Despite a 64.8% year-over-year revenue growth in 2026Q2, the company's gross margin remains compressed at a negligible 2.7%, indicating a lack of scalable profitability.
| Sales/Revenue | 199.91M | 107.63M | 47.38M | 18.54M | 32.28M | 25.53M | 15.69M | 19.03M | 8.57M |
| Revenue Growth % | 265.56% | 127.16% | 155.52% | -42.56% | 26.46% | 62.71% | -17.57% | 122.14% | - |
| Cost of Goods Sold | 192.64M | 103.31M | 44.5M | 22.21M | 26.04M | 18.3M | 11.16M | 13.16M | 6.4M |
| COGS % of Revenue | - | 95.99% | 93.92% | 119.75% | 80.65% | 71.7% | 71.13% | 69.14% | 74.73% |
| Gross Profit | 7.27M | 4.32M | 2.88M | -3.66M | 6.25M | 7.22M | 4.53M | 5.87M | 2.16M |
| Gross Margin % | 3.64% | 4.01% | 6.08% | -19.75% | 19.35% | 28.3% | 28.87% | 30.86% | 25.27% |
| Gross Profit Growth % | - | 49.96% | 178.65% | -158.65% | -13.55% | 59.5% | -22.88% | 171.31% | - |
| Operating Expenses | 10.92M | 10.69M | 16.52M | 20.76M | 4.83M | 1.39M | 1.37M | 626.07K | 800.06K |
| OpEx % of Revenue | - | 9.93% | 34.87% | 111.95% | 14.96% | 5.45% | 8.71% | 3.29% | 9.34% |
| Selling, General & Admin | 10.92M | 2.02M | 2.99M | 10.96M | 4.83M | 1.39M | 1.37M | 626.07K | 800.06K |
| SG&A % of Revenue | - | 1.88% | 6.32% | 59.08% | 14.96% | 5.45% | 8.71% | 3.29% | 9.34% |
| Research & Development | 0 | 0 | 0 | 8.69M | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | 46.89% | - | - | - | - | - |
| Other Operating Expenses | 0 | 8.67M | 13.53M | 1.11M | 0 | 0 | 0 | -2.59K | 0 |
| Operating Income | -3.65M | -6.37M | -13.64M | -24.42M | 1.42M | 5.83M | 3.16M | 5.25M | 1.36M |
| Operating Margin % | -1.83% | -5.92% | -28.79% | -131.71% | 4.39% | 22.85% | 20.16% | 27.57% | 15.93% |
| Operating Income Growth % | - | 53.3% | 44.14% | -1824.19% | -75.71% | 84.43% | -39.74% | 284.49% | - |
| EBITDA | -3.48M | -6.29M | -13.24M | -22.28M | 1.81M | 6.18M | 3.4M | 5.41M | 1.39M |
| EBITDA Margin % | -1.74% | -5.85% | -27.95% | -120.16% | 5.61% | 24.22% | 21.64% | 28.41% | 16.24% |
| EBITDA Growth % | 85.61% | 52.5% | 40.56% | -1330.1% | -70.7% | 82.09% | -37.2% | 288.68% | - |
| D&A (Non-Cash Add-back) | 168.66K | 79.85K | 399.87K | 2.14M | 394.89K | 351.04K | 233.35K | 159.35K | 26.26K |
| EBIT | -7.53M | -6.3M | -12.27M | -24.37M | 1.79M | 5.93M | 3.21M | 5.24M | 1.39M |
| Net Interest Income | -537.52K | -265.69K | -237.4K | -216.56K | -235.33K | -243.46K | -125.56K | -123.83K | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 537.52K | 265.69K | 237.4K | 216.56K | 235.33K | 243.46K | 125.56K | 123.83K | 43.86K |
| Other Income/Expense | -12.83M | -199K | 1.14M | -160.51K | 142.65K | -147.51K | -79.33K | -126.42K | -23.23K |
| Pretax Income | -16.48M | -6.57M | -12.51M | -24.58M | 1.56M | 5.68M | 3.08M | 5.12M | 1.34M |
| Pretax Margin % | -8.25% | -6.1% | -26.4% | -132.57% | 4.83% | 22.27% | 19.65% | 26.91% | 15.66% |
| Income Tax | 329.58K | 323.29K | 124.42K | 674.56K | 871.23K | 1.42M | 457K | 1.29M | 342.78K |
| Effective Tax Rate % | -2% | -4.92% | -0.99% | -2.74% | 55.88% | 24.93% | 14.82% | 25.17% | 25.55% |
| Net Income | -16.71M | -6.89M | -12.41M | -24.33M | 787.96K | 4.27M | 2.44M | 3.58M | 934.27K |
| Net Margin % | -8.36% | -6.4% | -26.19% | -131.21% | 2.44% | 16.72% | 15.53% | 18.83% | 10.9% |
| Net Income Growth % | 36.58% | 44.48% | 49.01% | -3187.78% | -81.54% | 75.2% | -32.05% | 283.67% | - |
| Net Income (Continuing) | -16.81M | -6.89M | -12.63M | -25.26M | 687.89K | 4.27M | 2.63M | 3.83M | 998.71K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -56.99K | 31.84K | 16.24K | -557.15K | 8.37K | 0 | 805.08K | 485.42K | 248.68K |
| EPS (Diluted) | -0.22 | -0.49 | -4.32 | -1.01 | 0.03 | 0.18 | 0.10 | 0.14 | 0.06 |
| EPS Growth % | -87.92% | 88.66% | -327.72% | -3179.27% | -81.78% | 82.93% | -32.04% | 139.34% | - |
