YYForce Inc.

Basis: FY2024–FY2025 operating and net figures are company-reported (FY2025 release and 20-F). FY2021–FY2023 figures are from SEC-sourced aggregator data (VCP Scanner) and reconcile to the FY2023 release for revenue (US$31.77M) and profit (US$0.864M). All USD.

Income statement

Notes:

• FY2025 EBITDA is operating loss plus D&A, which includes the US$9.6M impairment. On the aggregator basis, which excludes impairment and fair-value items, FY2025 EBITDA is −US$12.41M and operating income is −US$13.34M.

• The FY2025 non-IFRS net loss adds back SBC (US$6.60M) and impairments (US$9.61M), and excludes a US$2.38M warrant fair-value gain and a US$0.04M investment-property gain.

• FY2025 operating loss includes a US$2.38M gain on warrant fair value. Excluding that gain, the core operating loss was larger.

EPS (not comparable across years because of the reverse splits)

Margins and growth

Revenue CAGR: FY2021–FY2025 (four years) about 34.6%; FY2022–FY2025 (three years) about 41.9%.

Half-year P&L

Sources: H1 2026 release. H2 2025 gross profit and operating loss are derived from FY2025 less H1 2025. H1 2026 includes a US$2.62M net loss on convertible notes and a US$1.73M gain on warrant liabilities.

Trend commentary.

FY2021–FY2023: a small, profitable agency. Net margins were 2–4% and growth came from post-COVID hospitality recovery: revenue rose about 59% in FY2023 as Singapore hospitality and MICE demand returned.

FY2024 inflection: Revenue rose 29%, but the company swung to a US$4.84M loss.

• The swing came from US$5.16M of share-based compensation after the IPO, plus public-company costs and new overseas subsidiaries.

• Excluding SBC, the company was roughly break-even (non-IFRS net profit about US$0.3M).

FY2025: Revenue grew 39%, helped by acquisitions, and gross margin improved 100bp to 13.8%.

• Operating loss widened to US$20.6M because of US$6.6M of SBC, US$9.6M of impairments tied to exiting underperforming overseas subsidiaries, and higher G&A.

• The non-IFRS loss of US$7.6M shows the underlying business was loss-making even before non-cash items.

H1 2026: - Revenue growth slowed to 26.8%.

• Gross margin collapsed to 10.1% from 16.6% as casual-labor wages outran billing rates.

• The operating loss narrowed (no impairment in the period), but the non-IFRS operating loss was still US$2.74M.

• Management withdrew FY2026 guidance (US$103–110M revenue, non-IFRS profitability) just six months after issuing it.

Balance sheet

Discrepancy: the company's Dec-2025 statement shows loans and borrowings of US$6.00M (US$5.38M current plus US$0.63M non-current) and lease liabilities of US$1.53M. Simply Wall St reports total debt of US$6.5M, while VCP Scanner reports US$8.04M. The definitions differ.

Interim balance sheet (company-reported, unaudited)

Commentary.

• The balance sheet more than doubled in FY2025 as acquisitions added US$11.0M of goodwill and intangibles. This was after US$9.6M of impairments.

• Liquidity was thin at end-2025: cash of US$1.5M, a current ratio of 0.90 and negative working capital.

The H1 2026 repair was funded by equity: US$18.55M of ATM proceeds paid down payables and lifted equity to US$25.4M. Operating cash burn in the period was US$11.0M.

Related-party receivable: "Amount due from related parties" rose eightfold to US$4.05M (about 16% of equity). This warrants scrutiny; its nature is not explained in retrieved sources.

Cash flow

Source: VCP Scanner (SEC-sourced). FY2025 cash flow shows a net US$0.39M acquisition inflow, meaning cash acquired exceeded cash consideration. This implies the 2025 acquisitions were largely settled in shares or deferred consideration; the terms are not publicly disclosed in retrieved sources.

Ratios

Notes:

• Ratios are analyst calculations from the tables above. FY2021 ROA uses end-period assets. ROE for FY2021–FY2022 is not meaningful because equity was near zero or negative.

• Net debt/EBITDA is not meaningful for FY2024–FY2025 because EBITDA was negative.

• There is no inventory, so CCC = DSO − DPO.

• At 30 June 2026 the current ratio was 2.11x.

Ratio commentary.

Pre-IPO returns were high but on a tiny equity base: - Equity was negative at end-2021, so headline returns overstate quality.

• Asset turnover fell from 3.4x to 1.7x as acquisitions loaded goodwill onto the balance sheet.

• The cash conversion cycle of about 60–74 days structurally consumes cash. Workers are paid weekly while clients pay in 1–2 months. This is the key reason revenue growth has not produced operating cash.

Since FY2024 coverage ratios have been negative,: and the company depends on equity markets for liquidity.

Guidance and consensus

Management guidance: none in force. The FY2026 outlook (US$103–110M revenue and non-IFRS profitability) was withdrawn on 24 September 2026. An updated outlook is expected with FY2026 results.

Arithmetic check on the withdrawn target: H1 2026 revenue of US$32.7M implied H2 revenue of about US$70–77M, more than double H2 2025 (US$31.5M).

Consensus: none (no sell-side coverage).

