Revenue growth is highly volatile, swinging from a -24.5% decline to a 117.8% surge, while gross margins have structurally compressed from a peak of 40.5% to 12.4%, indicating a shift toward lower-margin project work.
Founder Group Limited (FGL) annual income statement — 5-year revenue, gross profit & net income history
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Sales/Revenue | 120.7M | 90.34M | 148.05M | 63.51M | 25.17M |
| Revenue Growth % | 33.6% | -38.98% | 133.12% | 152.3% | - |
| Cost of Goods Sold | 106.72M | 84.1M | 130.2M | 54.83M | 22.01M |
| COGS % of Revenue | 88.42% | 93.09% | 87.94% | 86.33% | 87.44% |
| Gross Profit | 13.98M | 6.24M | 17.85M | 8.68M | 3.16M |
| Gross Margin % | 11.58% | 6.91% | 12.06% | 13.67% | 12.56% |
| Gross Profit Growth % | 123.92% | -65.03% | 105.58% | 174.74% | - |
| Operating Expenses | 16.26M | 11.85M | 6.7M | 3.42M | 788.7K |
| OpEx % of Revenue | 13.47% | 13.12% | 4.52% | 5.38% | 3.13% |
| Selling, General & Admin | 14.95M | 7.15M | 5.51M | 3.42M | 788.7K |
| SG&A % of Revenue | 12.38% | 7.91% | 3.72% | 5.38% | 3.13% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 1.31M | 4.7M | 1.18M | 0 | 0 |
| Operating Income | -2.28M | -5.61M | 11.15M | 5.27M | 2.37M |
| Operating Margin % | -1.89% | -6.21% | 7.53% | 8.29% | 9.42% |
| Operating Income Growth % | 59.28% | -150.27% | 111.8% | 122.01% | - |
| EBITDA | 337.6K | -4.84M | 11.48M | 5.68M | 2.73M |
| EBITDA Margin % | 0.28% | -5.35% | 7.75% | 8.95% | 10.86% |
| EBITDA Growth % | 106.98% | -142.13% | 102% | 107.88% | - |
| D&A (Non-Cash Add-back) | 2.62M | 771.98K | 323.18K | 415.64K | 361.16K |
| EBIT | -281.51K | -3.58M | 11.03M | 5.52M | 2.65M |
| Net Interest Income | -5.13M | -1.96M | -1.45M | -328K | -5.43K |
| Interest Income | 239.94K | 102.61K | 47.26K | 1.34K | 435 |
| Interest Expense | 5.37M | 2.07M | 1.5M | 329.34K | 5.86K |
| Other Income/Expense | -3.37M | -42.72K | -1.36M | -75.18K | 271.14K |
| Pretax Income | -5.66M | -5.65M | 9.79M | 5.19M | 2.64M |
| Pretax Margin % | -4.69% | -6.25% | 6.61% | 8.17% | 10.5% |
| Income Tax | 2.11M | -500.44K | 2.65M | 1.25M | 724.88K |
| Effective Tax Rate % | -37.26% | 8.86% | 27.02% | 24.04% | 27.42% |
| Net Income | -7.76M | -5.15M | 7.15M | 3.94M | 1.92M |
| Net Margin % | -6.43% | -5.7% | 4.83% | 6.21% | 7.62% |
| Net Income Growth % | -50.74% | -172.06% | 81.24% | 105.56% | - |
| Net Income (Continuing) | -7.76M | -5.15M | 7.15M | 3.94M | 1.92M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2482.00 | -2915.00 | 4552.00 | 2512.00 | 1222.00 |
| EPS Growth % | 14.85% | -164.04% | 81.21% | 105.56% | - |
| EPS (Basic) | -2482.00 | -2915.00 | 4552.00 | 2512.00 | 1222.00 |
| Diluted Shares Outstanding | 3.13K | 1.77K | 1.57K | 1.57K | 1.57K |
| Basic Shares Outstanding | 3.13K | 1.77K | 1.57K | 1.57K | 1.57K |
| Dividend Payout Ratio | - | - | - | - | - |
Quick answers to the most common questions about buying FGL stock.
For fiscal year 2025, Founder Group Limited (FGL) reported total revenue of $120.7M. This represents a 379.5% increase compared to $25.2M in 2021.
Founder Group Limited (FGL) reported a net loss of $7.8M for the fiscal year ending 2025.
Founder Group Limited (FGL) reported an operating income of $-2.3M, resulting in an operating profit margin of -1.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Founder Group Limited (FGL) generated $14.0M in gross profit for the year, representing a gross profit margin of 11.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Volatile profitability and margins
Erratic Revenue Growth Pattern
FGL's revenue trajectory is highly volatile, swinging from a 24.5% decline in 2024Q4 to a 117.8% surge in 2025Q4, suggesting project-based revenue recognition rather than stable organic growth.
The extreme quarter-over-quarter swings, such as the jump from $30.0M to $65.2M, indicate revenue is likely driven by the timing of large, discrete engineering or construction project completions. This pattern makes forecasting difficult and implies limited visibility into near-term top-line performance, as growth appears episodic rather than durable.
Structural Margin Compression
Gross margins have deteriorated significantly from a peak of 40.5% in 2023Q4 to just 12.4% in 2025Q4, indicating severe pricing pressure or a shift toward lower-margin project work.
The collapse in gross margin from 40.5% to 12.4% over two years suggests the company may be taking on less profitable contracts to maintain revenue volume, or facing substantial cost overruns. This structural compression directly undermines profitability, as even the 117.8% revenue growth in 2025Q4 could not prevent an operating loss.
Negative Operating Leverage
Operating leverage is negative, as SG&A expenses grew 53.1% from 2024Q4 to 2025Q4 while revenue more than doubled, indicating overhead is not scaling efficiently with the top line.
Despite revenue more than doubling, operating income worsened from a loss of $5.3M to a loss of $1.6M, showing that cost growth is outpacing revenue gains. The increase in SG&A from $6.4M to $9.8M suggests the company is investing in overhead to support growth, but the benefits are not yet flowing to the bottom line.
Persistent Net Losses and EPS Distortion
Reported net income has been negative in three of the last five quarters, with EPS showing extreme volatility from $38.74 to -$27.57, indicating unreliable earnings quality.
The swing from a $6.6M profit in 2023Q4 to consistent losses thereafter suggests the earlier profitability may have been an anomaly driven by project timing. The lack of stock-based compensation and the erratic EPS figures further complicate valuation, as earnings appear driven by non-recurring operational factors rather than sustainable profitability.
2023Q4 Profitability Peak
The 2023Q4 quarter represents a clear operational inflection point, with net income of $6.6M and a 16.5% net margin, the only period of meaningful profitability in the dataset.
This peak was driven by a 40.5% gross margin and controlled SG&A, but it proved unsustainable as margins collapsed in subsequent quarters. The inflection highlights the company's vulnerability to project mix and cost execution, as the operational model could not replicate this performance despite higher revenue levels.
Sustainability of Growth and Margin Recovery
The strongest challenge to the narrative is whether the 117.8% revenue growth in 2025Q4 is sustainable, given the concurrent margin compression and persistent operating losses.
Short-sellers would focus on the fact that the massive revenue increase did not translate to profitability, with gross margin falling to 12.4% and operating loss narrowing only slightly. This suggests the growth may be coming from low-margin or loss-leading projects, raising questions about the quality of the revenue and the path to sustainable positive earnings.