The company’s manpower outsourcing division saw revenue jump 62.4% to US$15.55 million, while its integrated facility management arm grew by 11.1% to US$16.06 million. However, gross profit margins contracted to 10.1% from 16.6% in the prior-year period. CEO Mike Fu attributed the performance to the company's broader "YYForce 2030 Vision," an effort to transition from a labor-intensive provider to an integrated ecosystem utilizing AI, robotics, and smart facility management.
In section Releases
YYForce Revenue Climbs 27% as Labor Costs Squeeze Margins
Singapore-based YYForce Inc. reported a 26.8% revenue increase to US$32.7 million for the first half of 2026, driven by a sharp rise in manpower outsourcing demand. Despite the top-line growth, the company faced significant margin pressure as soaring hourly wages for casual workers outpaced billing rate adjustments.
To stabilize profitability, CFO Jason Phua outlined plans to reprice expiring contracts and exit underperforming engagements. While the company narrowed its net loss to US$7.06 million from US$8.20 million, it has withdrawn its fiscal year 2026 outlook due to the prevailing labor cost environment. On the balance sheet, capital structure improvements were evident, as total liabilities dropped 39% to US$12.66 million, supported by US$18.55 million in proceeds from an equity offering.
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