Revenue growth remains highly inconsistent, with a 36.2% decline in 2026Q2, while gross margins have compressed significantly from a 38.9% peak in 2022Q2 to just 11.2% in the most recent quarter.
| Sales/Revenue | 36.59M | 20.71M | 14.85M | 17.58M | 27.1M | 24.32M | 19.17M | 26.22M | 30.14M | 21.17M | 16.09M | 15.47M |
| Revenue Growth % | 10.29% | 39.47% | -15.56% | -35.1% | 11.41% | 26.86% | -26.87% | -13% | 42.34% | 31.55% | 4.02% | - |
| Cost of Goods Sold | 28.89M | 15.68M | 11.73M | 13.92M | 16.96M | 15.16M | 16.78M | 16.79M | 18M | 12.84M | 10.54M | 9.84M |
| COGS % of Revenue | - | 75.73% | 78.97% | 79.18% | 62.58% | 62.36% | 87.53% | 64.03% | 59.73% | 60.63% | 65.46% | 63.58% |
| Gross Profit | 7.7M | 5.03M | 3.12M | 3.66M | 10.14M | 9.16M | 2.39M | 9.43M | 12.13M | 8.33M | 5.56M | 5.63M |
| Gross Margin % | 21.05% | 24.27% | 21.03% | 20.82% | 37.42% | 37.64% | 12.47% | 35.97% | 40.27% | 39.37% | 34.54% | 36.42% |
| Gross Profit Growth % | - | 60.93% | -14.71% | -63.89% | 10.75% | 282.84% | -74.64% | -22.29% | 45.59% | 49.94% | -1.35% | - |
| Operating Expenses | 22.56M | 11.59M | 10.65M | 13.23M | 10.07M | 7.3M | 11.11M | 8.79M | 6.19M | 2.53M | 1.92M | 1.47M |
| OpEx % of Revenue | - | 55.98% | 71.75% | 75.21% | 37.15% | 30.01% | 57.93% | 33.53% | 20.55% | 11.93% | 11.9% | 9.51% |
| Selling, General & Admin | 19.71M | 10.48M | 8.97M | 12.28M | 8.82M | 6.76M | 8.08M | 8.12M | 5.61M | 2.32M | 1.72M | 1.36M |
| SG&A % of Revenue | - | 50.6% | 60.4% | 69.83% | 32.55% | 27.78% | 42.16% | 30.96% | 18.63% | 10.94% | 10.7% | 8.77% |
| Research & Development | 1.77M | 1.12M | 610.44K | 931.08K | 917.23K | 540.61K | 1.53M | 673.13K | 580.38K | 208.45K | 193.79K | 114.62K |
| R&D % of Revenue | - | 5.38% | 4.11% | 5.29% | 3.39% | 2.22% | 7.97% | 2.57% | 1.93% | 0.98% | 1.2% | 0.74% |
| Other Operating Expenses | 1000K | 0 | 1.08M | 15.31K | 327.92K | 0 | 1.5M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -14.86M | -6.57M | -7.53M | -9.56M | 74.06K | 1.86M | -8.72M | 639.57K | 5.94M | 5.81M | 3.64M | 4.16M |
| Operating Margin % | -40.61% | -31.71% | -50.72% | -54.39% | 0.27% | 7.64% | -45.46% | 2.44% | 19.72% | 27.44% | 22.64% | 26.9% |
| Operating Income Growth % | - | 12.8% | 21.26% | -13014.51% | -96.01% | 121.32% | -1462.71% | -89.23% | 2.27% | 59.45% | -12.47% | - |
| EBITDA | -8.21M | -3.13M | -4.76M | -6.25M | 3.53M | 4.96M | -6.45M | 2.11M | 7.16M | 6.62M | 4.47M | 4.9M |
| EBITDA Margin % | -22.44% | -15.1% | -32.05% | -35.54% | 13.04% | 20.41% | -33.65% | 8.03% | 23.76% | 31.26% | 27.75% | 31.65% |
| EBITDA Growth % | 6.55% | 34.29% | 23.84% | -276.9% | -28.84% | 176.95% | -406.28% | -70.59% | 8.19% | 48.2% | -8.8% | - |
| D&A (Non-Cash Add-back) | 6.65M | 3.44M | 2.77M | 3.32M | 3.46M | 3.11M | 2.26M | 1.47M | 1.22M | 809.31K | 822.84K | 734.74K |
| EBIT | -13.78M | -6.57M | -6.46M | -9.55M | 401.98K | 1.86M | -7.22M | 639.57K | 5.94M | 5.81M | 3.64M | 4.16M |
| Net Interest Income | 70.22K | 80.5K | -207.41K | -330.82K | -370.11K | -264.41K | 15.56K | 616.88K | -23.96K | -332.25K | -355.25K | 0 |
| Interest Income | 163.94K | 80.5K | 0 | 0 | 0 | 0 | 15.56K | 616.88K | 0 | 0 | 0 | 616.12K |
| Interest Expense | 93.72K | 0 | 207.41K | 330.82K | 370.11K | 264.41K | 0 | 0 | 23.96K | 332.25K | 355.25K | 0 |
| Other Income/Expense | 148.46K | 389K | 982.66K | 877.05K | 164.21K | 82.69K | 343.08K | 1.14M | -412.14K | 79.54K | 446.89K | -326.25K |
| Pretax Income | -14.71M | -6.18M | -6.55M | -8.69M | 238.26K | 1.94M | -8.37M | 1.78M | 5.53M | 5.89M | 4.09M | 3.84M |
| Pretax Margin % | -40.2% | -29.84% | -44.1% | -49.4% | 0.88% | 7.98% | -43.67% | 6.8% | 18.35% | 27.81% | 25.41% | 24.79% |
| Income Tax | -1.06M | -1.08M | 491.6K | 1.23M | 2.78M | 641.46K | 164.54K | 380.3K | 925.37K | 943.2K | 606.81K | 10.34K |
| Effective Tax Rate % | 7.18% | 17.43% | -7.51% | -14.13% | 1165.88% | 33.06% | -1.97% | 21.32% | 16.74% | 16.02% | 14.84% | 0.27% |
| Net Income | -13.14M | -5.1M | -6.06M | -7.2M | 3.24M | 1.51M | -8.44M | 1.42M | 4.6M | 4.95M | 3.48M | 3.83M |
| Net Margin % | -35.9% | -24.63% | -40.78% | -40.95% | 11.94% | 6.22% | -44.03% | 5.42% | 15.28% | 23.36% | 21.64% | 24.73% |
| Net Income Growth % | -57.12% | 15.76% | 15.9% | -322.54% | 113.94% | 117.92% | -693.73% | -69.12% | -6.92% | 41.98% | -8.95% | - |
