Revenue growth has contracted to -2.9% year-over-year, while operating margins have deteriorated to -93.5% due to overhead costs scaling faster than top-line performance.
| Sales/Revenue | 9.81M | 10.1M | 11.09M | 9.26M | 11.56M | 2.98M |
| Revenue Growth % | -2.94% | -8.91% | 19.79% | -19.9% | 288.41% | - |
| Cost of Goods Sold | 7.56M | 7.79M | 8.73M | 6.22M | 7.58M | 1.91M |
| COGS % of Revenue | 77.15% | 77.08% | 78.72% | 67.15% | 65.59% | 64.09% |
| Gross Profit | 2.24M | 2.31M | 2.36M | 3.04M | 3.98M | 1.07M |
| Gross Margin % | 22.85% | 22.92% | 21.28% | 32.85% | 34.41% | 35.91% |
| Gross Profit Growth % | -3.22% | -1.9% | -22.4% | -23.55% | 272.26% | - |
| Operating Expenses | 13.17M | 3.6M | 1.97M | 2.99M | 2.77M | 993.85K |
| OpEx % of Revenue | 134.37% | 35.68% | 17.79% | 32.32% | 23.96% | 33.4% |
| Selling, General & Admin | 10.25M | 1.09M | 1.41M | 2.16M | 2.36M | 557.87K |
| SG&A % of Revenue | 104.5% | 10.78% | 12.67% | 23.38% | 20.45% | 18.75% |
| Research & Development | 1.68M | 2.52M | 567.81K | 828.31K | 406.75K | 435.98K |
| R&D % of Revenue | 17.11% | 24.9% | 5.12% | 8.95% | 3.52% | 14.65% |
| Other Operating Expenses | 1.25M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -10.93M | -1.29M | 386.7K | 48.37K | 1.21M | 74.59K |
| Operating Margin % | -111.52% | -12.76% | 3.49% | 0.52% | 10.45% | 2.51% |
| Operating Income Growth % | -748.39% | -433.29% | 699.47% | -95.99% | 1518.98% | - |
| EBITDA | -10.36M | -1.28M | 482.83K | 166.93K | 1.34M | 190.53K |
| EBITDA Margin % | -105.69% | -12.65% | 4.35% | 1.8% | 11.58% | 6.4% |
| EBITDA Growth % | -710.87% | -364.69% | 189.24% | -87.53% | 602.49% | - |
| D&A (Non-Cash Add-back) | 571.26K | 10.82K | 96.13K | 118.56K | 130.83K | 115.94K |
| EBIT | -9.68M | -1.29M | 386.7K | 48.37K | 1.21M | 74.59K |
| Net Interest Income | 0 | 209 | -4.56K | -8.57K | -11.91K | -234 |
| Interest Income | 0 | 209 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 4.56K | 8.57K | 11.91K | 234 |
| Other Income/Expense | -18.82K | -14.58K | 32.86K | 15.78K | 22.38K | 150.44K |
| Pretax Income | -10.95M | -1.3M | 419.56K | 64.15K | 1.23M | 225.03K |
| Pretax Margin % | -111.71% | -12.9% | 3.78% | 0.69% | 10.64% | 7.56% |
| Income Tax | -86.74K | 86.31K | 257.33K | -68.54K | 163.48K | 17.26K |
| Effective Tax Rate % | 0.79% | -6.62% | 61.33% | -106.84% | 13.29% | 7.67% |
| Net Income | -10.82M | -1.48M | 162.23K | 132.69K | 1.07M | 207.86K |
| Net Margin % | -110.4% | -14.63% | 1.46% | 1.43% | 9.23% | 6.99% |
| Net Income Growth % | -632.47% | -1010.94% | 22.26% | -87.56% | 413.11% | - |
| Net Income (Continuing) | -10.87M | -1.39M | 162.23K | 132.69K | 1.07M | 207.78K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 197.17K | 91.07K | 0 | 0 | 0 | -45.18K |
| EPS (Diluted) | -0.64 | -0.09 | 0.01 | 0.01 | 0.07 | 0.01 |
| EPS Growth % | -582.3% | -968.52% | - | -87.62% | 411.51% | - |
| EPS (Basic) | -0.64 | -0.09 | 0.01 | 0.01 | 0.07 | 0.01 |
| Diluted Shares Outstanding | 16.93M | 15.76M | 15.02M | 15M | 15M | 15M |
| Basic Shares Outstanding | 16.93M | 15.76M | 15.02M | 15M | 15M | 15M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Imminent liquidity and solvency risk
As indicated by the most recent financial disclosures, NTCL's revenue growth has trended into negative territory at -2.94% year-over-year, suggesting that the company's transition from project-based IT services to a recurring SaaS model is failing to gain the necessary traction within its core institutional client base.
The persistent decline in top-line performance implies that the company's niche administrative modules are not providing the expected competitive moat against larger, more diversified edtech incumbents. Investors should monitor whether this contraction reflects a broader saturation of the 'Smart Campus' market or a fundamental inability to secure follow-on contracts with existing public agency clients.
Based on reported figures, NTCL's gross margin remains suppressed at approximately 22.85%, a level that appears inconsistent with a high-growth software firm and suggests a heavy reliance on low-margin, labor-intensive implementation services rather than high-margin, scalable software licensing or subscription-based revenue streams.
This margin profile indicates that the company may be functioning more as a bespoke IT consultancy than a scalable technology platform. The lack of pricing power is evident, as the firm appears unable to pass through costs or command premiums for its blockchain-based credentialing modules, leaving little room for operational profitability.
According to the latest income statement data, NTCL's operating margin has deteriorated to -111.52%, demonstrating that operating expenses are scaling significantly faster than revenue, which effectively negates any potential for operational leverage in the current business model.
The widening gap between gross profit and operating income suggests that the company's fixed-cost structure, particularly regarding personnel and R&D, is disproportionate to its current revenue scale. Without a significant pivot toward standardized product offerings, the firm appears trapped in a cycle of high-overhead spending that fails to generate incremental value.
As reported in recent filings, the inclusion of $5.2M in stock-based compensation during 2025Q4 significantly distorts the net income profile, highlighting a disconnect between reported earnings and the underlying cash-generating capacity of the business.
The reliance on equity-based incentives while the company faces substantial operating losses warrants further investigation into management's capital allocation priorities. This practice may be masking the true extent of the firm's cash burn, as investors should focus on the underlying operating performance rather than headline figures that exclude these non-cash expenses.
Financial statements reveal a critical mismatch between the company's $1.76M cash position and its annual operating losses, which suggests that the current business model may be unsustainable without immediate external financing or a drastic restructuring of the firm's cost base.
Short-sellers would likely focus on the high probability of a 'going concern' risk, given that the current burn rate appears to outpace available liquidity. The reliance on one-time project revenue, combined with the lack of clear path to profitability, suggests that the company's valuation may be disconnected from its fundamental operational realities.
Quick answers to the most common questions about buying NTCL stock.
For fiscal year 2025, NetClass Technology Inc (NTCL) reported total revenue of $9.8M. This represents a 229.5% increase compared to $3.0M in 2020.
NetClass Technology Inc (NTCL) reported a net loss of $10.8M for the fiscal year ending 2025.
NetClass Technology Inc (NTCL) reported an operating income of $-10.9M, resulting in an operating profit margin of -111.5%. This margin reflects the operational efficiency of the business before interest and taxes.
NetClass Technology Inc (NTCL) generated $2.2M in gross profit for the year, representing a gross profit margin of 22.8%. This demonstrates the company's core pricing power and production efficiency.