Diginex Ltd. (DGNX) AI Stock Analysis

• Market Cap: $212.05M
• Dividend Yield: N/A
• Average Volume (3M): 733.60K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.54
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 19
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 201,950,100
• 10 Day Avg. Volume: 373,407
• 30 Day Avg. Volume: 733,604
• PEG Ratio: -3.62
• Price to Book (P/B): 207.03
• Price to Sales (P/S): 462.42
• P/FCF Ratio: -123.01
• Enterprise Value/Market Cap: 4.44
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $1.00 ▼(-91.29% Downside)

The score is held down primarily by very weak profitability and sustained cash burn despite FY2025 revenue rebound and improved leverage. Technicals add additional pressure due to a steep downtrend and bearish momentum, while valuation provides limited support because losses drive a negative P/E and there is no dividend.

Positive Factors

Revenue Growth

A 57% revenue rebound in FY2025 shows the company can regrow top-line after a setback, indicating demand or product-market fit. Sustained revenue expansion over multiple quarters would underpin scale economics, improving chances to cover fixed costs and reduce reliance on external funding.

Improved Leverage

Material reduction in debt and a very low debt-to-equity (~0.05) materially lowers solvency and interest risk, giving management more strategic optionality. A stronger leverage position supports longer runway and capacity to invest in growth or weather further cash burn without immediate refinancing.

Strategic Leadership & M&A

Bringing the founder-CEO of the acquired Plan A.earth into the CEO role is a structural change that can accelerate integration, European expansion and product roadmap execution. Leadership with M&A and ESG SaaS experience can strengthen commercial traction and strategic focus over time.

Negative Factors

Persistent Cash Burn

Consistent negative operating and free cash flow, with FY2025 FCF worsening ~31%, implies ongoing cash burn that erodes runway. Over months this raises funding and dilution risk, limiting the company's ability to invest organically and forcing reliance on external capital until margins improve or growth scales materially.

Very Weak Profitability

Deeply negative operating and net margins show the cost base far exceeds revenue despite a high gross margin. Structural inability to convert revenue to operating profits undermines sustainable cash generation and suggests the business model or cost structure must change to achieve long-term viability.

Negative Equity & Poor ROE

Historical negative equity and an ROE around -114% indicate past losses have materially eroded shareholder capital. This structural capital weakness reduces financial flexibility, makes raising new equity or debt harder on favorable terms, and signals entrenched challenges in generating returns on invested capital.

Diginex Ltd. Business Overview & Revenue Model

Company Description

Diginex Limited, through its subsidiaries, engages in the provision of environmental, social, and governance (ESG) reporting solution services, advisory services, and developing customization solutions in Hong Kong, the United Kingdom, and the United States. Its suite of products includes digninexESG, a cloud based ESG platform that offers end to end reporting from topic discovery, data collection, and collaborative report publishing services; diginexLUMEN that allows companies to execute supply chain risk assessments; diginexAPPRISE, a multilingual application that collects standardized, actionable data related to working conditions directly from workers in supply chains; diginexCLIMATE, a carbon footprint calculator based on the GHG protocols; diginexADVISORY that provides clients strategy and advisory support for credible reporting; diginexPARTNERS that develops white label versions of diginexESG and diginexLUMEN; and diginexMANAGEDSERVICES that provides oversight and support to clients. The company was founded in 2020 and is headquartered in Telegraph Bay, Hong Kong.

How the Company Makes Money

Diginex Ltd. Financial Statement Overview

Summary

Revenue rebounded strongly in FY2025, and leverage improved with sharply lower debt. However, operating and net losses remain extremely large, and persistent negative operating/free cash flow (with worsening FY2025 FCF) keeps execution and funding risk elevated.

Income Statement

Revenue rebounded in FY2025 (+57% YoY) after a decline in FY2024, but profitability remains very weak. Despite 100% gross margin, operating losses are large and persistent (FY2025 EBIT margin ~-235%) and net losses continue (FY2025 net margin ~-255%), indicating the cost structure is far above the current revenue base.

Balance Sheet

Leverage improved materially: total debt fell sharply from FY2024 to FY2025, and FY2025 shows low debt relative to equity (debt-to-equity ~0.05). However, the balance sheet was stressed in prior years with negative equity (FY2022–FY2024), and profitability on equity is deeply negative in FY2025 (return on equity about -114%), highlighting ongoing earnings pressure despite improved capitalization.

Cash Flow

Cash generation is a key weakness: operating cash flow and free cash flow are negative across all years, and FY2025 free cash flow deteriorated further (down ~31% YoY). Cash burn is not being offset by earnings improvement, keeping funding risk elevated until the business scales revenue or reduces operating costs.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	2.04M	1.30M	1.63M	1.12M
Gross Profit	2.04M	1.30M	1.63M	1.12M
EBITDA	-4.68M	-4.21M	-9.04M	-12.97M
Net Income	-5.21M	-4.87M	-9.26M	-12.97M
Balance Sheet
Total Assets	6.24M	974.42K	1.59M	1.79M
Cash, Cash Equivalents and Short-Term Investments	3.11M	76.62K	1.18M	1.27M
Total Debt	237.68K	7.53M	6.74M	0.00
Total Liabilities	1.69M	23.98M	21.07M	12.60M
Stockholders Equity	4.56M	-23.01M	-19.48M	-10.81M
Cash Flow
Free Cash Flow	-7.67M	-5.86M	-6.59M	-6.48M
Operating Cash Flow	-7.67M	-5.86M	-6.59M	-6.47M
Investing Cash Flow	-10.03K	0.00	0.00	-5.04K
Financing Cash Flow	10.72M	4.75M	6.50M	7.45M

Diginex Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MARA	64 Neutral	$3.45B	5.01	23.13%	―	53.51%	112.53%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DGNX	42 Neutral	$212.05M	-24.94	―	―	―	―