Revenue growth remains highly erratic, swinging from a 147.3% surge in 2025Q2 to a 20.0% contraction by 2025Q4, while gross margins have compressed from a 34.6% peak in 2023Q2 to 25.2%.
| Sales/Revenue | 12.95M | 11.54M | 9.45M | 3.59M | 3.14M |
| Revenue Growth % | 12.19% | 22.18% | 162.89% | 14.52% | - |
| Cost of Goods Sold | 9.56M | 8.33M | 6.23M | 1.94M | 1.75M |
| COGS % of Revenue | 73.85% | 72.17% | 65.96% | 53.98% | 55.66% |
| Gross Profit | 3.39M | 3.21M | 3.22M | 1.65M | 1.39M |
| Gross Margin % | 26.15% | 27.83% | 34.04% | 46.02% | 44.34% |
| Gross Profit Growth % | 5.42% | -0.1% | 94.43% | 18.86% | - |
| Operating Expenses | 3.53M | 707.63K | 1.04M | 1.16M | 699.47K |
| OpEx % of Revenue | 27.22% | 6.13% | 11.05% | 32.15% | 22.29% |
| Selling, General & Admin | 3.22M | 678.65K | 921.26K | 1.09M | 617.87K |
| SG&A % of Revenue | 24.89% | 5.88% | 9.75% | 30.46% | 19.69% |
| Research & Development | 302.12K | 28.98K | 122.44K | 60.88K | 81.59K |
| R&D % of Revenue | 2.33% | 0.25% | 1.3% | 1.69% | 2.6% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -138.58K | 2.5M | 2.17M | 498.52K | 692.02K |
| Operating Margin % | -1.07% | 21.7% | 22.99% | 13.87% | 22.05% |
| Operating Income Growth % | -105.53% | 15.33% | 335.67% | -27.96% | - |
| EBITDA | -54.59K | 2.6M | 2.23M | 519.32K | 696.77K |
| EBITDA Margin % | -0.42% | 22.49% | 23.63% | 14.45% | 22.2% |
| EBITDA Growth % | -102.1% | 16.29% | 329.88% | -25.47% | - |
| D&A (Non-Cash Add-back) | 83.99K | 91.38K | 60.55K | 20.8K | 4.75K |
| EBIT | -119.3K | 2.48M | 2.18M | 518.12K | 688.72K |
| Net Interest Income | 14.62K | 12.34K | -597 | -85.33K | -93.05K |
| Interest Income | 14.62K | 12.34K | 5.42K | 1.34K | 165 |
| Interest Expense | 0 | 0 | 6.02K | 86.67K | 93.22K |
| Other Income/Expense | 19.27K | -20.66K | 4.62K | -67.07K | -96.52K |
| Pretax Income | -119.3K | 2.48M | 2.18M | 431.45K | 595.51K |
| Pretax Margin % | -0.92% | 21.52% | 23.04% | 12.01% | 18.98% |
| Income Tax | 202.9K | 380.77K | 316.93K | 59.01K | 78.61K |
| Effective Tax Rate % | -170.07% | 15.33% | 14.56% | 13.68% | 13.2% |
| Net Income | -322.2K | 2.1M | 1.86M | 372.44K | 516.89K |
| Net Margin % | -2.49% | 18.22% | 19.68% | 10.36% | 16.47% |
| Net Income Growth % | -115.32% | 13.11% | 399.31% | -27.95% | - |
| Net Income (Continuing) | -322.2K | 2.1M | 1.86M | 372.44K | 516.89K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.49 | 3.25 | 2.75 | 0.57 | 0.80 |
| EPS Growth % | -115.08% | 18.18% | 380.35% | -27.99% | - |
| EPS (Basic) | -0.49 | 3.25 | 2.75 | 0.57 | 0.80 |
| Diluted Shares Outstanding | 650K | 650K | 650K | 650K | 650K |
| Basic Shares Outstanding | 650K | 650K | 650K | 650K | 650K |
| Dividend Payout Ratio | - | - | - | - | - |
Municipal payment collection delays
As evidenced by the quarterly financial data, DXST's revenue trajectory remains highly erratic, swinging from a 147.3% surge in 2025Q2 to a 20.0% contraction by 2025Q4, suggesting that the company's project-based business model is heavily susceptible to the timing of municipal contract awards and industrial cycles.
The extreme variance in top-line performance indicates a lack of recurring revenue stability, which is typical for firms reliant on localized environmental restoration projects. Investors should monitor whether this volatility reflects genuine demand fluctuations or merely the lumpy nature of revenue recognition under percentage-of-completion accounting standards.
Based on reported income statements, DXST's gross margin has trended downward from a peak of 34.6% in 2023Q2 to 25.2% in 2025Q4, indicating that the company may be struggling to maintain pricing power against regional competitors in the Shandong environmental remediation market.
The erosion of gross profitability suggests that the costs associated with microbial cultivation and labor-intensive site remediation are rising faster than the company's ability to pass these expenses to municipal clients. This trend warrants further investigation into whether the firm is sacrificing margin to secure market share in a highly competitive regulatory environment.
According to the provided financial statements, DXST's operating income has failed to maintain consistent positive territory, with operating margins fluctuating between 30.3% and -8.5%, demonstrating that the company has yet to achieve the necessary scale to effectively absorb its fixed administrative and research overhead costs.
The inability to consistently convert gross profit into operating income suggests that the current cost structure is too heavy for the company's $12.9M revenue base. Without a significant shift toward higher-margin microbial product sales, the firm appears likely to continue experiencing periods of operating losses during project lulls.
As reported in recent filings, the company's cash-to-revenue ratio has compressed to approximately 4.4%, which, when paired with the reliance on project-based revenue, suggests that DXST may face significant liquidity constraints if municipal accounts receivable collections do not accelerate in the coming fiscal periods.
Short-sellers would likely focus on the disconnect between reported revenue growth and the meager cash balance, which may indicate that earnings are being driven by non-cash contract assets rather than actual cash inflows. This creates a potential risk of future write-downs if municipal clients in the Shandong region face fiscal tightening.
Quick answers to the most common questions about buying DXST stock.
For fiscal year 2025, Decent Holding Inc. (DXST) reported total revenue of $12.9M. This represents a 312.7% increase compared to $3.1M in 2021.
Decent Holding Inc. (DXST) reported a net loss of $0.3M for the fiscal year ending 2025.
Decent Holding Inc. (DXST) reported an operating income of $-0.1M, resulting in an operating profit margin of -1.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Decent Holding Inc. (DXST) generated $3.4M in gross profit for the year, representing a gross profit margin of 26.2%. This demonstrates the company's core pricing power and production efficiency.