted average shares outstanding
Basic and diluted 16,527,261 16,000,000 16,000,000



DARKIRIS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars, except for the number of shares)

For the Years Ended September 30,
2025 2024 2023
Cash flows from operating activities:
Net (loss) income $ (8,642,165 ) $ 1,096,805 $ (1,257,824 )
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Prepaid expenses written off 69,463 - -
Depreciation expense 8,116 8,346 7,383
Loss on disposal of property and equipment 12,233 - -
Amortization of intangible assets 24,867 - -
Loss on disposal of a subsidiary 52,697 - -
Share-based compensation 8,808,000 - -
Changes in operating assets and liabilities:
Accounts receivable (1,270,348 ) (915,209 ) (344,297 )
Prepayment for game development - (44,000 ) -
Prepaid expenses and other current assets (12,188 ) (431,812 ) 13,697
Security deposit (300,000 ) - -
Accounts payable (81,950 ) (108,444 ) 161,316
Contract liabilities 736,507 375,842 80,603
Taxes payable 77,453 98,158 -
Accrued expenses 59,380 (26,019 ) 7,438
Net cash (used in) provided by operating activities (457,935 ) 53,667 (1,331,684 )

Cash flows from investing activities:
Purchase of property and equipment (5,125 ) (12,148 ) (2,766 )
Proceeds from disposal of property and equipment 876 - -
Prepayment for game development (2,700,000 ) - -
Purchase of intangible assets (704,000 ) - -
Disposal of subsidiary, net of cash (15,090 ) - -
Net cash used in investing activities (3,423,339 ) (12,148 ) (2,766 )

Cash flows from financing activities:
Proceeds from capital contribution 570,000 2,741,925 406,793
Proceeds from issuance of ordinary shares 5,049,993 - -
Advances from shareholders 970,077 1,478,653 5,605,046
Repayments to shareholders (1,221,773 ) (3,992,925 ) (4,970,289 )
Deferred initial public offering costs - (28,542 ) -
Net cash provided by financing activities 5,368,297 199,111 1,041,550

Effect of exchange rate changes on cash (556 ) (7,759 ) (11,125 )

Net increase (decrease) in cash 1,486,467 232,871 (304,025 )
Cash, beginning of year 313,735 80,864 384,889
Cash, end of year $ 1,800,202 $ 313,735 $ 80,864

Supplemental disclosure information:
Cash paid for income tax - - -
Cash paid for interest - - -

Supplemental non-cash activities:
Share-based compensation $ 8,808,000 - -

DKI..........................................................p/m

go go go

DKI............................................................a/h

DKI might be turning around from its drop AH

Watching you.

$1.44 get out of pump on 1min green candle $$that was all she wrote 

$1.28 + 33% rising star quick pump and dump usually here .

DKI...............................................https://stockcharts.com/h-sc/ui?s=DKI&p=W&b=5&g=0&id=p86431144783

$DKI: Sold off.... back in again

Added 30k here at $0.89

with an $0.85 stop

Be gooooooooooooooooooddddddddddddd to me !!!!!!!!!!!


GO $DKI

It was a whatsapp frontloaded pump and dump. I follow the group, but wasn't interested in the pick, which they had promoted as being a huge M&A play. They wanted everyone to buy as much as they could, starting at 7 am PDT. A member of the group and I chat. I warned him to be careful Said he would risk $5k. Turns out, he bought $200k worth. Some a cool $million. Look at the chart. Frontloaded for a few days. Vol came in all at once. Someone must have gotten cold feet, as it dropped huge and fast.

I know nothing of the company. If its legit, maybe it will recover.

$DKI: Wondddddddderrrrrfullllllllllllll dip here at $1.40


Added 25k shares.................. lets get a big ol bounce back to at least $5

Just fell from $11.20 !!!!!!!!!!


GO $DKI