The company exhibits significant operational leverage with a 31.10% operating margin, though its 62.81% gross margin reflects structural sensitivity to labor-intensive BPO service delivery costs.
| 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) | 0.00 | 0.00 | 0.00 |
| EPS Growth % | - | - | - |
| EPS (Basic) | 0.00 | 0.00 | 0.00 |
| Diluted Shares Outstanding | 0 | 0 | 0 |
| Basic Shares Outstanding | 0 | 0 | 0 |
| Dividend Payout Ratio | - | - | - |
Geopolitical and liquidity exposure
As reported in recent financial disclosures, HPAIW has achieved a notable 132.36% year-over-year revenue growth, suggesting that the company's hybrid model of AI-assisted BPO services is gaining significant traction within its core enterprise markets despite the lack of a multi-year historical performance track record.
The triple-digit growth rate implies that the company is successfully capturing market share by leveraging its proprietary Helphub platform to drive AI adoption. Investors should monitor whether this momentum is sustainable or if it reflects lumpy, one-time implementation fees that could mask a slower underlying subscription growth trend.
Based on reported figures, the company maintains a 62.81% gross margin, which appears to be a direct result of its bifurcated revenue structure that blends high-margin software subscriptions with more labor-intensive, lower-margin BPO service delivery models that are inherently sensitive to human capital costs.
This margin profile suggests that while the AI Assist software provides a competitive edge, the overall profitability is structurally capped by the operational requirements of the BPO segment. Future margin expansion will likely depend on the company's ability to shift its revenue mix toward software-heavy contracts while managing cloud infrastructure expenses.
According to the company's income statement analysis, an operating margin of 31.10% indicates that HPAIW is currently achieving significant operating leverage, though this efficiency may be tested as the firm scales its international sales force and invests in the R&D necessary to maintain its AI accuracy.
The ability to scale operating income faster than gross profit suggests a lean cost structure, yet this may be vulnerable to sudden increases in cloud computing costs. Analysts should investigate whether this leverage is sustainable or if it relies on aggressive capitalization of development costs that could inflate margins.
As indicated by the company's financial snapshot, the low cash position of $2.58 million against $29.5 million in revenue suggests a tight liquidity runway that may necessitate future dilutive financing to support the company's aggressive growth trajectory and ongoing operational requirements in the PRC.
The combination of limited cash reserves and high geographic concentration in the People's Republic of China presents a significant risk profile that warrants caution. Investors should consider whether the current valuation adequately accounts for potential regulatory shifts in AI governance and the inherent volatility of a SPAC-related entity.
Quick answers to the most common questions about buying HPAIW stock.
For fiscal year 2024, Helport AI Limited (HPAIW) reported total revenue of $29.6M. This represents a 1008.6% increase compared to $2.7M in 2022.
Helport AI Limited (HPAIW) 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 (HPAIW) 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 (HPAIW) 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.