Diginex Ltd (NASDAQ:DGNX) shares are trading higher on Tuesday. The Sustainability RegTech Solutions provider posted financial results, highlighted by sharp revenue growth and a stronger balance sheet.
- Diginex stock is surging to new heights today. Why are DGNX shares rallying?
What To Know: Diginex reported unaudited results for the six months ended Sept. 30 before the market open.
Total revenue was $2.045 million, a 293% increase from the previous year’s revenue of $520,795. Major contributors to the strong jump were the subscription and license fees — up from $200,000 to $1.9 million — boosted by a one-off license deal for a white-label version of diginexESG.
CEO Mark Blick called the first half of fiscal 2025 "transformative," pointing to strong demand for ESG reporting and supply chain solutions. At the same time, higher costs tied to M&A activity pushed the company's net operating loss to approximately $6 million, compared with $4.2 million in the prior year’s period.
Net assets rose to $10.9 million as of Sept. 30, up from $4.6 million at the end of March. Diginex remains debt‑free, with no interest‑bearing borrowings, giving it flexibility to fund growth initiatives.
Subsequent to the reporting period, the company took another step towards enhancing its financial support by raising approximately $13.8 million through exercising its unexercised warrants. The action created more cash flow through the issuance of 18 million ordinary shares, backing up its acquisition strategy and diversification plans.
Diginex has powered through with the $13 million all-share acquisition of Matter DK ApS, adding to the enhancement of its AI-driven ESG data and analytics capabilities. In addition, it rolled out an AI‑powered ISSB Disclosure Tool to help organizations meet International Sustainability Standards Board requirements, with partial funding from the Hong Kong Monetary Authority (HKMA).
“We believe these achievements give us a solid foundation to accelerate both organic growth and our planned disciplined M&A strategy. We continue to enhance our AI-powered platforms, most notably with fully automated regulatory gap analysis and advanced data visualization capabilities,” Blick stated.
DGNX Price Action: Diginex shares are surging 17.53%, trading at $9.32 at the time of publication on Tuesday, according to Benzinga Pro. Even with this jump, the stock is still 76.9% below its 52-week high.
Read Next:
Image: T. Schneider/Shutterstock
