Revenue declined by 15.2% in 2025Q2, while operating income swung to a loss of $731.1K as SG&A expenses surged to $1.7M.
| Sales/Revenue | 46.01M | 49.45M | 44.68M | 54.62M | 25.61M | 10M |
| Revenue Growth % | - | 10.67% | -18.19% | 113.31% | 156.11% | - |
| Cost of Goods Sold | 39.88M | 42.12M | 37.3M | 40.69M | 15.54M | 4.98M |
| COGS % of Revenue | - | 85.18% | 83.47% | 74.49% | 60.67% | 49.81% |
| Gross Profit | 6.13M | 7.33M | 7.39M | 13.93M | 10.07M | 5.02M |
| Gross Margin % | 13.33% | 14.82% | 16.53% | 25.51% | 39.33% | 50.19% |
| Gross Profit Growth % | - | -0.79% | -46.97% | 38.36% | 100.72% | - |
| Operating Expenses | 5.49M | 4.48M | 4.24M | 4.47M | 1.85M | 1.65M |
| OpEx % of Revenue | - | 9.06% | 9.5% | 8.18% | 7.21% | 16.53% |
| Selling, General & Admin | 4.84M | 3.78M | 3.52M | 3.95M | 1.84M | 1.64M |
| SG&A % of Revenue | - | 7.65% | 7.87% | 7.24% | 7.18% | 16.44% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 654.88K | 696.84K | 728.32K | 514.4K | 8.76K | 8.76K |
| Operating Income | 642.48K | 2.85M | 3.14M | 9.47M | 8.22M | 3.36M |
| Operating Margin % | 1.4% | 5.76% | 7.04% | 17.33% | 32.12% | 33.65% |
| Operating Income Growth % | - | -9.34% | -66.79% | 15.1% | 144.42% | - |
| EBITDA | 1.01M | 3.53M | 3.87M | 9.98M | 8.23M | 3.37M |
| EBITDA Margin % | 2.21% | 7.14% | 8.67% | 18.27% | 32.15% | 33.74% |
| EBITDA Growth % | - | -8.84% | -61.2% | 21.22% | 144.05% | - |
| D&A (Non-Cash Add-back) | 372.08K | 679.75K | 728.32K | 514.4K | 8.76K | 8.76K |
| EBIT | 647.46K | 2.9M | 3.17M | 9.51M | 8.22M | 3.43M |
| Net Interest Income | 66.92K | -10.37K | -34.55K | -1.55K | -85 | 0 |
| Interest Income | 67.41K | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 485 | 10.37K | 34.55K | 1.55K | 85 | 0 |
| Other Income/Expense | 172.2K | 42.44K | -11.15K | 38.42K | -61 | 61K |
| Pretax Income | 814.68K | 2.89M | 3.13M | 9.5M | 8.22M | 3.43M |
| Pretax Margin % | 1.77% | 5.85% | 7.01% | 17.4% | 32.12% | 34.26% |
| Income Tax | 261.68K | 297.07K | 467.59K | 1.34M | 1.25M | 338.63K |
| Effective Tax Rate % | 32.12% | 10.27% | 14.93% | 14.12% | 15.21% | 9.89% |
| Net Income | 649.26K | 2.6M | 2.67M | 8.16M | 6.97M | 3.09M |
| Net Margin % | 1.41% | 5.25% | 5.96% | 14.94% | 27.23% | 30.88% |
| Net Income Growth % | - | -2.61% | -67.35% | 17.05% | 125.88% | - |
| Net Income (Continuing) | 552.99K | 2.6M | 2.67M | 8.16M | 6.97M | 3.09M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.04 | 0.14 | 0.15 | 0.51 | 0.44 | 0.19 |
| EPS Growth % | - | -6.67% | -70.59% | 15.91% | 131.58% | - |
| EPS (Basic) | - | 0.16 | 0.17 | 0.51 | 0.44 | 0.19 |
| Diluted Shares Outstanding | 18.3M | 18M | 18M | 18M | 18M | 18M |
| Basic Shares Outstanding | 18.3M | 16M | 16M | 16M | 16M | 16M |
| Dividend Payout Ratio | - | - | - | 18.38% | 107.56% | - |
Thin margin operational volatility
As reported in recent financial filings, GLE experienced a 15.2% revenue decline in 2025Q2 compared to previous periods, suggesting that the company's reliance on project-based ICT deployments in the Hong Kong market may be facing significant cyclical pressure or a slowdown in enterprise IT spending.
The sharp drop from $13.4 million in late 2024 to $9.6 million in the most recent quarter indicates that the company lacks a recurring revenue base to buffer against project delays. Investors should monitor whether this contraction reflects a temporary timing mismatch in contract completions or a more structural deterioration in the firm's competitive positioning within the regional ICT services landscape.
Based on the provided income statement data, GLE's gross margin has compressed to 12.2% in 2025Q2, down from a peak of 15.6% in 2024Q2, highlighting the inherent difficulty in maintaining profitability when faced with rising input costs or competitive pricing pressures in the Hong Kong market.
This margin profile suggests that the company operates as a low-moat integrator with limited pricing power over its hardware procurement and technical labor costs. The inability to sustain margins above 15% implies that any minor increase in operational expenses or project execution costs will likely lead to immediate bottom-line losses.
According to the latest quarterly figures, GLE's operating income swung to a loss of $731.1K in 2025Q2, demonstrating that the company's fixed SG&A costs are not scaling efficiently with the recent decline in gross profit generation across its primary service segments.
The transition from positive operating income in 2024 to a negative 7.6% operating margin suggests that the company's cost structure is too rigid to accommodate revenue volatility. Without a significant shift toward higher-margin service offerings, the firm appears vulnerable to continued operating losses during periods of reduced project activity.
As evidenced by the financial statements, GLE's SG&A expenses spiked to $1.7 million in 2025Q2, a significant increase from the $686K levels observed in late 2024, which suggests that management may be struggling to align administrative overhead with the current lower revenue environment.
The sudden escalation in overhead costs during a period of revenue contraction warrants further investigation into whether these are one-time administrative adjustments or a permanent increase in the company's cost base. If these expenses remain elevated, the path to returning to profitability will likely require a substantial and difficult reduction in headcount or operational footprint.
Quick answers to the most common questions about buying GLE stock.
For fiscal year 2024, Global Engine Group Holding Limited Ordinary Shares (GLE) reported total revenue of $49.5M. This represents a 394.6% increase compared to $10.0M in 2020.
Global Engine Group Holding Limited Ordinary Shares (GLE) is profitable, generating $2.6M in net income for the fiscal year ending 2024 with a net profit margin of 5.2%.
Global Engine Group Holding Limited Ordinary Shares (GLE) reported an operating income of $2.9M, resulting in an operating profit margin of 5.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Global Engine Group Holding Limited Ordinary Shares (GLE) generated $7.3M in gross profit for the year, representing a gross profit margin of 14.8%. This demonstrates the company's core pricing power and production efficiency.