NewGenIvf (NASDAQ: NIVF) swings to an $8.04 million loss despite wider gross margin

What happened

NewGenIvf Group Limited (NASDAQ: NIVF) posted an $8.04 million first-half loss attributable to shareholders, against a $724,975 profit a year earlier. The figures cover the six months ended June 30, 2026. One-time items sit on both sides of the comparison.

Revenue slipped 4.69% to $1.92 million from $2.02 million in the first half of 2025. Gross margin rose to 24.1% from 15.5%. Operating loss widened to $3.55 million from $3.24 million. Interest expense climbed to $0.54 million from $0.13 million because of additional convertible bonds.

Key numbers

Metric	Latest	Change	Source
Net loss attributable to shareholders, six months ended June 30, 2026	$8.04 million loss	from $724,975 profit	SEC 6-K
Revenue, six months	$1.92 million	from $2.02 million, -4.69%	SEC 6-K
Gross margin, six months	24.1%	from 15.5%, +8.6 percentage points	Calculated from SEC 6-K
Net cash used in operating activities, six months	$4.61 million	from $0.90 million	SEC 6-K
Convertible notes issued in the six months (aggregate principal)	$2.13 million		SEC 6-K

Read more: NewGenIvf Group (NIVF) company research

Two one-time items drive the swing

A one-off loss of $3.42 million on a Repurchase and Forbearance Agreement with JAK Opportunities VI LLC pushed net other expenses to $3.99 million. The filing says the company paid an investor to end additional closings under existing securities purchase agreements and to hold off on note conversions and warrant exercises.

The 2025 comparison was lifted by a non-cash $4.28 million gain on acquiring the Microsort trademarks. Without both items, the filing says the loss attributable to shareholders would have grown 29.91%, to $4.61 million. The underlying loss still widened.

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Where the margin gain came from

The filing credits the margin gain to a business model change in Kyrgyzstan, from running an IVF clinic to a fertility referral service. Referral revenue was $350,561, or 18.2% of the total, with none in the first half of 2025. IVF treatment revenue fell 22.05% to $1.57 million.

Revenue from Kyrgyzstan fell to $0.73 million from $1.05 million. Thailand rose to $0.91 million from $0.57 million. OptimistFi calculates that revenue fell by $94,747 while gross profit rose by $150,684, lifting gross margin by 8.6 percentage points. The filing says cost of revenues fell 14.39% as the Kyrgyzstan IVF clinic was downsized.

Cash burn, financing and new stakes

Net cash used in operating activities rose to $4.61 million from $0.90 million in the first half of 2025. The filing says the 2026 outflow mainly reflects a deposit for the K25.ai investment and the repurchase forbearance.

Financing covered it. Net cash from financing was $5.03 million, down from $9.96 million a year earlier. It came mainly from share issuance under an equity line of credit, convertible notes and acquisition issuance. The company issued convertible notes with aggregate principal of $2.13 million in the half.

Cash stood at $1.02 million on June 30, against $0.76 million at Dec. 31, 2025. The working capital surplus shrank to $0.62 million from $5.02 million at Dec. 31. The filing says issuing equity securities, including convertible debt, would dilute earnings per share, and that financing may be unavailable on acceptable terms. It lists reverse stock splits effective as recently as Oct. 23.

The company also kept building stakes outside fertility. It signed on May 15 to buy up to 10% of PredicXion Group Limited at a pre-money valuation of $100 million. It completed a 2% purchase on May 28 and exercised top-up options for 4% on June 2 and another 4% on June 18. On July 27 it signed to buy an additional 3% at a $250 million pre-money valuation.

Why it matters

OptimistFi has argued that NewGenIvf scales only if gains prove durable rather than accounting one-offs, and operating cash flow turns positive or is safely financed. This filing is mixed. Margin improved, but cash burn grew and the funding relies on instruments the filing says dilute shareholders.

The full-year table adds context. Revenue for 2025 fell 13.01% to $4.73 million. Net income of $9.73 million came with a $21.65 million non-cash bargain purchase gain on the Nodexus and Microsort acquisitions, against a $10.73 million operating loss.

Net book value rose to $26.43 million from $9.28 million at June 30, 2025. The filing attributes this to acquisitions of intellectual property assets, the prediction market investment and fundraising. Total liabilities were $10.72 million against $6.74 million in the prior balance-sheet column.

The margin gain comes from a change of business model in Kyrgyzstan while revenue still fell. It is not evidence of higher-volume services.

What's next

NewGenIvf says that after June 30 it recorded an unrealized gain of about $3 million on its 2% K25.ai stake, based on updated valuation of K25.ai shares. If it completes the other 11% investment by the end of December 2026, the filing says the unrealized gain might rise to $15 million.

A smaller operating cash outflow than the first-half level in the company's next report would support the case. Another outflow funded by new convertible notes or equity would weaken it.

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