Revenue growth has faced severe headwinds with a 67.8% year-over-year contraction, while gross margins have compressed sharply from historical highs of 85.6% to just 7.0% in 2024Q4.
| Sales/Revenue | 87.04M | 59.04M | 23.45M | 49.9M | 33.06M | 198.38M | 196.05M | 166.3M | 14.55M |
| Revenue Growth % | - | 151.79% | -53.01% | 50.96% | -83.34% | 1.19% | 17.89% | 1042.77% | - |
| Cost of Goods Sold | 13.37M | 20.27M | 5.06M | 6.15M | 9.87M | 9.29M | 48.08M | 15.17M | 9.17M |
| COGS % of Revenue | - | 34.33% | 21.57% | 12.32% | 29.84% | 4.68% | 24.53% | 9.12% | 63% |
| Gross Profit | 83.49M | 38.77M | 18.39M | 43.75M | 23.19M | 15.98M | 25.25M | 152.36M | 5.38M |
| Gross Margin % | 95.92% | 65.67% | 78.43% | 87.68% | 70.16% | 8.05% | 12.88% | 91.61% | 37% |
| Gross Profit Growth % | - | 110.82% | -57.97% | 88.66% | 45.14% | -36.72% | -83.43% | 2729.54% | - |
| Operating Expenses | 26.64M | 29.63M | 6.28M | 6M | 5.8M | 5M | 8.56M | 29.66M | 16.59M |
| OpEx % of Revenue | - | 50.18% | 26.76% | 12.03% | 17.53% | 2.52% | 4.36% | 17.84% | 114% |
| Selling, General & Admin | 9.07M | 16.41M | 575K | 12.15M | 3.54M | 3.53M | 7.4M | 6.69M | 4.19M |
| SG&A % of Revenue | - | 27.79% | 2.45% | 24.34% | 10.72% | 1.78% | 3.78% | 4.02% | 28.8% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 131.38K | 13.22M | 5.7M | -6.14M | 2.25M | 1.47M | 1.15M | 22.97M | 12.4M |
| Operating Income | 7.58M | 9.15M | 12.12M | 37.75M | 17.39M | 10.98M | 125.18M | 142.97M | 1.45M |
| Operating Margin % | 8.71% | 15.49% | 51.67% | 75.65% | 52.62% | 5.53% | 63.85% | 85.97% | 9.95% |
| Operating Income Growth % | - | -24.51% | -67.91% | 117.03% | 58.48% | -91.23% | -12.45% | 9770.91% | - |
| EBITDA | 11.96M | 18.64M | 17.76M | 40.58M | 18.71M | 17.61M | 130.08M | 142.97M | 1.45M |
| EBITDA Margin % | 13.74% | 31.57% | 75.73% | 81.31% | 56.59% | 8.88% | 66.35% | 85.97% | 9.95% |
| EBITDA Growth % | - | 4.95% | -56.23% | 116.91% | 6.2% | -86.46% | -9.02% | 9770.91% | - |
| D&A (Non-Cash Add-back) | 4.57M | 9.49M | 5.64M | 2.82M | 1.31M | 6.64M | 4.9M | 0 | 0 |
| EBIT | 34.81M | 108.99M | 52.79M | 28.43M | 46.48M | 218.14M | 125.21M | 142.97M | 1.45M |
| Net Interest Income | 17.92M | 11.46M | 9.69M | 11.17M | 14.75M | 743K | 18K | 0 | 22.31K |
| Interest Income | 20.61M | 21.77M | 20.02M | 11.17M | 15.94M | 743K | 18K | 0 | 22.31K |
| Interest Expense | 0 | 10.32M | 10.33M | 0 | 1.19M | 0 | 0 | 0 | 0 |
| Other Income/Expense | 97.4M | 89.53M | 30.34M | 27.8M | 27.89M | 17.89M | 71.33M | 37.72M | 20.71M |
| Pretax Income | 111.14M | 98.67M | 42.46M | 65.55M | 45.28M | 28.87M | 196.49M | 180.7M | 22.15M |
| Pretax Margin % | 127.7% | 167.13% | 181.08% | 131.36% | 136.99% | 14.55% | 100.22% | 108.65% | 152.2% |
| Income Tax | 5.82M | 1.68M | 785K | 3.98M | 4.48M | -23.61M | 24.64M | 23.54M | 606.94K |
| Effective Tax Rate % | 5.24% | 1.7% | 1.85% | 6.07% | 9.9% | -81.79% | 12.54% | 13.03% | 2.74% |
| Net Income | 161.46M | 54.7M | 44.44M | 63.88M | 42.05M | 215.72M | 178.09M | 150.24M | 17.6M |
| Net Margin % | 185.51% | 92.66% | 189.54% | 128.01% | 127.2% | 108.74% | 90.84% | 90.34% | 120.94% |
| Net Income Growth % | - | 23.09% | -30.42% | 51.92% | -80.51% | 21.13% | 18.54% | 753.66% | - |
| Net Income (Continuing) | 106.89M | 96.99M | 41.68M | 61.57M | 40.8M | 25.84M | 171.93M | 157.16M | 21.55M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -8.77M | 337.87M | 140.29M | -8.76M | 5.85M | 19.73M | 25.22M | 0 | 27.11M |
| EPS (Diluted) | 0.84 | 0.18 | 0.18 | 0.33 | 0.22 | 1.27 | 1.32 | 0.11 | 0.01 |
| EPS Growth % | - | 0% | -45.45% | 50% | -82.68% | -3.79% | 1100% | 809.09% | - |
| EPS (Basic) | - | 0.18 | 0.18 | 0.33 | 0.22 | 1.27 | 1.32 | 0.11 | 0.01 |