| EPS (Basic) | - | -0.49 | -4.32 | -1.01 | 0.03 | 0.18 | 0.10 | 0.14 | 0.06 |
| Diluted Shares Outstanding | 76.86M | 14.14M | 2.87M | 24.05M | 24.05M | 23.85M | 24.75M | 24.75M | 15.44M |
| Basic Shares Outstanding | 76.86M | 14.14M | 2.87M | 24.05M | 24.05M | 23.85M | 24.75M | 24.75M | 15.44M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Thin Liquidity and Margin Compression
According to recent financial disclosures, CPOP achieved a 127.16% year-over-year revenue surge, yet this rapid top-line growth appears disconnected from operational efficiency, as the company continues to struggle with maintaining consistent profitability across its project-based event hosting and marketing services business model.
The triple-digit revenue growth suggests strong market demand for the company's niche hip-hop event services, but the lack of recurring revenue streams makes this trajectory highly volatile. Investors should monitor whether this expansion is sustainable or merely a reflection of lumpy, project-based contract timing that masks underlying operational instability.
As reported in quarterly filings, the company's gross margin has compressed to a negligible 4.01%, indicating that the firm functions more as a low-margin service coordinator than a high-value IP owner, leaving little room for error in managing venue rentals and artist acquisition costs.
The razor-thin margins suggest that CPOP lacks significant pricing power, likely due to intense competition for talent and rising production costs within the Chinese entertainment sector. This structural weakness implies that even significant revenue gains may fail to translate into meaningful bottom-line results without a fundamental shift toward higher-margin digital offerings.
Based on the provided income statement data, the company's operating margin of -5.92% demonstrates that administrative and selling expenses are scaling in lockstep with revenue, preventing the firm from achieving the operating leverage necessary to reach sustainable profitability despite its aggressive growth phase.
The inability to decouple overhead growth from revenue expansion suggests that the current business model is labor-intensive and lacks the scalability of digital media platforms. This warrants further investigation into whether management can optimize its cost structure or if the current operating model is inherently capped by high variable service costs.
Data from recent balance sheet snapshots reveals a cash position of only $2,926,317 against over $107M in trailing twelve-month revenue, which suggests a precarious liquidity buffer that may force dilutive financing if the company fails to achieve positive operating cash flow in the near term.
Short-sellers would likely focus on the disconnect between the company's high-growth branding and its actual financial fragility, particularly given the negative operating margins. The reliance on external capital to fund operations in a volatile regulatory environment presents a significant risk to equity holders that the current growth narrative may be underestimating.
Quick answers to the most common questions about buying CPOP stock.
For fiscal year 2025, Pop Culture Group Co., Ltd (CPOP) reported total revenue of $107.6M. This represents a 1156.3% increase compared to $8.6M in 2018.
Pop Culture Group Co., Ltd (CPOP) reported a net loss of $6.9M for the fiscal year ending 2025.
Pop Culture Group Co., Ltd (CPOP) reported an operating income of $-6.4M, resulting in an operating profit margin of -5.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Pop Culture Group Co., Ltd (CPOP) generated $4.3M in gross profit for the year, representing a gross profit margin of 4.0%. This demonstrates the company's core pricing power and production efficiency.