The company's operating margin has deteriorated to -17.8% in 2025Q4, reflecting a failure to cover fixed costs amidst a sustained 21.5% year-over-year revenue contraction.
| Sales/Revenue | 18.67M | 23.84M | 29.52M | 29.91M | 25.49M | 18.22M | 16.4M | 10.78M |
| Revenue Growth % | -21.7% | -19.23% | -1.29% | 17.31% | 39.93% | 11.12% | 52.07% | - |
| Cost of Goods Sold | 14.79M | 16.73M | 20.68M | 20.48M | 18.38M | 13.02M | 11.11M | 8.41M |
| COGS % of Revenue | 79.23% | 70.18% | 70.06% | 68.49% | 72.1% | 71.45% | 67.78% | 77.99% |
| Gross Profit | 3.88M | 7.11M | 8.84M | 9.42M | 7.11M | 5.2M | 5.28M | 2.37M |
| Gross Margin % | 20.77% | 29.82% | 29.94% | 31.51% | 27.9% | 28.55% | 32.22% | 22.01% |
| Gross Profit Growth % | -45.45% | -19.57% | -6.19% | 32.5% | 36.71% | -1.51% | 122.62% | - |
| Operating Expenses | 5.5M | 5.24M | 2.9M | 2.88M | 1.71M | 1.73M | 2.11M | 1.77M |
| OpEx % of Revenue | 29.47% | 21.96% | 9.84% | 9.64% | 6.71% | 9.52% | 12.85% | 16.42% |
| Selling, General & Admin | 4.75M | 3.62M | 2.61M | 2.46M | 1.46M | 1.53M | 1.58M | 1.21M |
| SG&A % of Revenue | 25.43% | 15.16% | 8.82% | 8.22% | 5.74% | 8.39% | 9.66% | 11.26% |
| Research & Development | 754.19K | 1.62M | 298.47K | 424.56K | 249.05K | 205.36K | 522.87K | 556.09K |
| R&D % of Revenue | 4.04% | 6.8% | 1.01% | 1.42% | 0.98% | 1.13% | 3.19% | 5.16% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -1.62M | 1.87M | 5.92M | 6.54M | 5.4M | 3.47M | 3.18M | 602.14K |
| Operating Margin % | -8.69% | 7.86% | 20.05% | 21.87% | 21.18% | 19.04% | 19.37% | 5.58% |
| Operating Income Growth % | -186.64% | -68.35% | -9.5% | 21.1% | 55.72% | 9.23% | 427.31% | - |
| EBITDA | -337.2K | 3.15M | 7.1M | 6.91M | 5.69M | 3.7M | 3.4M | 826.23K |
| EBITDA Margin % | -1.81% | 13.21% | 24.06% | 23.1% | 22.31% | 20.3% | 20.75% | 7.66% |
| EBITDA Growth % | -110.7% | -55.63% | 2.78% | 21.49% | 53.76% | 8.73% | 311.73% | - |
| D&A (Non-Cash Add-back) | 1.29M | 1.28M | 1.18M | 369.5K | 286.69K | 230.6K | 226.63K | 224.08K |
| EBIT | -1.34M | 1.02M | 5.79M | 7.96M | 5.85M | 3.47M | 3.32M | 692.12K |
| Net Interest Income | -365.31K | -302.86K | -228.81K | -445.49K | -414.06K | -328.39K | -330.92K | -285.22K |
| Interest Income | 867 | 393 | 9.42K | 1.39K | 3.21K | 714 | 2.27K | 1.24K |
| Interest Expense | 366.18K | 303.25K | 238.22K | 446.88K | 417.27K | 329.1K | 333.19K | 286.46K |
| Other Income/Expense | -86.8K | -1.16M | -363.66K | 969.23K | 29.76K | 186.41K | -185.34K | -196.49K |
| Pretax Income | -1.71M | 715.94K | 5.55M | 7.51M | 5.43M | 3.65M | 2.99M | 405.65K |
| Pretax Margin % | -9.16% | 3% | 18.82% | 25.11% | 21.3% | 20.06% | 18.24% | 3.76% |
| Income Tax | 339.41K | 351.18K | 1M | 1.27M | 820.93K | 556.26K | 427.19K | 182.28K |
| Effective Tax Rate % | -19.85% | 49.05% | 18.04% | 16.87% | 15.12% | 15.22% | 14.29% | 44.93% |
| Net Income | -1.99M | 398.17K | 4.6M | 6.24M | 4.59M | 3.03M | 2.57M | 223.38K |
| Net Margin % | -10.68% | 1.67% | 15.57% | 20.86% | 18.01% | 16.61% | 15.7% | 2.07% |
| Net Income Growth % | -600.98% | -91.34% | -26.32% | 35.87% | 51.68% | 17.6% | 1052.23% | - |
| Net Income (Continuing) | -2.05M | 364.76K | 4.55M | 6.24M | 4.61M | 3.1M | 2.56M | 223.38K |
| Discontinued Operations | 0 | -19.51K | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 447.06K | 442.85K | 497.18K | 530.49K | 527.87K | 506.73K | 425K | 0 |
| EPS (Diluted) | -0.72 | 0.17 | 125.00 | 185.75 | 170.00 | 5.80 | 4.98 | 0.43 |
| EPS Growth % | -523.53% | -99.86% | -32.71% | 9.26% | 2831.03% | 16.47% | 1058.14% | - |
| EPS (Basic) | -0.72 | 0.17 | 125.75 | 186.75 | 6.94 | 5.81 | 4.98 | 0.43 |
