10-K: Mag Mile Capital Reports Strong Revenue Growth in 2025

Mag Mile Capital, Inc. announced a significant increase in revenue for the fiscal year ended December 31, 2025, driven by substantial growth in commission income and successful large-scale transactions.

Summary

• Mag Mile Capital, Inc. reported revenue of $4,062,250 for the year ended December 31, 2025, a substantial increase of 98% from $2,051,443 in 2024.
• Gross margin also saw a significant rise of 110.1%, reaching $1,383,239 in 2025 compared to $658,260 in 2024.
• The company experienced a net loss of $123,755 for 2025, an improvement from a net loss of $283,346 in 2024.
• Cash provided by operating activities was $513,293 in 2025, a significant turnaround from cash used of $55,738 in 2024.
• The company continues to operate as an emerging growth company and a smaller reporting company, benefiting from reduced disclosure requirements.
• Key to the revenue growth was a $59 million refinance transaction and a $14.5 million transaction with HKB Hotels Group, contributing $1.045 million in gross revenue.
• The company's growth strategies include investing in sales and marketing and pursuing strategic acquisitions.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive filing, highlighting significant revenue and gross margin growth, alongside a reduced net loss and positive operating cash flow. However, the ongoing net loss and substantial doubt about the company's ability to continue as a going concern temper the overall sentiment.

Positives

• Revenue increased by 98% to $4,062,250 in 2025 from $2,051,443 in 2024.
• Gross margin increased by 110.1% to $1,383,239 in 2025 from $658,260 in 2024.
• Net loss decreased by $159,591 to $123,755 in 2025 from $283,346 in 2024.
• Cash flow from operations turned positive, generating $513,293 in 2025, compared to a use of $55,738 in 2024.
• Successful closing of a $59 million refinance and a $14.5 million transaction with HKB Hotels Group.
• Increased revenue from new large loans originated through Commercial Mortgage Backed Securities (CMBS).
• The company is actively pursuing growth strategies including sales and marketing investment and strategic acquisitions.

Negatives

• The company reported a net loss of $123,755 for the year ended December 31, 2025.
• A working capital deficit of $144,294 was reported as of December 31, 2025.
• The independent auditor's report raises substantial doubt about the company's ability to continue as a going concern due to recurring operating losses and a working capital deficit.
• The company's disclosure controls and procedures and internal control over financial reporting were found to be not effective.
• Material weaknesses in internal control include lack of proper segregation of duties, timely and accurate transaction entry, and inadequate accounting for complex transactions due to size and limited resources.
• The company lacks an independent audit committee and has not properly documented a complete assessment of its internal control effectiveness.

Risks

• The company's ability to continue as a going concern is dependent on its ability to generate future profitable operations and/or obtain necessary financing.
• Risks associated with cybersecurity threats to data, systems, and business operations, although no material impact has been experienced to date.
• The company operates in an intensely competitive industry and faces competition from substantially larger and better capitalized competitors.
• The company's ability to secure, maintain, and enforce a strong intellectual property portfolio.
• The need to attract additional capital sufficient to finance working capital requirements and investments in plant, property, and equipment.
• The company's reliance on third-party suppliers for raw materials.
• The company's ability to attract and retain talented individuals.
• Uncertainty of general economic or market conditions.
• Potential limitations on the use of net operating loss carryforwards due to change in ownership provisions of the Tax Reform Act of 1986.

Future Outlook

The company's growth strategies focus on investing in sales and marketing to attract new customers and pursuing strategic acquisitions. The company's ability to continue as a going concern is dependent on its ability to generate future profitable operations and/or obtain necessary financing.

Management Comments

• The increase in gross margin is due in part to reconfigured commissions by slightly reducing overrides.
• When the Company closes deals for more profitable originators, it generates higher gross margin compared to lower-profit originators.
• The extraordinary marketing expense in Lisbon was to celebrate Mag Mile Capitals success and its clients, shareholders, employees, and capital sources trust in the CEO - Rushi Shah for many years.
• The rationale behind the Lisbon event expense was to celebrate Mag Mile Capitals success and its clients, shareholders, employees, and capital sources trust in the CEO - Rushi Shah for many years.
• Management believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.

Industry Context

StockSavvy.ai notes that Mag Mile Capital's strong revenue growth in 2025, despite a net loss, aligns with trends in the commercial real estate mortgage banking sector where deal volume and transaction complexity can lead to significant revenue fluctuations. The company's focus on leveraging technology like CapLogiq and its broad access to diverse capital sources positions it to compete in a market that increasingly values efficiency and comprehensive financing solutions.

Comparison to Industry Standards

• The company's revenue growth of 98% in 2025 significantly outpaces the typical growth rates seen in the broader commercial real estate finance industry, which can fluctuate based on market conditions.
• While Mag Mile Capital reported a net loss, its gross margin improvement of 110.1% suggests effective management of direct costs associated with revenue generation, a key metric for profitability in the mortgage banking sector.
• The company's reliance on commission income is standard for mortgage intermediaries. However, the significant related party commission expense to Park River Investments, LLC, warrants attention when comparing operational efficiency to industry peers who may have more diversified revenue streams or internal cost structures.
• The company's stated goal of pursuing strategic acquisitions is a common growth strategy in the financial services industry, aiming for scale and market share, similar to consolidation trends observed among competitors like Marcus & Millichap or CBRE's debt and structured finance divisions.

Corporate Governance

Legal Proceedings

• There are no material claims, actions, suits, proceedings, or investigations currently pending or threatened by or against the Company or its operations, assets, officers, directors, or affiliates.

Related Party Transactions

• Loan payable to Park River Investment LLC (formerly Mag Mile Capital LLC) of $300,000 as of December 31, 2025.
• Rushi Shah made a $200,000 working capital loan to the Company on July 24, 2025, which was repaid in November 2025.
• Office lease with 1141 W. Randolph, LLC, a company owned and controlled by Rushi Shah, for space at 1141 W. Randolph Street, Chicago, IL.
• A second commercial lease agreement for basement space at 1141 W. Randolph St., Chicago, IL, also related to Rushi Shah.
• Related party commission expense paid to Park River Investments, LLC, a company owned by Rushi Shah, totaling $1,039,088 for 2025.
• As of December 31, 2025, $79,750 was due for commission expense to Park River Investments, LLC.

Stakeholder Impact

• Shareholders: The company's ongoing net loss and going concern uncertainties may impact share value. However, the significant revenue growth could be viewed positively for long-term prospects.
• Employees: Increased payroll expense suggests potential growth in headcount or compensation, possibly linked to performance incentives.
• Creditors: The working capital deficit and going concern issues could raise concerns for creditors regarding the company's ability to meet its obligations.
• Management: Rushi Shah's compensation is significantly tied to revenue through a 55% commission structure, aligning his incentives with company performance.

Next Steps

• Continue to invest in sales and marketing to attract new customers.
• Explore potential high-quality acquisition opportunities.
• Continue to evaluate and enhance cybersecurity systems, controls, and processes.
• Management will continue to address material weaknesses in internal controls.

Key Dates

Recommendation

The company demonstrates strong revenue growth and improved gross margins, indicating operational progress. However, the persistent net loss, working capital deficit, and the auditor's substantial doubt about the going concern status necessitate a cautious approach. While the growth trajectory is positive, the financial stability concerns warrant a 'hold' recommendation until a clear path to profitability and sustained financial health is established.

Keywords

Mag Mile Capital, SEC Filing, 10-K, Annual Report, Commercial Real Estate, Mortgage Banking, Financing, Revenue Growth, Net Loss, Going Concern, Financial Statements, Rushi Shah, Chicago