Revenue growth has turned negative with a 20.58% year-over-year decline, while gross margins have compressed significantly from a 34.3% historical peak to 17.3% in 2026Q2.
| Sales/Revenue | 29.94M | 13.47M | 16.96M | 18.43M | 23.88M | 18.05M | 12.1M |
| Revenue Growth % | -25.69% | -20.58% | -7.93% | -22.83% | 32.27% | 49.18% | - |
| Cost of Goods Sold | 23.14M | 10.37M | 12.39M | 13.84M | 16.4M | 13.07M | 9.23M |
| COGS % of Revenue | - | 76.98% | 73.05% | 75.11% | 68.69% | 72.42% | 76.3% |
| Gross Profit | 6.8M | 3.1M | 4.57M | 4.59M | 7.48M | 4.98M | 2.87M |
| Gross Margin % | 22.71% | 23.02% | 26.95% | 24.89% | 31.31% | 27.58% | 23.7% |
| Gross Profit Growth % | - | -32.15% | -0.33% | -38.64% | 50.16% | 73.59% | - |
| Operating Expenses | 24.34M | 13.16M | 3.66M | 3.27M | 4.52M | 1.84M | 1.64M |
| OpEx % of Revenue | - | 97.71% | 21.58% | 17.74% | 18.94% | 10.2% | 13.51% |
| Selling, General & Admin | 24.13M | 11.39M | 3.44M | 3.14M | 3.96M | 1.88M | 1.6M |
| SG&A % of Revenue | - | 84.51% | 20.25% | 17.02% | 16.58% | 10.4% | 13.26% |
| Research & Development | 211.54K | 19.95K | 223.14K | 250.34K | 301.3K | 202.29K | 21.06K |
| R&D % of Revenue | - | 0.15% | 1.32% | 1.36% | 1.26% | 1.12% | 0.17% |
| Other Operating Expenses | 0 | 1.76M | 0 | 18.3K | 29.91K | 48.86K | 0 |
| Operating Income | -17.54M | -10.06M | 910.38K | 1.32M | 2.95M | 3.14M | 1.05M |
| Operating Margin % | -58.58% | -74.69% | 5.37% | 7.15% | 12.37% | 17.37% | 8.65% |
| Operating Income Growth % | - | -1205.29% | -30.91% | -55.39% | -5.81% | 199.72% | - |
| EBITDA | -16.58M | -9.58M | 1.52M | 1.95M | 3.51M | 3.4M | 1.25M |
| EBITDA Margin % | -55.38% | -71.07% | 8.96% | 10.58% | 14.69% | 18.83% | 10.34% |
| EBITDA Growth % | -422.55% | -729.91% | -22.05% | -44.4% | 3.17% | 171.81% | - |
| D&A (Non-Cash Add-back) | 956.32K | 487.24K | 609.7K | 632.3K | 552.97K | 263.05K | 204.22K |
| EBIT | -17.98M | -10.06M | 910.38K | 1.32M | 2.95M | 3.09M | 1.23M |
| Net Interest Income | -702.56K | -253.17K | 10.57K | 17.51K | 27.19K | 23.72K | 13.23K |
| Interest Income | 99.39K | 0 | 10.57K | 17.51K | 27.19K | 23.72K | 13.23K |
| Interest Expense | 801.95K | 253.17K | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -367.17K | -724.82K | 59.76K | 60.04K | 107.07K | 85.83K | 74.35K |
| Pretax Income | -17.91M | -10.79M | 970.13K | 1.38M | 3.06M | 3.22M | 1.12M |
| Pretax Margin % | -59.8% | -80.07% | 5.72% | 7.48% | 12.82% | 17.85% | 9.26% |
| Income Tax | 214.51K | 113.44K | 124.8K | 107.83K | 163.59K | 229.37K | 21.09K |
| Effective Tax Rate % | -1.2% | -1.05% | 12.86% | 7.83% | 5.34% | 7.12% | 1.88% |
| Net Income | -18.27M | -10.8M | 8.65K | 477.69K | 1.83M | 2M | 645.45K |
| Net Margin % | -61.02% | -80.15% | 0.05% | 2.59% | 7.66% | 11.08% | 5.33% |
| Net Income Growth % | -976.7% | -124907.19% | -98.19% | -73.87% | -8.55% | 209.77% | - |
| Net Income (Continuing) | -18.12M | -10.9M | 845.33K | 1.27M | 2.9M | 2.99M | 1.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 5.93M | 6.09M | 6.37M | 5.92M | 5.53M | 4.16M | 2.61M |
| EPS (Diluted) | -10.23 | -8.16 | 0.01 | 0.35 | 1.35 | 1.47 | 0.10 |
| EPS Growth % | -886.95% | - | -98.18% | -73.84% | -8.59% | 1315.38% | - |
| EPS (Basic) | - | -8.16 | 0.01 | 0.35 | 1.35 | 1.47 | 0.10 |
| Diluted Shares Outstanding | 1.79M | 1.32M | 1.28M | 1.36M | 1.36M | 1.36M | 6.25M |
| Basic Shares Outstanding | 1.79M | 1.32M | 1.28M | 1.36M | 1.36M | 1.36M | 6.25M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Unsustainable operating cash burn