| Diluted Shares Outstanding | 2.76M | 2.4M | 919.81K | 839.61K | 670.62K | 521.07K | 516.67K | 516.67K |
| Basic Shares Outstanding | 2.76M | 2.28M | 919.2K | 842.9K | 675.12K | 521.84K | 516.67K | 516.67K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Revenue volatility and margin erosion
According to the latest financial disclosures, Bon Natural Life Limited experienced a 21.5% year-over-year revenue decline in 2025Q4, marking a sustained period of top-line erosion that suggests significant challenges in maintaining market share within its core fragrance and bioactive ingredient segments.
The consistent downward trajectory in quarterly revenue suggests that the company is struggling to retain key B2B accounts or is facing aggressive pricing pressure in its primary markets. This trend indicates that the firm's specialized extraction model may be losing its competitive relevance or that demand for its specific botanical precursors is highly cyclical and currently in a downturn.
As reported in recent income statements, the company's gross margin has compressed to 18.4% in 2025Q4, reflecting a notable deterioration from the 33.3% levels observed in 2023Q2, which implies a weakening ability to pass through rising raw material costs to its customer base.
The decline in gross profitability suggests that the company lacks the pricing power necessary to offset the energy-intensive nature of its extraction processes. Investors should monitor whether this margin contraction is a permanent shift in the cost structure or a temporary result of unabsorbed manufacturing overhead due to lower production volumes.
Based on the provided income statement data, the company's operating margin plummeted to -17.8% in 2025Q4, demonstrating that the current revenue base is insufficient to cover fixed operating expenses, which have become a significant burden on the firm's bottom-line performance.
The shift from positive operating income to a loss indicates a lack of operational scalability, as SG&A expenses are not adjusting downward in proportion to the revenue decline. This suggests that the company's current cost structure is too rigid, leaving it vulnerable to further losses if top-line stabilization does not occur in the near term.
Financial filings indicate that the company has transitioned from a profitable entity to one generating a -20.2% net margin, raising concerns about the long-term viability of its current business model in the absence of a clear path back to operational efficiency.
Short-sellers would likely focus on the rapid deterioration of net income and the potential for future liquidity constraints if the current cash burn persists. The reliance on a narrow product set in a volatile B2B market warrants further investigation into whether the company can pivot its strategy before its cash reserves are exhausted.
Quick answers to the most common questions about buying BON stock.
For fiscal year 2025, Bon Natural Life Limited (BON) reported total revenue of $18.7M. This represents a 73.2% increase compared to $10.8M in 2018.
Bon Natural Life Limited (BON) reported a net loss of $2.0M for the fiscal year ending 2025.
Bon Natural Life Limited (BON) reported an operating income of $-1.6M, resulting in an operating profit margin of -8.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Bon Natural Life Limited (BON) generated $3.9M in gross profit for the year, representing a gross profit margin of 20.8%. This demonstrates the company's core pricing power and production efficiency.