YYForce (NASDAQ: YFOR) has withdrawn its fiscal year 2026 outlook issued on March 12, 2026, citing labor cost pressures in the first half of the year. The company stated that investors should no longer rely on previous projections and expects to provide an updated outlook with full-year results.

Despite the withdrawal, YYForce reported a narrowed first-half fiscal year 2026 net loss of $7.06 million, a 13.8% improvement year-on-year. Revenue expanded 26.8% to $32.7 million, driven by strong top-line growth in its manpower outsourcing segment.

Financial performance overview

The following table details the key financial metrics for the first half compared to the prior year period:

*Prior year EPS retroactively adjusted for reverse share splits. *Comparison not meaningful due to share split adjustments.

Segment performance and operational highlights

Revenue growth was uneven across the company's two primary business lines. Manpower outsourcing revenue surged 62.4% to $15.55 million, attributed to stronger demand in Singapore and Malaysia, along with contributions from subsidiaries in Hong Kong and Thailand. In contrast, Integrated Facility Management (IFM) revenue grew 11.1% to $16.06 million, supported by new contract wins and full-period contributions from acquisitions made in 2025.

Operational metrics showed mixed trends:

• Manpower Services: Cumulative YY Circle App downloads reached 998,575, up from 586,389 in the prior year. Monthly active users increased to 35,743 from 30,103.
• IFM Services: The number of customers grew to 218 from 190, though average revenue per customer declined slightly to $73,682 from $76,095.

Balance sheet and liquidity updates

YYForce reported a significant improvement in its capital structure during the period. Total liabilities decreased 39% to $12.66 million from $20.73 million at the end of 2025, reflecting the settlement of trade payables and a reduction in warrant liabilities. Working capital improved to a positive $11.9 million, compared to a deficit of $1.7 million at the end of the previous fiscal year.

Cash position stood at approximately $3.08 million as of June 30, 2026. The company raised $18.55 million through an At-The-Market equity offering, contributing to an increase in total equity to $25.36 million from $13.61 million in December 2025.

What the numbers show

A divergence exists between the rate of revenue growth and profitability metrics. While sales expanded by 26.8%, gross profit declined by 22.7% due to margin compression from rising labor costs. This indicates that the volume-driven growth in manpower outsourcing came at the expense of unit economics. Furthermore, the narrowing of net loss was partially non-operational; the 32.2% improvement in operating loss was significantly influenced by the absence of the prior-year impairment charge, rather than purely operational efficiency gains. The withdrawal of the FY2026 outlook underscores the severity of these labor cost pressures on future profitability.

YYForce Inc. (NASDAQ: YFOR) shares rose 37.14% to $1.92 in after-hours trading on Tuesday following the disclosure of improved unaudited financial metrics for the first half of fiscal 2026.

The Singapore-based AI workforce and facility management provider reported that its balance sheet strengthened significantly during the period. Total assets increased to approximately $38.0 million as of June 30, up from $34.3 million at the end of fiscal 2025. Net assets surged roughly 85% to about $25.2 million from $13.6 million, primarily reflecting reduced liabilities through strategic balance sheet management.

Balance Sheet Strength

Based on 3.20 million Class A shares outstanding, the company stated this represents approximately $11.88 in total assets per share and $7.87 in net assets per share. The figures are preliminary and unaudited. YYForce expects to release comprehensive interim results by late September, following completion of its audit process.

What the Numbers Show

The divergence between asset growth and net asset expansion highlights the primary driver of value creation. While total assets grew by approximately $3.7 million (from $34.3 million to $38.0 million), net assets expanded by $11.6 million. This indicates that the reduction in liabilities was the dominant factor behind the improved equity position, rather than pure asset accumulation. The company attributed this shift to "strategic balance sheet management."

Operational Focus

During the period, YYForce advanced AI training data and robotics applications across hospitality, security, and facilities management. The company also expanded operations into Singapore, Hong Kong, Thailand, Egypt, and Malaysia.

CEO Mike Fu said, "Our balance sheet is meaningfully stronger than it was at year-end," adding that the company's focus is now on "commercial execution" and scaling its technology platform.

Trading Metrics

YYForce has a market capitalization of $17.97 million. The stock has a 52-week high of $1.53 and a 52-week low of $1.23. The Relative Strength Index (RSI) stands at 46.81. Over the past 12 months, the stock has fallen 99.77%. YFOR is currently trading at about 56.7% of its 52-week price range. The stock closed the regular session on Tuesday at $1.40, down 2.78%.