ShopBack posted a net profit of US$208.4 million in FY2025 after a year of layoffs and cost cuts.
Audited filings reviewed by DealStreetAsia show the turnaround was driven mainly by fair value gains rather than a recovery in its core business.
The Singapore-based cashback platform, through its local entity Ecommerce Enablers Pte. Ltd., reversed a US$65.1 million loss a year earlier.
The swing was driven largely by net finance income of US$231.9 million, compared with a US$5.7 million cost in FY2024, mainly due to fair value adjustments linked to preference shares.
Its underlying business, however, remained loss-making. Revenue slipped 2.8% to US$129.4 million, while operating loss narrowed to US$23.1 million from US$59.1 million.
The smaller operating loss followed a broader restructuring.
Employee benefits, ShopBack’s largest cost item, fell to US$61.5 million from US$90.2 million a year earlier, while other expenses also declined.
Marketing and advertising spending, however, rose slightly to US$24.9 million from US$22.7 million.
Operating losses narrow after restructuring
The results reflect ShopBack’s pullback from more capital-intensive segments as it refocuses on its core cashback and affiliate business, following its exit from buy now, pay later and layoffs in 2024.
ShopBack also reduced its cash burn, though operating cash flow remained negative.
Net cash used in operations narrowed to US$9 million from US$33 million in FY2024, while cash and bank balances stood at US$208.6 million at end-March 2025, compared with US$211.6 million a year earlier.
Its balance sheet remained under pressure. Total equity was still negative at US$230.3 million, though that improved from negative US$445.6 million in FY2024.
Total liabilities fell to US$571.7 million from US$780.8 million, with preference shares accounting for a large share under current accounting treatment.
In its filing, ShopBack said those preference shares are redeemable only under specific conditions and that it does not currently have a contractual obligation to repay them.
The latest results show ShopBack has become leaner, but has yet to restore operating profitability.
Cost cuts have narrowed losses, but the business still needs to stabilise revenue and show it can recover without support from accounting gains.
Featured image: Edited by Fintech News Singapore, based on image by wahyu_t via Freepik
