TROOPS, Inc.
- Open
- 2.53
- Day high
- 2.60
- Day low
- 2.44
- Prev close
- 2.46
- Volume
- 102K
- Mkt cap
- $301M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 6.1
- P/S
- 11.1
- Yield
- —
- Per share
- —
TROOPS, Inc. (TROO) is a Technology company listed on NASDAQ. The stock is up 262% over the past year. Drillr has 1 published research article covering TROO.
TROOPS, Inc. (TROO) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
TROO earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 29, 2026 | — | $-0.22 | — | $9M | — |
| Nov 19, 2024 | — | $-0.01 | — | $3M | — |
| Nov 20, 2023 | — | $-0.01 | — | $2M | — |
| May 15, 2023 | — | $0.00 | — | $975500 | — |
| Dec 31, 2021 | — | $-0.04 | — | $1M | — |
| Jun 30, 2020 | — | $-0.02 | — | $3M | — |
| Dec 31, 2019 | — | $0.00 | — | $1M | — |
| Dec 31, 2018 | — | $-0.32 | — | $1M | — |
TROOPS, Inc. company profile
Overview
TROOPS, Inc. (NASDAQ:TROO) is a Hong Kong-based financial technology and lending company that was founded in 2005 and went public in 2008. Originally known as SGOCO Group, Ltd., the company changed its name to TROOPS, Inc. in November 2021 to better reflect its evolving business focus. The company operates primarily in Hong Kong and Australia, combining traditional money lending services with modern financial technology solutions through its digital marketplace platform.
Business
TROOPS operates in the financial services sector with a dual focus on traditional lending and financial technology solutions. The company's core business can be divided into several key segments: 1. **Money Lending Services** - TROOPS provides various types of loans including mortgage loans (secured by real estate), personal loans for individual borrowers, and corporate loans for business clients. This traditional lending business forms a significant portion of their operations, particularly in Hong Kong and Australia where they hold appropriate lending licenses. 2. **Financial Technology Platform** - The company operates an online financial marketplace accessible through mobile applications that connects financial institutions with end users. This platform serves as an intermediary, allowing banks and other lenders to reach potential borrowers while providing consumers with access to multiple lending options in one place. The platform includes application programming interface (API) services that enable third-party integration. 3. **Software-as-a-Service (SaaS) Solutions** - TROOPS develops and provides technology solutions for financial institutions, including app development services, project-based consulting, API integration services, and ongoing maintenance and support. These services help traditional financial institutions modernize their digital offerings. 4. **Real Estate Investment and Management** - The company also maintains a real estate portfolio, investing in properties and providing property leasing and management services, which provides additional revenue streams and asset diversification. Based on recent financial data, the lending and fintech platform operations appear to generate the majority of revenues, though specific segment breakdowns are not publicly disclosed in the available financial statements.
Revenue model
TROOPS generates revenue through multiple complementary business models that leverage both traditional financial services and modern technology platforms. **Primary Revenue Streams:** 1. **Interest Income** - The company earns interest on loans disbursed to individual and corporate borrowers. Interest rates vary based on loan type, borrower creditworthiness, and market conditions. Mortgage loans typically carry lower rates but higher volumes, while personal and corporate loans command higher interest rates. 2. **Platform Fees and Commissions** - Through its financial marketplace, TROOPS earns transaction fees and commissions when users successfully obtain loans through partner financial institutions. The company acts as an intermediary, taking a percentage of successful loan originations. 3. **SaaS and Technology Services** - The company charges subscription fees for its software solutions and project-based fees for custom development work, API integration, and ongoing technical support services to financial institution clients. 4. **Rental Income** - Property investments generate steady rental income from tenants, providing a relatively stable revenue base. **Margin Influencing Factors:** Several factors can significantly impact TROOPS' profitability. Rising interest rates generally benefit the lending business by increasing net interest margins, while economic downturns can lead to higher default rates and credit losses. Regulatory changes in Hong Kong and Australia regarding lending practices, capital requirements, or fintech operations could affect both costs and revenue potential. Competition from traditional banks, other fintech platforms, and peer-to-peer lending services puts pressure on both interest margins and platform fees. Technology development costs for maintaining and upgrading the digital platform represent ongoing expenses, while the success of the SaaS business depends on the pace of digital transformation among financial institutions in the region.
