Revenue growth remains highly inconsistent, fluctuating between a 32.3% contraction in 2024Q4 and a 12.8% expansion in 2025Q2, while operating margins have largely remained negative.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Sales/Revenue | 1.31B | 1.44B | 1.24B | 1.5B | 1.72B | 2.38B | 2.11B | 1.53B | 559.39K | 882.01K | 13.06M | 738.3K | 2.77M | 7.4M | 21.37M | 21.64M | 19.6M | 12.37M | 9.41M | 6.6M |
| Revenue Growth % | -5.23% | 16.91% | -17.46% | -12.98% | -27.6% | 12.36% | 37.87% | 274116.37% | -36.58% | -93.25% | 1669.25% | -73.35% | -62.57% | -65.37% | -1.25% | 10.41% | 58.45% | 31.39% | 42.65% | - |
| Cost of Goods Sold | 1.15B | 1.28B | 1.11B | 1.33B | 1.5B | 2.05B | 1.84B | 1.37B | 1.17M | 1.66M | 17.18M | 927.29K | 1.78M | 4.59M | 13.25M | 13.7M | 11.98M | 7.51M | 5.93M | 4.28M |
| COGS % of Revenue | - | 88.34% | 90.22% | 88.81% | 87.41% | 86.28% | 87.06% | 89.25% | 209.46% | 187.75% | 131.52% | 125.6% | 64.26% | 62.03% | 62% | 63.31% | 61.12% | 60.72% | 63% | 64.85% |
| Gross Profit | 156.34M | 168.46M | 120.78M | 167.56M | 216.63M | 325.98M | 273.63M | 164.87M | -612.33K | -773.96K | -4.12M | -188.99K | 990K | 2.81M | 8.12M | 7.49M | 7.62M | 4.86M | 3.48M | 2.32M |
| Gross Margin % | 11.93% | 11.66% | 9.78% | 11.19% | 12.59% | 13.72% | 12.94% | 10.75% | -109.46% | -87.75% | -31.52% | -25.6% | 35.74% | 37.97% | 37.98% | 34.62% | 38.86% | 39.28% | 37% | 35.15% |
| Gross Profit Growth % | - | 39.47% | -27.91% | -22.65% | -33.55% | 19.13% | 65.96% | 27025.68% | 20.88% | 81.2% | -2078.31% | -119.09% | -64.77% | -65.38% | 8.33% | -1.64% | 56.75% | 39.5% | 50.15% | - |
| Operating Expenses | 167.38M | 178M | 172.04M | 238.64M | 266.16M | 292.46M | 250.24M | 200.88M | 5.37M | 4.34M | 4.96M | 8.31M | 4.91M | 2.91M | 3.73M | 4.61M | 2.83M | 1.91M | 2.41M | 1.64M |
| OpEx % of Revenue | - | 12.32% | 13.92% | 15.94% | 15.47% | 12.31% | 11.83% | 13.1% | 959.39% | 491.92% | 37.98% | 1126.21% | 177.19% | 39.26% | 17.45% | 21.31% | 14.42% | 15.45% | 25.55% | 24.83% |
| Selling, General & Admin | 167.38M | 170.4M | 172.3M | 238.64M | 266.16M | 292.46M | 250.24M | 229.19M | 5.06M | 4.02M | 3.92M | 5.16M | 2.56M | 2.46M | 3.96M | 4.5M | -163.9K | 1.91M | 2.41M | 1.64M |
| SG&A % of Revenue | - | 11.8% | 13.94% | 15.94% | 15.47% | 12.31% | 11.83% | 14.94% | 905.46% | 455.53% | 30% | 699.13% | 92.42% | 33.24% | 18.53% | 20.79% | -0.84% | 15.45% | 25.55% | 24.83% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 7.6M | -264K | 0 | 0 | 0 | 0 | -28.31M | 0 | -170K | 0 | -1.23M | -360.62K | 0 | -231.62K | -113.86K | 146.95K | 0 | 0 | 0 |
| Operating Income | -11.04M | -9.54M | -51.55M | -71.08M | -49.54M | 33.51M | 23.39M | -3.8M | -5.98M | -5.11M | -9.08M | -8.5M | -1.47M | 600K | 4.16M | 3.33M | 4.94M | 3.07M | 1.08M | 681.44K |
| Operating Margin % | -0.84% | -0.66% | -4.17% | -4.75% | -2.88% | 1.41% | 1.11% | -0.25% | -1068.86% | -579.67% | -69.49% | -1151.81% | -53.07% | 8.11% | 19.46% | 15.39% | 25.19% | 24.8% | 11.45% | 10.33% |
| Operating Income Growth % | - | 81.5% | 27.48% | -43.49% | -247.82% | 43.27% | 715.14% | 36.4% | -16.94% | 43.68% | -6.75% | -478.49% | -345% | -85.57% | 24.86% | -32.55% | 60.97% | 184.65% | 58.14% | - |
| EBITDA | -2.77M | -1.94M | -40.85M | -57.65M | -38.52M | 44.31M | 32.49M | 6.91M | -5.15M | -3.78M | -7.85M | -7.98M | -1.2M | 820K | 4.78M | 3.78M | 5.85M | 3.64M | 1.31M | 829.24K |
| EBITDA Margin % | -0.21% | -0.13% | -3.31% | -3.85% | -2.24% | 1.86% | 1.54% | 0.45% | -920.9% | -429.06% | -60.06% | -1080.58% | -43.32% | 11.08% | 22.37% | 17.47% | 29.83% | 29.39% | 13.95% | 12.57% |
| EBITDA Growth % | 94.04% | 95.26% | 29.14% | -49.67% | -186.92% | 36.39% | 370.49% | 234.05% | -36.12% | 51.76% | 1.66% | -564.83% | -246.34% | -82.85% | 26.46% | -35.34% | 60.83% | 176.78% | 58.39% | - |
| D&A (Non-Cash Add-back) | 8.27M | 7.6M | 10.7M | 13.44M | 11.02M | 10.8M | 9.1M | 10.71M | 827.63K | 1.33M | 1.23M | 525.92K | 270K | 220K | 0 | 450K | 0 | 0 | 235.87K | 147.8K |
