The company's revenue trajectory remains highly volatile, with operating margins plummeting to -172.2% in 2024Q4 as fixed professional costs outpace transactional income.
| Sales/Revenue | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - |
| Cost of Goods Sold | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - |
| Gross Profit | -3.36M | 4.08M | 11.2M | 16.87M | 20.22M | 27.96M |
| Gross Margin % | -26.27% | 29.55% | 100% | 100.49% | 99.04% | 100% |
| Gross Profit Growth % | -182.38% | -63.6% | -33.62% | -16.57% | -27.68% | - |
| Operating Expenses | 6.87M | 6.89M | 15.7M | 15.14M | 16.36M | 16.04M |
| OpEx % of Revenue | 53.72% | 49.95% | 140.21% | 90.19% | 80.12% | 57.38% |
| Selling, General & Admin | 4.77M | 4.78M | 12.36M | 11.12M | 11.71M | 10.94M |
| SG&A % of Revenue | 37.3% | 34.68% | 110.37% | 66.21% | 57.33% | 39.11% |
| Research & Development | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | - | - | - | - | - | - |
| Operating Income | -10.23M | -2.81M | -4.5M | 1.73M | 3.86M | 11.92M |
| Operating Margin % | -79.99% | -20.39% | -40.21% | 10.3% | 18.92% | 42.62% |
| Operating Income Growth % | -263.55% | 37.53% | -360.3% | -55.23% | -67.58% | - |
| EBITDA | -8.13M | -707.54K | -2.54M | 4.77M | 7.2M | 15.16M |
| EBITDA Margin % | -63.56% | -5.13% | -22.72% | 28.44% | 35.28% | 54.23% |
| EBITDA Growth % | -1048.49% | 72.2% | -153.29% | -33.72% | -52.49% | - |
| D&A (Non-Cash Add-back) | 2.1M | 2.11M | 1.96M | 3.05M | 3.34M | 3.25M |
| EBIT | -4.67M | -344.52K | -3.23M | 1.73M | 4.62M | 12.05M |
| Net Interest Income | 4.39M | 4.12M | 826.22K | -80.98K | 209.29K | 18.24K |
| Interest Income | 4.45M | 4.26M | 1.06M | 1.22K | 209.29K | 18.24K |
| Interest Expense | 61.23K | 139.3K | 232K | 82.2K | 0 | 0 |
| Other Income/Expense | - | - | - | - | - | - |
| Pretax Income | -4.73M | -483.81K | -3.46M | 1.65M | 4.63M | 11.77M |
| Pretax Margin % | -37% | -3.51% | -30.9% | 9.82% | 22.68% | 42.08% |
| Income Tax | 0 | 0 | 381.82K | 70.18K | 431.51K | 1.75M |
| Effective Tax Rate % | 0% | 0% | -11.03% | 4.26% | 9.32% | 14.89% |
| Net Income | -4.73M | -483.81K | -3.84M | 1.58M | 4.2M | 10.01M |
| Net Margin % | -37% | -3.51% | -34.31% | 9.4% | 20.57% | 35.82% |
| Net Income Growth % | -877.65% | 87.41% | -343.39% | -62.41% | -58.06% | - |
| Net Income (Continuing) | -4.73M | -483.81K | -3.84M | 1.58M | 4.2M | 10.01M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.93 | -0.10 | -0.23 | 0.11 | 0.21 | 0.67 |
| EPS Growth % | -873.82% | 58.48% | -309.09% | -47.62% | -68.66% | - |
| EPS (Basic) | -0.93 | -0.10 | -0.23 | 0.11 | 0.21 | 0.67 |
| Diluted Shares Outstanding | 5.06M | 5.06M | 17.08M | 15M | 20M | 15M |
| Basic Shares Outstanding | 5.06M | 5.06M | 16.71M | 15M | 20M | 15M |
| Dividend Payout Ratio | - | - | - | - | 89.29% | 69.8% |
Cyclical Deal Flow Dependence
As reported in recent financial statements, MEGL's revenue trajectory remains highly inconsistent, with quarterly figures fluctuating significantly between $3.3 million and $9.5 million, reflecting a business model that is heavily tethered to the unpredictable nature of Hong Kong's small-cap IPO and corporate finance deal flow.
The lack of a consistent growth trend suggests that the company struggles to maintain a predictable pipeline of transactional mandates. Investors should monitor whether the firm can transition toward more recurring advisory services to mitigate the inherent volatility of its current IPO-centric revenue model.
Based on the company's most recent income statement data, the emergence of a negative 26.27% gross margin indicates that the firm's fixed professional costs are currently outpacing its ability to generate revenue, a concerning departure from its historical ability to maintain positive gross profitability.
This margin compression suggests that the company is carrying significant excess capacity in its professional headcount relative to current market demand. The inability to scale revenue against these fixed costs implies that the firm may be operating at a structural disadvantage in the current environment.
According to historical income statement filings, MEGL's operating leverage has turned sharply negative, with operating margins plummeting to -172.2% in 2024Q4, demonstrating that the company's SG&A expenses are not scaling down in proportion to the significant contraction in its top-line transactional revenue.
The firm appears to be maintaining a high fixed-cost base despite the lack of sufficient deal flow to cover these expenses. This suggests that management may be prioritizing the retention of licensed personnel over immediate operational efficiency, which warrants further investigation into the sustainability of this burn rate.
As evidenced by the company's financial disclosures, the massive $127.5 million cash position relative to its modest annual revenue suggests that MEGL's net income is currently driven more by non-operating factors than by the core profitability of its financial services business, complicating traditional earnings quality assessments.
The disconnect between the company's substantial cash reserves and its persistent operating losses indicates that the firm is functioning more as a capital-heavy entity than a high-growth financial services provider. Investors should be cautious of interpreting net income figures without adjusting for the impact of this idle capital.
Based on the provided financial data, a critical challenge to the investment narrative is the company's inability to achieve consistent operating profitability, as evidenced by the recurring negative operating margins that suggest the core business model may be fundamentally unviable under current market conditions.
Short-term observers might argue that the company's cash-rich balance sheet provides a buffer, but this does not address the underlying issue of operational inefficiency. The risk remains that the firm will continue to erode its capital base if it cannot successfully pivot to a more profitable service mix.
Quick answers to the most common questions about buying MEGL stock.
Magic Empire Global Limited (MEGL) reported a net loss of $4.7M for the fiscal year ending 2024.
Magic Empire Global Limited (MEGL) reported an operating income of $-10.2M, resulting in an operating profit margin of -80.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Magic Empire Global Limited (MEGL) generated $-3.4M in gross profit for the year, representing a gross profit margin of -26.3%. This demonstrates the company's core pricing power and production efficiency.