HKIT · Hitek Global Inc.

Revenue surged 125% to $6.5 million in FY2025 from $2.9 million in FY2024, primarily reflecting higher software sales after launching updated software in March 2024 that better satisfies market demand. The Company is negotiating additional sales contracts with new customers and developing a new invoice system superior to free tax authority platforms, signaling potential for software growth. However, this topline expansion came at the cost of profitability, as gross profit declined 31.4% to $690 thousand with margins contracting to 10.6%, mainly due to an unfavorable revenue mix shift—fewer revenues from higher-margin tax devices and services sales, consistent with patterns noted in prior periods.

Operating income reflected a slight 2.5% worsening to -$1.8 million from -$1.7 million, as the gross profit decline outweighed any operating leverage from revenue growth. Management anticipates reducing general and administrative expenses and their ratio to revenue in future periods for cost-effectiveness, which could help narrow operating losses if revenue momentum sustains. Despite ongoing operating deficits, net income flipped to a $180 thousand profit from a $897 thousand loss, supported by an income tax benefit primarily from utilizing prior-year net operating losses to offset current taxable income. Diluted EPS followed suit, rising 150% to $0.02 from -$0.04.