HONG KONG, Jan. 30, 2026 (GLOBE NEWSWIRE) -- DarkIris Inc. (Nasdaq: DKI) (the “Company” or “DarkIris...











            







    
        
            January 30, 2026 16:05 ET
        

        
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                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 EndedSeptember 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 DepartmentEmail: dki@darkiris.com  Ascent Investor Relations LLCTina XiaoPhone: +1-646-932-7242Email: 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   -   -  
            

DarkIris Inc. Reports 27.3% Revenue Growth and Positive Operating Cash Flow for Fiscal Year 2025

<section class="insight" data-version="1">
  <section data-block="information">
    <h3>Information</h3>
    <p>HONG KONG, Jan. 30, 2026 (GLOBE NEWSWIRE) -- DarkIris Inc. (Nasdaq: DKI) (the “Company” or “DarkIris...</p>
  </section>

  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>DarkIris Inc. (DKI) reported a 27.3% revenue increase to $10.08 million for fiscal year 2025. Despite a significant net loss and rising operating expenses, key operating metrics showed improvement, indicating potential for long-term growth in the gaming sector.</p>
  </section>

  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>DKI&#039;s 2025 revenue rose 27.3% to $10.08 million.</li><li>Net loss increased to $8.64 million, compared to net income of $1.1 million in 2024.</li><li>Operating expenses surged by 499.3% to $11.1 million due to equity incentives.</li><li>Monthly Paying Users and Average Revenue per Paying User increased.</li><li>Cash position improved to $1.8 million as of September 30, 2025.</li></ul>
  </section>

  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>Activision Blizzard (ATVI)</strong>: Competitor in the gaming industry, potential impact on market dynamics.</li><li><strong>Electronic Arts (EA)</strong>: Also operates in the mobile gaming sector, relevant for market comparisons.</li></ul>
  </section>

  <section data-block="category">
    <h3>Earnings</h3>
    <p>This news primarily falls under &#039;Earnings&#039; as it discusses DKI&#039;s financial results and outlook. Given the company&#039;s recent IPO and significant revenue growth, these earnings will be closely watched by investors looking for growth opportunities in the gaming sector.</p>
  </section>

  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>Revenue growth of 27.3% might drive positive investor sentiment.</li><li>A significant increase in operating expenses could raise concerns over profitability.</li><li>Improved cash position suggests better liquidity for future investments.</li><li>Growing Monthly Paying Users and Average Revenue per Paying User indicate successful user engagement strategies.</li></ul>
  </section>

  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>2025 revenue: $10.08 million, up from $7.92 million in 2024.</li><li>Net loss in 2025: $8.64 million; EPS at -$0.52.</li><li>Cash reserves reached $1.8 million as of September 30, 2025.</li><li>Operating expenses increased to $11.1 million, up 499.3% from 2024.</li><li>R&amp;D investment grew to $0.9 million in fiscal 2025.</li></ul>
  </section>

  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Investors may consider DKI as a speculative buy given revenue growth, with a medium-term outlook.</p>
  </section>
</section>


<article>
    <h2>DarkIris Inc. Reports Strong Financial Performance for Fiscal Year 2025</h2>
    <p>HONG KONG, Jan. 30, 2026 (GLOBE NEWSWIRE) -- DarkIris Inc. (Nasdaq: DKI), a leading technology enterprise focused on mobile digital games, has announced its financial results for the fiscal year ending September 30, 2025. The company achieved a robust revenue growth of <strong>27.3%</strong>, reaching <strong>$10.08 million</strong> compared to <strong>$7.92 million</strong> in the previous fiscal year. This growth underscores DarkIris's commitment to expanding its game portfolio while enhancing user engagement.</p>

    <section>
        <h3>Overview of Fiscal Year 2025 Performance</h3>
        <p>Mr. Zhifang Hong, Chief Executive Officer and Chairman of DarkIris, expressed optimism about the company’s financial trajectory, stating, “Fiscal year 2025 was a transformative year for DarkIris as we continued to develop, refine, and iterate our games. We delivered solid operating performance, with significant contributions from both previously launched games and new titles introduced this year.”</p>

        <ul>
            <li><strong>Revenue:</strong> Increased to $10.08 million, a 27.3% rise from $7.92 million in FY 2024.</li>
            <li><strong>Gross Profit:</strong> $2.50 million, down from $3.01 million, reflecting a gross margin of 24.8%.</li>
            <li><strong>Net Loss:</strong> Reported at $8.64 million, in contrast to a net income of $1.10 million in FY 2024.</li>
            <li><strong>Loss per Share:</strong> Basic and diluted loss of $0.52 compared to earnings of $0.07 in FY 2024.</li>
        </ul>
    </section>

    <section>
        <h3>Drivers of Revenue Growth</h3>
        <p>The impressive revenue increase was primarily driven by:</p>
        <ul>
            <li>Contributions from five successful game launches in March 2024, generating approximately $5.04 million.</li>
            <li>The release of a new game in 2025, which added $0.25 million to revenues.</li>
            <li>Collaborations with two third-party digital platforms that substantially promoted user engagement, contributing an additional $5.04 million to revenue growth.</li>
        </ul>
    </section>

    <section>
        <h3>Increased Operating and Marketing Investments</h3>
        <p>DarkIris made significant investments in operational and marketing activities to drive long-term growth. In FY 2025, the company allocated around <strong>$0.90 million</strong> for product research and development, reinforcing its commitment to enhancing its game portfolio. Despite facing increased operating expenses, which totaled <strong>$11.10 million</strong>—a 499.3% increase from FY 2024—DarkIris aims to strengthen its market position through innovation and user engagement strategies.</p>

        <ul>
            <li><strong>Operating Expenses:</strong> Rose to $11.10 million, with selling expenses accounting for $9.30 million.</li>
            <li><strong>Investments:</strong> Share-based compensation of approximately <strong>$8.81 million</strong> was aimed at retaining key talent post-IPO.</li>
        </ul>
    </section>

    <section>
        <h3>Future Outlook</h3>
        <p>Looking ahead, DarkIris is focused on sustaining its growth trajectory by investing in creative game development and optimizing user engagement strategies. The company intends to diversify its marketing and distribution channels further, ensuring it capitalizes on its growing base of high-value users. Mr. Hong concluded, “Supported by an increasingly diversified product matrix, DarkIris is well positioned to unlock sustainable growth and long-term operating leverage.”</p>
    </section>

    <section>
        <h3>Conclusion</h3>
        <p>DarkIris Inc. (Nasdaq: DKI) continues to demonstrate resilience and adaptability in the competitive gaming market. With a solid financial foundation and strategic growth initiatives, the company is poised for further success in the coming years.</p>
    </section>
</article>

DarkIris Inc. (DKI) reported a 27.3% revenue increase to $10.08 million for fiscal year 2025. Despite a significant net loss and rising operating expenses, key operating metrics showed improvement, indicating potential for long-term growth in the gaming sector.

DarkIris Inc. Reports 27.3% Revenue Growth and Positive Operating Cash Flow for Fiscal Year 2025

Information

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Earnings

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