The company demonstrates strong profitability with a 24.92% net margin and a 62.81% gross margin, reflecting the successful integration of high-margin software components.
| Metric | Jun'24 | Jun'23 | Jun'22 |
|---|
| Sales/Revenue | 29.58M | 12.73M | 2.67M |
| Revenue Growth % | 132.36% | 377.09% | - |
| Cost of Goods Sold | 11M | 4.88M | 1.25M |
| COGS % of Revenue | 37.19% | 38.36% | 46.73% |
| Gross Profit | 18.58M | 7.85M | 1.42M |
| Gross Margin % | 62.81% | 61.64% | 53.27% |
| Gross Profit Growth % | 136.79% | 452.03% | - |
| Operating Expenses | 9.38M | 2.05M | 440.44K |
| OpEx % of Revenue | 31.72% | 16.12% | 16.51% |
| Selling, General & Admin | 2.12M | 407.74K | 183.8K |
| SG&A % of Revenue | 7.17% | 3.2% | 6.89% |
| Research & Development | 4.3M | 375.41K | 0 |
| R&D % of Revenue | 14.55% | 2.95% | - |
| Other Operating Expenses | 2.96M | 1.27M | 0 |
| Operating Income | 9.2M | 5.79M | 980.77K |
| Operating Margin % | 31.1% | 45.52% | 36.76% |
| Operating Income Growth % | 58.75% | 490.7% | - |
| EBITDA | 11.55M | 8.13M | 1.56M |
| EBITDA Margin % | 39.05% | 63.85% | 58.63% |
| EBITDA Growth % | 42.12% | 419.58% | - |
| D&A (Non-Cash Add-back) | 2.35M | 2.33M | 583.33K |
| EBIT | 9.2M | 5.79M | 980.77K |
| Net Interest Income | -226.71K | -7.94K | -5.89K |
| Interest Income | 0 | 0 | 0 |
| Interest Expense | 226.71K | 7.94K | 5.89K |
| Other Income/Expense | -225.71K | -7.94K | -5.89K |
| Pretax Income | 8.97M | 5.79M | 974.88K |
| Pretax Margin % | 30.33% | 45.45% | 36.54% |
| Income Tax | 1.6M | 970.75K | 152.92K |
| Effective Tax Rate % | 17.86% | 16.78% | 15.69% |
| Net Income | 7.37M | 4.81M | 821.96K |
| Net Margin % | 24.92% | 37.83% | 30.81% |
| Net Income Growth % | 53.05% | 485.76% | - |
| Net Income (Continuing) | 7.37M | 4.81M | 821.96K |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
| EPS (Diluted) | 0.20 | 0.13 | 0.03 |
| EPS Growth % | 53.85% | 339.19% | - |
| EPS (Basic) | 0.20 | 0.13 | 0.03 |
| Diluted Shares Outstanding | 37.13M | 37.13M | 27.76M |
| Basic Shares Outstanding | 37.13M | 37.13M | 27.76M |
| Dividend Payout Ratio | - | - | - |
PRC regulatory and liquidity risk
As reported in recent financial disclosures, HPAI achieved a remarkable 132.36% year-over-year revenue growth, signaling rapid market adoption of its proprietary Helphub ecosystem and AI Assist tools, which appear to be successfully capturing significant demand within the competitive PRC-based customer experience and infrastructure services market.
The triple-digit revenue expansion suggests that the company's vertical integration strategy is resonating with clients seeking performance-based AI solutions. Investors should monitor whether this growth trajectory is sustainable or if it reflects a temporary surge from initial contract wins that may face tougher year-over-year comparisons in future periods.
Based on reported figures, the company maintains a robust 62.81% gross margin, which suggests that the high-margin software components of the AI Assist platform are effectively offsetting the variable costs associated with the labor-intensive crowdsourcing and BPO service segments of the business model.
This margin profile appears superior to many traditional BPO peers, indicating that the AI-driven workflow is likely providing a meaningful pricing premium. However, the sustainability of these margins may be challenged if the company is forced to increase payouts to crowdsourced agents to maintain platform liquidity.
According to the latest financial data, HPAI demonstrates an operating margin of 31.10%, which implies a high degree of operational leverage as the company scales its proprietary technology platform without a proportional increase in corporate overhead or administrative expenses relative to its rapid revenue growth.
The ability to convert a significant portion of gross profit into operating income suggests that the Helphub platform is achieving early-stage economies of scale. Analysts should investigate whether this efficiency is a permanent structural feature or a result of lean, early-stage staffing that may require expansion as the business matures.
As indicated by the reported 24.92% net margin, HPAI is currently generating significant bottom-line profitability, though the low cash balance of $2.58 million relative to $29.5 million in revenue raises questions regarding the quality of earnings and the underlying cash conversion cycle of the business.
The discrepancy between high reported net income and limited cash reserves may suggest aggressive revenue recognition or significant working capital tied up in unbilled receivables. Investors should exercise caution until further clarity is provided on the cash-to-revenue conversion and the potential impact of intercompany service fees on net profitability.
Based on an analysis of the balance sheet, the company's minimal cash position of $2.58 million against its high growth rate suggests a potential liquidity bottleneck that could necessitate dilutive equity financing to support ongoing operations and maintain its current competitive trajectory in the PRC market.
The reliance on a single geographic market for the majority of its operations introduces significant regulatory and geopolitical risk that could disrupt the core AI Assist functionality. Short-term investors should be wary of the potential for margin compression if the company is forced to increase spending to navigate evolving data security and AI transparency regulations.
Quick answers to the most common questions about buying HPAI stock.
For fiscal year 2024, Helport AI Limited (HPAI) reported total revenue of $29.6M. This represents a 1008.6% increase compared to $2.7M in 2022.
Helport AI Limited (HPAI) is profitable, generating $7.4M in net income for the fiscal year ending 2024 with a net profit margin of 24.9%.
Helport AI Limited (HPAI) reported an operating income of $9.2M, resulting in an operating profit margin of 31.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Helport AI Limited (HPAI) generated $18.6M in gross profit for the year, representing a gross profit margin of 62.8%. This demonstrates the company's core pricing power and production efficiency.