Revenue contracted by 5.2% in 2023Q4, while gross margins experienced extreme volatility, plummeting from a 21.4% peak in 2022Q4 to a low of 4.4% in 2023Q3.
| Sales/Revenue | 83.67M | 126.53M | 85.27M | 83.67M | 65.84M | 31.8M | 5.67M |
| Revenue Growth % | - | 48.39% | 1.91% | 27.09% | 107.01% | 460.53% | - |
| Cost of Goods Sold | 76.47M | 128.01M | 82.26M | 76.47M | 62.09M | 32.4M | 4.73M |
| COGS % of Revenue | - | 101.17% | 96.47% | 91.4% | 94.32% | 101.87% | 83.39% |
| Gross Profit | 7.2M | -1.48M | 3.01M | 7.2M | 3.74M | -593.12K | 942.63K |
| Gross Margin % | 8.6% | -1.17% | 3.53% | 8.6% | 5.68% | -1.86% | 16.61% |
| Gross Profit Growth % | - | -149.23% | -58.18% | 92.35% | 730.97% | -162.92% | - |
| Operating Expenses | 21.41M | 57.33M | 19.9M | 21.85M | 11.82M | 7.86M | 3.82M |
| OpEx % of Revenue | - | 45.31% | 23.34% | 26.12% | 17.96% | 24.71% | 67.36% |
| Selling, General & Admin | 21.85M | 57.33M | 19.9M | 21.85M | 11.82M | 7.86M | 3.82M |
| SG&A % of Revenue | - | 45.31% | 23.34% | 26.12% | 17.96% | 24.71% | 67.36% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | -24.18K |
| Operating Income | -14.65M | -58.81M | -16.89M | -14.65M | -8.08M | -8.45M | -2.88M |
| Operating Margin % | -17.51% | -46.48% | -19.81% | -17.51% | -12.27% | -26.57% | -50.75% |
| Operating Income Growth % | - | -248.23% | -15.27% | -81.32% | 4.39% | -193.51% | - |
| EBITDA | -8.53M | -46.84M | -11.21M | -8.12M | -2.59M | -4.97M | -2.57M |
| EBITDA Margin % | -10.2% | -37.02% | -13.15% | -9.7% | -3.93% | -15.64% | -45.23% |
| EBITDA Growth % | - | -317.7% | -38.15% | -213.36% | 47.92% | -93.83% | - |
| D&A (Non-Cash Add-back) | 6.12M | 11.97M | 5.67M | 6.53M | 5.49M | 3.48M | 313.12K |
| EBIT | -14.37M | -249.35M | -14.52M | -13.94M | -5.58M | -7.55M | -2.9M |
| Net Interest Income | -86.47K | -2.24M | -537.48K | -523.32K | -460K | -519.5K | -178.25K |
| Interest Income | 218.43K | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 304.89K | 2.24M | 537.48K | 523.32K | 460K | 519.5K | 178.25K |
| Other Income/Expense | 207.75K | -192.77M | 1.83M | 193.24K | 1.13M | 377.79K | -202.43K |
| Pretax Income | -14.44M | -251.58M | -15.06M | -14.46M | -6.45M | -8.07M | -3.08M |
| Pretax Margin % | -17.26% | -198.84% | -17.66% | -17.28% | -9.79% | -25.39% | -54.32% |
| Income Tax | 435.58K | -13.47M | -2.37M | -1.2M | -139.45K | 65.89K | 130.21K |
| Effective Tax Rate % | -3.02% | 5.35% | 15.74% | 8.31% | 2.16% | -0.82% | -4.22% |
| Net Income | -26.09M | -237.48M | -12.69M | -13.26M | -6.22M | -8M | -3.21M |
| Net Margin % | -31.18% | -187.69% | -14.88% | -15.85% | -9.44% | -25.16% | -56.61% |
| Net Income Growth % | - | -1771.42% | 4.29% | -113.3% | 22.3% | -149.06% | - |
| Net Income (Continuing) | -25.96M | -238.12M | -12.69M | -13.26M | -6.05M | -8.14M | -3.21M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 5M | 4.61M | 4.94M | 5M | 5M | 6.35M | 0 |
| EPS (Diluted) | -0.93 | 0.00 | -1.30 | -2.04 | -0.22 | -0.28 | -0.11 |
| EPS Growth % | - | 100% | 36.27% | -827.27% | 21.43% | -154.55% | - |
| EPS (Basic) | - | 0.00 | -1.30 | -2.04 | -0.22 | -0.28 | -0.11 |
| Diluted Shares Outstanding | 28.03M | 0 | 37.64M | 28.03M | 28.03M | 28.03M | 28.03M |
| Basic Shares Outstanding | 28.03M | 0 | 37.64M | 28.03M | 28.03M | 28.03M | 28.03M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Liquidity and solvency constraints
