STARTENGINE CROWDFUNDING, INC. SEC 10-Q Report

StartEngine Crowdfunding, Inc., a leading platform for equity crowdfunding and private offerings, has released its latest Form 10-Q report, showcasing significant financial and operational improvements. The report highlights the company's robust growth in revenue and profitability, driven by the success of its new product lines and strategic operational adjustments.

Financial Highlights

StartEngine Crowdfunding, Inc. reported impressive financial results for the period, reflecting substantial growth and improved profitability:

• Total Revenues: $70.18 million, a remarkable increase of 225% from the same period in 2024, primarily driven by the success of StartEngine Private offerings.
• Gross Profit: $22.31 million, an increase of $11.63 million compared to the same period in 2024, indicating improved profitability.
• Operating Income: $4.96 million, a substantial improvement from an operating loss of $6.98 million in the same period in 2024, highlighting effective cost management and increased revenue.
• Net Income: $4.99 million, a turnaround from a net loss of $7.04 million in the same period in 2024, demonstrating strong financial performance.
• Diluted EPS: $0.00, reflecting the company's improved earnings position compared to a loss per share in the same period in 2024.

Business Highlights

The company's business performance has been bolstered by strategic initiatives and new product launches:

• Revenue Segments: The company reported significant growth in its StartEngine Private product line, which became the largest revenue generator in 2025. This product line involves providing accredited investors the opportunity to purchase membership interests in funds that own shares of venture capital-backed, late-stage private companies.
• Revenue Segments: Regulation Crowdfunding platform fees saw a slight increase due to higher raise totals for issuers within the period, while Regulation A commissions increased significantly due to higher amounts raised in offerings.
• Revenue Segments: StartEngine Premium revenue increased due to a shift in payment strategy, more issuers utilizing the services, and a price increase from $15,000 to $17,000.
• Revenue Segments: StartEngine Secure revenue increased due to a change in billing strategy to a tiered service annual contract.
• New Product Launches: The company launched 'StartEngine Private' in August 2023, which has quickly become the largest source of revenue, indicating a successful new product introduction.
• Future Outlook: The company plans to continue focusing on the StartEngine Private product line as a major revenue source, although growth may be limited by factors such as stock availability and demand.
• Future Outlook: The company anticipates an increase in Regulation A and Crowdfunding revenues as raises continue to disburse, and it plans to complete the transition of hosting new Regulation Crowdfunding issuances with its broker-dealer entity by the end of 2025.
• Operational Adjustments: At the end of 2024, the company reduced its workforce by 25% to remain competitive and reduce costs, aiming for profitability in 2025.
• Operational Adjustments: The company is leveraging more technology to improve process efficiency and scale the business, as evidenced by an increase in software expenses.

SEC Filing: STARTENGINE CROWDFUNDING, INC. [ STGC ] - 10-Q - Aug. 01, 2025