Revenue has experienced a structural collapse, falling to $1.9 million in 2026Q1 while operating margins remain deeply negative at -161.5%.
| Sales/Revenue | 9.59M | 7.71M | 545.9M | 7.44M | 6.88M |
| Revenue Growth % | -96.45% | -98.59% | 7239.41% | 8.16% | - |
| Cost of Goods Sold | 4.34M | 3.41M | 136.65M | 3.2M | 2.12M |
| COGS % of Revenue | - | 44.17% | 25.03% | 43.01% | 30.8% |
| Gross Profit | 5.25M | 4.31M | 409.26M | 4.24M | 4.76M |
| Gross Margin % | 54.78% | 55.83% | 74.97% | 56.99% | 69.2% |
| Gross Profit Growth % | - | -98.95% | 9554.61% | -10.93% | - |
| Operating Expenses | 13.84M | 10.26M | 382.61M | 9.52M | 5.46M |
| OpEx % of Revenue | - | 133.02% | 70.09% | 128.05% | 79.32% |
| Selling, General & Admin | 12.82M | 9.54M | 12.3M | 8.92M | 5.18M |
| SG&A % of Revenue | - | 123.68% | 2.25% | 119.92% | 75.32% |
| Research & Development | 1.02M | 720K | 732K | 604K | 275K |
| R&D % of Revenue | - | 9.33% | 0.13% | 8.12% | 4% |
| Other Operating Expenses | 0 | 0 | 369.58M | 0 | 0 |
| Operating Income | -8.58M | -5.95M | -2.26M | -5.29M | -696K |
| Operating Margin % | -89.45% | -77.18% | -0.41% | -71.05% | -10.12% |
| Operating Income Growth % | - | -163% | 57.16% | -659.34% | - |
| EBITDA | -8.23M | -5.68M | -1.97M | -5.03M | -528K |
| EBITDA Margin % | -85.75% | -73.59% | -0.36% | -67.65% | -7.68% |
| EBITDA Growth % | -276.94% | -187.47% | 60.75% | -853.03% | - |
| D&A (Non-Cash Add-back) | 355K | 277K | 289K | 253K | 168K |
| EBIT | -8.58M | -657K | -15.12M | -6.3M | -570K |
| Net Interest Income | -17.63M | -268K | -234K | -451K | -158K |
| Interest Income | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 17.63M | 268K | 234K | 451K | 158K |
| Other Income/Expense | 8.85M | 5.03M | 2.44M | -1.47M | -32K |
| Pretax Income | 268.9K | -925K | 172.31K | -6.75M | -728K |
| Pretax Margin % | 2.8% | -11.99% | 0.03% | -90.76% | -10.59% |
| Income Tax | 7K | 3K | 31K | 11K | 23K |
| Effective Tax Rate % | 2.6% | -0.32% | 17.99% | -0.16% | -3.16% |
| Net Income | 261.9K | -928K | -15.38M | -6.76M | -751K |
| Net Margin % | 2.73% | -12.03% | -2.82% | -90.91% | -10.92% |
| Net Income Growth % | 108.13% | 93.97% | -127.49% | -800.4% | - |
| Net Income (Continuing) | 261.9K | -928K | -15.38M | -6.76M | -751K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.01 | -0.08 | -0.58 | -0.26 | -0.03 |
| EPS Growth % | -364.19% | 86.12% | -123.08% | -818.73% | - |
| EPS (Basic) | - | -0.08 | -0.58 | -0.26 | -0.03 |
| Diluted Shares Outstanding | 28.94M | 11.53M | 26.5M | 26.5M | 26.5M |
| Basic Shares Outstanding | 28.94M | 11.53M | 26.5M | 26.5M | 26.5M |
| Dividend Payout Ratio | - | - | - | - | - |
Terminal Revenue Contraction Risk
As reported in recent financial statements, Fusemachines experienced a staggering revenue contraction, with quarterly figures plummeting from over $130 million in 2024 to a mere $1.9 million by 2026Q1, signaling a fundamental breakdown in the company's ability to retain its primary business segments or market relevance.
The extreme volatility in top-line performance suggests that the company's previous revenue scale was likely tied to non-recurring or highly concentrated contracts that have since evaporated. Investors should interpret this trajectory as a potential terminal decline rather than a cyclical downturn, as there is no evidence of a stable growth floor.
Based on the provided income statement data, gross margins have fluctuated significantly, settling at 50.5% in 2026Q1, which appears insufficient to cover the company's high fixed operating costs and suggests a lack of pricing power in its current niche software application service model.
The inability to maintain gross margins above the 60% threshold typically expected for software-as-a-service providers indicates that the company is likely burdened by high variable costs or manual service delivery requirements. This margin profile implies that the business model may be fundamentally unscalable in its current configuration.
According to the company's reported figures, the operating margin reached a deeply negative -161.5% in 2026Q1, demonstrating that the firm has failed to achieve any meaningful operating leverage as revenue has collapsed while SG&A expenses remain disproportionately high relative to the current top-line.
The persistent gap between gross profit and operating income suggests that management has not successfully rightsized the cost structure to match the diminished revenue base. This lack of efficiency indicates that the company is currently consuming its remaining capital to fund an oversized administrative and operational footprint.
As evidenced by the 2025Q4 net income of $21.2 million despite an operating loss of $4 million, the company's bottom-line results appear heavily influenced by non-operating gains or accounting adjustments that do not reflect the underlying health of the core software business operations.
Investors should exercise caution when evaluating net income, as these non-recurring items mask the severe cash-burning nature of the core business. A focus on operating cash flow is warranted to determine if the company can sustain its current trajectory without further dilutive financing or asset liquidation.
While some market participants may view the remaining $7.7 million revenue base as a potential platform for a pivot, the company's history of extreme revenue volatility and negative operating margins suggests that the risk of total capital impairment remains the most likely outcome for shareholders.
The counter-narrative that FUSE could serve as a 'clean shell' for future acquisitions ignores the significant cash burn and the potential for further operational deterioration. Without a clear, evidence-based path to profitability, the current valuation appears to be driven more by speculative hope than by fundamental business viability.
Quick answers to the most common questions about buying FUSE stock.
For fiscal year 2025, Fusemachines Inc. (FUSE) reported total revenue of $7.7M. This represents a 12.2% increase compared to $6.9M in 2022.
Fusemachines Inc. (FUSE) reported a net loss of $0.9M for the fiscal year ending 2025.
Fusemachines Inc. (FUSE) reported an operating income of $-6.0M, resulting in an operating profit margin of -77.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Fusemachines Inc. (FUSE) generated $4.3M in gross profit for the year, representing a gross profit margin of 55.8%. This demonstrates the company's core pricing power and production efficiency.