The company's top-line performance remains highly unstable, evidenced by a 103.8% revenue surge in 2025Q2 following a 79.4% contraction in 2024Q4, while operating margins remain deeply negative at -6.1%.
| Sales/Revenue | 36.38M | 18.72M | 73.69M | 2.2M | 12.14M | 24.6M | 23.83M | 18.53M | 14.14M | 9.35M |
| Revenue Growth % | - | -74.59% | 3255.57% | -81.91% | -50.65% | 3.21% | 28.62% | 31.01% | 51.24% | - |
| Cost of Goods Sold | 36.5M | 17.18M | 72.53M | 958.44K | 5.78M | 11.18M | 7.53M | 6.11M | 5.3M | 4.58M |
| COGS % of Revenue | - | 91.74% | 98.43% | 43.65% | 47.64% | 45.45% | 31.6% | 32.96% | 37.47% | 48.94% |
| Gross Profit | -117.79K | 1.55M | 1.15M | 1.24M | 6.48M | 13.42M | 16.3M | 12.42M | 8.84M | 4.78M |
| Gross Margin % | -0.32% | 8.26% | 1.57% | 56.35% | 53.4% | 54.55% | 68.4% | 67.04% | 62.53% | 51.06% |
| Gross Profit Growth % | - | 33.99% | -6.76% | -80.91% | -51.69% | -17.68% | 31.23% | 40.45% | 85.22% | - |
| Operating Expenses | 15.34M | 6M | 16.34M | 9.12M | 57.52M | 3.22M | 6.82M | 4.11M | 2.9M | 1.96M |
| OpEx % of Revenue | - | 32.06% | 22.18% | 415.29% | 473.81% | 13.07% | 28.61% | 22.15% | 20.5% | 20.93% |
| Selling, General & Admin | 12.56M | 2.83M | 13.77M | 6.38M | 31.65M | 2.97M | 5.79M | 3.82M | 2.54M | 1.8M |
| SG&A % of Revenue | - | 15.14% | 18.69% | 290.74% | 260.73% | 12.07% | 24.29% | 20.6% | 17.99% | 19.22% |
| Research & Development | 2.23M | 3.17M | 2.57M | 2.73M | 11.23M | 246.92K | 1.03M | 286.84K | 355.73K | 159.19K |
| R&D % of Revenue | - | 16.92% | 3.49% | 124.55% | 92.54% | 1% | 4.33% | 1.55% | 2.51% | 1.7% |
| Other Operating Expenses | 546.65K | 0 | 0 | 0 | 14.63M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -15.46M | -4.46M | -15.19M | -7.88M | -51.16M | 10.2M | 9.48M | 8.32M | 5.94M | 2.82M |
| Operating Margin % | -42.49% | -23.8% | -20.61% | -358.94% | -421.44% | 41.48% | 39.78% | 44.88% | 42.03% | 30.13% |
| Operating Income Growth % | - | 70.66% | -92.72% | 84.59% | -601.36% | 7.62% | 14% | 39.92% | 110.93% | - |
| EBITDA | -15.09M | -4.25M | -14.77M | -7.53M | -47.3M | 11.21M | 10.4M | 8.78M | 6.15M | 2.92M |
| EBITDA Margin % | -41.48% | -22.69% | -20.04% | -342.81% | -389.63% | 45.58% | 43.65% | 47.38% | 43.5% | 31.2% |
| EBITDA Growth % | - | 71.24% | -96.2% | 84.08% | -521.81% | 7.78% | 18.48% | 42.72% | 110.85% | - |
| D&A (Non-Cash Add-back) | 365.61K | 208.67K | 420.46K | 354.23K | 3.86M | 1.01M | 921.68K | 463.54K | 207.96K | 99.75K |
| EBIT | -14.91M | -9.34M | -28.82M | -7.88M | -60.95M | 10.24M | 9.7M | 8.67M | 6.27M | 3.2M |
| Net Interest Income | -93.65K | -3.38M | -284.07K | -148.77K | -309.16K | -374.1K | -175.72K | 72.7K | -25.38K | -137.7K |
| Interest Income | 34.83K | 0 | 7 | 374 | 156.04K | 147.82K | 629 | 219K | 161.38K | 4.8K |
| Interest Expense | 128.47K | 3.38M | 284.08K | 149.15K | 465.2K | 521.92K | 176.35K | 146.3K | 186.76K | 142.5K |
| Other Income/Expense | -2.53M | -5.07M | -13.91M | -143.09K | -330.79K | -483.59K | 45.42K | 207.37K | 135.71K | 241.75K |
| Pretax Income | -17.99M | -9.53M | -29.1M | -8.03M | -61.41M | 9.72M | 9.53M | 8.52M | 6.08M | 3.06M |
| Pretax Margin % | -49.44% | -50.87% | -39.49% | -365.45% | -505.87% | 39.52% | 39.97% | 46% | 42.98% | 32.72% |
| Income Tax | 2.98K | 0 | 6.08K | 1.1M | 138.06K | 1.67M | 453.72K | 605.43K | 955.19K | 485.66K |
| Effective Tax Rate % | -0.02% | 0% | -0.02% | -13.68% | -0.22% | 17.21% | 4.76% | 7.1% | 15.71% | 15.87% |
| Net Income | -13.08M | -9.53M | -19.3M | -9.37M | -58.63M | 8.17M | 9.07M | 7.92M | 5.12M | 2.57M |
| Net Margin % | -35.96% | -50.87% | -26.19% | -426.47% | -482.97% | 33.21% | 38.07% | 42.74% | 36.23% | 27.52% |
| Net Income Growth % | - | 50.64% | -106.06% | 84.03% | -817.66% | -9.97% | 14.58% | 54.53% | 99.08% | - |
| Net Income (Continuing) | -17.99M | -9.53M | -29.11M | -9.12M | -61.55M | 8.05M | 9.07M | 7.92M | 5.12M | 2.57M |
| Discontinued Operations | 1000K | 0 | 7.39M | -282.03K | 0 | 233.15K | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 2.42M | 2.46M | 111.4K | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -24.79 | -16290.00 | -3.49 | -1.23 | -1131.00 | 210.00 | 2.58 | 2.28 | 1.47 | 0.74 |
| EPS Growth % | - | -466662.18% | -183.74% | 99.89% | -638.57% | 8039.53% | 13.16% | 55.1% | 98.65% | - |
| EPS (Basic) | - | -16290.00 | -3.49 | -1.23 | -11.31 | 210.00 | 2.58 | 2.28 | 1.47 | 0.74 |
| Diluted Shares Outstanding | 527.79K | 597.23K | 309.75K | 856.52K | 505.37K | 398.59K | 351.41K | 348K | 348K | 348K |