As reported in recent financial filings, Eshallgo's revenue has experienced a significant downturn, with the most recent quarterly figures showing a 20.58% year-over-year decline, signaling that the company's core business model is struggling to maintain its market position amidst a challenging macroeconomic environment for Chinese SMEs.
The consistent decline in top-line performance suggests that the company's integrated ERP and maintenance service model is failing to provide the expected defensive moat against broader commercial headwinds. Investors should monitor whether this contraction reflects a permanent loss of market share or merely a cyclical deferral of equipment upgrades by the company's client base.
Based on the company's reported income statements, gross margins have compressed from historical peaks of 34.3% down to 17.3% in 2026Q2, indicating that Eshallgo lacks the pricing power necessary to offset rising procurement costs or competitive pressures within the office equipment and IT services market.
This margin degradation appears to be a direct consequence of the company's reliance on low-margin hardware distribution rather than high-margin software services. The inability to maintain gross profitability suggests that the firm's value proposition is increasingly commoditized, leaving little room to absorb operational volatility.
According to the provided income statement data, Eshallgo's operating margin has plummeted to -101.3% in the most recent quarter, demonstrating a severe lack of operating leverage as SG&A expenses have ballooned relative to the company's shrinking revenue-generating capacity and overall business scale.
The decoupling of fixed costs from revenue suggests that management has been unable to right-size the organization in response to the top-line decline. This structural inefficiency implies that the company is currently burning through its cash reserves to support an administrative and sales overhead that the current business volume cannot justify.
As evidenced by the financial statements, Eshallgo's net income has shifted from positive territory to a loss of $7.3 million in 2026Q2, a trend exacerbated by significant stock-based compensation charges of $4.2 million recorded in late 2025, which further dilutes the quality of reported earnings.
The transition to deep net losses, combined with non-cash charges, warrants further investigation into the company's long-term viability. The lack of consistent profitability suggests that the current earnings profile is highly speculative and potentially reliant on future capital infusions to sustain operations.
Quick answers to the most common questions about buying EHGO stock.
For fiscal year 2025, Eshallgo Inc. Class A Ordinary Shares (EHGO) reported total revenue of $13.5M. This represents a 11.3% increase compared to $12.1M in 2020.
Eshallgo Inc. Class A Ordinary Shares (EHGO) reported a net loss of $10.8M for the fiscal year ending 2025.
Eshallgo Inc. Class A Ordinary Shares (EHGO) reported an operating income of $-10.1M, resulting in an operating profit margin of -74.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Eshallgo Inc. Class A Ordinary Shares (EHGO) generated $3.1M in gross profit for the year, representing a gross profit margin of 23.0%. This demonstrates the company's core pricing power and production efficiency.