Revenue performance has collapsed significantly, with gross margins compressing from a historical high of 59.5% in 2023Q3 to 35.4% in 2026Q2.
Galaxy Payroll Group Limited (GLXG) annual income statement — 6-year revenue, gross profit & net income history
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 |
|---|
| Sales/Revenue | 17.97M | 3.52M | 30.12M | 31.47M | 46.92M | 34.79M | 35.3M |
| Revenue Growth % | -53.59% | -88.31% | -4.26% | -32.93% | 34.86% | -1.44% | - |
| Cost of Goods Sold | 9.88M | 2.04M | 13.95M | 13M | 11.7M | 11.48M | 9.81M |
| COGS % of Revenue | - | 57.8% | 46.31% | 41.31% | 24.93% | 32.99% | 27.78% |
| Gross Profit | 8.09M | 1.49M | 16.17M | 18.47M | 35.22M | 23.31M | 25.49M |
| Gross Margin % | 45.01% | 42.2% | 53.69% | 58.69% | 75.07% | 67.01% | 72.22% |
| Gross Profit Growth % | - | -90.81% | -12.42% | -47.56% | 51.08% | -8.55% | - |
| Operating Expenses | 11.11M | 5.05M | 9.15M | 8.12M | 8.14M | 11.45M | 17.39M |
| OpEx % of Revenue | - | 143.4% | 30.37% | 25.79% | 17.36% | 32.92% | 49.27% |
| Selling, General & Admin | 11.11M | 2.65M | 8.64M | 7.81M | 7.77M | 11.45M | 17.39M |
| SG&A % of Revenue | - | 75.27% | 28.66% | 24.81% | 16.56% | 32.92% | 49.27% |
| Research & Development | 0 | 2.4M | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 68.13% | - | - | - | - | - |
| Other Operating Expenses | 8 | 0 | 513.71K | 310.31K | 373.57K | 0 | 8 |
| Operating Income | -4.65M | -3.56M | 7.02M | 10.35M | 27.08M | 11.86M | 8.1M |
| Operating Margin % | -25.88% | -101.2% | 23.32% | 32.89% | 57.71% | 34.09% | 22.95% |
| Operating Income Growth % | - | -150.72% | -32.13% | -61.77% | 128.33% | 46.42% | - |
| EBITDA | -4.43M | -3.41M | 8.26M | 11.6M | 28.41M | 13.16M | 8.21M |
| EBITDA Margin % | -24.68% | -96.72% | 27.43% | 36.85% | 60.56% | 37.82% | 23.27% |
| EBITDA Growth % | -176.96% | -141.21% | -28.74% | -59.18% | 115.96% | 60.2% | - |
| D&A (Non-Cash Add-back) | 216.41K | 157.57K | 1.24M | 1.25M | 1.33M | 1.3M | 113.04K |
| EBIT | -4.6M | -3.46M | 7.32M | 10.94M | 27.49M | 12.55M | 8.1M |
| Net Interest Income | 251.59K | 89.55K | 187.05K | 63.12K | -54.49K | -223.81K | -125.56K |
| Interest Income | 260.98K | 97.21K | 221.72K | 186.39K | 659 | 9.86K | 0 |
| Interest Expense | 9.4K | 7.67K | 34.67K | 123.27K | 55.15K | 233.67K | 0 |
| Other Income/Expense | 227.35K | 93.09K | 264.81K | 466.09K | 178.09K | 454.34K | 33.44K |
| Pretax Income | -4.42M | -3.47M | 7.29M | 10.82M | 27.25M | 12.31M | 8.13M |
| Pretax Margin % | -24.62% | -98.56% | 24.2% | 34.37% | 58.09% | 35.39% | 23.04% |
| Income Tax | 215.77K | 68.74K | 1.78M | 1.81M | 4.7M | 2.62M | 3.53M |
| Effective Tax Rate % | -4.88% | -1.98% | 24.47% | 16.69% | 17.23% | 21.28% | 43.35% |
| Net Income | -4.64M | -3.54M | 5.51M | 9.01M | 22.56M | 9.69M | 4.61M |
| Net Margin % | -25.82% | -100.51% | 18.28% | 28.64% | 48.08% | 27.86% | 13.05% |
| Net Income Growth % | -158.94% | -164.28% | -38.9% | -60.06% | 132.75% | 110.37% | - |
| Net Income (Continuing) | -4.64M | -3.54M | 5.51M | 9.01M | 22.56M | 9.69M | 4.61M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.29 | -1.96 | 3.32 | 5.10 | 12.70 | 5.46 | 2.87 |
| EPS Growth % | -218.49% | -159.04% | -34.9% | -59.84% | 132.6% | 90.24% | - |
| EPS (Basic) | - | -1.96 | 3.32 | 5.55 | 13.90 | 5.97 | 2.87 |
| Diluted Shares Outstanding | 2.03M | 1.81M | 1.66M | 1.77M | 1.77M | 1.77M | 1.6M |
| Basic Shares Outstanding | 2.03M | 1.81M | 1.66M | 1.62M | 1.62M | 1.62M | 1.6M |
| Dividend Payout Ratio | - | - | 171.85% | 109.69% | 83.89% | 15.48% | 147.81% |
Quick answers to the most common questions about buying GLXG stock.