| Basic Shares Outstanding | 526.42K | 584.81K | 297.23K | 763.95K | 505.37K | 385.54K | 351.41K | 348K | 348K | 348K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Imminent liquidity and solvency risk
As indicated by the most recent quarterly data, BHAT experienced a 103.8% revenue surge in 2025Q2 following a 79.4% contraction in 2024Q4, suggesting that the company's top-line performance remains highly sensitive to erratic product launch cycles rather than sustainable, long-term organic growth within the competitive toy market.
The extreme variance in quarterly revenue suggests that the business model lacks a recurring revenue base, leaving it exposed to the unpredictability of consumer demand for AR-enabled hardware. Investors should monitor whether this recent growth is a temporary anomaly or a sign of a stabilized distribution strategy, as historical data shows a pattern of sharp, unsustainable revenue swings.
Based on reported financial statements, the company's gross margin has fluctuated significantly, reaching a low of -42.1% in 2023Q4 before recovering to 36.5% in 2025Q2, which highlights the inherent difficulty in maintaining pricing power for commoditized physical hardware in a saturated electronic gaming environment.
The wide swings in gross profitability imply that the company struggles to manage manufacturing costs effectively or is forced into aggressive discounting to clear inventory. This volatility suggests that the AR-integrated toy segment lacks the brand equity required to protect margins against rising input costs or competitive pricing pressures.
According to historical income statements, BHAT has consistently failed to achieve positive operating income, with the 2024Q4 period showing an operating margin of -57.2%, demonstrating that the company's current cost structure is fundamentally misaligned with its ability to generate sufficient revenue to cover fixed operating expenses.
The inability to scale operating income alongside revenue suggests that administrative and R&D overheads remain disproportionately high for the current business size. This lack of operating leverage indicates that the company may require a significant pivot toward higher-margin software services to reach a break-even point, as the current hardware-heavy model appears structurally unprofitable.
As reported in recent filings, the company's net income has been consistently negative, with a notable $23 million stock-based compensation charge in 2023Q4, which significantly distorted the reported earnings and highlights the potential for non-operating items to obscure the underlying operational performance of the business.
The reliance on non-cash charges and the absence of consistent net profitability suggest that the quality of earnings is low and potentially misleading for valuation purposes. Investors should be wary of the impact of these accounting adjustments, as they appear to mask the ongoing cash burn and the lack of a clear path toward sustainable bottom-line growth.
Based on the provided financial data, the company's cash position of only $14,300, combined with persistent negative net margins, suggests that BHAT faces a severe liquidity crisis that may limit its ability to fund future operations or meet short-term obligations without immediate external capital injections.
Short-sellers would likely focus on the extreme cash scarcity as a primary indicator of potential insolvency, especially given the company's history of erratic revenue performance. The lack of a meaningful cash buffer warrants further investigation into the company's ability to remain a going concern, as the current financial profile suggests a high risk of operational failure.
Quick answers to the most common questions about buying BHAT stock.
For fiscal year 2024, Fujian Blue Hat Interactive Entertainment Technology Ltd. (BHAT) reported total revenue of $18.7M. This represents a 100.2% increase compared to $9.4M in 2016.
Fujian Blue Hat Interactive Entertainment Technology Ltd. (BHAT) reported a net loss of $9.5M for the fiscal year ending 2024.
Fujian Blue Hat Interactive Entertainment Technology Ltd. (BHAT) reported an operating income of $-4.5M, resulting in an operating profit margin of -23.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Fujian Blue Hat Interactive Entertainment Technology Ltd. (BHAT) generated $1.5M in gross profit for the year, representing a gross profit margin of 8.3%. This demonstrates the company's core pricing power and production efficiency.