Executive Summary / Key Takeaways

• Orangekloud Technology Inc. is strategically pivoting towards AI-driven no-code application development with its recently launched eMOBIQ® AI platform and an initiative to develop a specialized large language model (LLM) for software engineering. This positions the company at the forefront of a rapidly evolving industry, aiming to democratize enterprise application creation.
• The company's core business revolves around its eMOBIQ no-code platform, Microsoft Dynamics ERP consulting, and IT services, serving diverse sectors across Singapore, Malaysia, and the United States. This regional focus and specialized offerings provide a unique market niche.
• Financially, Orangekloud is in a challenging but transformative phase, reporting significant net losses and declining revenues in 2023 and 2024, following profitable years prior. A substantial capital raise in 2024 and a recent share consolidation in September 2025 underscore efforts to stabilize its capital structure and fund its strategic AI investments.
• Orangekloud faces intense competition from established giants like Microsoft and Salesforce , as well as agile low-code/RPA specialists such as Appian and UiPath . Its competitive edge lies in its no-code accessibility for SMEs and regional expertise, though it contends with smaller scale and brand recognition.
• The investment thesis hinges on the successful market adoption of its eMOBIQ® AI platform and the realization of efficiency gains and competitive advantages from its AI initiatives, which are critical for a return to profitability and sustained growth.

Orangekloud's Vision in the No-Code Revolution

Orangekloud Technology Inc. (NASDAQ:ORKT), headquartered in Singapore and incorporated in 2023, is carving out a distinctive position within the dynamic technology landscape. The company operates primarily through its Packaged Software Solutions and No-Code Platform and Mobile Application segments, extending its IT consultancy services and related product offerings across Singapore, Malaysia, and the United States. At its core, Orangekloud aims to simplify complex application development, making enterprise-grade solutions accessible to a broader market, particularly small and medium-sized enterprises (SMEs).

The broader technology industry is experiencing a profound shift towards artificial intelligence (AI) and no-code/low-code development, driven by the increasing demand for rapid digital transformation and efficient software creation. This trend is further amplified by the surge in AI-driven infrastructure needs, which necessitates agile application development for data management and operational tasks. Orangekloud's strategy is deeply intertwined with these macro trends, seeking to empower businesses to build and deploy custom applications with unprecedented speed and ease.

Technological Edge: eMOBIQ AI and the LLM Frontier

Central to Orangekloud's strategic differentiation is its proprietary eMOBIQ platform, a no-code rapid mobile application development solution. This technology allows SMEs and organizations to design, build, and implement enterprise-grade custom applications without requiring extensive coding expertise. The tangible benefit for customers is a significantly accelerated development cycle and reduced reliance on specialized technical talent, translating into faster market entry and lower operational costs for digital initiatives.

In a significant stride towards innovation, Orangekloud officially launched its eMOBIQ® AI Platform on July 25, 2025. This advanced platform is an AI-driven no-code development environment, enabling users to create, customize, and deploy enterprise-grade applications using natural language alone. The company touts eMOBIQ® AI as the "industry's first enterprise-grade, AI-first no-code development platform," a claim that underscores its ambition to lead in this nascent but rapidly expanding niche. This technological leap promises to further democratize application development, offering unparalleled ease of use and potentially unlocking new levels of efficiency for businesses.

Further solidifying its commitment to AI, Orangekloud signed a Memorandum of Understanding (MOU) with Evvo Labs Pte. Ltd. on June 18, 2025. This partnership is dedicated to developing a specialized large language model (LLM) tailored specifically for software engineering and application development. The strategic intent behind this initiative is to enhance the intelligence and capabilities of its platforms, potentially leading to more sophisticated automation, predictive development features, and even greater efficiency in the application lifecycle. For investors, these technological advancements represent Orangekloud's primary competitive moat, offering the potential for superior customer value, increased market penetration, and ultimately, improved financial performance through higher adoption rates and potentially stronger pricing power.

Competitive Arena: Battling Giants and Niche Players

Orangekloud operates in a highly competitive landscape, contending with both established technology behemoths and agile, specialized players. Its direct competitors include Appian Corporation (APPN), Microsoft Corporation (MSFT), Salesforce Inc. (CRM), and UiPath Inc. (PATH). Each of these rivals brings distinct strengths to the market, forcing Orangekloud to strategically position itself.

Appian, for instance, is a leader in low-code automation platforms, known for its process automation capabilities for larger enterprises. While Appian offers greater integration depth, ORKT's eMOBIQ platform emphasizes ease of use for SMEs, potentially offering a more accessible and cost-effective solution for non-technical users in international markets like Southeast Asia. Microsoft, a global technology giant, offers its Dynamics 365 ERP and Power Apps low-code platform. Orangekloud directly competes in ERP consulting, providing customization for Microsoft Dynamics, but its eMOBIQ platform offers an alternative that could be more straightforward for users seeking to avoid the complexities of a vast ecosystem. Salesforce dominates the CRM space with its own low-code platform, while UiPath specializes in robotic process automation (RPA). Orangekloud's OK365 web portal for data collection and its comprehensive consulting services offer a more holistic project support approach compared to UiPath's automation-centric focus.

