Revenue growth reached 108.4% in 2024Q2, yet the firm continues to struggle with structural profitability, reporting a persistent -15.0% operating margin.
| Sales/Revenue | 255.46M | 220.03M | 128.31M | 145.4M | 82.44M |
| Revenue Growth % | - | 71.48% | -11.75% | 76.39% | - |
| Cost of Goods Sold | 182.88M | 153.88M | 83.31M | 128.49M | 65.22M |
| COGS % of Revenue | - | 69.94% | 64.93% | 88.37% | 79.12% |
| Gross Profit | 72.58M | 66.15M | 45.01M | 40.17M | 20.14M |
| Gross Margin % | 28.41% | 30.06% | 35.07% | 27.63% | 24.43% |
| Gross Profit Growth % | - | 46.98% | 12.04% | 99.44% | - |
| Operating Expenses | 106.38M | 252.05M | 59.89M | 32.26M | 23.33M |
| OpEx % of Revenue | - | 114.55% | 46.67% | 22.18% | 28.3% |
| Selling, General & Admin | 106.38M | 238.47M | 371.41K | 32.26M | 23.33M |
| SG&A % of Revenue | - | 108.38% | 0.29% | 22.18% | 28.3% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 0 | 13.58M | 59.52M | 0 | 0 |
| Operating Income | -33.8M | -185.9M | -14.88M | 6.82M | -3.08M |
| Operating Margin % | -13.23% | -84.49% | -11.6% | 4.69% | -3.73% |
| Operating Income Growth % | - | -1148.92% | -318.22% | 321.75% | - |
| EBITDA | -18.61M | -172.32M | -6.62M | 9.98M | -2.24M |
| EBITDA Margin % | -7.28% | -78.32% | -5.16% | 6.86% | -2.72% |
| EBITDA Growth % | - | -2502.66% | -166.36% | 545.4% | - |
| D&A (Non-Cash Add-back) | 15.19M | 13.58M | 8.26M | 3.16M | 836K |
| EBIT | -18.85M | -220.53M | -14.07M | 6.83M | -3.08M |
| Net Interest Income | -1.86M | -131K | -1.72M | -78K | -87K |
| Interest Income | 338 | 362K | 0 | 0 | 0 |
| Interest Expense | 1.86M | 493K | 1.72M | 78K | 87K |
| Other Income/Expense | 6.06M | -35.12M | -911K | -70K | -86K |
| Pretax Income | -27.74M | -221.02M | -15.8M | 6.75M | -3.16M |
| Pretax Margin % | -10.86% | -100.45% | -12.31% | 4.64% | -3.84% |
| Income Tax | 290 | 0 | 0 | 6.51M | 134K |
| Effective Tax Rate % | -0% | 0% | 0% | 96.43% | -4.24% |
| Net Income | -34.74M | -221.02M | -15.8M | 241K | -3.3M |
| Net Margin % | -13.6% | -100.45% | -12.31% | 0.17% | -4% |
| Net Income Growth % | - | -1299.23% | -6654.36% | 107.31% | - |
| Net Income (Continuing) | -18.96M | -221.02M | -15.8M | 241K | -3.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -27.94 | -177.70 | -12.70 | 0.29 | -2.70 |
| EPS Growth % | - | -1299.21% | -4494.46% | 110.7% | - |
| EPS (Basic) | - | -177.70 | -12.70 | 0.29 | -2.70 |
| Diluted Shares Outstanding | 1.24M | 1.24M | 1.24M | 1.24M | 1.24M |
| Basic Shares Outstanding | 1.24M | 1.24M | 1.24M | 1.24M | 1.24M |
| Dividend Payout Ratio | - | - | - | - | - |
Unsustainable Operating Margin Burn
As indicated by the most recent quarterly data, Harrison Global Holdings achieved a significant revenue surge to $125.2 million, representing a 108.4% year-over-year growth rate, though the historical inconsistency in quarterly reporting suggests that this trajectory may be driven by lumpy project-based contracts rather than organic scaling.
The rapid top-line expansion appears to be heavily influenced by the company's pivot toward VTuber management and audio production. Investors should monitor whether this growth is sustainable or merely a reflection of aggressive, front-loaded marketing spend that may not repeat in subsequent periods.
Based on the reported financial statements, the company's gross margin of 27.7% reflects the high direct costs associated with talent acquisition and production labor, which have struggled to show meaningful improvement despite the substantial increase in total revenue volume observed over the last several quarters.
The inability to expand gross margins suggests that the company's vertically integrated talent pipeline has yet to achieve the economies of scale necessary to offset production costs. This indicates that the current business model may be inherently labor-intensive, limiting the potential for significant margin expansion in the near term.
According to the latest income statement, the company's operating margin has deteriorated to -15.0%, a figure that highlights a significant lack of operating leverage as SG&A expenses continue to outpace the growth in gross profit generated by the firm's core entertainment and educational service segments.
The widening gap between revenue growth and operating income suggests that management is prioritizing market share acquisition over immediate profitability. This strategy appears to be placing immense pressure on the bottom line, necessitating a shift toward more efficient cost management to reach a sustainable operating profile.
As reported in recent filings, the company's transition to a -15.0% operating margin despite a 108.4% revenue increase warrants skepticism regarding the long-term viability of its current cost structure, particularly as the firm attempts to scale its virtual talent management operations in a highly competitive market.
Short-sellers may focus on the potential for rapid fan engagement decay, which could lead to a sharp reversal in revenue growth if the company fails to consistently produce high-performing virtual IP. The reliance on heavy SG&A spending to drive top-line results suggests that the business may be more vulnerable to a liquidity crunch than its current cash position implies.
Quick answers to the most common questions about buying BLMZ stock.
For fiscal year 2024, Harrison Global Holdings Inc. (BLMZ) reported total revenue of $220.0M. This represents a 166.9% increase compared to $82.4M in 2021.
Harrison Global Holdings Inc. (BLMZ) reported a net loss of $221.0M for the fiscal year ending 2024.
Harrison Global Holdings Inc. (BLMZ) reported an operating income of $-185.9M, resulting in an operating profit margin of -84.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Harrison Global Holdings Inc. (BLMZ) generated $66.1M in gross profit for the year, representing a gross profit margin of 30.1%. This demonstrates the company's core pricing power and production efficiency.