NXTT · Next Technology Holding Inc.

Revenue Growth Driven by New Commercial Client Wins

For fiscal 2025, Next Technology Holding Inc. recorded GAAP revenue of $11.6M, representing a 545.3% year-over-year increase from $1.8M in fiscal 2024. This material growth was directly driven by the execution of four new commercial customer agreements during the year, with clients operating in the hotel management, smart water-system management, and cryptocurrency mining industries. The new contracts reflect successful execution of the company’s go-to-market expansion strategy, as outlined in management’s discussion of operating results.

Gross Margin Compression From Project Mix Shift

GAAP gross profit for FY2025 was $1.8M, up 64.2% year-over-year from $1.1M in FY2024, resulting in a gross margin of 15.1% for the year. The decrease in gross margin relative to prior year performance is primarily attributable to a shift in the company’s project mix toward more complex and resource-intensive client engagements, which require higher upfront input costs to deliver successfully.

Strategic Operating Investments Support Long-Term Value

The company recorded a GAAP operating loss of $80.2M in FY2025, compared to an operating loss of $16.8K in FY2024. The significant increase in operating losses stems from elevated expenditures across key growth areas: increased utilization of external vendors and outsourced development resources, higher personnel expenses from headcount expansion to support revenue growth, and increased selling and marketing expenses aligned with the company’s business expansion strategy. While these expenses have materially increased near-term operating costs, management notes that they reflect continued investment in organizational capability and are expected to generate long-term value by accelerating technology development and market expansion. Looking ahead, the company expects to make additional capital expenditures to support anticipated business growth.