Revenue growth of 22.9% in 2025Q4 is overshadowed by a deteriorating operating margin of -26.1% and a significant contraction in gross margins from 19.7% in 2021Q2 to 10.4% in 2025Q4.
| Sales/Revenue | 23.22M | 21.19M | 15.47M | 18.3M | 14.13M | 9.23M |
| Revenue Growth % | 9.58% | 36.92% | -15.43% | 29.52% | 53.1% | - |
| Cost of Goods Sold | 20.12M | 18.73M | 13.27M | 15.27M | 11.2M | 7.75M |
| COGS % of Revenue | 86.67% | 88.41% | 85.73% | 83.47% | 79.25% | 84.02% |
| Gross Profit | 3.1M | 2.46M | 2.21M | 3.03M | 2.93M | 1.47M |
| Gross Margin % | 13.33% | 11.59% | 14.27% | 16.53% | 20.75% | 15.98% |
| Gross Profit Growth % | 26.01% | 11.25% | -27.01% | 3.22% | 98.73% | - |
| Operating Expenses | 7.15M | 4.4M | 1.39M | 1.5M | 694.3K | 658.27K |
| OpEx % of Revenue | 30.79% | 20.76% | 8.98% | 8.22% | 4.91% | 7.13% |
| Selling, General & Admin | 3.41M | 2.74M | 1.13M | 1.28M | 641.16K | 621.51K |
| SG&A % of Revenue | 14.68% | 12.91% | 7.28% | 6.98% | 4.54% | 6.74% |
| Research & Development | 3.74M | 1.66M | 262.38K | 227.56K | 53.14K | 36.76K |
| R&D % of Revenue | 16.11% | 7.85% | 1.7% | 1.24% | 0.38% | 0.4% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -4.05M | -1.94M | 819.05K | 1.52M | 2.24M | 816.67K |
| Operating Margin % | -17.46% | -9.17% | 5.29% | 8.31% | 15.83% | 8.85% |
| Operating Income Growth % | -108.62% | -337.21% | -46.16% | -31.99% | 173.9% | - |
| EBITDA | -2.91M | -568.49K | 1.54M | 2.1M | 2.36M | 921.83K |
| EBITDA Margin % | -12.55% | -2.68% | 9.96% | 11.47% | 16.69% | 9.99% |
| EBITDA Growth % | -412.72% | -136.87% | -26.54% | -11.02% | 155.87% | - |
| D&A (Non-Cash Add-back) | 1.14M | 1.37M | 722.78K | 577.49K | 121.88K | 105.16K |
| EBIT | -3.65M | -725.85K | 1.34M | 1.55M | 2.24M | 816.67K |
| Net Interest Income | -1.74M | -20 | -7.51K | -16.71K | -12.64K | 320 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 320 |
| Interest Expense | 1.74M | 20 | 7.51K | 16.71K | 12.64K | 0 |
| Other Income/Expense | -1.34M | 1.22M | 512.28K | 11.23K | -6.96K | -3.69K |
| Pretax Income | -5.39M | -725.87K | 1.33M | 1.53M | 2.23M | 812.98K |
| Pretax Margin % | -23.22% | -3.43% | 8.6% | 8.38% | 15.78% | 8.81% |
| Income Tax | 86.08K | 119.97K | 344.85K | 417.27K | 568K | 205.26K |
| Effective Tax Rate % | -1.6% | -16.53% | 25.9% | 27.23% | 25.47% | 25.25% |
| Net Income | -5.48M | -812.84K | 969.6K | 1.07M | 1.65M | 569.53K |
| Net Margin % | -23.59% | -3.84% | 6.27% | 5.86% | 11.67% | 6.17% |
| Net Income Growth % | -573.78% | -183.83% | -9.59% | -34.95% | 189.49% | - |
| Net Income (Continuing) | -5.48M | -845.84K | 986.47K | 1.12M | 1.66M | 607.73K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 225.07K | 212.76K | 180.59K | 164.63K |
| EPS (Diluted) | -0.58 | -0.11 | 0.15 | 0.19 | 0.29 | 0.07 |
| EPS Growth % | -427.27% | -173.33% | -21.05% | -34.48% | 302.22% | - |
| EPS (Basic) | -0.58 | -0.11 | 0.12 | 0.19 | 0.29 | 0.07 |
| Diluted Shares Outstanding | 9.37M | 7.14M | 6.4M | 5.7M | 5.7M | 7.9M |
| Basic Shares Outstanding | 9.37M | 7.14M | 7.78M | 5.7M | 5.7M | 7.9M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Insufficient liquidity for operations
As indicated by the most recent quarterly data, LOBO achieved a 22.9% revenue increase to $11.1M, yet this growth appears disconnected from the company's ability to generate sustainable profit, suggesting that top-line expansion is currently being prioritized over the fundamental health of the underlying business model.