| EBIT | -6.64M | -1.87M | -43.65M | -59.13M | -42.64M | 31.08M | 29.83M | -9.46M | -8.87M | -5.14M | -9.58M | -6.52M | 1.45M | 2.69M | 4.23M | 3.86M | 5.48M | 3.35M | 1.49M | 967.29K |
| Net Interest Income | 758.5K | 1.32M | 1.77M | -193K | 479K | 467K | 460K | -2.36M | 0 | 705K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -45.22K |
| Interest Income | 1.79M | 2.33M | 2.72M | 2.35M | 1.16M | 1.08M | 1.12M | 586K | 0 | 705K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.03M | 1.01M | 952K | 2.54M | 685K | 612K | 664K | 2.94M | 561.97K | 0 | 402.49K | 195.55K | 195.97K | -510K | 82.14K | 70.34K | -120K | 85.67K | 97.12K | 45.22K |
| Other Income/Expense | 4.53M | 6.66M | 6.95M | 9.41M | 6.21M | -3.04M | 8.98M | 23.6M | 11.11M | 2.08M | -627.34K | 212.42M | 2.88M | -725.14K | -78.4K | 449.47K | 473.44K | -87.44M | 318.08K | 240.63K |
| Pretax Income | -6.51M | -2.88M | -44.61M | -61.67M | -43.33M | 30.47M | 32.37M | -12.4M | -8.91M | -5.14M | -9.7M | -6.71M | 1.28M | 2.53M | 4.08M | 3.78M | 5.41M | 3.26M | 1.4M | 922.07K |
| Pretax Margin % | -0.5% | -0.2% | -3.61% | -4.12% | -2.52% | 1.28% | 1.53% | -0.81% | -1592.82% | -582.35% | -74.3% | -908.96% | 46.22% | 34.13% | 19.09% | 17.48% | 27.61% | 26.38% | 14.82% | 13.97% |
| Income Tax | -949K | 2M | -1.28M | -2.68M | 14.1M | -5.79M | 1.94M | 4.59M | 1.58M | 247K | -95.03K | -11.98K | 49.99M | 520K | 656.3K | 850.03K | 850K | 531.46K | 415.33K | 73.65K |
| Effective Tax Rate % | 14.57% | -69.6% | 2.87% | 4.35% | -32.54% | -19.02% | 6% | -37% | -17.76% | -4.81% | 0.98% | 0.18% | 3904.43% | 20.59% | 16.09% | 22.48% | 15.71% | 16.29% | 29.76% | 7.99% |
| Net Income | -5.56M | -4.88M | -43.33M | -58.99M | -57.43M | 36.26M | 30.43M | -16.99M | -8.91M | -5.14M | -9.65M | -10.22M | -24.3M | 2M | 3.21M | 3.1M | 4.54M | 2.67M | 918.02K | 795.21K |
| Net Margin % | -0.42% | -0.34% | -3.51% | -3.94% | -3.34% | 1.53% | 1.44% | -1.11% | -1592.82% | -582.35% | -73.87% | -1384.68% | -877.19% | 26.97% | 15% | 14.34% | 23.16% | 21.62% | 9.75% | 12.05% |
| Net Income Growth % | 88.67% | 88.73% | 26.55% | -2.72% | -258.37% | 19.18% | 279.07% | -90.7% | -73.47% | 46.77% | 5.61% | 57.93% | -1317.57% | -37.76% | 3.32% | -31.64% | 69.77% | 191.28% | 15.44% | - |
| Net Income (Continuing) | -5.56M | -4.88M | -43.33M | -58.99M | -57.43M | 36.26M | 30.43M | -16.99M | -8.91M | -5.14M | -9.61M | -6.7M | 922.64K | 2M | 3.22M | 3.13M | 4.56M | 2.73M | 980.35K | 848.42K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -168.57K | -3.66M | -25.96M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 867.83K | 0 | 0 | 1.44M | 1.41B | 1.33B | 1.26B | 0 | 1.07M |
| EPS (Diluted) | -0.27 | -0.24 | -2.25 | -3.12 | -3.08 | 1.60 | 1.65 | -0.94 | -0.48 | -0.30 | -7.41 | -27.74 | -88.20 | 8.62 | 13.94 | 13.76 | 21.88 | 31.69 | 48.96 | 42.41 |
| EPS Growth % | 87.4% | 89.33% | 27.88% | -1.3% | -292.5% | -3.03% | 275.53% | -95.83% | -60% | 95.95% | 73.29% | 68.55% | -1123.2% | -38.16% | 1.31% | -37.11% | -30.96% | -35.27% | 15.44% | - |
| EPS (Basic) | - | -0.24 | -2.25 | -3.12 | -3.08 | 1.98 | 1.67 | -1.00 | -0.76 | -0.30 | -7.41 | -279.00 | -88.20 | 8.62 | 14.01 | 13.76 | 21.88 | 206.03 | 77.64 | 67.25 |
| Diluted Shares Outstanding | 20.97M | 20.11M | 19.29M | 18.93M | 18.66M | 21.61M | 18.41M | 18.17M | 18.67M | 17.41M | 14.56M | 14.56M | 275.5K | 231.5K | 230K | 225.5K | 207.5K | 84.38K | 18.75K | 18.75K |
| Basic Shares Outstanding | 20.97M | 20.11M | 19.29M | 18.93M | 18.66M | 18.33M | 18.41M | 16.99M | 11.72M | 17.31M | 14.56M | 14.56M | 275.5K | 231.5K | 228.91K | 225.5K | 207.5K | 12.98K | 11.82K | 11.82K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Persistent negative operating margins
