Revenue growth remains highly volatile with a 7.2% year-over-year increase in 2025Q4, yet structural margin compression persists with gross margins consistently hovering near 3.3%.
| Sales/Revenue | 187.05M | 177.93M | 214.41M | 290.38M | 279.36M | 165.21M | 119.64M |
| Revenue Growth % | 5.12% | -17.01% | -26.16% | 3.94% | 69.09% | 38.09% | - |
| Cost of Goods Sold | 180.94M | 172.98M | 209.11M | 282.56M | 271.34M | 160.62M | 115.58M |
| COGS % of Revenue | 96.73% | 97.22% | 97.53% | 97.31% | 97.13% | 97.22% | 96.61% |
| Gross Profit | 6.11M | 4.95M | 5.29M | 7.81M | 8.02M | 4.6M | 4.06M |
| Gross Margin % | 3.27% | 2.78% | 2.47% | 2.69% | 2.87% | 2.78% | 3.39% |
| Gross Profit Growth % | 23.43% | -6.47% | -32.27% | -2.58% | 74.48% | 13.22% | - |
| Operating Expenses | 5.02M | 6.29M | 4.42M | 4.12M | 4.35M | 3.51M | 3.25M |
| OpEx % of Revenue | 2.69% | 3.54% | 2.06% | 1.42% | 1.56% | 2.13% | 2.72% |
| Selling, General & Admin | 4.56M | 4.52M | 3.52M | 3.59M | 4.06M | 3.31M | 3.12M |
| SG&A % of Revenue | 2.44% | 2.54% | 1.64% | 1.24% | 1.45% | 2.01% | 2.61% |
| Research & Development | 463.17K | 481.55K | 437.26K | 530.14K | 238.07K | 101.13K | 67.11K |
| R&D % of Revenue | 0.25% | 0.27% | 0.2% | 0.18% | 0.09% | 0.06% | 0.06% |
| Other Operating Expenses | 0 | 1.3M | 461.45K | 0 | 50.19K | 99.36K | 71.29K |
| Operating Income | 1.09M | -1.34M | 875.03K | 3.37M | 3.4M | 975.6K | 750.76K |
| Operating Margin % | 0.58% | -0.76% | 0.41% | 1.16% | 1.22% | 0.59% | 0.63% |
| Operating Income Growth % | 180.83% | -253.58% | -74.04% | -0.74% | 248.14% | 29.95% | - |
| EBITDA | 1.83M | -489.83K | 1.45M | 3.56M | 3.59M | 1.22M | 953.63K |
| EBITDA Margin % | 0.98% | -0.28% | 0.68% | 1.23% | 1.29% | 0.74% | 0.8% |
| EBITDA Growth % | 472.93% | -133.69% | -59.17% | -0.84% | 193.91% | 28.13% | - |
| D&A (Non-Cash Add-back) | 740.48K | 854K | 579.03K | 190.04K | 194.9K | 246.32K | 202.87K |
| EBIT | 1.99M | -1.64M | 875.03K | 3.66M | 4.66M | 975.6K | 750.76K |
| Net Interest Income | -362.97K | -809.48K | -553.17K | -474K | -859.61K | -724.09K | -692.28K |
| Interest Income | 135.95K | -112.57K | 14.75K | 30.77K | 92.31K | 102.36K | 14.38K |
| Interest Expense | 498.92K | 696.91K | 567.91K | 504.78K | 951.92K | 826.45K | 706.66K |
| Other Income/Expense | 406.64K | -994.18K | 1.14M | -214.17K | 306.99K | 334.68K | -199.65K |
| Pretax Income | 1.49M | -2.34M | 2.02M | 3.16M | 3.7M | 1.31M | 551.11K |
| Pretax Margin % | 0.8% | -1.31% | 0.94% | 1.09% | 1.33% | 0.79% | 0.46% |
| Income Tax | 298.41K | -65.72K | 265.67K | 587.28K | 1.07M | 718.41K | 493.09K |
| Effective Tax Rate % | 19.99% | 2.81% | 13.17% | 18.6% | 28.86% | 54.83% | 89.47% |
| Net Income | 1.19M | -2.27M | 1.75M | 2.57M | 2.63M | 591.87K | 58.02K |
| Net Margin % | 0.64% | -1.28% | 0.82% | 0.89% | 0.94% | 0.36% | 0.05% |
| Net Income Growth % | 152.57% | -229.76% | -31.86% | -2.46% | 345.13% | 920.11% | - |
| Net Income (Continuing) | 1.19M | -2.27M | 1.75M | 2.57M | 2.63M | 591.87K | 58.02K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.10 | -0.22 | 0.17 | 0.25 | 0.26 | 0.06 | 0.01 |
| EPS Growth % | 145.45% | -229.41% | -32% | -3.85% | 353.75% | - | - |
| EPS (Basic) | 0.10 | -0.22 | 0.17 | 0.25 | 0.26 | 0.06 | 0.01 |
| Diluted Shares Outstanding | 11.55M | 10.42M | 10.33M | 10.33M | 10.33M | 10.33M | 10.33M |
| Basic Shares Outstanding | 11.55M | 10.42M | 10.33M | 10.33M | 10.33M | 10.33M | 10.33M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Extreme margin fragility
