The company's operating margin has deteriorated to -38.8%, reflecting a structural misalignment between fixed costs and a declining revenue base.
| Sales/Revenue | 5.12M | 12.52M | 29.2M | 11.17M | 18.2M | 19.76M |
| Revenue Growth % | -59.11% | -57.12% | 161.3% | -38.62% | -7.86% | - |
| Cost of Goods Sold | 4.36M | 10.91M | 23.65M | 9.25M | 16.18M | 17.92M |
| COGS % of Revenue | 85.27% | 87.18% | 81.02% | 82.8% | 88.88% | 90.69% |
| Gross Profit | 753.77K | 1.6M | 5.54M | 1.92M | 2.02M | 1.84M |
| Gross Margin % | 14.73% | 12.82% | 18.98% | 17.2% | 11.12% | 9.31% |
| Gross Profit Growth % | -53.02% | -71.05% | 188.33% | -5.06% | 10.04% | - |
| Operating Expenses | 2.25M | 1.2M | 1.21M | 684.28K | 711.65K | 755.83K |
| OpEx % of Revenue | 43.96% | 9.56% | 4.14% | 6.12% | 3.91% | 3.83% |
| Selling, General & Admin | 2.13M | 1.2M | 1.21M | 684.28K | 711.65K | 755.83K |
| SG&A % of Revenue | 41.59% | 9.56% | 4.14% | 6.12% | 3.91% | 3.83% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 121.17K | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -1.5M | 407.9K | 4.33M | 1.24M | 1.31M | 1.08M |
| Operating Margin % | -29.23% | 3.26% | 14.84% | 11.08% | 7.21% | 5.49% |
| Operating Income Growth % | -466.76% | -90.59% | 250.03% | -5.72% | 21.12% | - |
| EBITDA | -1.5M | 423.31K | 4.35M | 1.26M | 1.34M | 1.1M |
| EBITDA Margin % | -29.23% | 3.38% | 14.91% | 11.28% | 7.34% | 5.59% |
| EBITDA Growth % | -453.41% | -90.27% | 245.34% | -5.64% | 20.9% | - |
| D&A (Non-Cash Add-back) | 0 | 15.41K | 19.99K | 22.59K | 22.86K | 20.94K |
| EBIT | -1.5M | 409.36K | 4.31M | 1.38M | 1.35M | 1.09M |
| Net Interest Income | 0 | 0 | -5.25K | -74.25K | -139.76K | -18.57K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 5.25K | 74.25K | 139.76K | 18.57K |
| Other Income/Expense | -324 | 1.46K | -26.54K | 68.12K | -104.35K | -12.58K |
| Pretax Income | -1.5M | 409.36K | 4.31M | 1.31M | 1.21M | 1.07M |
| Pretax Margin % | -29.24% | 3.27% | 14.75% | 11.69% | 6.64% | 5.42% |
| Income Tax | 0 | 124.67K | 587.98K | 175K | 156.54K | 119.85K |
| Effective Tax Rate % | 0% | 30.45% | 13.65% | 13.4% | 12.95% | 11.19% |
| Net Income | -1.5M | 274.86K | 3.67M | 1.12M | 1.04M | 941.99K |
| Net Margin % | -29.26% | 2.2% | 12.59% | 10% | 5.72% | 4.77% |
| Net Income Growth % | -644.87% | -92.52% | 228.82% | 7.29% | 10.56% | - |
| Net Income (Continuing) | -1.5M | 284.69K | 3.72M | 1.13M | 1.05M | 951.51K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 94.23K | 84.39K | 40.58K | 27.07K | 16.51K |
| EPS (Diluted) | -0.11 | 0.02 | 0.28 | 0.08 | 0.08 | 0.07 |
| EPS Growth % | -623.81% | -92.5% | 232.15% | 7.25% | 10.55% | - |
| EPS (Basic) | -0.11 | 0.02 | 0.28 | 0.08 | 0.08 | 0.07 |
| Diluted Shares Outstanding | 13.44M | 13.25M | 13.25M | 13.25M | 13.25M | 13.25M |
| Basic Shares Outstanding | 13.44M | 13.25M | 13.25M | 13.25M | 13.25M | 13.25M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Liquidity and revenue collapse
As reported in recent financial statements, EPSM experienced a significant revenue decline, with quarterly turnover dropping from $3.0M to $2.1M, reflecting a contraction that suggests the company's reliance on high-end luxury beverage distribution is currently failing to maintain its historical market footprint in Macau.
The sharp reduction in top-line performance indicates that the company's transactional business model is highly susceptible to volatility in the luxury hospitality and gaming sectors. This trend suggests that the firm may be losing its competitive edge in securing the necessary allocations of premium spirits and fine wines required to sustain its revenue base.
Based on the latest income statement data, EPSM's gross margin compressed from 16.3% to 12.5%, highlighting a lack of pricing power that leaves the firm unable to effectively absorb procurement cost fluctuations within its ultra-premium spirits and wine portfolio.
The inability to maintain double-digit gross margins in a luxury-focused segment suggests that the company is operating as a low-value intermediary rather than a premium brand partner. Investors should monitor whether this margin erosion is a permanent feature of their current procurement strategy or a temporary result of aggressive discounting to clear stagnant inventory.
According to the provided financial figures, EPSM's operating margin deteriorated to -38.8% in the most recent quarter, demonstrating that the company's fixed cost structure is significantly misaligned with its current, diminished revenue scale and overall lack of operational efficiency.
The persistence of negative operating income despite the company's efforts to manage SG&A suggests that the current business model is not scalable under existing market conditions. Without a substantial increase in sales volume or a radical reduction in fixed overhead, the company appears to be struggling to reach a break-even point.
Data from the income statement indicates that EPSM is currently burning through its cash reserves, with net losses of nearly $800K in the most recent quarter, raising significant questions about the long-term viability of its current procurement-heavy, low-margin distribution strategy.
Short-sellers would likely focus on the company's inability to generate positive cash flow and the potential for further inventory write-downs given the illiquid nature of high-end wine assets. The lack of proprietary brands makes the firm entirely dependent on third-party allocations, which may be at risk if the company's financial health continues to decline.
Quick answers to the most common questions about buying EPSM stock.
For fiscal year 2025, Epsium Enterprise Limited Ordinary Shares (EPSM) reported total revenue of $5.1M. This represents a 74.1% decline compared to $19.8M in 2020.
Epsium Enterprise Limited Ordinary Shares (EPSM) reported a net loss of $1.5M for the fiscal year ending 2025.
Epsium Enterprise Limited Ordinary Shares (EPSM) reported an operating income of $-1.5M, resulting in an operating profit margin of -29.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Epsium Enterprise Limited Ordinary Shares (EPSM) generated $0.8M in gross profit for the year, representing a gross profit margin of 14.7%. This demonstrates the company's core pricing power and production efficiency.