As reported in recent financial statements, Newegg's revenue trajectory remains highly inconsistent, with quarterly figures fluctuating between a 32.3% contraction in 2024Q4 and a 12.8% expansion in 2025Q2, suggesting that the company's top-line performance is heavily tethered to cyclical hardware refresh cycles and seasonal demand shifts.
The erratic revenue growth suggests that Newegg struggles to maintain a consistent baseline of demand outside of peak holiday periods or major semiconductor launches. Investors should monitor whether the recent return to positive growth in early 2025 represents a sustainable recovery or merely a temporary rebound from prior-year inventory destocking.
Based on the company's reported figures, gross margins have hovered in the narrow 10.2% to 13.8% range, reflecting the intense price competition inherent in the consumer electronics retail sector and the limited bargaining power Newegg maintains against dominant hardware OEMs and larger generalist e-commerce platforms.
The inability to consistently expand gross margins above 14% suggests that Newegg lacks the pricing power necessary to offset rising logistics and fulfillment costs. This structural limitation implies that the company may remain vulnerable to even minor fluctuations in component pricing or shipping expenses.
According to the provided income statement data, Newegg has struggled to achieve positive operating leverage, as SG&A expenses frequently outpaced gross profit, resulting in negative operating margins for the majority of the last ten quarters despite periodic attempts to rationalize the company's fixed cost structure.
The persistent gap between gross profit and operating expenses indicates that the company's current scale is insufficient to cover its fixed overhead. Unless management can significantly reduce SG&A intensity or pivot toward higher-margin service revenue, the path to sustained operating profitability appears increasingly difficult to navigate.
As indicated by the quarterly income statements, Newegg's net income figures are frequently influenced by stock-based compensation expenses, which reached as high as $9.0M in 2023Q2, potentially masking the underlying cash-generative capacity of the core retail operations and complicating the assessment of true economic profitability.
The reliance on equity-based incentives in a period of negative operating income warrants further investigation into the company's long-term compensation strategy. Investors should be cautious of the discrepancy between reported net income and the actual cash flow generated from operations, as non-cash charges continue to distort the bottom line.
Based on the reported financials, the primary risk to the investment thesis is the company's inability to achieve consistent profitability, as evidenced by the negative operating margins that have persisted through most of the last ten quarters, suggesting a potential structural flaw in the retail model.
Short-sellers may focus on the company's reliance on low-margin hardware sales and the potential for inventory obsolescence in a rapidly evolving tech landscape. The lack of a clear inflection point toward sustainable operating income suggests that the current business model may require a fundamental pivot to avoid long-term value erosion.
Quick answers to the most common questions about buying NEGG stock.
For fiscal year 2025, Newegg Commerce, Inc. (NEGG) reported total revenue of $1.44B. This represents a 21787.5% increase compared to $6.6M in 2007.
Newegg Commerce, Inc. (NEGG) reported a net loss of $4.9M for the fiscal year ending 2025.
Newegg Commerce, Inc. (NEGG) reported an operating income of $-9.5M, resulting in an operating profit margin of -0.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Newegg Commerce, Inc. (NEGG) generated $168.5M in gross profit for the year, representing a gross profit margin of 11.7%. This demonstrates the company's core pricing power and production efficiency.