| Diluted Shares Outstanding | 191.64M | 314.28M | 253.52M | 191.64M | 185.52M | 169.02M | 132.32M | 177.03M | 185.05M |
| Basic Shares Outstanding | 191.51M | 314.28M | 253.46M | 191.51M | 185.4M | 168.95M | 132.32M | 177M | 185.05M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Non-operating income dependency
As indicated by the most recent quarterly filings, AMTD Digital's revenue has experienced a sharp 67.8% year-over-year decline, suggesting that the initial momentum of its ecosystem-based business model is facing significant challenges in maintaining consistent top-line growth within the competitive Hong Kong financial services landscape.
The dramatic volatility in revenue figures implies that the company's core service offerings may lack the recurring nature required for sustainable long-term expansion. Investors should monitor whether this contraction reflects a permanent loss of market share or merely the lumpy, project-based nature of its institutional ecosystem solutions.
Based on reported financial statements, the company's net income frequently dwarfs its operating income, with net margins reaching as high as 194.5% in historical periods, which strongly suggests that headline profitability is driven by non-operating fair value fluctuations rather than core software-driven operational efficiency.
This reliance on investment portfolio performance creates a disconnect between reported earnings and actual business health. Analysts should treat these non-operating gains with caution, as they are inherently volatile and do not represent the underlying scalability of the SpiderNet ecosystem.
According to the latest income statement data, gross margins have compressed significantly to 7.0% in 2024Q4, a stark departure from the 85.6% levels observed in earlier periods, indicating that the cost of revenue is rising disproportionately relative to the company's ability to generate high-margin service fees.
Such a collapse in gross profitability suggests that the company may be shifting toward more capital-intensive or lower-margin service delivery models. This trend warrants further investigation into whether the firm is losing its pricing power or if the cost structure of its digital platform has become fundamentally inefficient.
As highlighted by the company's historical financial performance, the heavy reliance on parent-company relationships suggests that AMTD Digital may function more as a captive investment vehicle than an independent software provider, raising concerns about the durability of its growth if institutional support were to diminish.
Short-sellers would likely focus on the lack of transparency regarding the underlying assets in the investment portfolio and the potential for margin compression as the firm attempts to scale outside of its immediate corporate circle. The current valuation appears to ignore these structural risks, potentially overestimating the company's competitive moat.
Quick answers to the most common questions about buying HKD stock.
For fiscal year 2026, AMTD Digital Inc. (HKD) reported total revenue of $59.0M. This represents a 305.7% increase compared to $14.6M in 2019.
AMTD Digital Inc. (HKD) is profitable, generating $54.7M in net income for the fiscal year ending 2026 with a net profit margin of 92.7%.
AMTD Digital Inc. (HKD) reported an operating income of $9.1M, resulting in an operating profit margin of 15.5%. This margin reflects the operational efficiency of the business before interest and taxes.
AMTD Digital Inc. (HKD) generated $38.8M in gross profit for the year, representing a gross profit margin of 65.7%. This demonstrates the company's core pricing power and production efficiency.