Society Pass (SOPA) AI Stock Analysis

• Market Cap: $5.33M
• Dividend Yield: N/A
• Average Volume (3M): 848.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: -13.05%
• EPS Growth: 62.51%
• Country: US
• Employees: 40
• Sector: Technology
• Sector Strength: 65
• Industry: Software - Application
• EPS (TTM): -3.53
• Shares Outstanding: 4,518,030
• 10 Day Avg. Volume: 2,325,938
• 30 Day Avg. Volume: 848,673
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -0.11
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -0.24
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $14.00
• Price Target Upside: 1086.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Society Pass faces significant financial challenges, with consistent losses and financial instability marked by negative equity. While there are some improvements in cash flow, the historical trend remains concerning. Technical analysis shows mixed signals with potential short-term bullishness but long-term caution. Valuation metrics further highlight risks due to negative earnings and lack of dividends, resulting in an overall score of 42.

Positive Factors

IPO Plans

The announcement of plans to spinoff two of its businesses in IPOs is expected to drive significant value to Society Pass’s shareholders.

Market Opportunities

Continued strong economic expansion, robust population growth, and the increasing adoption of mobile technology are providing large and fast-growing market opportunities for Society Pass in Southeast Asia.

Valuation

The company's market capitalization is only ~$4 million while it has ~$8 million in cash, implying its shares are undervalued.

Negative Factors

Financial Guidance

The company has not provided any financial guidance, and has not updated its expectations to have 2 IPO spinoffs in 2024/2025.

Financial Performance

Society Pass recently reported its fiscal Q3 2024 results with revenue falling short of both estimates and consensus, and no financial guidance provided.

Society Pass Business Overview & Revenue Model

Company Description

Society Pass (SOPA) is a leading data-driven loyalty platform and e-commerce ecosystem based in Southeast Asia. The company focuses on connecting consumers and merchants through a variety of digital offerings, including e-commerce marketplaces, payment solutions, and loyalty programs. SOPA aims to enhance the shopping experience by leveraging technology to provide personalized and seamless interactions between businesses and their customers.

How the Company Makes Money

Society Pass generates revenue primarily through its e-commerce marketplaces, where it facilitates transactions between consumers and merchants and earns commission fees. The company also monetizes its platform by offering digital payment solutions, which include transaction fees and service charges. Additionally, SOPA capitalizes on its loyalty programs by partnering with merchants to drive customer engagement and repeat purchases, which further strengthens its revenue streams. Strategic partnerships with local and international brands help expand its market reach and enhance its service offerings.

Society Pass Financial Statement Overview

Summary

Society Pass exhibits revenue growth but struggles with profitability and financial stability. Consistent losses on the income statement and negative equity on the balance sheet indicate financial challenges. Despite some improvements in cash flow, the historical trend of negative free cash flow and operating cash flow raises concerns about long-term sustainability.

Income Statement

Society Pass has shown some revenue growth over the years, but profitability remains a significant concern. The company reported negative net income consistently, with a net profit margin of -0.14% in 2024, an improvement compared to -221.88% in 2023. The gross profit margin is also low at 26.22% for 2024. EBIT and EBITDA margins are negative, indicating operational challenges. Despite revenue growth, the inability to translate it into profit is a major weakness.

Balance Sheet

The balance sheet reflects a challenging situation with negative stockholders' equity in 2024, indicating financial instability. The debt-to-equity ratio cannot be calculated due to negative equity, posing a risk. Total liabilities exceed total assets, and the equity ratio is -10.05%, highlighting financial distress. However, the company has maintained a good cash position with cash and cash equivalents exceeding short-term debt, presenting some liquidity strength.

Cash Flow

Cash flow analysis shows a positive operating cash flow in 2024, a significant improvement from negative values in previous years. The free cash flow to net income ratio is high due to minimal net income, but the free cash flow growth rate is remarkable. Despite these improvements, the historical trend of negative free cash flow and operating cash flow raises concerns about long-term sustainability.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
8.17M	5.64M	519.88K	52.45K	10.41K
	Gross Profit
2.47M	966.97K	-190.80K	-36.21K	9.64K
	EBIT
-17.96M	-30.66M	-34.21M	-3.75M	-4.49M
	EBITDA
-16.80M	-30.68M	-31.60M	-2.94M	-7.28M
	Net Income Common Stockholders
-18.13M	-33.79M	-34.77M	-3.83M	-7.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.63M	18.93M	23.26M	506.67K	606.49K
	Total Assets
16.36M	32.70M	35.18M	7.87M	8.74M
	Total Debt
1.43M	1.57M	629.13K	83.20K	53.44K
	Net Debt
-2.20M	-17.36M	-22.64M	-423.46K	-553.05K
	Total Liabilities
11.33M	12.69M	2.85M	18.28M	15.79M
	Stockholders Equity
5.31M	20.35M	32.43M	-10.41M	-7.05M
Cash Flow		Free Cash Flow
-14.27M	-15.02M	-10.86M	-1.25M	-1.60M
	Operating Cash Flow
-13.91M	-14.45M	-10.81M	-1.25M	-1.57M
	Investing Cash Flow
-340.25K	177.39K	-246.84K	0.00	-92.31K
	Financing Cash Flow
-785.52K	10.18M	33.82M	1.21M	1.32M

Society Pass Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.18
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOPA, the sentiment is Positive. The current price of 1.18 is above the 20-day moving average (MA) of 0.89, above the 50-day MA of 1.02, and above the 200-day MA of 1.16, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.06 is Neutral, neither overbought nor oversold. The STOCH value of 40.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOPA.

Society Pass Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$10.77B	10.41	-6.71%	2.99%	7.69%	-13.12%
OLB	50 Neutral	$3.04M	―	-145.26%	―	-58.00%	60.27%
VERB	47 Neutral	$5.69M	―	-106.89%	―	-60.68%	96.58%
IDAI	43 Neutral	$5.10M	―	-312.80%	―	-32.41%	-207.11%
SOPA	42 Neutral	$5.33M	―	-601.50%	―	-13.05%	62.51%
TGL	34 Underperform	$2.96M	―	-37.33%	―	-95.52%	-625.88%

Society Pass Corporate Events

Society Pass Restructures After CMO Resignation

On April 30, 2025, Society Pass Incorporated’s Board of Directors accepted the resignation of Mr. Rokas Sidlauskas as the Group Chief Marketing Officer. His departure was amicable and not due to any disagreements with the company. Concurrently, the Board decided to eliminate the position of Group Chief Marketing Officer from its management team, indicating a potential restructuring or strategic shift within the company.

Spark’s Take on SOPA Stock

According to Spark, TipRanks’ AI Analyst, SOPA is a Underperform.

Society Pass is facing significant financial challenges, highlighted by consistent losses and negative equity. Despite some revenue growth, the company’s inability to achieve profitability is a critical weakness. The technical analysis shows a bearish trend with weak market momentum, and the valuation is unattractive due to a negative P/E ratio and no dividend yield. These factors collectively result in a low overall score, indicating a high-risk investment.

To see Spark’s full report on SOPA stock, click here.