Revenue has contracted significantly alongside a deterioration in profitability, with gross margins falling to -9.6% in 2025Q4 and operating margins reaching -22.9% in the same period.
| Sales/Revenue | 107.32M | 44.82M | 58.19M | 242.13M | 443.02M | 50.32M | 39.05M |
| Revenue Growth % | -80.25% | -22.97% | -75.97% | -45.35% | 780.33% | 28.86% | - |
| Cost of Goods Sold | 111.54M | 46.7M | 78.52M | 192.21M | 344.86M | 40.06M | 32.83M |
| COGS % of Revenue | - | 104.19% | 134.95% | 79.38% | 77.84% | 79.61% | 84.07% |
| Gross Profit | -4.22M | -1.88M | -20.34M | 49.92M | 98.17M | 10.26M | 6.22M |
| Gross Margin % | -3.93% | -4.19% | -34.95% | 20.62% | 22.16% | 20.39% | 15.93% |
| Gross Profit Growth % | - | 90.76% | -140.74% | -49.15% | 856.7% | 64.91% | - |
| Operating Expenses | 13.97M | 9.52M | -20.34M | 28.76M | 10.19M | 2.84M | 1.11M |
| OpEx % of Revenue | - | 21.23% | -34.95% | 11.88% | 2.3% | 5.65% | 2.84% |
| Selling, General & Admin | 13.97M | 9.52M | 46.42M | 28.76M | 10.19M | 2.84M | 1.11M |
| SG&A % of Revenue | - | 21.23% | 79.78% | 11.88% | 2.3% | 5.65% | 2.84% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | -66.76M | 0 | 0 | 0 | -111 |
| Operating Income | -18.19M | -11.39M | -66.76M | 21.11M | 88.3M | 7.42M | 5.11M |
| Operating Margin % | -16.95% | -25.42% | -114.73% | 8.72% | 19.93% | 14.74% | 13.09% |
| Operating Income Growth % | - | 82.93% | -416.23% | -76.09% | 1090.04% | 45.16% | - |
| EBITDA | 18.8M | -635.81K | -10.45M | 59.52M | 104.77M | 8.94M | 6.14M |
| EBITDA Margin % | 17.51% | -1.42% | -17.96% | 24.58% | 23.65% | 17.77% | 15.73% |
| EBITDA Growth % | -76.94% | 93.92% | -117.56% | -43.19% | 1071.68% | 45.6% | - |
| D&A (Non-Cash Add-back) | 36.99M | 10.76M | 56.31M | 38.41M | 16.47M | 1.52M | 1.03M |
| EBIT | -18.23M | -11.39M | -65.5M | 21.9M | 88.3M | 20.4M | 5.11M |
| Net Interest Income | 1.1M | 216.53K | -10.31K | -4.24K | -6.08K | 12.49K | 193K |
| Interest Income | 1.1M | 217.45K | 342.5K | 172.81K | 54.18K | 12.49K | 193K |
| Interest Expense | 2.02K | 921 | 10.31K | 4.24K | 6.08K | 0 | 0 |
| Other Income/Expense | -4.33M | -4.98M | -65.51M | 783K | 317.81K | 12.98M | 193.11K |
| Pretax Income | -22.52M | -16.38M | -65.51M | 21.89M | 88.29M | 20.4M | 5.3M |
| Pretax Margin % | -20.99% | -36.54% | -112.59% | 9.04% | 19.93% | 40.54% | 13.58% |
| Income Tax | 2.04M | -166.86K | -10.82M | -5.64M | 14.91M | 1.54M | 159.31K |
| Effective Tax Rate % | -9.05% | 1.02% | 16.52% | -25.78% | 16.89% | 7.54% | 3% |
| Net Income | -24.56M | -16.21M | -54.69M | 25.83M | 73.38M | 18.68M | 5.15M |
| Net Margin % | -22.88% | -36.17% | -93.99% | 10.67% | 16.56% | 37.12% | 13.18% |
| Net Income Growth % | -239.37% | 70.36% | -311.69% | -64.79% | 292.85% | 263.04% | - |
| Net Income (Continuing) | -24.56M | -16.21M | -54.69M | 27.54M | 73.38M | 18.86M | 5.15M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 400 | 400 | 400 | 363.67K | 342.34K | 3.72M | 0 |
| EPS (Diluted) | -13.91 | -38.68 | -31.20 | 17.55 | 110.37 | 10.78 | 0.00 |
| EPS Growth % | -1774.05% | -23.97% | -277.78% | -84.1% | 923.84% | - | - |
| EPS (Basic) | - | -38.68 | -31.21 | 17.55 | 110.37 | 10.78 | 0.00 |
| Diluted Shares Outstanding | 1.77M | 1.77M | 1.76M | 1.47M | 666.67K | 1.75M | 0 |
| Basic Shares Outstanding | 1.77M | 1.77M | 1.76M | 1.47M | 666.67K | 1.75M | 0 |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Project-based revenue volatility
As indicated by the historical income statement data, ARBB has experienced a severe revenue decline, with the most recent quarterly figures showing a significant contraction from the peak levels observed in 2022, highlighting the company's extreme sensitivity to cyclical Malaysian property development and construction project timelines.
The sharp drop in top-line performance suggests that the company lacks a recurring revenue base to buffer against the inherent lumpiness of its IoT integration contracts. Investors should monitor whether the current revenue trajectory represents a permanent loss of market share or merely a temporary delay in project execution within the Malaysian construction sector.
According to the reported financial statements, ARBB's gross margin has deteriorated into negative territory, falling to -9.6% in the most recent period, which suggests that the direct costs associated with hardware procurement and labor are currently exceeding the value of the company's project-based revenue streams.
This negative gross margin profile implies a lack of pricing power and potential inefficiencies in the company's supply chain management. The inability to maintain positive margins suggests that the current business model may be fundamentally unviable without a shift toward higher-margin software or service-based offerings.
Based on the provided income statement data, ARBB's operating margin has consistently trended downward, reaching -22.9% in the latest quarter, which indicates that the company's fixed administrative and personnel overhead is scaling poorly against a rapidly shrinking revenue base and failing to achieve necessary operational efficiencies.
The disconnect between revenue contraction and the persistence of SG&A expenses suggests that management has not yet successfully rightsized the cost structure to match current project volumes. This operating leverage profile appears to be a significant drag on the company's ability to reach break-even status in the near term.
As reported in the financial filings, the company's net income has remained consistently negative, with a net margin of -38.2% in the most recent period, indicating that the reported losses are driven by core operational failures rather than non-recurring items or accounting anomalies.
The absence of stock-based compensation in the provided data suggests that the reported EPS figures are not being diluted by equity-based incentives, yet the persistent net losses remain a primary concern for shareholders. The reliance on cash reserves to fund these ongoing operational deficits warrants further investigation into the sustainability of the company's current capital allocation strategy.
Quick answers to the most common questions about buying ARBB stock.
For fiscal year 2025, ARB IOT Group Limited (ARBB) reported total revenue of $44.8M. This represents a 14.8% increase compared to $39.1M in 2020.
ARB IOT Group Limited (ARBB) reported a net loss of $16.2M for the fiscal year ending 2025.
ARB IOT Group Limited (ARBB) reported an operating income of $-11.4M, resulting in an operating profit margin of -25.4%. This margin reflects the operational efficiency of the business before interest and taxes.
ARB IOT Group Limited (ARBB) generated $-1.9M in gross profit for the year, representing a gross profit margin of -4.2%. This demonstrates the company's core pricing power and production efficiency.