Revenue growth remains highly inconsistent, with an 88.2% year-over-year decline in 2026Q2, while the company continues to struggle with a negative operating margin of -11.3%.
| Sales/Revenue | 25.96M | 17.63M | 14.75M | 3.07M | 3.49M | 22.61M | 22.28M |
| Revenue Growth % | 36.98% | 19.55% | 380.52% | -12.06% | -84.56% | 1.45% | - |
| Cost of Goods Sold | 19.02M | 12.65M | 10.83M | 2.07M | 2.53M | 15.43M | 15.43M |
| COGS % of Revenue | - | 71.73% | 73.4% | 67.3% | 72.48% | 68.26% | 69.25% |
| Gross Profit | 6.94M | 4.98M | 3.92M | 1M | 960.36K | 7.18M | 6.85M |
| Gross Margin % | 26.75% | 28.27% | 26.6% | 32.7% | 27.52% | 31.74% | 30.75% |
| Gross Profit Growth % | - | 27.06% | 290.77% | 4.52% | -86.62% | 4.73% | - |
| Operating Expenses | 10.59M | 6.95M | 5.77M | 775.65K | 644.1K | 4.43M | 5.03M |
| OpEx % of Revenue | - | 39.42% | 39.11% | 25.27% | 18.45% | 19.58% | 22.58% |
| Selling, General & Admin | 9.64M | 6.3M | 5.17M | 5M | 4.18M | 3.75M | 3.83M |
| SG&A % of Revenue | - | 35.71% | 35.08% | 162.77% | 119.9% | 16.57% | 17.19% |
| Research & Development | 952.9K | 654.04K | 594.52K | 138.3K | 106.5K | 939.06K | 839.99K |
| R&D % of Revenue | - | 3.71% | 4.03% | 4.51% | 3.05% | 4.15% | 3.77% |
| Other Operating Expenses | 0 | 0 | 0 | 49.87K | 415.93K | 224.74K | 0 |
| Operating Income | -3.65M | -1.97M | -1.85M | 228.15K | 316.26K | 2.49M | 2.18M |
| Operating Margin % | -14.06% | -11.15% | -12.52% | 7.43% | 9.06% | 11.01% | 9.78% |
| Operating Income Growth % | - | -6.53% | -909.2% | -27.86% | -87.3% | 14.22% | - |
| EBITDA | -2.79M | -1.21M | -1.1M | 323.53K | 401.18K | 3.01M | 2.5M |
| EBITDA Margin % | -10.76% | -6.86% | -7.45% | 10.54% | 11.49% | 13.31% | 11.2% |
| EBITDA Growth % | -356.75% | -10.04% | -439.49% | -19.36% | -86.66% | 20.54% | - |
| D&A (Non-Cash Add-back) | 859.11K | 758.02K | 747.84K | 95.38K | 84.92K | 518.25K | 315.58K |
| EBIT | -3.46M | -1.76M | -1.85M | 1.79M | 2.46M | 2.49M | 2.18M |
| Net Interest Income | 14.7K | 10.54K | 67.64K | 22.45K | -7.03K | -8.8K | 887.22K |
| Interest Income | 9.5K | 10.54K | 67.64K | 22.45K | 0 | 0 | 887.22K |
| Interest Expense | 1.37K | 0 | 0 | 0 | 7.03K | 8.8K | 0 |
| Other Income/Expense | 139.1K | 285.72K | 464.69K | 88.98K | -2.12M | 200.92K | 527.16K |
| Pretax Income | -3.51M | -1.68M | -1.38M | 317.13K | 345.43K | 2.69M | 2.71M |
| Pretax Margin % | -13.53% | -9.53% | -9.37% | 10.33% | 9.9% | 11.9% | 12.15% |
| Income Tax | -268.57K | -270.5K | -86.34K | 35.43K | 51.36K | 261.37K | 238.44K |
| Effective Tax Rate % | 7.65% | 16.09% | 6.25% | 11.17% | 14.87% | 9.71% | 8.81% |
| Net Income | -3.24M | -1.41M | -1.3M | 281.7K | 294.07K | 2.43M | 2.47M |
| Net Margin % | -12.49% | -8% | -8.78% | 9.18% | 8.43% | 10.75% | 11.08% |
| Net Income Growth % | -428.35% | -8.9% | -559.77% | -4.21% | -87.9% | -1.59% | - |
| Net Income (Continuing) | -3.24M | -1.41M | -1.3M | 281.7K | 294.07K | 2.43M | 2.47M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.80 | -1.20 | -1.30 | 0.25 | 0.26 | 2.10 | 2.50 |
| EPS Growth % | -357.1% | 7.69% | -624.19% | -4.25% | -87.67% | -16% | - |
| EPS (Basic) | - | -1.20 | -1.30 | 0.25 | 0.26 | 2.10 | 2.50 |
| Diluted Shares Outstanding | 1.16M | 1.16M | 1.16M | 1.14M | 1.14M | 1.14M | 1M |
| Basic Shares Outstanding | 1.16M | 1.16M | 1.16M | 1.14M | 1.14M | 1.14M | 1M |
| Dividend Payout Ratio | - | - | - | - | - | 138.56% | 82.91% |
Operating scale and profitability
