Business Context and Reporting Period
Company: Nexttrip, Inc. (NTRP)
Filing Type: Form 10-Q (Quarterly Report)
Period Ended: November 30, 2025
Business Overview: Nexttrip operates an integrated travel booking and media ecosystem. The company reports two primary segments: Travel (powered by the NXT2.0 booking engine, including leisure, luxury, and group travel) and Media (JOURNY.tv FAST channel and Travel Magazine). The company is in early-stage commercial operations and recently completed a reverse acquisition of NextTrip Holdings, Inc.
Key Financial Metrics
| Metric | Three Months Ended Nov 30, 2025 | Nine Months Ended Nov 30, 2025 |
|---|---|---|
| Total Revenue | $1,200,130 | $2,096,605 |
| Gross Profit | $217,478 (18.1% Margin) | $421,959 (20.1% Margin) |
| Operating Loss | $(3,084,782) | $(10,927,394) |
| Net Loss (Continuing Ops) | $(3,275,566) | $(10,630,953) |
| Net Loss Applicable to Common Stockholders | $(3,286,255) | $(10,889,368) |
| Cash and Cash Equivalents | $2,427,299 | $2,427,299 (Ending Balance) |
| Working Capital | $(750,124) Deficit | $(750,124) Deficit |
| Total Debt (Current + Non-Current) | $4,101,711 | $4,101,711 |
Note: Debt includes $1,003,353 in current notes payable, $98,358 in SBA EIDL loan, and $3,000,000 in a related-party line of credit.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 1,508% year-over-year for the quarter and 402% for the nine-month period. This surge is attributed to group travel revenues, consortia payments, and commission income from the Five Star Alliance (FSA) acquisition.
- Segment Expansion: The company introduced a new Media segment in Q3 2025, generating $21,098 in revenue for the quarter. Prior periods had no Media segment revenue.
- Expense Increases: Operating expenses rose 86% for the quarter and 118% for the nine-month period. Key drivers include:
- Professional Services: Increased 245% (quarter) due to investor relations contracts and acquisition-related accounting/legal fees.
- Organization Costs: Increased 37% (quarter) and 1,660% (nine months), largely due to non-cash stock options granted to former directors ($2.37M).
- Depreciation & Amortization: Increased 83% (quarter) due to new intangible assets from FSA, JOURNY.tv, and TA Pipeline acquisitions.
- Acquisitions: Significant M&A activity included the full acquisition of FSA Travel (April 2025), JOURNY.tv assets (April 2025), and TA Pipeline LLC (August 2025).
Guidance, Outlook, Risks, and Unusual Items
- Going Concern: Management has expressed substantial doubt about the company's ability to continue as a going concern for the next 12 months. The company estimates a need for a minimum of $5.5 million to fund operations for the next year.
- Liquidity Strategy: The company is actively raising capital through private placements and debt. Subsequent to the period end (December 2025), the company raised $3.3 million in gross proceeds via preferred stock and common stock offerings.
- Unusual Items:
- Settlement Income: Recorded $149,517 (quarter) and $1,272,761 (nine months) in other income from a settlement agreement regarding a promissory note receivable from NextPlay Technologies, Inc.
- Derivative Liability: Recorded a gain of $40,000 (quarter) due to the revaluation of a put option liability associated with the TA Pipeline acquisition.
- Mezzanine Equity: $387,000 of common stock issued for the TA Pipeline acquisition is classified as mezzanine equity due to contingent redemption rights.
- Risk Factors: Risks include the inability to secure future financing, potential dilution from equity raises, and the need to achieve revenue targets to offset high operating costs.
Investor Verification Checklist
- Cash Burn Rate: Verify the sustainability of the $2.4M cash balance against the estimated $5.5M funding requirement for the next 12 months.
- Related Party Debt: Review the terms of the $3.0M line of credit from Monaco Investment Partners II, LP (12% interest, maturity May 2027) and its impact on liquidity.
- Acquisition Integration: Assess the revenue contribution and integration progress of recent acquisitions (FSA, TA Pipeline, JOURNY.tv) to determine if they are driving the reported margin improvements.
- Non-Cash Expenses: Analyze the impact of the $2.37M non-cash organization costs (stock options to former directors) on the true cash operating burn.
- Mezzanine Equity: Understand the conditions under which the $387,000 mezzanine equity (TA Pipeline shares) could be redeemed, potentially impacting cash flow.