Revenue contracted by 77.5% in 2024Q4, while the company continues to report operating losses despite maintaining a robust 83.3% gross margin.
| Sales/Revenue | 2.2M | 1.89M | 622.69K | 1.58M | 17.81M | 37.6M | 17.44M | 13.45M | 5.35M |
| Revenue Growth % | -96.02% | 203.34% | -60.59% | -91.13% | -52.62% | 115.59% | 29.66% | 151.26% | - |
| Cost of Goods Sold | 587.81K | 270.83K | 182.18K | 405.63K | 996.46K | 2.43M | 2.64M | 1.33M | 500.38K |
| COGS % of Revenue | - | 14.34% | 29.26% | 25.67% | 5.59% | 6.45% | 15.15% | 9.89% | 9.35% |
| Gross Profit | 1.61M | 1.62M | 440.51K | 1.17M | 16.82M | 35.17M | 14.8M | 12.12M | 4.85M |
| Gross Margin % | 73.31% | 85.66% | 70.74% | 74.33% | 94.41% | 93.55% | 84.85% | 90.11% | 90.65% |
| Gross Profit Growth % | - | 267.31% | -62.49% | -93.02% | -52.19% | 137.7% | 22.09% | 149.77% | - |
| Operating Expenses | 9.15M | 5.46M | 3.64M | 5.51M | 14.23M | 24.29M | 13.15M | 3.14M | 2.19M |
| OpEx % of Revenue | - | 289.14% | 584.19% | 348.71% | 79.87% | 64.6% | 75.41% | 23.35% | 40.82% |
| Selling, General & Admin | 9.15M | 4.92M | 3.64M | 5.51M | 14.23M | 24.29M | 13.15M | 3.14M | 2.19M |
| SG&A % of Revenue | - | 260.34% | 584.19% | 348.71% | 79.87% | 64.6% | 75.41% | 23.35% | 40.82% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 543.91K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -7.53M | -3.84M | -3.2M | -4.34M | 2.59M | 10.89M | 1.65M | 8.98M | 2.67M |
| Operating Margin % | -341.96% | -203.48% | -513.45% | -274.38% | 14.54% | 28.95% | 9.44% | 66.76% | 49.83% |
| Operating Income Growth % | - | -20.21% | 26.25% | -267.43% | -76.21% | 561.29% | -81.67% | 236.66% | - |
| EBITDA | -6.43M | -3.56M | -2.71M | -3.73M | 3.26M | 11.28M | 1.95M | 9.22M | 2.71M |
| EBITDA Margin % | -292.09% | -188.32% | -435.06% | -235.75% | 18.32% | 30.02% | 11.21% | 68.56% | 50.59% |
| EBITDA Growth % | -146.28% | -31.3% | 27.27% | -214.17% | -71.09% | 477.41% | -78.8% | 240.5% | - |
| D&A (Non-Cash Add-back) | 1.1M | 286.33K | 488.13K | 610.37K | 673.43K | 399.22K | 308.27K | 241.72K | 40.86K |
| EBIT | -7.53M | -3.84M | -3.2M | -4.34M | 3.24M | 10.89M | 1.65M | 8.98M | 2.67M |
| Net Interest Income | 1.14M | 672.7K | 763.19K | 372.2K | 226.16K | 197.24K | 139.92K | 75.54K | 0 |
| Interest Income | 1.14M | 672.7K | 763.19K | 372.2K | 226.16K | 197.24K | 139.92K | 75.54K | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 1.52M | -124.64K | 763.75K | 751.76K | 651.15K | 558.81K | 402.02K | 108.78K | -43.01K |
| Pretax Income | -6.02M | -3.97M | -2.43M | -3.58M | 3.24M | 11.44M | 2.05M | 9.09M | 2.62M |
| Pretax Margin % | -273.16% | -210.08% | -390.8% | -226.8% | 18.19% | 30.44% | 11.74% | 67.57% | 49.02% |
| Income Tax | 14.93K | -110.03K | 93 | 14.83K | 4.81K | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | -0.25% | 2.77% | -0% | -0.41% | 0.15% | 0% | 0% | 0% | 0% |
| Net Income | -6.03M | -3.86M | -2.43M | -3.6M | 3.24M | 11.44M | 2.05M | 9.09M | 2.62M |
| Net Margin % | -273.84% | -204.25% | -390.81% | -227.74% | 18.16% | 30.44% | 11.74% | 67.57% | 49.02% |
| Net Income Growth % | -141.09% | -58.53% | 32.37% | -211.21% | -71.73% | 458.77% | -77.46% | 246.32% | - |
| Net Income (Continuing) | -6.03M | -3.86M | -2.43M | -3.6M | 3.24M | 11.44M | 2.05M | 9.09M | 2.62M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -133711.65 | -70785.00 | -78408.00 | -365904.00 | 335412.00 | 999999.00 | 287496.00 | 999999.00 | 326700.00 |
| EPS Growth % | -132.08% | 9.72% | 78.57% | -209.09% | -72.4% | 322.73% | -79.44% | 328% | - |
| EPS (Basic) | - | -70785.00 | -78408.00 | -365904.00 | 335412.00 | 999999.00 | 287496.00 | 999999.00 | 326700.00 |
| Diluted Shares Outstanding | 45 | 55 | 30 | 10 | 10 | 9 | 7 | 7 | 8 |
| Basic Shares Outstanding | 45 | 55 | 30 | 10 | 10 | 9 | 7 | 7 | 8 |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Regulatory and liquidity volatility
