Revenue volatility remains a primary concern, with the company recording a -44.3% operating margin in 2025Q2 as SG&A expenses continue to outpace gross profits.
| Sales/Revenue | 8.86M | 4.47M | 4.8M | 8.16M | 6.95M | 5.98M |
| Revenue Growth % | -37.56% | -6.93% | -41.16% | 17.43% | 16.13% | - |
| Cost of Goods Sold | 6.47M | 2.88M | 2.63M | 4.52M | 4.19M | 4.3M |
| COGS % of Revenue | - | 64.5% | 54.71% | 55.42% | 60.36% | 71.96% |
| Gross Profit | 2.39M | 1.59M | 2.17M | 3.64M | 2.75M | 1.68M |
| Gross Margin % | 27.01% | 35.5% | 45.29% | 44.58% | 39.64% | 28.04% |
| Gross Profit Growth % | - | -27.04% | -40.22% | 32.06% | 64.16% | - |
| Operating Expenses | 13.52M | 9.58M | 2.52M | 2.3M | 1.83M | 856.52K |
| OpEx % of Revenue | - | 214.57% | 52.5% | 28.24% | 26.35% | 14.32% |
| Selling, General & Admin | 13.75M | 9.51M | 2.51M | 2.09M | 1.61M | 856.52K |
| SG&A % of Revenue | - | 212.86% | 52.25% | 25.62% | 23.18% | 14.32% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | -1000K | 76.22K | 12.27K | 214.22K | 219.91K | 0 |
| Operating Income | -10.16M | -8M | -346.31K | 1.33M | 923.38K | 820.63K |
| Operating Margin % | -114.69% | -179.07% | -7.22% | 16.34% | 13.3% | 13.72% |
| Operating Income Growth % | - | -2209.62% | -125.99% | 44.28% | 12.52% | - |
| EBITDA | -10M | -7.7M | -334.04K | 1.55M | 1.14M | 838.61K |
| EBITDA Margin % | -112.88% | -172.47% | -6.96% | 18.96% | 16.46% | 14.02% |
| EBITDA Growth % | -486.36% | -2206.27% | -121.6% | 35.27% | 36.33% | - |
| D&A (Non-Cash Add-back) | 160.44K | 294.55K | 12.27K | 214.22K | 219.91K | 17.98K |
| EBIT | -11.85M | -8.28M | -1.62M | 259.87K | 1.16M | 831.25K |
| Net Interest Income | -1M | -1.24M | -90.82K | -27.32K | -21.78K | -11.06K |
| Interest Income | 243.29K | 2.57K | 1.98K | 99 | 1.42K | 955 |
| Interest Expense | 1.25M | 1.24M | 92.8K | 27.42K | 23.2K | 12.02K |
| Other Income/Expense | -2.2M | -1.52M | -1.27M | -1.1M | 213.26K | -1.4K |
| Pretax Income | -12.36M | -9.52M | -1.62M | 232.45K | 1.14M | 819.23K |
| Pretax Margin % | -139.49% | -213.16% | -33.74% | 2.85% | 16.37% | 13.7% |
| Income Tax | 168.57K | -209.34K | -25.76K | 219.85K | 287.43K | 228.67K |
| Effective Tax Rate % | -1.36% | 2.2% | 1.59% | 94.58% | 25.29% | 27.91% |
| Net Income | -12.53M | -9.31M | -1.59M | 12.6K | 849.21K | 590.57K |
| Net Margin % | -141.4% | -208.48% | -33.2% | 0.15% | 12.23% | 9.87% |
| Net Income Growth % | -4866.46% | -484.42% | -12743.98% | -98.52% | 43.8% | - |
| Net Income (Continuing) | -12.53M | -9.31M | -1.59M | 12.6K | 849.21K | 590.57K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -9.96 | -7.36 | -2.24 | 0.02 | 1.22 | 0.85 |
| EPS Growth % | -2493.13% | -228.57% | -12827.27% | -98.56% | 43.53% | - |
| EPS (Basic) | - | -7.36 | -2.24 | 0.02 | 1.22 | 0.85 |
| Diluted Shares Outstanding | 1.26M | 876.27K | 695K | 695K | 695K | 695K |
| Basic Shares Outstanding | 1.26M | 876.27K | 695K | 695K | 695K | 695K |
| Dividend Payout Ratio | - | - | - | - | 84.65% | - |
Liquidity and operational insolvency
According to the latest quarterly filings, Fitell's revenue trajectory remains highly erratic, with recent figures showing a 24.7% quarterly increase to $2.6M, yet this follows a multi-year trend of significant contraction from the $4.9M peak observed in 2022, suggesting that growth durability remains fundamentally unproven.
The inconsistency in top-line performance indicates that the company is struggling to establish a predictable sales cadence for its equipment and licensing segments. Investors should monitor whether these fluctuations represent genuine market penetration or merely the timing of lumpy, non-recurring hardware orders.
As reported in financial statements, Fitell's gross margin has experienced significant compression, falling to 11.0% in 2025Q2 from historical highs near 50%, which highlights the company's inability to maintain pricing power in a competitive retail environment while managing rising costs of goods sold.
This sharp decline in profitability at the gross level suggests that the company is likely resorting to aggressive discounting to move inventory. Such margin degradation implies that the proprietary brand strategy is not currently providing the defensive moat required to offset broader industry pricing pressures.
Based on reported figures, Fitell's operating leverage is currently non-existent, as the company recorded an operating margin of -44.3% in the most recent quarter, demonstrating that SG&A expenses are significantly outpacing the gross profit generated by its core fitness equipment and licensing operations.
The inability to scale operating income alongside revenue suggests a bloated cost structure that is not aligned with current business volume. This disconnect warrants further investigation into whether the company's fixed overheads can be rationalized without compromising its long-term expansion goals.
Analysis of the income statement reveals that Fitell's net income remains deeply negative, with a net margin of -63.5% in 2025Q2, indicating that the company's bottom-line performance is currently driven by persistent operational deficits rather than non-recurring accounting items or tax anomalies.
The absence of meaningful earnings quality is underscored by the consistent net losses that have plagued the company over the last several quarters. Investors should be wary of the potential for future equity dilution, as the current burn rate appears unsustainable without external capital injections.
Data from recent filings suggests that Fitell's business model faces a critical challenge, as the company's operating losses of $1.2M in 2025Q2 against a limited cash position may indicate that the current strategy is not viable under existing market conditions.
Short-sellers would likely focus on the widening gap between revenue generation and cash preservation, which points to a potential liquidity trap. The reliance on a capital-intensive retail model in a discretionary spending downturn appears to be the primary risk factor for the company's future solvency.
Quick answers to the most common questions about buying FTEL stock.
For fiscal year 2024, Fitell Corporation (FTEL) reported total revenue of $4.5M. This represents a 25.3% decline compared to $6.0M in 2020.
Fitell Corporation (FTEL) reported a net loss of $9.3M for the fiscal year ending 2024.
Fitell Corporation (FTEL) reported an operating income of $-8.0M, resulting in an operating profit margin of -179.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Fitell Corporation (FTEL) generated $1.6M in gross profit for the year, representing a gross profit margin of 35.5%. This demonstrates the company's core pricing power and production efficiency.