The company's operational viability is severely compromised, evidenced by a 70.7% revenue decline in 2025Q4 and an inability to scale SG&A expenses, which reached $587,000 against only $76,400 in quarterly revenue.
| Sales/Revenue | 202.01K | 530.61K | 1.1M |
| Revenue Growth % | -61.93% | -51.73% | - |
| Cost of Goods Sold | 113.38K | 355.66K | 750.74K |
| COGS % of Revenue | 56.12% | 67.03% | 68.3% |
| Gross Profit | 88.63K | 174.94K | 348.49K |
| Gross Margin % | 43.88% | 32.97% | 31.7% |
| Gross Profit Growth % | -49.34% | -49.8% | - |
| Operating Expenses | 775.85K | 262.28K | 186.5K |
| OpEx % of Revenue | 384.07% | 49.43% | 16.97% |
| Selling, General & Admin | 775.85K | 262.28K | 186.5K |
| SG&A % of Revenue | 384.07% | 49.43% | 16.97% |
| Research & Development | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 |
| Operating Income | -687.22K | -87.34K | 161.99K |
| Operating Margin % | -340.19% | -16.46% | 14.74% |
| Operating Income Growth % | -686.84% | -153.92% | - |
| EBITDA | -666.23K | -86.06K | 174.27K |
| EBITDA Margin % | -329.8% | -16.22% | 15.85% |
| EBITDA Growth % | -674.14% | -149.38% | - |
| D&A (Non-Cash Add-back) | 0 | 0 | 0 |
| EBIT | -666.23K | -86.06K | 174.27K |
| Net Interest Income | -47.48K | -5.86K | 36 |
| Interest Income | 968 | 1.28K | 36 |
| Interest Expense | 48.45K | 7.14K | 0 |
| Other Income/Expense | -27.46K | -5.86K | 12.28K |
| Pretax Income | -714.68K | -93.2K | 174.27K |
| Pretax Margin % | -353.79% | -17.56% | 15.85% |
| Income Tax | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% |
| Net Income | -714.68K | -93.2K | 174.27K |
| Net Margin % | -353.79% | -17.56% | 15.85% |
| Net Income Growth % | -666.85% | -153.48% | - |
| Net Income (Continuing) | -714.68K | -93.2K | 174.27K |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
| EPS (Diluted) | -0.06 | -0.01 | 0.02 |
| EPS Growth % | - | -153.5% | - |
| EPS (Basic) | -0.06 | -0.01 | 0.02 |
| Diluted Shares Outstanding | 11.11M | 11.11M | 11.11M |
| Basic Shares Outstanding | 11.11M | 11.11M | 11.11M |
| Dividend Payout Ratio | - | - | - |
Severe liquidity and solvency
As reported in recent financial statements, OFAL experienced a severe 70.7% year-over-year revenue decline in 2025Q4, reflecting a rapid deterioration in project-based income that suggests the company is struggling to maintain its market position within the highly competitive Hong Kong interior design and fit-out sector.
The consistent downward trend in quarterly revenue indicates that the firm is failing to convert its project pipeline into recognized income. This contraction appears to be structural rather than cyclical, as the company lacks the recurring revenue streams necessary to buffer against the volatility of the local real estate market.
Based on the company's latest income statement, SG&A expenses surged to $587,000 in 2025Q4, which represents a massive disconnect from the $76,400 in quarterly revenue, highlighting an inability to scale operating costs in alignment with the company's rapidly shrinking top-line performance and overall business activity.
The operating loss of $534,300 for the quarter demonstrates that the firm's fixed cost structure is fundamentally misaligned with its current revenue scale. Investors should monitor whether management can implement significant cost-cutting measures, as the current level of overhead absorption appears unsustainable for a firm of this size.
According to the provided data, OFAL's gross margin fluctuated significantly from 11.6% in 2024Q2 to 69.1% in 2025Q4, suggesting that the company's profitability is highly sensitive to project mix and potentially unreliable accounting estimates rather than consistent pricing power or structural cost advantages in its fit-out operations.
While the 69.1% gross margin in the most recent quarter appears superficially strong, it is likely an artifact of low volume rather than operational efficiency. The lack of consistency in these margins warrants further investigation into the company's project-based accounting practices and its ability to maintain pricing power.
As indicated by the reported figures, the company's cash balance of only $31,950 against a quarterly net loss of $521,800 suggests that OFAL is facing an imminent liquidity crisis that may necessitate dilutive financing or threaten the firm's ability to continue as a going concern.
Short-sellers would likely focus on the extreme cash burn rate relative to the company's minimal liquidity reserves. The absence of a clear path to profitability suggests that the current business model may be fundamentally unviable without a significant injection of capital or a radical restructuring of its cost base.
Quick answers to the most common questions about buying OFAL stock.
For fiscal year 2025, OFA Group (OFAL) reported total revenue of $0.2M. This represents a 81.6% decline compared to $1.1M in 2023.
OFA Group (OFAL) reported a net loss of $0.7M for the fiscal year ending 2025.
OFA Group (OFAL) reported an operating income of $-0.7M, resulting in an operating profit margin of -340.2%. This margin reflects the operational efficiency of the business before interest and taxes.
OFA Group (OFAL) generated $0.1M in gross profit for the year, representing a gross profit margin of 43.9%. This demonstrates the company's core pricing power and production efficiency.