As reported in recent financial filings, IZM's revenue growth has exhibited significant volatility, with the most recent quarterly figure of $96.7M representing a 7.2% year-over-year increase, following a period of sharp contraction that highlights the company's sensitivity to cyclical SME demand within the Chinese electronics sector.
The erratic top-line performance suggests that IZM lacks a durable, recurring revenue base, leaving it highly exposed to the immediate procurement cycles of small-batch manufacturers. Investors should monitor whether the recent return to growth is a sustainable recovery or merely a temporary fluctuation in a highly fragmented and competitive spot market.
Based on the provided income statement data, IZM operates with a razor-thin gross margin of approximately 3.3%, which indicates that the company functions as a high-volume, low-value-add intermediary with minimal pricing power relative to the broader electronics distribution landscape and its larger, more diversified global peers.
The inability to expand gross margins beyond the low single digits suggests that the company's digital platform has not yet achieved the scale or differentiation required to command premium service fees. This structural limitation leaves the firm with almost no cushion to absorb rising logistics costs or competitive price pressure.
According to the company's historical income statements, operating margins have consistently hovered near 0.5%, demonstrating that IZM's operating expenses scale almost linearly with revenue, thereby preventing the realization of meaningful operating leverage even during periods of top-line expansion or recovery in the broader manufacturing environment.
The lack of operating leverage implies that the company's cost structure is heavily weighted toward variable expenses, which may be necessary to support its transactional brokerage model. This profile suggests that significant profitability improvements are unlikely without a fundamental shift in the business model toward higher-margin service offerings.
As evidenced by the net margin of 0.4% in the most recent quarter, IZM's bottom-line performance is so precarious that even minor operational disruptions or shifts in component pricing could easily push the company into a sustained net loss position, as seen in the 2024 fiscal year.
Short-term volatility in net income, which swung from a loss of $1.6M in 2024Q4 to a profit of $413.6K in 2025Q4, warrants further investigation into the stability of the company's earnings quality. Investors should be wary of the potential for future margin compression if the competitive landscape for SME procurement intensifies.
Quick answers to the most common questions about buying IZM stock.
For fiscal year 2025, ICZOOM Group Inc. (IZM) reported total revenue of $187.0M. This represents a 56.3% increase compared to $119.6M in 2019.
ICZOOM Group Inc. (IZM) is profitable, generating $1.2M in net income for the fiscal year ending 2025 with a net profit margin of 0.6%.
ICZOOM Group Inc. (IZM) reported an operating income of $1.1M, resulting in an operating profit margin of 0.6%. This margin reflects the operational efficiency of the business before interest and taxes.
ICZOOM Group Inc. (IZM) generated $6.1M in gross profit for the year, representing a gross profit margin of 3.3%. This demonstrates the company's core pricing power and production efficiency.