According to the most recent quarterly financial data, OCG experienced a sharp 77.5% year-over-year revenue decline, signaling a significant deceleration from previous periods and highlighting the extreme sensitivity of the company's transaction-based model to shifting market sentiment and reduced trading activity within its cultural asset ecosystem.
The dramatic drop in top-line performance suggests that the company's reliance on speculative retail trading volume is a major vulnerability. Investors should monitor whether this contraction represents a structural loss of platform liquidity or merely a cyclical downturn in the broader Chinese collectibles market.
As reported in recent filings, OCG maintains a robust gross margin of 83.3%, which underscores the inherent efficiency of its fee-based listing model, yet this figure stands in stark contrast to the persistent operating losses that continue to erode the company's overall financial stability.
While the high gross margin indicates that the direct costs of facilitating trades are minimal, the inability to convert this into operating profit suggests a bloated cost structure. The company appears to be struggling to scale its operations effectively, as fixed costs remain disproportionately high relative to current revenue levels.
Based on the provided income statement data, OCG's SG&A expenses continue to dwarf its quarterly revenue, creating a structural imbalance that necessitates a significant pivot in expense discipline to prevent further depletion of the company's cash reserves during this period of declining transaction volume.
The persistent operating losses suggest that the company is investing heavily in infrastructure and potential metaverse initiatives that have yet to yield a return. This aggressive spending strategy appears to be a high-risk gamble that assumes future volume growth will eventually justify the current burn rate.
Financial statements indicate that OCG's net income is heavily impacted by non-operating items and stock-based compensation, which totaled $573.0K in the most recent quarter, further complicating the assessment of the company's core operational performance and its ability to generate sustainable shareholder value over the long term.
The presence of significant stock-based compensation during a period of revenue contraction warrants further investigation into management's alignment with shareholders. The discrepancy between the company's cash position and its negative earnings suggests that the current income statement may not fully capture the underlying economic reality of the business.
As noted in the company's recent performance metrics, the combination of a 77.5% revenue decline and negative operating margins suggests that OCG's business model may be fundamentally unsustainable without a rapid recovery in trading activity or a drastic reduction in its current operating cost structure.
Short-sellers would likely focus on the widening gap between the company's high cash balance and its inability to generate positive cash flow from operations. This disconnect implies that the market may be overvaluing the company's potential as a tech platform while ignoring the immediate risks posed by its deteriorating core business.
Quick answers to the most common questions about buying OCG stock.
For fiscal year 2025, Oriental Culture Holding Ltd. (OCG) reported total revenue of $1.9M. This represents a 64.7% decline compared to $5.4M in 2018.
Oriental Culture Holding Ltd. (OCG) reported a net loss of $3.9M for the fiscal year ending 2025.
Oriental Culture Holding Ltd. (OCG) reported an operating income of $-3.8M, resulting in an operating profit margin of -203.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Oriental Culture Holding Ltd. (OCG) generated $1.6M in gross profit for the year, representing a gross profit margin of 85.7%. This demonstrates the company's core pricing power and production efficiency.