TAOP · Taoping Inc.

Taoping Inc. reported its fiscal year 2025 financial results, reflecting a deliberate strategic realignment toward higher-value platform-based and AI-enabled services. Total revenue decreased 16.0% year-over-year to $30.8 million from $36.7 million in 2024, primarily due to the Company's continued shift away from lower-margin legacy software and transactional businesses. Gross profit declined to $3.37 million from $7.77 million, as the transitional revenue mix and ongoing investments in new business initiatives weighed on profitability. Operating loss widened significantly to $9.23 million from $1.61 million, driven by increased administrative costs and continued scaling of next-generation platform infrastructure. Net loss attributable to the Company was $10.06 million, compared to $1.82 million in the prior year. Management emphasized that the Company is focused on improving gross margin through higher-value service offerings and expects operating efficiency to improve as platform revenues scale and recurring income becomes a larger component of the business mix. Co-CEO Bin Ma noted early validation of the strategy, citing over $3 million in new smart elevator orders announced to date. The Company expects continued growth in AI-enabled platform services, expansion of recurring revenue streams, gradual improvement in gross margins and operating leverage, and accelerated growth through strategic collaborations and acquisitions. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially.