Gross margins have steadily compressed from 33.9% in 2021Q4 to 23.4% in 2026Q2, reflecting significant difficulty in managing labor-intensive service costs.
| Sales/Revenue | 102.07M | 49.4M | 50.47M | 65.95M | 63.75M | 74.53M | 46.2M | 51.15M | 45.81M | 35.58M |
| Revenue Growth % | -4.68% | -2.11% | -23.48% | 3.45% | -14.46% | 61.31% | -9.67% | 11.65% | 28.74% | - |
| Cost of Goods Sold | 76.1M | 38.35M | 37.92M | 47.59M | 44.39M | 48.31M | 30.1M | 31.77M | 27.05M | 21.05M |
| COGS % of Revenue | - | 77.63% | 75.14% | 72.15% | 69.64% | 64.83% | 65.15% | 62.11% | 59.04% | 59.16% |
| Gross Profit | 23.07M | 11.05M | 12.55M | 18.37M | 19.36M | 26.21M | 16.1M | 19.38M | 18.76M | 14.53M |
| Gross Margin % | 22.6% | 22.37% | 24.86% | 27.85% | 30.36% | 35.17% | 34.85% | 37.89% | 40.96% | 40.84% |
| Gross Profit Growth % | - | -11.9% | -31.7% | -5.11% | -26.16% | 62.82% | -16.92% | 3.27% | 29.12% | - |
| Operating Expenses | 43.5M | 19.32M | 28.36M | 43.84M | 20.21M | 17.15M | 8.63M | 5.66M | 5.77M | 3.84M |
| OpEx % of Revenue | - | 39.11% | 56.19% | 66.47% | 31.7% | 23.01% | 18.68% | 11.06% | 12.61% | 10.8% |
| Selling, General & Admin | 43.5M | 19.32M | 28.36M | 43.84M | 20.21M | 17.15M | 8.63M | 5.66M | 5.77M | 3.84M |
| SG&A % of Revenue | - | 39.11% | 56.19% | 66.47% | 31.7% | 23.01% | 18.68% | 11.06% | 12.61% | 10.8% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -13.62M | -8.27M | -15.81M | -25.47M | -852.99K | 9.07M | 7.47M | 13.72M | 12.99M | 10.69M |
| Operating Margin % | -13.34% | -16.74% | -31.33% | -38.62% | -1.34% | 12.16% | 16.17% | 26.83% | 28.35% | 30.04% |
| Operating Income Growth % | - | 47.7% | 37.93% | -2886.35% | -109.41% | 21.35% | -45.55% | 5.64% | 21.53% | - |
| EBITDA | -12.19M | -7.43M | -14.96M | -22.52M | 7.38K | 9.68M | 7.5M | 13.74M | 13.21M | 10.7M |
| EBITDA Margin % | -11.95% | -15.05% | -29.64% | -34.15% | 0.01% | 12.99% | 16.23% | 26.86% | 28.83% | 30.07% |
| EBITDA Growth % | 74.55% | 50.3% | 33.58% | -305410.18% | -99.92% | 29.08% | -45.44% | 4.04% | 23.42% | - |
| D&A (Non-Cash Add-back) | 1.4M | 834.23K | 850.74K | 2.95M | 860.36K | 611.9K | 26.38K | 19.7K | 218.28K | 13.21K |
| EBIT | -20.17M | -8.27M | -18.61M | -30.27M | -3.08M | 10.1M | 7.47M | 13.72M | 12.99M | 10.69M |
| Net Interest Income | 2.55M | 2.08M | -213.38K | -512.54K | -75.21K | 85.38K | 76.94K | 39.66K | -48.25K | 21.1K |
| Interest Income | 2.58M | 2.08M | 295.83K | 229.04K | 182.56K | 110.89K | 103.39K | 61.69K | 31.89K | 21.1K |
| Interest Expense | 923.68K | 0 | 509.21K | 741.58K | 257.77K | 25.51K | 26.45K | 22.02K | 80.14K | 0 |
| Other Income/Expense | -85.64K | 2.36M | -3.31M | -5.54M | -2.48M | 1.01M | 75.9K | 15.99K | -48.25K | 21.1K |
| Pretax Income | -20.25M | -5.91M | -19.12M | -31.01M | -3.34M | 10.07M | 7.55M | 13.74M | 12.94M | 10.71M |
| Pretax Margin % | -19.84% | -11.96% | -37.89% | -47.02% | -5.23% | 13.52% | 16.33% | 26.86% | 28.25% | 30.1% |
| Income Tax | 39.88K | 0 | 21.62K | 286.33K | 2.09M | 3.67M | 1.9M | 3.57M | 3.25M | 2.66M |
| Effective Tax Rate % | -0.2% | 0% | -0.11% | -0.92% | -62.77% | 36.46% | 25.16% | 25.95% | 25.1% | 24.84% |
| Net Income | -11.86M | -3.75M | -19.39M | -35.01M | -5.43M | 6.41M | 5.65M | 10.23M | 9.68M | 8.05M |
| Net Margin % | -11.62% | -7.59% | -38.42% | -53.08% | -8.52% | 8.6% | 12.23% | 20.01% | 21.13% | 22.62% |
| Net Income Growth % | 78.97% | 80.67% | 44.62% | -544.67% | -184.73% | 13.44% | -44.8% | 5.71% | 20.27% | - |
| Net Income (Continuing) | -20.29M | -5.91M | -19.14M | -31.3M | -5.43M | 6.4M | 5.65M | 10.17M | 9.69M | 8.05M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 2M | 1.93M | 795.87K | 880.72K | -19.95K | -47.04K | -34.49K | -50.28K | 11.14K | 0 |
| EPS (Diluted) | -245.43 | -1.24 | -47.87 | -601.75 | -27151.04 | 42726.20 | 33646.00 | 60948.00 | 57658.00 | 47938.00 |
| EPS Growth % | 99.57% | 97.4% | 92.04% | 97.78% | -163.55% | 26.99% | -44.8% | 5.71% | 20.28% | - |
| EPS (Basic) | - | -1.24 | -47.87 | -601.75 | -27151.04 | 42726.20 | 33646.00 | 60948.00 | 57658.00 | 47938.00 |
| Diluted Shares Outstanding | 48.3K | 3.01M | 405K | 58.92K | 200 | 150 | 168 | 168 | 168 | 168 |
| Basic Shares Outstanding | 48.3K | 3.01M | 405K | 58.17K | 200 | 150 | 168 | 168 | 168 | 168 |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | 48.74% |
Persistent negative operating margins
As indicated by the most recent quarterly data, EJH's revenue has experienced a persistent decline, with the latest figures showing a 2.11% year-over-year contraction, suggesting that the company's core service offerings are struggling to maintain market share within its primary Fujian province operational footprint.
The consistent inability to achieve positive top-line growth over the last ten quarters implies that the company's service model may be reaching saturation or facing significant competitive displacement. Investors should monitor whether this trend reflects a structural decline in demand for household services or an inability to effectively scale the technician workforce.
According to historical income statements, gross margins have steadily compressed from 33.9% in 2021Q4 to 23.4% in 2026Q2, highlighting the difficulty of managing labor-intensive service costs in an environment where pricing power appears limited by intense local competition and rising wage expectations.
This downward trajectory in gross profitability suggests that the company is failing to pass through rising labor costs to its end customers. The persistent margin pressure indicates that the current business model lacks the necessary pricing power to offset the variable costs inherent in its domestic service operations.
Based on reported financial filings, the company has failed to demonstrate positive operating leverage, as evidenced by the -16.74% operating margin and the recurring inability to scale SG&A expenses efficiently relative to the declining gross profit generated by its service segments.
The lack of operating leverage suggests that the company's administrative and platform-related overhead remains disproportionately high for its current revenue scale. Without a significant reduction in SG&A or a meaningful expansion in gross profit, the company appears unlikely to reach sustainable operating profitability in the near term.
Financial statements reveal a significant anomaly where the company maintains a substantial cash position despite consistent operational losses, raising questions about the quality of earnings and the strategic rationale behind holding such liquidity while the core business continues to burn through capital.
The discrepancy between the large cash balance and the lack of accretive growth or operational improvement warrants deep skepticism regarding the company's capital allocation strategy. Analysts should consider whether this cash is truly available for operational needs or if it represents restricted capital that provides little utility to shareholders.
Quick answers to the most common questions about buying EJH stock.
For fiscal year 2025, E-Home Household Service Holdings Limited (EJH) reported total revenue of $49.4M. This represents a 38.8% increase compared to $35.6M in 2017.
E-Home Household Service Holdings Limited (EJH) reported a net loss of $3.7M for the fiscal year ending 2025.
E-Home Household Service Holdings Limited (EJH) reported an operating income of $-8.3M, resulting in an operating profit margin of -16.7%. This margin reflects the operational efficiency of the business before interest and taxes.
E-Home Household Service Holdings Limited (EJH) generated $11.1M in gross profit for the year, representing a gross profit margin of 22.4%. This demonstrates the company's core pricing power and production efficiency.