YYForce withdraws 2026 revenue forecast of $103 million to $110 million
Key Facts
YYForce withdrew its financial forecast for fiscal 2026, which targeted revenue of between $103 million and $110 million, in its first-half results disclosure published on September 25, 2026. The company said labor cost pressures during the first half prompted it to withdraw the forecast issued on March 12. It added that it would provide an updated forecast alongside the announcement of its full-year results. The withdrawn forecast had been based on a strong demand outlook in key markets and a full-year contribution from companies it acquired in 2025. It also assumed continued client retention in its manpower outsourcing and integrated facilities management segments.
In its first-half results, the company reported revenue of about $32.7 million, up 26.8% year over year from $25.8 million in the corresponding period of 2025. Manpower outsourcing revenue rose 62.4% to $15.55 million from $9.58 million in the first half of the previous year. The company attributed the growth to stronger demand in Singapore and Malaysia, as well as contributions from its Hong Kong and Thailand businesses. Integrated facilities management revenue increased 11.1% to $16.06 million, compared with $14.46 million in the corresponding period. The results show that revenue growth was concentrated in manpower outsourcing, while integrated facilities management grew more slowly.
Revenue growth was accompanied by a decline in gross margin to 10.1% in the first half from 16.6% in the corresponding period of 2025. The company said the decline was mainly due to higher labor costs in its facilities management and manpower outsourcing businesses. This included higher hourly wages for casual workers, according to its disclosure. Meanwhile, the net loss narrowed 13.8% to $7.06 million from $8.20 million a year earlier. First-half performance therefore combined higher revenue with a smaller loss, alongside clear pressure on gross margin from labor costs.
On November 6, YYForce said it had generated positive operating cash flow, attributing this to improved working capital management and faster collection of accounts receivable. It also said recurring software and services contracts strengthened its liquidity position and contributed to organic cash flows. The statement did not specify the cash flow amount or measurement period. In its growth plans, the company targeted revenue of $20 million from its Malaysian operations in fiscal 2027. It compared this target with a management estimate of about $10 million for Malaysia in 2026, and said the target represented growth of about 100%.
The company said the announcement of its Malaysia target did not set a specific timetable for achieving consolidated net profit at the group level. In the stock market, YFOR shares closed at $0.0570 on November 10, 2026, down 40.13% during the session. The share decline in that session puts investors' focus on the path of the withdrawn forecast, as well as the company's ability to manage labor costs and margin pressure. The next financial update announced by the company remains an updated forecast alongside its full-year 2026 results. The Malaysia revenue target for 2027 also remains part of its stated growth plans.