0001213900-26-057595
SEC filingFY2025 delivered $83.9M revenue from large-scale aquaculture projects with competitive pricing advantages, but razor-thin 1.7% gross margins and -$9.6M free cash flow reflect high execution costs and working capital intensity amid growth.
Megan Holdings achieved $83.9M in FY2025 revenue, primarily from large-scale aquaculture and agriculture projects. The company competes effectively with small suppliers by offering better pricing due to project size, as noted in the filing. This scale enables customer value through economies not available to smaller competitors, driving topline expansion despite industry challenges.
Revenue recognition follows ASC 606, assessing customer history and the business practice of stopping service for nonpayment, limiting credit risk exposure. Management considers the expected credit loss balance adequate as of December 31, 2025, with no consideration of payment likelihood for unprovided services. This prudent approach supports revenue quality amid project-based billing.
All group leases are operating leases with straight-line expense recognition, providing cost predictability. Deferred IPO costs comply with FASB ASC 340-10-S99-1 and SAB Topic 5A, reflecting preparation for capital market access. Impairment assessments rely on undiscounted future cash flows from operations, signaling confidence in asset recoverability. These policies bolster resilience as the company manages cash needs and project scale in a competitive landscape.