Competitive moat
TROOPS operates in a highly competitive financial services landscape with limited sustainable competitive advantages. The company's regulatory licenses in Hong Kong and Australia for money lending provide some barrier to entry, as obtaining such licenses requires significant compliance infrastructure and capital requirements. However, this moat is relatively narrow as many established banks and financial institutions already possess similar licensing. The company's technology platform represents a potential competitive advantage in connecting borrowers with multiple lenders, but this type of marketplace model faces intense competition from larger, better-funded fintech companies and established financial comparison websites. The platform's success depends heavily on network effects - having enough lenders and borrowers to create liquidity - which TROOPS may struggle to achieve given its limited scale compared to competitors. **Competitive Threats:** Traditional banks with deeper pockets and established customer relationships pose a significant threat, particularly as they develop their own digital lending platforms. Large fintech companies and marketplace lenders with superior technology, marketing budgets, and venture capital backing represent formidable competition. Additionally, the company's small scale (with annual revenues under $11 million) limits its ability to invest in technology development and marketing at the pace required to compete effectively. The company's real estate holdings provide some asset backing but do not constitute a meaningful competitive moat in the core financial services business. Overall, TROOPS appears to have a weak competitive position with limited sustainable advantages, making it vulnerable to larger, better-resourced competitors in both traditional lending and fintech segments.
Risks & safety
TROOPS presents a mixed but concerning margin of safety profile with significant financial challenges despite adequate liquidity. **Overall Assessment:** Moderate liquidity cushion but substantial operational losses raise solvency concerns. • **Cash Position:** $5.2 million in cash and short-term investments as of FY 2024, providing reasonable near-term liquidity • **Debt Level:** Very low debt-to-equity ratio of 0.0004, indicating minimal financial leverage risk • **Current Ratio:** Strong at 3.30, suggesting ability to meet short-term obligations • **Burn Rate:** Significant concern with $13.4 million net loss on only $10.1 million revenue in FY 2024 • **EBITDA:** Negative $11.2 million in FY 2024, indicating substantial operational cash burn • **Valuation Metrics:** Price-to-book ratio of 2.46 appears reasonable given asset base of $79.2 million • **Free Cash Flow:** Positive $1.7 million in FY 2024, though inconsistent across periods • **Graham Net-Net:** Slightly positive at 4.7% of market cap, suggesting some asset protection **Other Considerations:** Revenue volatility, small scale operations, and regulatory dependency in Hong Kong and Australia create additional risks to financial stability.
Recent development
Based on the available financial data, TROOPS has undergone significant strategic transformation over recent years, though detailed earning call transcripts are not available to provide specific management commentary on strategic initiatives. **Key Developments:** The most notable change was the company's rebranding from SGOCO Group to TROOPS, Inc. in November 2021, signaling a strategic pivot toward financial technology and away from its previous business focus. This name change coincided with increased emphasis on developing the digital financial marketplace platform and expanding SaaS offerings to financial institutions. **Financial Performance Trends:** The company has experienced significant volatility in financial performance. Revenue increased from $3.9 million in FY 2022 to $10.1 million in FY 2024, suggesting some success in scaling operations. However, this growth came at a substantial cost, with net losses expanding dramatically from $346,000 in FY 2022 to $13.4 million in FY 2024. The company achieved positive EBITDA of $1.6 million in FY 2022 but has since swung to significant negative EBITDA, indicating operational challenges. **Operational Focus:** The company appears to have invested heavily in technology infrastructure and platform development, as evidenced by the substantial increase in operating expenses. The expansion of SaaS and API services suggests management is positioning TROOPS as a technology enabler for traditional financial institutions rather than purely a direct lender. The maintenance of real estate investments provides some stability and diversification during this transition period.
TROO company profile · for informational purposes only — not investment advice.
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