Operating margins have deteriorated to -93.4% in 2025Q2, driven by SG&A expenses of $19.4M that significantly outpace the company's $15.1M quarterly revenue.
| Sales/Revenue | 58.96M | 26.09M | 31.96M | 34.93M | 32.21M | 35.19M |
| Revenue Growth % | -12.12% | -18.38% | -8.5% | 8.44% | -8.46% | - |
| Cost of Goods Sold | 30.6M | 13.78M | 14M | 16.51M | 16.26M | 20.17M |
| COGS % of Revenue | - | 52.84% | 43.79% | 47.27% | 50.48% | 57.32% |
| Gross Profit | 28.37M | 12.3M | 17.97M | 18.42M | 15.95M | 15.02M |
| Gross Margin % | 48.11% | 47.16% | 56.21% | 52.73% | 49.52% | 42.68% |
| Gross Profit Growth % | - | -31.52% | -2.46% | 15.46% | 6.2% | - |
| Operating Expenses | 57.68M | 31.67M | 11.28M | 10.88M | 5.42M | 6.02M |
| OpEx % of Revenue | - | 121.42% | 35.3% | 31.14% | 16.82% | 17.11% |
| Selling, General & Admin | 57.48M | 31.5M | 11.27M | 10.8M | 5.39M | 5.48M |
| SG&A % of Revenue | - | 120.76% | 35.27% | 30.91% | 16.73% | 15.56% |
| Research & Development | 205.09K | 172.81K | 11.37K | 80.01K | 29.48K | 543.8K |
| R&D % of Revenue | - | 0.66% | 0.04% | 0.23% | 0.09% | 1.55% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -29.32M | -19.37M | 6.68M | 7.54M | 10.53M | 9M |
| Operating Margin % | -49.72% | -74.26% | 20.91% | 21.59% | 32.7% | 25.58% |
| Operating Income Growth % | - | -389.89% | -11.41% | -28.4% | 17.04% | - |
| EBITDA | -29.04M | -13.26M | 6.82M | 7.76M | 10.79M | 9.41M |
| EBITDA Margin % | -49.25% | -50.85% | 21.33% | 22.23% | 33.49% | 26.75% |
| EBITDA Growth % | -271.87% | -294.56% | -12.2% | -28.02% | 14.62% | - |
| D&A (Non-Cash Add-back) | 279.53K | 6.11M | 134.95K | 222.17K | 253.06K | 411.33K |
| EBIT | -29.32M | -19.37M | 6.68M | 7.54M | 10.53M | 9M |
| Net Interest Income | 107.07K | 101.15K | -353K | -443.58K | -479.9K | -347.32K |
| Interest Income | 509.18K | 101.15K | 0 | 0 | 0 | 347.32K |
| Interest Expense | 99.35K | 0 | 353K | 443.58K | 479.9K | 0 |
| Other Income/Expense | 2.2M | -58K | 94.97K | -336.03K | 246.53K | 3.5M |
| Pretax Income | -27.12M | -19.43M | 6.78M | 7.21M | 10.78M | 12.5M |
| Pretax Margin % | -46% | -74.48% | 21.2% | 20.63% | 33.47% | 35.51% |
| Income Tax | 2.8M | 781.76K | 148.31K | 387.85K | 431.63K | 815.27K |
| Effective Tax Rate % | -10.33% | -4.02% | 2.19% | 5.38% | 4% | 6.52% |
| Net Income | -29.5M | -20.21M | 6.63M | 6.82M | 10.35M | 11.68M |
| Net Margin % | -50.03% | -77.48% | 20.74% | 19.52% | 32.13% | 33.19% |
| Net Income Growth % | -292.13% | -404.89% | -2.78% | -34.12% | -11.4% | - |
| Net Income (Continuing) | -29.5M | -20.21M | 6.63M | 6.82M | 10.35M | 11.68M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -17.81 | -12.70 | 4.58 | 4.12 | 6.25 | 8.08 |
| EPS Growth % | -266.67% | -377.29% | 11.16% | -34.08% | -22.65% | - |
| EPS (Basic) | - | -12.70 | 4.00 | 4.12 | 6.25 | 8.08 |
| Diluted Shares Outstanding | 1.66M | 1.59M | 1.45M | 1.66M | 1.66M | 1.45M |
| Basic Shares Outstanding | 1.66M | 1.59M | 1.66M | 1.66M | 1.66M | 1.45M |
| Dividend Payout Ratio | - | - | 80.39% | 146.66% | - | - |
Severe negative operating leverage
According to the provided quarterly data, MFI's revenue trajectory has become increasingly erratic, oscillating between a 23.5% contraction in 2024Q4 and a 20.8% expansion in 2025Q2, suggesting that the firm's core platform business lacks the predictable, recurring revenue base typical of stable software-as-a-service providers.
The inconsistency in top-line performance implies that MFI remains heavily reliant on project-based or transactional revenue streams that are highly sensitive to regional market cycles. Investors should monitor whether the recent growth spike in 2025Q2 represents a sustainable recovery or merely a temporary fluctuation in client trading activity.
As reported in the financial statements, MFI's gross margin has fluctuated significantly, dropping to 35.5% in 2025Q2 from a peak of 60.1% in 2023Q4, which indicates a potential loss of pricing power or an increase in the direct costs associated with maintaining its specialized trading infrastructure.
The compression in gross margins suggests that the company may be forced to absorb higher cloud or liquidity-related expenses to retain its client base in a competitive environment. This trend warrants further investigation into whether the firm's localized moat is being eroded by larger, more scalable global competitors.
Based on the reported figures, MFI has experienced a dramatic shift in operating leverage, with operating margins collapsing to -93.4% in 2025Q2, as SG&A expenses have surged to $19.4M while revenue failed to scale proportionally to cover the company's fixed cost base.
The current cost structure appears fundamentally misaligned with the firm's revenue-generating capacity, suggesting that the business is currently unable to achieve the economies of scale necessary for profitability. The sharp increase in SG&A relative to revenue indicates a lack of expense discipline that threatens the company's long-term viability.
Data from the income statement indicates that MFI's net margin of -90.9% in 2025Q2 highlights a critical risk, as the company's aggressive spending on overhead appears to be outpacing its ability to monetize its platform, raising questions about the sustainability of its current business model.
Short-sellers would likely focus on the widening gap between revenue and operating expenses, which suggests that the company is burning through its cash reserves to fund operations that are not yet self-sustaining. Without a clear path to rationalizing the SG&A burden, the firm may face significant liquidity challenges in the coming quarters.
Quick answers to the most common questions about buying MFI stock.
For fiscal year 2024, mF International Limited (MFI) reported total revenue of $26.1M. This represents a 25.9% decline compared to $35.2M in 2020.
mF International Limited (MFI) reported a net loss of $20.2M for the fiscal year ending 2024.
mF International Limited (MFI) reported an operating income of $-19.4M, resulting in an operating profit margin of -74.3%. This margin reflects the operational efficiency of the business before interest and taxes.
mF International Limited (MFI) generated $12.3M in gross profit for the year, representing a gross profit margin of 47.2%. This demonstrates the company's core pricing power and production efficiency.