The company's revenue contracted by 39.0% in 2025Q4, while an operating margin of -104.1% indicates that high gross margins of 84.7% are insufficient to cover ballooning R&D and SG&A expenses.
| Sales/Revenue | 22.54M | 37.04M | 31.46M | 35.09M | 27.72M | 18.12M | 12.21M |
| Revenue Growth % | -39.15% | 17.74% | -10.35% | 26.58% | 52.99% | 48.39% | - |
| Cost of Goods Sold | 3.65M | 4.38M | 4.23M | 7.05M | 4.54M | 2.51M | 1.3M |
| COGS % of Revenue | 16.21% | 11.84% | 13.44% | 20.1% | 16.39% | 13.86% | 10.63% |
| Gross Profit | 18.88M | 32.65M | 27.23M | 28.04M | 23.18M | 15.61M | 10.91M |
| Gross Margin % | 83.79% | 88.16% | 86.56% | 79.9% | 83.61% | 86.14% | 89.37% |
| Gross Profit Growth % | -42.17% | 19.92% | -2.88% | 20.96% | 48.49% | 43.03% | - |
| Operating Expenses | 44.42M | 17.34M | 15.37M | 13.03M | 9.76M | 5.75M | 5.3M |
| OpEx % of Revenue | 197.1% | 46.81% | 48.85% | 37.13% | 35.2% | 31.72% | 43.43% |
| Selling, General & Admin | 24.38M | 9.96M | 11.09M | 10.55M | 10.22M | 5M | 4.15M |
| SG&A % of Revenue | 108.19% | 26.9% | 35.27% | 30.05% | 36.87% | 27.58% | 33.96% |
| Research & Development | 20.13M | 6.17M | 4.27M | 3.86M | 1.04M | 750.48K | 1.16M |
| R&D % of Revenue | 89.32% | 16.67% | 13.59% | 11% | 3.75% | 4.14% | 9.46% |
| Other Operating Expenses | -93.39K | 1.2M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -25.54M | 15.32M | 11.86M | 13.63M | 11.92M | 9.86M | 5.61M |
| Operating Margin % | -113.31% | 41.35% | 37.71% | 38.85% | 42.99% | 54.42% | 45.94% |
| Operating Income Growth % | -266.75% | 29.11% | -12.98% | 14.39% | 20.84% | 75.79% | - |
| EBITDA | -24.43M | 16.82M | 12.88M | 15.1M | 13.32M | 10.47M | 5.96M |
| EBITDA Margin % | -108.41% | 45.42% | 40.93% | 43.04% | 48.04% | 57.79% | 48.8% |
| EBITDA Growth % | -245.24% | 30.65% | -14.74% | 13.4% | 27.17% | 75.72% | - |
| D&A (Non-Cash Add-back) | 1.1M | 1.51M | 1.01M | 1.47M | 1.4M | 609.55K | 349.14K |
| EBIT | -25.64M | 14.66M | 11.86M | 14.82M | 12.76M | 9.67M | 5.5M |
| Net Interest Income | -737.37K | -576.36K | -284.27K | -290.72K | -151.59K | -159.47K | -89.62K |
| Interest Income | 0 | 393 | 0 | 8.55K | 2.33K | 0 | 0 |
| Interest Expense | 737.37K | 576.75K | 284.27K | 299.27K | 153.92K | 159.47K | 89.62K |
| Other Income/Expense | -837.57K | -1.23M | 497.48K | 890.15K | 688.35K | -283.25K | -11.46M |
| Pretax Income | -26.37M | 14.09M | 12.36M | 14.52M | 12.61M | 9.58M | -5.85M |
| Pretax Margin % | -117.03% | 38.04% | 39.29% | 41.38% | 45.47% | 52.86% | -47.89% |
| Income Tax | 1.17M | 1.49M | 1.7M | 1.75M | 2.42M | 2.43M | 1.28M |
| Effective Tax Rate % | -4.42% | 10.57% | 13.76% | 12.03% | 19.22% | 25.33% | -21.96% |
| Net Income | -27.28M | 12.45M | 10.55M | 12.57M | 11.68M | 7.1M | -7.18M |
| Net Margin % | -121.04% | 33.62% | 33.52% | 35.82% | 42.12% | 39.18% | -58.83% |
| Net Income Growth % | -319.04% | 18.09% | -16.09% | 7.64% | 64.46% | 198.83% | - |
| Net Income (Continuing) | -27.54M | 12.6M | 10.66M | 12.77M | 10.18M | 7.15M | -7.13M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -144.09K | 101.34K | -43.39K | -155.59K | -356.73K | -448.7K | -683.77K |
| EPS (Diluted) | -0.98 | 0.49 | 0.41 | 0.02 | -0.02 | 0.99 | -1.00 |
| EPS Growth % | -300% | 19.51% | 1789.4% | 189.67% | -102.45% | 198.83% | - |
| EPS (Basic) | -0.98 | 0.49 | 0.41 | 0.02 | -0.02 | 0.99 | -1.00 |
| Diluted Shares Outstanding | 27.79M | 25.63M | 7.58M | 7.19M | 7.19M | 7.19M | 7.19M |
| Basic Shares Outstanding | 27.79M | 25.56M | 7.58M | 6.29M | 7.19M | 7.19M | 7.19M |