Bull case

1. Margin repair from repricing plus contracted growth. If repricing restores gross margin toward the FY2025 level of 13.8%, the H1 2026 run-rate revenue of about US$65M annualized implies roughly US$2.4M of extra annual gross profit. The S$15.96M of new contracts add about S$5.6M of year-one revenue. Together these could narrow the non-IFRS operating loss (US$2.74M in H1 2026) toward break-even.

2. The balance sheet is no longer the binding constraint. Working capital is US$11.9M, liabilities fell 39%, and no warrants or convertibles remain. Equity of US$25.4M against a market capitalization of roughly US$5–12M gives asymmetric upside if losses stop.

3. Platform optionality. Profitable monetization of 24iFM (marketplace and advertising), RaaS robotics or the AI data lab would add revenue at gross margins far above the 10–14% services base. The installed base of about 1,054 customers and about 268k active app users provides distribution.

Bear case

1. No demonstrated pricing power. Gross margin fell 650bp year on year in H1 2026 despite 26.8% revenue growth. Growth may be buying volume at a loss, and wage regulation limits cost relief.

2. Serial dilution and listing fragility.

   • Two reverse splits within three months and a 1-year return of about −99.95%.

   • Post-September 2026 trading near US$1 and heavy reliance on equity issuance.

   • Founder super-voting control, plus home-country exemptions from shareholder approval of issuance.

   • Together these point to further dilution.

3. Credibility and governance.

   • Guidance was withdrawn after six months, and acquisitions were impaired within the year.

   • Frequent strategy pivots: overseas expansion and then exit; staffing, then IFM, then AI and humanoid robotics.

   • A US$4.05M related-party receivable, board turnover and a combined Chair/CEO.

   • These raise the discount investors should apply to management targets.

Catalysts and monitorables (next 12 months)

Analyst verdict

YYForce is a genuine operating business with real customers, real contracts and real growth. Revenue has more than tripled in four years to US$57M, IFM customers doubled in 2025, and the staffing app has meaningful penetration of Singapore hospitality. At its core, however, the company remains a low-margin labor contractor. It has not shown that it can grow profitably.

The evidence since listing is unfavorable. Gross margin fell to 10.1% in H1 2026 as wages outran prices, and the non-IFRS business still loses money. Operating cash flow has been negative for two and a half years. Ambitious guidance issued in March 2026 was abandoned in September.

The H1 2026 recapitalization fixed the balance sheet, at a heavy cost to shareholders. That cost came through an ATM program, toxic-structure convertibles that have since been retired, and two reverse splits totaling 1-for-1,500.

The AI, robotics and humanoid repositioning under the YYForce name provides narrative optionality. Management itself states these initiatives were not revenue-material. The market has so far greeted robotics announcements with sharp sell-offs rather than re-rating.

Governance concentration makes the investment case weaker still. Founder control runs through 500-vote shares, the Chair/CEO role is combined, and a spouse sits on the board. Home-country exemptions from shareholder approval of share issuance and a rising related-party receivable compound this.

The apparent discount to book value is less compelling once intangibles and related-party balances are stripped out.

Overall assessment: speculative, high risk. A constructive view would require three pieces of evidence:

1. H2 2026 gross margin recovering toward 13–14%.

2. Sustained positive non-IFRS operating income.

3. No further dilutive financing.

Until those appear, the shares are best treated as a high-volatility option on management's ability to reprice contracts and monetize automation. They are not a fundamentally supported equity. Monitor the FY2026 results, cash runway and Nasdaq compliance closely.

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APPENDIX — PRINCIPAL SOURCES

• YY Group Holding Ltd Form 20-F FY2025 and 20-F/A (SEC EDGAR, CIK 1985337) — 2026 — Corporate structure, subsidiaries, risk factors, customers, employees, ownership, directors

• YY Group Form 20-F FY2023, FY2024; Form 424B4 (IPO prospectus) — 2024–2025 — Directors, auditor, history

• FY2025 unaudited results release (GlobeNewswire / PR Newswire) — 20 April 2026 — FY2025 and H2 2025 financials, segments, guidance

• Preliminary FY2025 highlights release — 9 March 2026 — FY2025 preliminary range

• H1 2026 results release and Form 6-K — 24–25 September 2026 — H1 2026 financials, balance sheet, 2030 Vision, guidance withdrawal

• Rebrand release (YYForce / YFOR) — 31 August 2026 — Name and ticker change, positioning

• Strategic update release — 27 October 2025 — 2025 acquisitions, overseas mix, margin target

• Uniforce Security acquisition release and coverage (Staffing Industry Analysts, Outsource Accelerator) — June 2025 — UFS details

• S$15.96M contract release — 29 September 2026 — Contract values

• Reverse split and Nasdaq compliance 6-Ks and releases — March–April 2026 — Listing history, share counts, convertible notes

• IPO pricing and closing releases; Renaissance Capital; IPOScoop — April 2024 — IPO details

• FY2023 and FY2024 results releases (company IR site) — May 2024; April 2025 — Historical revenue and gross profit

• VCP Scanner (SEC-sourced income statement, balance sheet, cash flow) — Accessed October 2026 — FY2021–FY2025 time series

• Finviz news feed — Accessed October 2026 — News chronology and daily price reactions

• Benzinga, Simply Wall St, Robinhood, Google Finance, YCharts, Lightyear, TickerGate, Multiples.vc, roic.ai — September 2026 — Market data (conflicting where noted)

• Quartr (Primech Holdings FY2026 summary) — 29 July 2026 — Peer benchmark