The company's profitability has collapsed, evidenced by a 2026Q1 gross margin of -0.4% and a net loss of $3.5 million, indicating that cost structures are currently outpacing revenue generation.
| Sales/Revenue | 122.47M | 119.87M | 99M | 91.84M |
| Revenue Growth % | - | 21.08% | 7.79% | - |
| Cost of Goods Sold | 113.79M | 108.4M | 90.21M | 82.69M |
| COGS % of Revenue | - | 90.43% | 91.13% | 90.04% |
| Gross Profit | 8.68M | 11.47M | 8.78M | 9.15M |
| Gross Margin % | 7.09% | 9.57% | 8.87% | 9.96% |
| Gross Profit Growth % | - | 30.58% | -4% | - |
| Operating Expenses | 11.91M | 11M | 6.1M | 6.11M |
| OpEx % of Revenue | - | 9.18% | 6.16% | 6.65% |
| Selling, General & Admin | 11.63M | 10.69M | 5.84M | 5.89M |
| SG&A % of Revenue | - | 8.92% | 5.9% | 6.41% |
| Research & Development | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - |
| Other Operating Expenses | 274.5K | 310.87K | 255.24K | 217.06K |
| Operating Income | -3.23M | 462.91K | 2.68M | 3.04M |
| Operating Margin % | -2.63% | 0.39% | 2.71% | 3.31% |
| Operating Income Growth % | - | -82.75% | -11.66% | - |
| EBITDA | -2.79M | 773.78K | 2.94M | 3.26M |
| EBITDA Margin % | -2.28% | 0.65% | 2.97% | 3.54% |
| EBITDA Growth % | - | -73.67% | -9.71% | - |
| D&A (Non-Cash Add-back) | 433.19K | 310.87K | 255.24K | 217.06K |
| EBIT | -3.45M | 257.49K | 2.61M | 2.97M |
| Net Interest Income | -2.25M | -2.26M | -1.62M | -1.67M |
| Interest Income | 0 | 0 | 0 | 0 |
| Interest Expense | 2.25M | 2.26M | 1.62M | 1.67M |
| Other Income/Expense | -2.37M | -2.47M | -1.69M | -1.74M |
| Pretax Income | -5.6M | -2M | 991.68K | 1.3M |
| Pretax Margin % | -4.57% | -1.67% | 1% | 1.41% |
| Income Tax | 31.08K | -131.96K | 0 | 0 |
| Effective Tax Rate % | -0.56% | 6.59% | 0% | 0% |
| Net Income | -5.63M | -1.87M | 991.68K | 1.3M |
| Net Margin % | -4.6% | -1.56% | 1% | 1.41% |
| Net Income Growth % | - | -288.75% | -23.45% | - |
| Net Income (Continuing) | -5.63M | -1.87M | 991.68K | 1.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.23 | -0.08 | 0.04 | 0.05 |
| EPS Growth % | - | -294.75% | -20% | - |
| EPS (Basic) | - | -0.08 | 0.04 | 0.05 |
| Diluted Shares Outstanding | 24.31M | 24.02M | 24.79M | 25.91M |
| Basic Shares Outstanding | 24.31M | 24.02M | 24.79M | 25.91M |
| Dividend Payout Ratio | - | - | - | - |
Negative gross margin volatility
According to the most recent quarterly filings, OTH reported revenue of $29.8 million in 2026Q1, representing a 9.6% growth rate, yet this top-line expansion appears disconnected from the underlying operational performance as the company struggles to maintain consistent sales volume across the observed ten-quarter historical period.
The revenue trajectory remains erratic, suggesting that the company lacks a stable demand base or pricing power within its consumer cyclical niche. Investors should monitor whether this growth is driven by unsustainable promotional activity, as the inability to convert top-line gains into positive gross profit in the most recent quarter warrants significant caution.
As reported in the 2026Q1 financial statements, OTH experienced a sharp contraction in gross margin to -0.4%, a stark reversal from the 12.6% peak observed in 2025Q3, which suggests that the company's cost of goods sold is currently outpacing its ability to generate revenue.
The collapse into negative gross margin territory implies that the company may be selling products below cost, potentially to clear inventory or due to severe supply chain inefficiencies. This structural weakness suggests that the current business model may not be viable without a fundamental shift in procurement or pricing strategy.
Based on the provided income statement data, OTH's operating income plummeted to -$2.9 million in 2026Q1, indicating that SG&A expenses of $2.8 million are exerting excessive pressure on a business that has failed to achieve the necessary scale to cover its fixed operating cost structure.
The lack of operating leverage is evident as SG&A costs remain stubbornly high relative to the company's fluctuating revenue base. This suggests that management has limited flexibility to adjust the cost base in response to revenue volatility, which may lead to continued operating losses in the near term.
Analysis of the 2026Q1 results reveals a net loss of $3.5 million, which, when combined with the negative gross margin, suggests that the company's current operational trajectory is unsustainable and may require external financing or a drastic restructuring to avoid further erosion of shareholder value.
Short-term observers might focus on the rapid deterioration from a profitable 2025Q2 to the current loss-making state as evidence of a failing business model. The absence of stock-based compensation does not mitigate the core issue of negative profitability, suggesting that the company's primary challenge is operational execution rather than accounting optics.
Quick answers to the most common questions about buying OTH stock.
For fiscal year 2025, Off The Hook YS Inc. (OTH) reported total revenue of $119.9M. This represents a 30.5% increase compared to $91.8M in 2023.
Off The Hook YS Inc. (OTH) reported a net loss of $1.9M for the fiscal year ending 2025.
Off The Hook YS Inc. (OTH) reported an operating income of $0.5M, resulting in an operating profit margin of 0.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Off The Hook YS Inc. (OTH) generated $11.5M in gross profit for the year, representing a gross profit margin of 9.6%. This demonstrates the company's core pricing power and production efficiency.