The company's profitability has deteriorated sharply, with gross margins falling to 24.8% in 2025Q4 from historical levels above 60%, reflecting a failure to maintain pricing power.
| Sales/Revenue | 24.52M | 41.48M | 39.76M | 33.8M | 34.3M | 30.67M | 31.6M | 25.58M | 20.78M | 14.76M | 9.27M |
| Revenue Growth % | -40.89% | 4.32% | 17.61% | -1.43% | 11.83% | -2.96% | 23.54% | 23.09% | 40.78% | 59.3% | - |
| Cost of Goods Sold | 15.38M | 15.8M | 15.44M | 13.61M | 13.82M | 11.83M | 12.26M | 7.35M | 5.61M | 4.23M | 3.07M |
| COGS % of Revenue | 62.73% | 38.1% | 38.83% | 40.27% | 40.3% | 38.58% | 38.79% | 28.72% | 26.98% | 28.66% | 33.16% |
| Gross Profit | 9.14M | 25.67M | 24.32M | 20.19M | 20.48M | 18.84M | 19.34M | 18.24M | 15.17M | 10.53M | 6.19M |
| Gross Margin % | 37.27% | 61.9% | 61.17% | 59.73% | 59.7% | 61.42% | 61.21% | 71.28% | 73.02% | 71.34% | 66.84% |
| Gross Profit Growth % | -64.41% | 5.57% | 20.44% | -1.38% | 8.7% | -2.62% | 6.07% | 20.17% | 44.07% | 70.04% | - |
| Operating Expenses | 23.54M | 30.23M | 12.06M | 9.54M | 9.18M | 10.05M | 9.62M | 8.93M | 6.55M | 5.14M | 3.74M |
| OpEx % of Revenue | 96.02% | 72.87% | 30.34% | 28.23% | 26.76% | 32.77% | 30.42% | 34.91% | 31.5% | 34.82% | 40.32% |
| Selling, General & Admin | 23.54M | 30.23M | 12.06M | 9.54M | 9.18M | 10.05M | 9.62M | 8.31M | 6.15M | 4.74M | 3.35M |
| SG&A % of Revenue | 96.02% | 72.87% | 30.34% | 28.23% | 26.76% | 32.77% | 30.42% | 32.49% | 29.59% | 32.14% | 36.12% |
| Research & Development | 0 | 1.38M | 1.19M | 1.06M | 1.08M | 930K | 0 | 620.13K | 397.38K | 396.65K | 389.34K |
| R&D % of Revenue | - | 3.33% | 2.99% | 3.14% | 3.15% | 3.03% | - | 2.42% | 1.91% | 2.69% | 4.2% |
| Other Operating Expenses | 0 | -1.38M | -1.19M | -1.06M | -1.08M | -930K | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -14.41M | -4.55M | 12.26M | 10.65M | 11.3M | 8.79M | 9.73M | 9.3M | 8.63M | 5.39M | 2.46M |
| Operating Margin % | -58.76% | -10.97% | 30.83% | 31.5% | 32.94% | 28.65% | 30.78% | 36.37% | 41.52% | 36.52% | 26.51% |
| Operating Income Growth % | -216.55% | -137.12% | 15.13% | -5.75% | 28.58% | -9.67% | 4.55% | 7.84% | 60.03% | 119.41% | - |
| EBITDA | -10.26M | -1.68M | 13.01M | 11.35M | 13.75M | 9.59M | 11.92M | 9.76M | 8.93M | 5.59M | 2.55M |
| EBITDA Margin % | -41.83% | -4.04% | 32.73% | 33.57% | 40.09% | 31.28% | 37.71% | 38.16% | 42.98% | 37.89% | 27.52% |
| EBITDA Growth % | -511.99% | -112.88% | 14.65% | -17.45% | 43.31% | -19.51% | 22.09% | 9.27% | 59.71% | 119.29% | - |
| D&A (Non-Cash Add-back) | 4.15M | 2.88M | 753K | 701K | 2.45M | 806K | 2.19M | 457.22K | 305.26K | 202.06K | 93.48K |
| EBIT | -14.41M | -4.55M | 12.26M | 10.65M | 11.3M | 8.79M | 9.78M | 9.36M | 8.65M | 5.42M | 2.46M |
| Net Interest Income | 146K | 163K | 38K | 60K | 28K | 103K | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 146K | 163K | 38K | 60K | 28K | 103K | 49K | 31.52K | 17.76K | 11.61K | 6.49K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 49K | 0 | 0 | 0 | 0 |
| Other Income/Expense | -7.38M | 379K | -671K | 94K | 216K | 209K | 5K | 59.18K | 23.93K | 28.96K | 6.49K |
| Pretax Income | -21.79M | -4.17M | 11.59M | 10.74M | 11.51M | 9M | 9.73M | 9.36M | 8.65M | 5.42M | 2.46M |
| Pretax Margin % | -88.86% | -10.06% | 29.15% | 31.78% | 33.57% | 29.33% | 30.8% | 36.6% | 41.63% | 36.72% | 26.58% |
| Income Tax | 0 | 1.95M | 3.25M | 2.92M | 3.05M | 2.59M | 2.66M | 2.86M | 2.42M | 1.46M | 641.71K |
| Effective Tax Rate % | 0% | -46.69% | 28.05% | 27.22% | 26.51% | 28.78% | 27.36% | 30.53% | 27.97% | 26.95% | 26.05% |
| Net Income | -21.96M | -6.14M | 8.34M | 7.82M | 8.46M | 6.41M | 7.07M | 6.51M | 5.82M | 3.96M | 1.82M |
| Net Margin % | -89.58% | -14.8% | 20.97% | 23.13% | 24.67% | 20.89% | 22.37% | 25.43% | 28% | 26.85% | 19.67% |
| Net Income Growth % | -257.75% | -173.63% | 6.65% | -7.61% | 32.07% | -9.38% | 8.68% | 11.8% | 46.82% | 117.43% | - |
| Net Income (Continuing) | -21.79M | -6.12M | 8.34M | 7.82M | 8.46M | 6.41M | 7.07M | 6.51M | 6.23M | 3.96M | 1.82M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 2.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.62K | -806 |
| EPS (Diluted) | -4.14 | -0.41 | 63.96 | 69.49 | 0.29 | 0.22 | 0.25 | 0.23 | 0.20 | 0.14 | 0.06 |
| EPS Growth % | -909.76% | -100.64% | -7.96% | 23862.07% | 31.82% | -12% | 8.7% | 15% | 42.86% | 122.22% | - |
