Gross margins have deteriorated significantly from 53.3% in 2020Q4 to a precarious 1.5% in 2025Q2, indicating a failure to maintain pricing power within the Amazon marketplace.
| Sales/Revenue | 26.81M | 13.69M | 10.01M | 5.86M | 6.51M | 2.29M | 670K |
| Revenue Growth % | 87.1% | 36.77% | 70.81% | -9.99% | 184.36% | 241.64% | - |
| Cost of Goods Sold | 24.91M | 12.12M | 9.03M | 5.64M | 5.08M | 1.17M | 401K |
| COGS % of Revenue | - | 88.54% | 90.25% | 96.33% | 78.11% | 50.9% | 59.85% |
| Gross Profit | 1.9M | 1.57M | 976K | 215K | 1.43M | 1.12M | 269K |
| Gross Margin % | 7.08% | 11.46% | 9.75% | 3.67% | 21.89% | 49.1% | 40.15% |
| Gross Profit Growth % | - | 60.66% | 353.95% | -84.91% | 26.78% | 317.84% | - |
| Operating Expenses | 13.92M | 7.77M | 6.07M | 5.31M | 2.88M | 704K | 223K |
| OpEx % of Revenue | - | 56.78% | 60.6% | 90.65% | 44.26% | 30.76% | 33.28% |
| Selling, General & Admin | 11.96M | 5.92M | 4.36M | 5.31M | 2.79M | 704K | 186K |
| SG&A % of Revenue | - | 43.26% | 43.53% | 90.65% | 42.93% | 30.76% | 27.76% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 1.18M | 1.85M | 1.71M | 0 | 87K | 0 | 37K |
| Operating Income | -10.98M | -6.2M | -5.09M | -4.51M | -845K | 420K | 46K |
| Operating Margin % | -40.96% | -45.32% | -50.85% | -77.01% | -12.98% | 18.35% | 6.87% |
| Operating Income Growth % | - | -21.91% | -12.79% | -433.96% | -301.19% | 813.04% | - |
| EBITDA | -9.36M | -5.44M | -4.35M | -3.93M | -321K | 524K | 93K |
| EBITDA Margin % | -34.92% | -39.71% | -43.47% | -67.04% | -4.93% | 22.89% | 13.88% |
| EBITDA Growth % | -63.77% | -24.97% | -10.74% | -1123.68% | -161.26% | 463.44% | - |
| D&A (Non-Cash Add-back) | 1.62M | 768K | 739K | 584K | 524K | 104K | 47K |
| EBIT | -12.41M | -7.49M | -4.56M | -1.85M | -932K | 420K | 45K |
| Net Interest Income | -209K | -569K | -6K | -361K | -568K | -232K | -104K |
| Interest Income | 459K | 78K | 4K | 0 | 0 | 0 | 103K |
| Interest Expense | 668K | 647K | 10K | 361K | 568K | 232K | 103K |
| Other Income/Expense | -2.1M | -1.29M | 523K | 2.31M | -629K | -232K | -104K |
| Pretax Income | -13.08M | -7.49M | -4.57M | -2.21M | -1.56M | 188K | -58K |
| Pretax Margin % | -48.78% | -54.75% | -45.62% | -37.67% | -23.98% | 8.21% | -8.66% |
| Income Tax | 239K | 310K | 32K | -6K | -21K | 76K | -9K |
| Effective Tax Rate % | -1.83% | -4.14% | -0.7% | 0.27% | 1.35% | 40.43% | 15.52% |
| Net Income | -13.32M | -7.8M | -4.6M | -2.2M | -1.54M | 112K | -49K |
| Net Margin % | -49.67% | -57.01% | -45.94% | -37.57% | -23.66% | 4.89% | -7.31% |
| Net Income Growth % | -182.24% | -69.73% | -108.91% | -42.92% | -1475% | 328.57% | - |
| Net Income (Continuing) | -13.32M | -7.8M | -4.6M | -2.2M | -1.54M | 112K | -49K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -68.32 | -1.40 | -3.88 | -3.32 | -3.73 | 0.27 | -0.12 |
| EPS Growth % | -152.87% | 63.92% | -16.87% | 10.99% | -1481.48% | 325% | - |
| EPS (Basic) | - | -1.40 | -3.88 | -3.32 | -3.73 | 0.27 | -0.12 |
| Diluted Shares Outstanding | 194.89K | 655.12K | 1.18M | 663.41K | 413.19K | 412.68K | 413.3K |
| Basic Shares Outstanding | 194.89K | 655.12K | 1.18M | 663.41K | 413.19K | 412.68K | 413.3K |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Platform dependency and insolvency
According to historical income statements, JFBR achieved a 36.77% year-over-year revenue growth rate, yet this top-line expansion appears disconnected from operational reality as gross margins have compressed to a nominal 1.5% in the most recent quarter, signaling potential reliance on unsustainable promotional discounting strategies.
The company's ability to scale revenue suggests successful product catalog expansion, but the lack of corresponding margin improvement implies that growth is being purchased rather than earned. Investors should monitor whether this trajectory is a deliberate market-share grab or a symptom of diminishing returns on advertising spend.
As reported in financial filings, the company's gross margin has deteriorated from a peak of 53.3% in 2020 to a precarious 1.5% in 2025Q2, reflecting an inability to maintain pricing power within the highly competitive and commoditized Amazon marketplace ecosystem.
This collapse in gross profitability suggests that the company's cost structure is highly sensitive to platform fees and fulfillment expenses. The current margin profile appears insufficient to cover fixed operating costs, leaving the business with virtually no buffer against adverse shifts in marketplace commission rates.
Based on the provided income statement data, JFBR continues to exhibit negative operating leverage, as SG&A expenses consistently outpace gross profit generation, resulting in an operating margin of -51.2% that indicates a failure to achieve necessary economies of scale despite significant revenue growth.
The persistent gap between revenue growth and operating income suggests that the company's overhead is not scaling efficiently with its transactional volume. This trend warrants investigation into whether the current management structure is capable of pivoting toward a sustainable, profit-oriented operating model.
Data from recent quarters suggests that JFBR's business model faces a critical inflection point, as the combination of a -57.01% net margin and limited cash reserves indicates that the current trajectory may be fundamentally incompatible with long-term operational viability without external capital intervention.
Short-sellers would likely focus on the company's inability to convert top-line growth into positive cash flow, viewing the current revenue expansion as a potential precursor to liquidity exhaustion. The reliance on Amazon's infrastructure creates a binary risk profile where any platform-level change could exacerbate existing margin pressures.
Quick answers to the most common questions about buying JFBR stock.
For fiscal year 2024, Jeffs' Brands Ltd (JFBR) reported total revenue of $13.7M. This represents a 1943.0% increase compared to $0.7M in 2019.
Jeffs' Brands Ltd (JFBR) reported a net loss of $7.8M for the fiscal year ending 2024.
Jeffs' Brands Ltd (JFBR) reported an operating income of $-6.2M, resulting in an operating profit margin of -45.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Jeffs' Brands Ltd (JFBR) generated $1.6M in gross profit for the year, representing a gross profit margin of 11.5%. This demonstrates the company's core pricing power and production efficiency.