The firm's profitability has collapsed, with operating margins swinging from a robust 81.4% in 2024Q4 to a negative 4.1% in 2026Q2 due to an inability to cover fixed costs.
| Sales/Revenue | 7.36M | - | - | - |
| Revenue Growth % | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - |
| COGS % of Revenue | - | - | - | - |
| Gross Profit | 5.75M | 3.32M | 3.01M | 2.32M |
| Gross Margin % | 78.1% | 76.5% | 66.46% | 60.03% |
| Gross Profit Growth % | - | 10.27% | 29.53% | - |
| Operating Expenses | 1.57M | 1.42M | 887.04K | 891.61K |
| OpEx % of Revenue | - | 32.68% | 19.58% | 23.03% |
| Selling, General & Admin | 1.57M | 1.42M | 887.04K | 891.61K |
| SG&A % of Revenue | - | 32.68% | 19.58% | 23.03% |
| Research & Development | 0 | - | - | - |
| R&D % of Revenue | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - |
| Operating Income | 4.17M | 1.9M | 2.12M | 1.43M |
| Operating Margin % | 56.74% | 43.82% | 46.87% | 37% |
| Operating Income Growth % | - | -10.45% | 48.23% | - |
| EBITDA | 4.22M | 2.09M | 2.31M | 1.65M |
| EBITDA Margin % | 57.33% | 48.07% | 50.98% | 42.68% |
| EBITDA Growth % | - | -9.67% | 39.76% | - |
| D&A (Non-Cash Add-back) | 43.17K | 184.61K | 186.13K | 219.98K |
| EBIT | 4.14M | 1.9M | 2.12M | 1.49M |
| Net Interest Income | 25.69K | 9.35K | 9.26K | 3.28K |
| Interest Income | 25.69K | 9.35K | 9.26K | 3.28K |
| Interest Expense | 0 | 0 | 0 | 0 |
| Other Income/Expense | 0 | - | - | - |
| Pretax Income | 4.16M | 1.91M | 2.13M | 1.5M |
| Pretax Margin % | 56.48% | 44.1% | 47.08% | 38.8% |
| Income Tax | 657.25K | 294.18K | 334.07K | 222.69K |
| Effective Tax Rate % | 15.82% | 15.37% | 15.67% | 14.83% |
| Net Income | 3.5M | 1.62M | 1.8M | 1.28M |
| Net Margin % | 47.59% | 37.32% | 39.7% | 33.05% |
| Net Income Growth % | - | -9.95% | 40.56% | - |
| Net Income (Continuing) | 3.5M | 1.62M | 1.8M | 163.19K |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 37.36K | 6 | 0 | 0 |
| EPS (Diluted) | 0.15 | 0.16 | 0.18 | 0.13 |
| EPS Growth % | - | -11.11% | 38.46% | - |
| EPS (Basic) | - | 0.16 | 0.18 | 0.13 |
| Diluted Shares Outstanding | 23.82M | 10M | 10M | 10M |
| Basic Shares Outstanding | 23.82M | 10M | 10M | 10M |
| Dividend Payout Ratio | - | 47.51% | - | - |
Regulatory pipeline dependency
As evidenced by the dramatic revenue contraction to $37.6K in 2026Q2 from $3.0M in 2024Q4, the firm's top-line performance is highly susceptible to the cyclical nature of Hong Kong IPO mandates and the timing of successful regulatory approvals for its small-cap client base.
The sharp decline suggests that the firm's reliance on transactional success fees creates significant quarterly revenue lumpiness. Investors should monitor whether this contraction represents a temporary pause in the listing pipeline or a more permanent shift in the firm's ability to secure viable mandates.
According to the provided financial data, the firm's gross margin plummeted to -20.6% in 2026Q2, a stark reversal from the 81.7% margin observed in 2024Q4, indicating that fixed costs are no longer being adequately absorbed by the current volume of transactional advisory work.
The collapse in margins highlights the firm's vulnerability to fixed-cost overheads when deal flow dries up. This suggests that the current business model lacks the necessary scale to maintain profitability during periods of low market activity, warranting caution regarding future margin stability.
Based on reported figures, the operating margin swung from a robust 81.4% in 2024Q4 to a negative 4.1% in 2026Q2, demonstrating that the firm's high fixed-cost structure, primarily driven by professional compensation, creates significant downside risk when revenue growth fails to materialize.
The inability to scale SG&A downward in proportion to the revenue decline suggests a rigid cost structure that may be difficult to manage in a prolonged downturn. This indicates that the firm's operating leverage is currently working against its bottom-line performance.
As reported in recent financial statements, the transition from a $2.1M net profit in 2024Q4 to a $186.6K net loss in 2026Q2 highlights the extreme sensitivity of the firm's earnings to the successful completion of milestone-based advisory projects within specific reporting periods.
The lack of recurring revenue streams makes the reported net income highly unreliable for forecasting purposes. Investors should be wary of the potential for further earnings volatility if the firm continues to struggle with the timing and conversion of its IPO sponsorship pipeline.
While the firm maintains a low debt profile, the recent financial data suggests that the business model may be fundamentally challenged by the tightening regulatory environment, which could permanently impair the firm's ability to generate the high-margin success fees that previously defined its performance.
Short-term observers might focus on the firm's cash position, but the underlying income statement suggests a potential erosion of the firm's competitive moat. The risk remains that the firm's reliance on a narrow segment of the market leaves it exposed to regulatory shifts that could render its current advisory services obsolete.
Quick answers to the most common questions about buying GRAN stock.
Grande Group Limited Class A Ordinary Shares (GRAN) is profitable, generating $1.6M in net income for the fiscal year ending 2025 with a net profit margin of 37.3%.
Grande Group Limited Class A Ordinary Shares (GRAN) reported an operating income of $1.9M, resulting in an operating profit margin of 43.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Grande Group Limited Class A Ordinary Shares (GRAN) generated $3.3M in gross profit for the year, representing a gross profit margin of 76.5%. This demonstrates the company's core pricing power and production efficiency.