DOGZ · Dogness (International) Corporation

Dogness (International) Corporation reported challenging financial results for the six months ended December 31, 2025, with revenue declining 36.2% year-over-year to $7.7 million. Management attributed the decline primarily to the impact of U.S. tariff policies, which affected export sales and customer demand. The intelligent pet products segment experienced the most significant contraction, with revenue falling 62.6% to $1.7 million, while the climbing hooks and others category declined 76.8% to $0.7 million. Partially offsetting these declines, traditional pet products revenue grew 14.6% to $5.3 million, driven by increased sales volume and orders from existing customers.

Profitability metrics deteriorated significantly during the period. Gross profit margin contracted to 11.2% from 28.3% in the prior year period, driven by lower sales volume and reduced average selling prices for intelligent pet products and climbing hooks. The company recorded a $1.1 million impairment charge on investments in equity investees, contributing to total operating expenses of $6.3 million. While general and administrative expenses decreased 20.3% due to cost-saving measures including reduced office renovation and share-based compensation expenses, selling expenses increased 97.7% to $1.2 million, attributed to higher entertainment and advertising fees. Consequently, net loss widened 185.0% to $5.2 million.

CEO Silong Chen highlighted proactive operational optimizations and strategic investments in marketing and R&D, noting the company's robust patent portfolio of over 200 patents and integrated supply chain as positioning factors for navigating trade fluctuations. The balance sheet reflects a decrease in cash and cash equivalents to $6.6 million from $12.8 million at June 30, 2025. Management expressed optimism regarding the launch of a new generation of intelligent, eco-friendly pet products to drive future growth.