Financially, Orangekloud, as a newer and smaller entity, currently lags behind its larger, more established competitors. For instance, while Microsoft, Salesforce, and UiPath generally exhibit positive P/E ratios (37.56, 35.17, and 333.21 respectively for 2025 TTM), Orangekloud's P/E ratio stands at -6.98, reflecting its current unprofitability. Similarly, its Price-to-Book (P/B) ratio of 4.45 is within the range of some competitors like Salesforce (3.82) and UiPath (4.03), but significantly lower than Microsoft (11.14) and notably different from Appian (-42.17), which also indicates a different stage of financial maturity and market perception. Orangekloud's competitive advantages stem from its regional expertise in Asia and its focus on highly accessible no-code solutions for SMEs, which allows it to address local needs and potentially achieve better operational adaptability in underserved markets. However, its smaller scale and brand recognition present vulnerabilities, potentially leading to higher customer acquisition costs and challenges in matching the R&D investment and innovation pace of its larger rivals.

Financial Performance: A Pivotal Turnaround

Orangekloud's financial trajectory has seen a significant shift in recent years. The company reported positive net income from continuing operations of $71,355 in 2021 and $1.99 million in 2022, with operating revenues of $4.91 million and $7.15 million, respectively. This period of profitability and revenue growth demonstrated the initial viability of its business model.

However, 2023 marked a turning point, with Orangekloud reporting a net loss from continuing operations of $1.31 million and a decrease in operating revenue to $6.09 million. This trend intensified in 2024, as the company recorded a substantial net loss of $8.65 million on operating revenue that further declined to $4.04 million.

The TTM figures as of September 29, 2025, reflect this challenging period, with annual revenue at $4.04 million, a net income of -$8.65 million, annual operating cash flow of -$9.92 million, and annual free cash flow of -$10.35 million. These figures highlight a company in a significant investment phase, prioritizing strategic development over immediate profitability.

To address these financial developments and support its operations and strategic initiatives, Orangekloud undertook a significant capital raise in 2024, evidenced by an issuance of capital stock amounting to $18.69 million. This influx of capital substantially increased its additional paid-in capital, providing crucial liquidity. The company's balance sheet as of 2024-12-31 shows total cash and cash equivalents at $8.17 million, a notable increase from $1.07 million in 2023, reflecting the impact of this capital injection. Despite the current unprofitability, the gross profit margin remains at 26.06% (TTM), indicating that its core services retain some pricing power, though high operating expenses, reflected in a -214.88% operating margin (TTM), are currently eroding profitability.

Strategic Maneuvers and Capital Restructuring

In a move to strengthen its capital structure and potentially enhance its market appeal, Orangekloud's shareholders approved a share consolidation at an Extraordinary General Meeting on September 19, 2025. This significant corporate action involved consolidating 8.39 million issued Class A Ordinary Shares into 2.10 million Class A Ordinary Shares, and 14.97 million issued Class B Ordinary Shares into 3.74 million Class B Ordinary Shares. The authorized share capital was also adjusted, effectively changing the nominal value of shares from US$0.1 to US$0.4 each, and reducing the total number of authorized shares from 50.00 million to 12.50 million.

This share consolidation, which was reflected on the Nasdaq Capital Market on September 29, 2025, with a new CUSIP Number (G6781F119), typically aims to increase the per-share price of a stock. This can make the shares more attractive to institutional investors, potentially improve liquidity, and help the company maintain compliance with listing requirements. For Orangekloud, this restructuring signals a commitment to long-term stability and a more favorable perception in the capital markets as it embarks on its ambitious AI-driven growth strategy.

Outlook and Risks: Charting the Future

Orangekloud's future outlook is intrinsically tied to the successful execution and market adoption of its eMOBIQ® AI platform and the ongoing development of its specialized LLM. While specific quantitative guidance from management is not available, the company's strategic investments in AI clearly signal an expectation of future growth driven by these innovative offerings. The attendance at the Directions ASIA 2025 Conference also suggests a continued focus on leveraging the Microsoft ecosystem, which could provide additional avenues for growth through its consulting services.

However, the path forward is not without significant risks. The intense competitive landscape, dominated by well-capitalized and technologically advanced players like Microsoft, Appian, and Salesforce, poses a considerable challenge. Orangekloud must demonstrate superior execution and clear differentiation to capture market share. There is also inherent execution risk associated with launching new AI platforms and developing advanced LLMs, requiring substantial R&D investment and successful integration into customer workflows. The company's current financial losses and negative cash flow indicate a need for a rapid return to profitability, which will depend heavily on the commercial success of its new AI offerings. Furthermore, any shifts in customer or supplier dynamics, particularly within the Microsoft ecosystem, could impact its operational costs and market positioning.

Conclusion

Orangekloud Technology Inc. stands at a pivotal juncture, transforming its business model to embrace the burgeoning opportunities in AI-driven no-code application development. Its eMOBIQ® AI platform and the strategic pursuit of a specialized LLM represent a bold vision to simplify enterprise software creation and cater to the growing demand for agile digital solutions, particularly within the SME segment and across its core markets in Asia. This technological leadership forms the bedrock of its investment thesis.

Despite facing significant financial headwinds in recent years, evidenced by declining revenues and substantial losses, the company's proactive capital raise and recent share consolidation demonstrate a commitment to fortifying its financial foundation. The success of Orangekloud hinges on its ability to effectively commercialize its innovative AI technologies, carve out a sustainable competitive niche against formidable rivals, and translate its technological advantages into a compelling financial turnaround. Investors will closely monitor the adoption rates of eMOBIQ® AI and the company's progress towards achieving profitability and positive cash flow, as these will be critical indicators of its long-term viability and growth potential in the rapidly evolving software landscape.