Figtree Holding’s Latest Financials Tell a Terrifying Story. Here’s What You Need to Know.

Introduction:

Sometimes, if you know where to look, financial reports tell a dramatic story—a story of a company fighting for its very survival. The latest quarterly report from Figtree Holdings Limited is one such document. Beneath the surface of the numbers, it reveals a narrative of surprising and impactful challenges.

Here are the five most critical takeaways from the report, broken down to show what’s really going on inside the company.

1. The Ultimate Red Flag: The Company Is Questioning Its Own Survival

In the world of finance, few statements are more alarming than a “going concern” warning. It’s the company’s own management formally acknowledging that there are serious doubts about its ability to stay in business for the next year. In this unaudited report, Figtree Holdings didn’t just mention this; they detailed the “multiple material uncertainties” in plain sight.

The report states:

The following factors indicated the existence of multiple material uncertainties that may cast significant doubt on the Group and the Company’s ability to continue as going concerns…

The key reasons cited for this doubt are severe: a net loss of S$3.1 million for the period, a significant deficiency in net current assets if you exclude a defaulted loan, and a critical dependence on continued financial support from a corporate shareholder.

In response, the company’s directors express confidence that they can continue, pointing to their overall net current assets, positive cash flow forecasts, and a new S$0.95 million loan they secured from a shareholder after the period ended. This internal tension—the official acknowledgment of risk versus the board’s assertion of confidence—is the central drama of the report and a massive red flag for anyone assessing the company’s health.

2. A 75% Revenue Plunge in Just Nine Months

The income statement tells a story of a business model under extreme stress. For the first nine months of 2025, the Group’s revenue fell by a staggering 75.3% compared to the same period in 2024, dropping from nearly S7.0 million to just S1.7 million.

According to the company’s “Review of Performance,” this collapse has a clear cause: revenue in 2024 was boosted by a single large project (Jiaerte). In contrast, 2025 revenue came from much smaller projects, such as the one with Hiap Seng Engineering Ltd, that carry lower profit margins. This reveals a significant vulnerability in the company’s business model—an extreme dependency on securing large, individual projects, which creates inherent volatility and makes consistent performance incredibly difficult.

3. The Cash Reserves Are Evaporating

A net loss on paper is one thing, but the impact on a company’s actual cash is where the danger becomes tangible. The Group’s cash and cash equivalents plummeted from S2.20 million at the end of 2024 to just S0.43 million by September 30, 2025.

That represents a net decrease of S$1.72 million in just nine months.

The “Review of the Cash Flow Statement” shows exactly where the money went: the company used S$2.22 million in net cash for its operating activities during the period. This “cash burn” is a critical metric because it shows how quickly a company is using up its available funds just to keep the lights on. With less than half a million dollars left, the runway is getting dangerously short.

4. Cost-Cutting Isn’t Enough to Stop the Bleeding

To its credit, the company has made aggressive moves to control its spending. “General and administrative expenses” for the third quarter of 2025 were slashed by 84.5% compared to the same quarter last year. This is a significant operational achievement.

However, it wasn’t nearly enough. Despite these deep cuts, the Group still reported a net loss of S$3.1 million for the nine-month period. This juxtaposition is telling. It suggests the company’s problems are not simply due to bloated overhead. The issues are more fundamental, rooted in an inability to generate sufficient revenue. Furthermore, the company’s cost-saving efforts were hampered by external forces; the report notes that a significant portion of the savings was canceled out by unrealized foreign exchange losses, highlighting how vulnerable its bottom line is to currency fluctuations.

5. The Business Isn’t Funding Itself—A Shareholder Lifeline Is Keeping It Afloat

When a company’s operations are losing money and burning through cash, it must find funding elsewhere to survive. For Figtree Holdings, that funding is coming from its own backers.

The “Borrowings” section of the report shows that “Shareholders’ loans” swelled from S8.6 million at the end of 2024 to S11.4 million by the end of the third quarter of 2025. This connects directly back to the “going concern” warning, which explicitly states that the company’s ability to continue is dependent on “the continued financial support from a corporate shareholder.”

This creates an extremely precarious situation. The company’s day-to-day survival does not hinge on its own operational profitability but on the patience and deep pockets of its shareholders, a foundation that can vanish with a single change of heart.

Conclusion:

These five points are not isolated issues but interconnected symptoms of a business caught in a vicious cycle. The 75% revenue plunge is the root cause that starves the company of operational cash. This forces aggressive but insufficient cost-cutting and makes the company entirely dependent on a shareholder lifeline, which brings us back to the existential threat of the going concern warning. The report is a candid look at a company’s struggle, laid bare in its own financial statements.

It leaves us with a critical question: When a company’s own financials raise such serious questions, what does it truly take to turn the ship around?

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