Singapore-based cashback platform ShopBack swung to a profit in the financial year ended March 31, 2025, a year marked by layoffs and a strategic pullback, regulatory filings showed.
According to its audited financials reviewed by DealStreetAsia, Ecommerce Enablers Pte. Ltd., ShopBack’s Singapore-registered entity, reported a net profit of $208.4 million for FY2025, reversing a $65.1-million loss a year earlier.
The swing was primarily attributed to a surge in net finance income to $231.9 million from a negative $5.7 million, largely stemming from fair value adjustments on preference shares, rather than improvements in underlying operations.
Excluding these gains, the core business remained loss-making, though losses narrowed during the year.
ShopBack’s revenue stood at $129.4 million in FY2025, down 2.8% from $133.1 million a year earlier.
The company generates revenue primarily through commissions from affiliate marketing services, where it earns fees from merchants when users complete transactions via its platform. It also derives income from digital voucher sales, advertising placements, and previously buy-now-pay-later services, according to its filing, although it did not disclose a breakdown by business line.
The softer top line comes against the backdrop of a broader reset at the company, which in March 2024 cut about 24% of its workforce, or roughly 195 employees, as part of efforts to rein in costs and refocus the business.
The layoffs followed a period of rapid expansion, during which the company aggressively ramped up its headcount and expanded into new verticals. The management later acknowledged that the pace of growth had outstripped the business’s fundamentals, prompting a shift towards sustainability.
ShopBack also wound down parts of its more capital-intensive initiatives, including its buy-now-pay-later offering in the same year, as it reviewed business lines and prioritised profitability.
The pullback has extended into 2026. The company has discontinued its ShopBack Pay service in Malaysia from March 25, removing QR-based payments and in-app transactions in the market as it reallocates resources to higher-impact segments.
Despite the operational reset, ShopBack has continued to highlight product and platform milestones. The company said in January 2026 that it had surpassed S$1 billion in cashback awarded to users since inception, underscoring the scale of its consumer rewards ecosystem.
It has also moved to strengthen governance, announcing the appointment of Chong Ee Rong and Dan Neary to its board in February 2026, bringing experience in organisational leadership and global technology platforms.
DealStreetAsia has reached out to ShopBack for comment.
Losses narrow on cost cuts
ShopBack’s operating loss improved to $23.1 million from $59.1 million a year earlier, reflecting a sharp reduction in expenses. Employee benefit expenses declined 31.8% following the restructuring, while spending on IT, professional fees, and other overheads also fell.
In its filings, the company said it had taken steps, including closing unprofitable operations and reducing discretionary spending to improve cash flow and liquidity.
Despite the improvement, ShopBack continued to post negative operating cash flow, with $9 million used during the year, though significantly lower than the previous year’s $33 million.
The group ended FY2025 with $208.6 million in cash and bank balances, providing some buffer as it works towards profitability.
Its balance sheet, however, remains under pressure. ShopBack reported negative equity of $230.3 million, although this improved from $445.6 million a year earlier.
Total liabilities stood at $571.7 million, driven largely by $401.5 million in preference shares, which are classified as current liabilities under accounting rules. The company noted that these instruments are only redeemable under specific conditions and that it currently has no contractual obligation to repay them.
Back to core
The developments over the past year underscore a broader recalibration at ShopBack, as it shifts away from expansion-led growth towards a more disciplined operating model.
Recent product exits—including BNPL earlier and payments in Malaysia—suggest a narrower focus on its core cashback and affiliate business. At the same time, the company has introduced newer features such as ShopBack Play and other gamified rewards tools, aimed at deepening user engagement and driving repeat transactions.
While ShopBack has also highlighted milestones such as surpassing S$1 billion in cashback awarded and adding new board members in 2026, these initiatives come as it continues to balance growth ambitions with tighter cost control.
The company’s next phase will depend on whether it can stabilise revenue and translate these efforts into sustainable operating profitability.
Founded in 2014 by Henry Chan and Joel Long, the company said it has served over 60 million users across 13 markets, and in 2025, continued its global growth with its expansion into North America.
According to DealStreetAsia’s DATA VANTAGE, the company has raised over $351.7 million to date. Its largest shareholders include Temasek, Rakuten Capital, and Anchor I Pte. Ltd.