For fiscal year 2025, Galaxy Payroll Group Limited (GLXG) reported total revenue of $3.5M. This represents a 90.0% decline compared to $35.3M in 2020.
Galaxy Payroll Group Limited (GLXG) reported a net loss of $3.5M for the fiscal year ending 2025.
Galaxy Payroll Group Limited (GLXG) reported an operating income of $-3.6M, resulting in an operating profit margin of -101.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Galaxy Payroll Group Limited (GLXG) generated $1.5M in gross profit for the year, representing a gross profit margin of 42.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Extreme revenue concentration risk
Revenue Base Facing Structural Erosion
According to the provided financial data, GLXG has experienced a severe contraction in top-line performance, with quarterly revenue figures fluctuating wildly and ultimately failing to sustain the $27.2 million peak observed in 2024Q1, signaling a potential loss of critical client relationships or fundamental business model instability.
The extreme volatility in quarterly revenue suggests that the company's business model is highly sensitive to the retention of a very small number of large-scale contracts. Investors should monitor whether this contraction reflects a permanent shift in market demand for the company's multi-jurisdictional payroll services or a failure to compete against more agile, digital-first regional competitors.
Gross Margin Compression Amid Instability
As reported in the income statement, GLXG's gross margin profile has demonstrated significant inconsistency, dropping from historical highs near 59% to 35.4% in 2026Q2, which suggests that the company is struggling to maintain pricing power while managing the direct costs of its specialized compliance-heavy service delivery model.
The inability to maintain stable gross margins indicates that the company may be forced to offer deeper discounts to retain remaining clients or that the cost of maintaining compliance infrastructure has become disproportionately high relative to the shrinking revenue base. This trend warrants further investigation into whether the company's service delivery model remains economically viable at current scale levels.
Operating Leverage Decoupled From Reality
Based on the reported figures, GLXG's operating margin has collapsed to -101.2% in recent periods, indicating that the company's fixed administrative overhead is currently far too heavy to be supported by the significantly diminished revenue stream, effectively erasing any potential for operational scaling or profitability.
The decoupling of SG&A expenses from revenue suggests a lack of operational agility, as the company appears unable to right-size its corporate infrastructure in response to the massive top-line contraction. This structural imbalance implies that the current cost base may be unsustainable without a radical pivot in the company's operating strategy or a significant reduction in headcount.
Distressed Asset Versus Operational Entity
While the income statement paints a picture of a failing payroll provider, the company's $4.1 million cash position relative to its $3.5 million TTM revenue suggests that the market may be mispricing the firm by ignoring its potential value as a shell or a collection of regional licenses.
Short-sellers would likely focus on the rapid depletion of cash reserves and the lack of a clear path to operational profitability, viewing the company as a classic value trap. However, an alternative interpretation is that the firm's established legal infrastructure across 11 jurisdictions could hold strategic value for a larger player seeking rapid market entry, provided the remaining cash is not entirely consumed by ongoing losses.