While the 22.9% year-over-year revenue growth in 2025Q4 demonstrates an ability to capture market share, the lack of consistent sequential growth suggests that demand remains volatile. Investors should monitor whether this revenue is driven by repeatable hardware sales or lumpy, project-based software development contracts that may not recur.
According to the provided financial statements, LOBO's gross margin has contracted significantly from 19.7% in 2021Q2 to 10.4% in 2025Q4, reflecting an inability to pass through rising input costs or achieve the economies of scale necessary to support its specialized manufacturing and software development activities.
The compression of gross margins suggests that the company's competitive position is weak, forcing it to compete on price rather than product differentiation. This trend implies that the anticipated software-driven margin expansion has failed to materialize, leaving the firm exposed to commodity price volatility in its hardware segment.
Based on reported figures, LOBO's operating margin has deteriorated to -26.1% in 2025Q4, demonstrating that the company's fixed cost base, particularly in R&D and SG&A, is scaling far faster than its gross profit, which warrants significant concern regarding the current operational efficiency of the business.
The divergence between revenue growth and operating income suggests that the company is currently unable to achieve the operating leverage required to reach profitability. The aggressive increase in R&D spending appears to be a primary driver of this negative leverage, indicating that the firm is betting heavily on future software capabilities at the expense of current solvency.
As documented in the income statement, R&D expenses surged to $2.7M in 2025Q4, a substantial increase from the $18.2K reported in 2021Q2, which suggests that management is aggressively funding product development despite the company's inability to generate positive operating cash flow from its existing product lines.
The sharp rise in R&D spending relative to revenue suggests a pivot toward high-cost software development that has yet to yield a return on investment. This expense discipline appears questionable given the company's limited cash reserves, as it risks exhausting liquidity before these investments can reach commercial viability.
Data from the financial snapshot reveals that LOBO's cash reserves have dwindled to $908,341 against a $23M revenue base, which suggests that the company may face an imminent liquidity crisis that could force dilutive equity financing or a significant restructuring of its current operational strategy.
Short-sellers would likely focus on the widening gap between revenue growth and cash generation, which may indicate that the company is struggling to convert sales into actual cash. The combination of negative net margins and a sub-$1M cash balance implies that the current business model is unsustainable without external capital injection.
Quick answers to the most common questions about buying LOBO stock.
For fiscal year 2025, Lobo EV Technologies Ltd. (LOBO) reported total revenue of $23.2M. This represents a 151.6% increase compared to $9.2M in 2020.
Lobo EV Technologies Ltd. (LOBO) reported a net loss of $5.5M for the fiscal year ending 2025.
Lobo EV Technologies Ltd. (LOBO) reported an operating income of $-4.1M, resulting in an operating profit margin of -17.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Lobo EV Technologies Ltd. (LOBO) generated $3.1M in gross profit for the year, representing a gross profit margin of 13.3%. This demonstrates the company's core pricing power and production efficiency.