| Dividend Payout Ratio | - | - | - | - | 46.47% | - | - |
Existential liquidity and solvency
According to recent financial disclosures, BDMD experienced a severe 39.0% year-over-year revenue decline in 2025Q4, marking a persistent downward trend that suggests the company's specialized microwave ablation business model is currently struggling to maintain its historical market penetration within the competitive Chinese medical device landscape.
The consistent double-digit revenue declines across recent quarters indicate that the firm's reliance on a high-touch, capital-intensive sales model may be failing to gain traction in the current procurement environment. Investors should monitor whether this contraction reflects a fundamental loss of market share or merely a temporary disruption in hospital-level capital expenditure cycles.
As reported in the latest income statement, BDMD maintains an impressive 84.7% gross margin, yet this high-margin profile is effectively neutralized by an operating margin of -104.1%, suggesting that the company's current cost structure is fundamentally misaligned with its ability to generate sustainable top-line growth.
The disparity between the high-margin disposable needle business and the deeply negative operating income highlights a failure to achieve necessary economies of scale. This suggests that the firm's fixed costs, particularly in sales and distribution, are currently too heavy to be supported by the existing, shrinking revenue base.
Based on the provided income statement data, BDMD's R&D and SG&A expenses have surged to $27.6 million combined in 2025Q4, which significantly exceeds the $14.6 million in total revenue, indicating a lack of expense discipline that threatens the company's long-term viability as a going concern.
The aggressive spending on R&D and SG&A during a period of declining revenue suggests that management is attempting to buy growth that is not materializing. This strategy appears to be rapidly depleting the company's limited cash reserves, leaving little room for error in future operational execution.
With a cash balance of only $178,321 against a quarterly net loss of $16.0 million, the company's financial position appears precarious, suggesting that the current business model may be unsustainable without an immediate and potentially dilutive capital injection to address its severe liquidity constraints.
Short-sellers would likely focus on the extreme cash burn rate and the lack of a clear path to profitability as evidence of an impending solvency crisis. The market's current valuation may be failing to account for the high probability of significant shareholder dilution required to keep operations running.
Quick answers to the most common questions about buying BDMD stock.
For fiscal year 2025, Baird Medical Investment Holdings Limited (BDMD) reported total revenue of $22.5M. This represents a 84.6% increase compared to $12.2M in 2019.
Baird Medical Investment Holdings Limited (BDMD) reported a net loss of $27.3M for the fiscal year ending 2025.
Baird Medical Investment Holdings Limited (BDMD) reported an operating income of $-25.5M, resulting in an operating profit margin of -113.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Baird Medical Investment Holdings Limited (BDMD) generated $18.9M in gross profit for the year, representing a gross profit margin of 83.8%. This demonstrates the company's core pricing power and production efficiency.