| Net Income (Continuing) | -13.14M | -5.1M | -6.06M | -7.46M | 3.02M | 1.3M | -8.54M | 1.4M | 4.6M | 4.95M | 3.48M | 3.83M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 44 | 43 | 42 | 974 | 297.43K | 528.01K | 614.67K | 117.49K | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.74 | -0.38 | -0.55 | -0.68 | 0.31 | 0.15 | -0.85 | 0.14 | 0.46 | 0.53 | 4.64 | 5.10 |
| EPS Growth % | -16.84% | 30.91% | 19.12% | -319.35% | 106.67% | 117.65% | -707.14% | -69.57% | -13.21% | -88.58% | -9.02% | - |
| EPS (Basic) | - | -0.38 | -0.55 | -0.68 | 0.31 | 0.15 | -0.85 | 0.14 | 0.46 | 0.53 | 4.64 | 5.10 |
| Diluted Shares Outstanding | 17.81M | 13.41M | 10.92M | 10.62M | 10.58M | 10.25M | 9.91M | 9.91M | 9.91M | 9.37M | 750K | 750K |
| Basic Shares Outstanding | 17.81M | 13.41M | 10.92M | 10.62M | 10.58M | 10.25M | 9.91M | 9.91M | 9.91M | 9.37M | 750K | 750K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | 55.12% | - | - |
Persistent Operating Margin Deficit
As evidenced by the historical quarterly data, DOGZ exhibits highly inconsistent revenue trajectories, with growth rates swinging from -42.8% to 81.1% over the last ten quarters, suggesting that the company's reliance on discretionary pet product sales remains susceptible to significant cyclical and seasonal demand fluctuations.
The erratic nature of top-line performance indicates a lack of predictable recurring revenue streams, likely exacerbated by the company's transition toward smart pet hardware. Investors should monitor whether the recent revenue volatility reflects genuine market adoption of new product lines or merely the lumpy nature of wholesale distribution cycles.
According to the provided financial statements, gross margins have deteriorated from a peak of 38.9% in 2022Q2 to 11.2% in 2026Q2, highlighting a concerning inability to maintain pricing power as the company shifts its product mix toward more competitive and commoditized smart pet electronics.
This downward trend in gross profitability suggests that the company is struggling to offset rising input costs or is engaging in aggressive discounting to clear inventory. The persistent margin erosion warrants further investigation into whether the current manufacturing cost structure can support long-term profitability in the smart pet category.
Based on reported figures, the company's operating margin has remained consistently negative, reaching -56.3% in 2026Q2, which implies that SG&A and R&D expenses are scaling disproportionately to revenue, failing to demonstrate the operational efficiency required to achieve a sustainable break-even point in the near term.
The lack of operating leverage suggests that the company's current growth strategy is heavily reliant on high fixed-cost investments that have yet to yield meaningful economies of scale. Without a significant pivot toward cost rationalization, the current trajectory appears to indicate continued reliance on external capital to fund operations.
As reported in financial filings, the company's cost structure is dominated by substantial SG&A expenses that frequently exceed gross profit, a dynamic that has persisted throughout the last ten quarters and underscores the significant financial strain of maintaining its current R&D and marketing infrastructure.
The inability to align operating expenses with gross profit generation suggests that management's current expense discipline may be insufficient to navigate the competitive landscape. Investors should monitor whether future cost-cutting initiatives can effectively address these structural inefficiencies without compromising the company's ability to innovate in the smart pet space.
Quick answers to the most common questions about buying DOGZ stock.
For fiscal year 2025, Dogness (International) Corporation (DOGZ) reported total revenue of $20.7M. This represents a 33.8% increase compared to $15.5M in 2015.
Dogness (International) Corporation (DOGZ) reported a net loss of $5.1M for the fiscal year ending 2025.
Dogness (International) Corporation (DOGZ) reported an operating income of $-6.6M, resulting in an operating profit margin of -31.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Dogness (International) Corporation (DOGZ) generated $5.0M in gross profit for the year, representing a gross profit margin of 24.3%. This demonstrates the company's core pricing power and production efficiency.