As indicated by the most recent quarterly filings, NIPG experienced a 5.2% revenue contraction in 2023Q4, highlighting the inherent instability of a business model heavily reliant on volatile prize money and sponsorship cycles rather than consistent, recurring service-based income streams across its global esports operations.
The revenue trajectory appears inconsistent, suggesting that the company struggles to maintain a predictable pipeline of sponsorship renewals. This lack of durability in top-line growth warrants further investigation into whether the firm can successfully pivot toward more stable, service-oriented revenue streams.
Based on reported financial data, NIPG's gross margin fluctuated significantly from a peak of 21.4% in 2022Q4 to a low of 4.4% in 2023Q3, reflecting the high cost of talent acquisition and the inability to scale revenue proportionally with rising direct competitive expenses.
The erratic nature of these margins suggests that the company lacks meaningful pricing power within the competitive esports landscape. Investors should monitor whether the firm can optimize its roster costs, as the current structure appears to prioritize market share over sustainable unit economics.
According to the income statement, NIPG's operating margin plummeted to -31.9% during mid-2023, demonstrating that corporate overhead and administrative expenses are currently decoupled from the company's ability to generate sufficient gross profit to cover its fixed operational footprint.
This disconnect implies that the company's administrative structure is currently too heavy for its existing revenue scale. Without a significant reduction in SG&A, the firm may continue to struggle with achieving positive operating leverage, regardless of any potential top-line expansion.
As reported in recent financial statements, NIPG's net income swings from a $3.2M profit in 2022Q4 to a $12.0M loss in 2023Q2, suggesting that reported earnings are highly sensitive to non-operating items and the timing of significant stock-based compensation charges.
The reliance on non-cash adjustments and the lumpy nature of these results make it difficult to ascertain the underlying profitability of the core business. Analysts should adjust for these items to determine if the company is moving toward a sustainable path to positive net income.
Based on the provided figures, the company's reliance on aggressive M&A to drive growth, coupled with a cash position of only $7.1M, suggests that the current growth trajectory may be fundamentally unsustainable without further dilutive financing or a rapid improvement in operational efficiency.
Short-sellers would likely focus on the widening gap between revenue growth and cash burn, which may indicate that the company is effectively subsidizing its operations through capital raises. This warrants caution regarding the long-term viability of the current business model if market conditions tighten.
Quick answers to the most common questions about buying NIPG stock.
For fiscal year 2025, NIP Group Inc. (NIPG) reported total revenue of $126.5M. This represents a 2130.1% increase compared to $5.7M in 2020.
NIP Group Inc. (NIPG) reported a net loss of $237.5M for the fiscal year ending 2025.
NIP Group Inc. (NIPG) reported an operating income of $-58.8M, resulting in an operating profit margin of -46.5%. This margin reflects the operational efficiency of the business before interest and taxes.
NIP Group Inc. (NIPG) generated $-1.5M in gross profit for the year, representing a gross profit margin of -1.2%. This demonstrates the company's core pricing power and production efficiency.