Revenue has plummeted to $64.2K in 2026Q1, while the company continues to struggle with a deeply negative operating margin of -9.7% despite maintaining a 73.7% gross margin.
| Sales/Revenue | 635.93K | 866.93K | 1.25M | 830.52K | 1.2M | 4.91M | 3.15M |
| Revenue Growth % | -49.64% | -30.84% | 50.94% | -30.96% | -75.51% | 56.1% | - |
| Cost of Goods Sold | 276.51K | 407.2K | 651.72K | 334.82K | 688.37K | 2.61M | 1.83M |
| COGS % of Revenue | - | 46.97% | 51.99% | 40.32% | 57.23% | 53.1% | 58.27% |
| Gross Profit | 359.42K | 459.73K | 601.86K | 495.69K | 514.52K | 2.3M | 1.31M |
| Gross Margin % | 56.52% | 53.03% | 48.01% | 59.68% | 42.77% | 46.9% | 41.73% |
| Gross Profit Growth % | - | -23.62% | 21.42% | -3.66% | -77.67% | 75.43% | - |
| Operating Expenses | 3.54M | 3.53M | 2.65M | 1.87M | 1.47M | 504.54K | 584.13K |
| OpEx % of Revenue | - | 407.39% | 211.13% | 225.71% | 122.36% | 10.27% | 18.56% |
| Selling, General & Admin | 3.54M | 3.53M | 2.65M | 1.87M | 689.65K | 504.54K | 584.66K |
| SG&A % of Revenue | - | 407.39% | 211.13% | 225.71% | 57.33% | 10.27% | 18.58% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 782.25K | 0 | 0 |
| Operating Income | -3.18M | -3.07M | -2.04M | -1.24M | -689.65K | 1.8M | 728.66K |
| Operating Margin % | -500.1% | -354.36% | -163.11% | -149.85% | -57.33% | 36.63% | 23.15% |
| Operating Income Growth % | - | -50.24% | -64.3% | -80.46% | -138.33% | 146.95% | - |
| EBITDA | -3.16M | -3.05M | -2M | -1.19M | -655.78K | 2.07M | 730.26K |
| EBITDA Margin % | -496.44% | -352.09% | -159.27% | -142.86% | -54.52% | 42.11% | 23.2% |
| EBITDA Growth % | -102.54% | -52.88% | -68.27% | -80.93% | -131.7% | 183.27% | - |
| D&A (Non-Cash Add-back) | 23.32K | 19.65K | 48.17K | 58.01K | 33.87K | 269.12K | 1.6K |
| EBIT | -2.79M | -2.56M | -2.53M | -1.24M | -689.65K | 1.8M | 728.66K |
| Net Interest Income | -70.79K | -52.24K | -72.08K | 2.22M | 990.11K | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 2.22M | 990.11K | 0 | 0 |
| Interest Expense | 70.79K | 52.24K | 72.08K | 0 | 0 | 0 | 0 |
| Other Income/Expense | 387.09K | 461.57K | -561.73K | 2.22M | 990.11K | 102.22K | 532 |
| Pretax Income | -2.79M | -2.61M | -2.61M | 971.1K | 300.46K | 1.9M | 729.19K |
| Pretax Margin % | -439.23% | -301.12% | -207.93% | 116.93% | 24.98% | 38.71% | 23.17% |
| Income Tax | 4.52K | 47.47K | 0 | 422.23K | 186.92K | 576.33K | 97.08K |
| Effective Tax Rate % | -0.16% | -1.82% | 0% | 43.48% | 62.21% | 30.31% | 13.31% |
| Net Income | -2.78M | -2.63M | -2.59M | 548.87K | 113.54K | 1.33M | 632.11K |
| Net Margin % | -436.97% | -303.44% | -206.67% | 66.09% | 9.44% | 26.98% | 20.09% |
| Net Income Growth % | -52.76% | -1.54% | -572.01% | 383.41% | -91.43% | 109.67% | - |
| Net Income (Continuing) | -2.8M | -2.66M | -2.61M | 548.87K | 113.54K | 1.33M | 632.11K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 65.28K | 65.84K | 111.83K | 8.67K | -4.84K | 0 | 0 |
| EPS (Diluted) | -0.37 | -0.40 | -0.16 | -0.09 | 0.01 | -0.00 | 0.06 |
| EPS Growth % | -269.92% | -150% | -70.39% | -895.76% | - | -100.78% | - |
| EPS (Basic) | - | -0.40 | -0.16 | -0.09 | 0.01 | -0.00 | 0.06 |
| Diluted Shares Outstanding | 7.48M | 6.56M | 16.68M | 11.51M | 9.63M | 9.81M | 9.81M |
| Basic Shares Outstanding | 7.48M | 6.56M | 16.68M | 11.51M | 9.63M | 9.81M | 9.81M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Unsustainable Operating Burn Rate
As reported in recent financial filings, HWH's quarterly revenue has plummeted to $64.2K in 2026Q1, representing a sharp 78.3% year-over-year decline that underscores the company's inability to maintain its membership-driven ecosystem and suggests a fundamental failure in its current customer acquisition strategy.
The consistent downward trend in top-line performance indicates that the Hapi platform is struggling to achieve the necessary network effects to retain users. This contraction appears to be accelerating, which raises significant concerns regarding the viability of the company's multi-vertical business model in a competitive leisure market.
Based on the provided income statement data, HWH's operating expenses remain disproportionately high relative to its shrinking revenue, with SG&A costs frequently exceeding total quarterly sales, which suggests a lack of expense discipline and an inability to scale the platform's infrastructure efficiently.
The company's cost structure appears heavily weighted toward fixed corporate overhead that does not fluctuate with the declining transaction volume. This misalignment between operational spending and revenue generation suggests that the current business model is not yet optimized for a lean, digital-first operating environment.
According to the latest quarterly figures, HWH maintains a gross margin of 73.7%, yet this is overshadowed by a deeply negative operating margin, indicating that the company's core service delivery is profitable while its broader corporate platform remains fundamentally unsustainable at current scale.
While the gross margin suggests potential pricing power or low variable costs for digital services, the inability to convert this into positive operating income points to excessive fixed costs. Investors should monitor whether management can rationalize these expenses or if the current margin profile is permanently impaired by the platform's design.
Analysis of the company's financial history reveals that HWH's survival appears increasingly tied to external funding, as evidenced by the persistent net losses and the lack of organic cash flow, which warrants further investigation into the company's reliance on its parent entity, Alset International.
Short-term liquidity appears to be the primary concern, as the company's operating losses consistently erode its cash position. The reliance on related-party support suggests that the income statement may not reflect the true economic cost of operations, potentially masking deeper structural vulnerabilities that could emerge if external funding is curtailed.
Quick answers to the most common questions about buying HWH stock.
For fiscal year 2025, HWH International Inc. (HWH) reported total revenue of $0.9M. This represents a 72.5% decline compared to $3.1M in 2020.
HWH International Inc. (HWH) reported a net loss of $2.6M for the fiscal year ending 2025.
HWH International Inc. (HWH) reported an operating income of $-3.1M, resulting in an operating profit margin of -354.4%. This margin reflects the operational efficiency of the business before interest and taxes.
HWH International Inc. (HWH) generated $0.5M in gross profit for the year, representing a gross profit margin of 53.0%. This demonstrates the company's core pricing power and production efficiency.