Visionary Holdings posts 2025 loss amid overhaul

Annual results finalized; SEC filing still pending

Visionary Holdings Inc. has publicly released its final annual report and audited financial statements for the fiscal year ended March 31, 2025, while noting that its Form 20-F has not yet been filed with the U.S. Securities and Exchange Commission. The Toronto‑headquartered company said total revenue for fiscal 2025 was USD 5.04 million, a year‑over‑year decline of 46.2%. The drop was primarily attributed to a contraction of its real estate leasing operations and changes in the education policy environment.

The company reported a net loss of USD 15.75 million for the year. Management said the loss mainly reflected one‑time transformation‑related investments, approximately USD 4.70 million in asset impairment charges, and financing‑related costs that it considers transitional in nature. Despite the revenue decline, gross margin improved modestly to 28.0%, with the education services segment recording a gross margin of 64.4%, which the company said demonstrated relative stability in core operating efficiency.

Visionary emphasized that the information in the press release is based on its finalized annual report and audited financial statements, and should not be construed as indicating that the Form 20‑F has been filed or accepted by the SEC. A copy of the final annual report, including audited financial statements, was attached to the announcement for informational purposes only and does not constitute an SEC filing.

Strategic shift toward health management and medical aesthetics

During the reporting period, Visionary continued its transition from a traditional education‑ and real estate‑focused business toward a diversified platform centered on health management, anti‑aging and premium medical aesthetics, complemented by its AI‑enabled education business. Revenue from emerging businesses accounted for approximately 21.1% of total revenue, which the company said indicates that its business restructuring has entered an early implementation stage.

In health management and anti‑aging, Visionary pursued exploratory initiatives around service‑oriented offerings, including gastrointestinal health management and solutions. The company said it is using a model that combines platform development, strategic partners and end‑service delivery, and has advanced market testing and early‑stage commercialization efforts in Asia. These initiatives remain subject to ongoing execution and validation.

In premium medical aesthetics, Visionary is exploring service‑driven aesthetics and health management solutions aligned with market demand in Asia and supported by North American medical resources. During fiscal 2025, it established strategic collaborations with Jiangsu Yike Regenerative Medicine Technology Co., Ltd. and Anhui Weikang Kangling Medical Technology Co., Ltd. to support access to proprietary technologies and products and to facilitate expansion of a global premium medical aesthetics service network.

AI education remains stable as cash flow improves modestly

The company said its AI education business remained relatively stable during the year. Through a hybrid online‑offline model, it continued to offer Ontario Secondary School Diploma programs, vocational education and academic pathway services. Visionary also maintained cooperation with multiple Canadian public institutions to provide integrated education support services for international students.

Operating cash outflows decreased to USD 2.97 million in fiscal 2025, compared with USD 4.10 million in the prior fiscal year. Cash flow from investing activities totaled USD 14.51 million, mainly from asset dispositions that supported liquidity during the transformation period. As of March 31, 2025, the company reported total assets of USD 63.63 million.

CEO Xiyong Hou described fiscal 2025 as a phase in which strategic transformation moved from planning to tangible execution. He said initial revenue generation from emerging health‑related businesses validated the practical feasibility of the company’s transition and provided a foundation for subsequent development, while the education segment continued to contribute stable margins.

Liquidity pressures and capital structure actions

Visionary reported approximately USD 54.50 million in negative working capital as of March 31, 2025, and acknowledged ongoing liquidity and financing pressures. The company also referenced certain loan defaults and said it has been pursuing measures including equity financing initiatives and negotiations with creditors on debt restructuring and extensions. According to the announcement, some creditors have agreed to temporary extensions, and management said it will continue to evaluate and implement measures to improve its financial condition.

Looking ahead, Visionary’s stated priorities include continuing to explore commercialization opportunities in health management, anti‑aging and premium medical aesthetics, including potential acquisitions or partnerships subject to prudent evaluation. The company also plans to further optimize its AI education ecosystem by enhancing digital student management systems and expanding marketing in key Asian markets to support business stability and cash flow.

The company said it intends to strengthen corporate governance and internal controls by recruiting experienced finance and compliance professionals, enhancing compliance training, and normalizing audit committee operations. Management highlighted a focus on improving financial reporting quality and operational transparency as it seeks to support sustainable growth and, in its view, create long‑term value for shareholders.