| EPS (Basic) | -4.14 | -0.41 | 63.96 | 69.49 | 0.29 | 0.22 | 0.25 | 0.23 | 0.20 | 0.14 | 0.06 |
| Diluted Shares Outstanding | 5.3M | 14.87M | 26.51M | 22.5M | 28.75M | 28.75M | 28.75M | 28.75M | 28.75M | 28.75M | 28.75M |
| Basic Shares Outstanding | 5.3M | 14.87M | 26.51M | 22.5M | 28.75M | 28.75M | 28.75M | 28.75M | 28.75M | 28.75M | 28.75M |
| Dividend Payout Ratio | - | - | - | - | - | 67.86% | 102.52% | - | 51.73% | - | - |
Structural Revenue Model Collapse
As reported in recent financial filings, LICN experienced a severe 56.1% year-over-year revenue decline in 2025Q4, marking a persistent downward trend that suggests the company's core SME-focused service model is currently failing to maintain its historical market penetration within the competitive Fujian province business landscape.
The consistent erosion of top-line performance indicates that the firm's educational and taxation service funnel is no longer effectively converting prospects into recurring revenue. Investors should monitor whether this decline reflects a permanent loss of competitive relevance or merely a cyclical trough in regional SME demand.
Based on the provided income statement data, LICN's gross margin plummeted to 24.8% in 2025Q4, a significant deterioration from the 60% levels observed in previous periods, which suggests that the company is struggling to maintain pricing power amidst a shrinking and increasingly cost-sensitive client base.
The inability to protect gross margins during a period of revenue decline implies that the cost of service delivery has become disproportionately high relative to the value captured. This margin degradation warrants further investigation into whether the company is forced to offer deep discounts to retain its remaining customer base.
According to the latest quarterly figures, LICN's operating margin collapsed to -89.3%, demonstrating that the company's fixed-cost structure is currently unaligned with its diminished revenue scale, effectively turning what was once a source of operational efficiency into a significant drag on the firm's overall financial health.
The decoupling of SG&A expenses from revenue generation suggests that management has failed to rationalize the cost base in response to the sharp top-line contraction. This lack of operational agility indicates that the current business model may be structurally unviable without a fundamental shift in expense management.
Based on the reported figures, LICN's net margin reached a concerning -122.9% in 2025Q4, highlighting that the company is currently losing more than a dollar for every dollar of revenue generated, which raises significant questions regarding the sustainability of its current capital allocation and operational strategy.
The presence of stock-based compensation alongside deep net losses suggests that the company is continuing to dilute shareholders while failing to achieve profitability. Analysts should be wary of these persistent losses, as they indicate that the firm's current path is rapidly depleting its available cash reserves.
While the company maintains a cash balance of $26.9 million, which exceeds its annual revenue, the rapid cash burn rate observed in recent quarters suggests that this liquidity may be insufficient to support a long-term turnaround if the current negative operating trajectory remains unaddressed by management.
Short-sellers would likely focus on the disconnect between the company's cash-rich balance sheet and its deteriorating income statement, arguing that the cash is being trapped in an unproductive business. The market appears to be pricing in a high probability that these assets will be eroded by continued operational losses.
Quick answers to the most common questions about buying LICN stock.
For fiscal year 2025, Lichen International Limited (LICN) reported total revenue of $24.5M. This represents a 164.6% increase compared to $9.3M in 2014.
Lichen International Limited (LICN) reported a net loss of $22.0M for the fiscal year ending 2025.
Lichen International Limited (LICN) reported an operating income of $-14.4M, resulting in an operating profit margin of -58.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Lichen International Limited (LICN) generated $9.1M in gross profit for the year, representing a gross profit margin of 37.3%. This demonstrates the company's core pricing power and production efficiency.