As reported in financial statements, CCTG exhibits highly erratic revenue cycles, with quarterly figures swinging from $11.3 million in 2021Q4 to as low as $958.1K in 2024Q2, suggesting that the company's project-based business model lacks the recurring revenue stability required for consistent top-line expansion.
The significant quarter-over-quarter fluctuations indicate that the company's revenue is heavily dependent on the timing of specific OEM project deliveries rather than a steady stream of demand. Investors should monitor whether the recent revenue volatility reflects a structural shift in customer procurement cycles or an inability to maintain a consistent pipeline of design wins.
Based on reported figures, CCTG has maintained a relatively stable gross margin profile, averaging near 28% across recent periods, which suggests that the company retains some pricing power despite the broader operational challenges currently impacting its bottom-line performance and overall net profitability.
The ability to sustain gross margins in the high-twenties while revenue fluctuates wildly implies that the company's value-added manufacturing services for specialized industrial and medical applications are not yet being commoditized. However, this margin stability is currently insufficient to offset the high fixed-cost burden, leaving the company vulnerable to any further contraction in gross profit.
According to recent SEC filings, CCTG's operating income has consistently failed to scale with revenue, as evidenced by the negative operating margin of -11.15% in recent periods, indicating that the company's current overhead structure is disproportionately high relative to its total sales volume.
The persistent gap between gross profit and operating income suggests that SG&A expenses are not being managed with the necessary discipline to achieve break-even at current revenue levels. This lack of operating leverage warrants further investigation into whether the company is over-investing in administrative infrastructure or if the current scale is simply too small to support its operational footprint.
Based on the provided data, the company's transition from profitable quarters in 2023 to consistent operating losses raises significant concerns regarding the long-term viability of its current cost structure, especially given the lack of clear evidence that revenue growth will reach the necessary scale to cover expenses.
Short-sellers would likely focus on the widening disconnect between the company's historical profitability and its current cash-burning trajectory. Without a clear path to operational efficiency, the company may face the risk of needing dilutive financing to sustain its operations, which would further pressure shareholder value.
Quick answers to the most common questions about buying CCTG stock.
For fiscal year 2025, CCSC Technology International Holdings Limited Ordinary Shares (CCTG) reported total revenue of $17.6M. This represents a 20.9% decline compared to $22.3M in 2020.
CCSC Technology International Holdings Limited Ordinary Shares (CCTG) reported a net loss of $1.4M for the fiscal year ending 2025.
CCSC Technology International Holdings Limited Ordinary Shares (CCTG) reported an operating income of $-2.0M, resulting in an operating profit margin of -11.2%. This margin reflects the operational efficiency of the business before interest and taxes.
CCSC Technology International Holdings Limited Ordinary Shares (CCTG) generated $5.0M in gross profit for the year, representing a gross profit margin of 28.3%. This demonstrates the company's core pricing power and production efficiency.