The company's operating margin plummeted to -106.6% in 2025Q4, reflecting an inability to scale gross profits against a $457.7M SG&A expense burden.
| Sales/Revenue | 546.99M | 784.4M | 559.52M | 682.12M |
| Revenue Growth % | -30.27% | 40.19% | -17.97% | - |
| Cost of Goods Sold | 255.15M | 361.2M | 290.09M | 244.81M |
| COGS % of Revenue | 46.65% | 46.05% | 51.85% | 35.89% |
| Gross Profit | 291.84M | 423.2M | 269.43M | 437.31M |
| Gross Margin % | 53.35% | 53.95% | 48.15% | 64.11% |
| Gross Profit Growth % | -31.04% | 57.07% | -38.39% | - |
| Operating Expenses | 895.82M | 870.38M | 897.97M | 453.55M |
| OpEx % of Revenue | 163.77% | 110.96% | 160.49% | 66.49% |
| Selling, General & Admin | 869.5M | 870.38M | 897.97M | 453.55M |
| SG&A % of Revenue | 158.96% | 110.96% | 160.49% | 66.49% |
| Research & Development | 26.31M | 49M | 539.53K | 328.25K |
| R&D % of Revenue | 4.81% | 6.25% | 0.1% | 0.05% |
| Other Operating Expenses | - | - | - | - |
| Operating Income | -603.98M | -447.18M | -628.53M | -16.24M |
| Operating Margin % | -110.42% | -57.01% | -112.33% | -2.38% |
| Operating Income Growth % | -35.06% | 28.85% | -3770.52% | - |
| EBITDA | -577.34M | -426.52M | -616.36M | -8.01M |
| EBITDA Margin % | -105.55% | -54.37% | -110.16% | -1.17% |
| EBITDA Growth % | -35.36% | 30.8% | -7599.66% | - |
| D&A (Non-Cash Add-back) | 26.64M | 20.67M | 12.18M | 8.23M |
| EBIT | -603.98M | -448.89M | -628.53M | -16.24M |
| Net Interest Income | -17.49M | -31.03M | 245K | 3.24M |
| Interest Income | 3.34M | 0 | 245K | 3.24M |
| Interest Expense | - | - | - | - |
| Other Income/Expense | - | - | - | - |
| Pretax Income | -628.96M | -479.92M | -633.96M | -5.18M |
| Pretax Margin % | -114.98% | -61.18% | -113.3% | -0.76% |
| Income Tax | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% |
| Net Income | -628.96M | -479.92M | -633.96M | -5.18M |
| Net Margin % | -114.98% | -61.18% | -113.3% | -0.76% |
| Net Income Growth % | -31.05% | 24.3% | -12138.53% | - |
| Net Income (Continuing) | -628.96M | -479.92M | -633.96M | -5.18M |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -18.01 | -583.20 | -770.40 | -6.30 |
| EPS Growth % | 96.91% | 24.3% | -12128.57% | - |
| EPS (Basic) | -18.01 | -583.20 | -770.40 | -6.30 |
| Diluted Shares Outstanding | 34.62M | 822.79K | 822.79K | 822.79K |
| Basic Shares Outstanding | 34.62M | 822.79K | 822.79K | 822.79K |
| Dividend Payout Ratio | - | - | - | - |
Unscalable operating cost structure
As evidenced by the most recent quarterly data, PicoCELA's revenue trajectory remains highly inconsistent, with a notable 18.4% growth in 2025Q4 following periods of significant contraction, suggesting that the company's project-based business model is highly sensitive to the timing of large-scale infrastructure deployments in Japan.
The erratic revenue swings indicate that the firm has yet to establish a predictable, recurring revenue base, likely due to its heavy reliance on cyclical construction and civil engineering projects. Investors should monitor whether the recent uptick represents a sustainable shift in demand or merely the lumpy recognition of milestone-based contracts.
According to the reported financial statements, PicoCELA has maintained a relatively consistent gross margin profile, hovering around the 50% to 57% range, which suggests that the company retains some pricing power for its proprietary mesh networking hardware despite the broader volatility in its top-line performance.
This gross margin resilience implies that the underlying technology holds value in specialized environments where standard mesh protocols fail. However, the inability to translate these healthy gross margins into positive operating results suggests that the current pricing strategy is insufficient to cover the company's substantial fixed overhead.
Based on the provided income statement data, PicoCELA exhibits a significant lack of operating leverage, as evidenced by an operating margin that plummeted to -106.6% in 2025Q4, indicating that SG&A expenses are scaling far more aggressively than the company's ability to generate gross profit.
The massive disparity between gross profit and operating income highlights a structural inefficiency where the cost of maintaining technical sales and R&D teams far outweighs the current revenue contribution. This suggests that the firm is currently in a high-burn phase that requires a fundamental restructuring of its operating expense base to reach breakeven.
As reported in recent filings, the company's cost structure is dominated by SG&A expenses, which reached $457.7M in 2025Q4, dwarfing the $149.7M in gross profit and suggesting that management has not yet achieved the necessary scale to amortize its fixed operational costs effectively.
The disproportionate allocation toward SG&A relative to revenue suggests that the company is investing heavily in market penetration or specialized technical support that has yet to yield a commensurate return. Without a significant reduction in these fixed costs or a massive expansion in revenue, the current expense discipline appears unsustainable.
Based on the latest financial figures, the primary risk to the investment thesis is the company's extreme cash burn, which, if left unchecked, may force a pivot or capital raise despite the current $541M cash position, as the operating losses continue to outpace revenue growth.
Short-term observers may point to the company's inability to achieve operating profitability as a sign of a flawed business model that relies too heavily on niche, project-based revenue. The market should remain cautious until management demonstrates a clear path to narrowing the gap between its high operating expenses and its current gross profit generation.
Quick answers to the most common questions about buying PCLA stock.
For fiscal year 2025, PicoCELA Inc. (PCLA) reported total revenue of $547.0M. This represents a 19.8% decline compared to $682.1M in 2022.
PicoCELA Inc. (PCLA) reported a net loss of $629.0M for the fiscal year ending 2025.
PicoCELA Inc. (PCLA) reported an operating income of $-604.0M, resulting in an operating profit margin of -110.4%. This margin reflects the operational efficiency of the business before interest and taxes.
PicoCELA Inc. (PCLA) generated $291.8M in gross profit for the year, representing a gross profit margin of 53.4%. This demonstrates the company's core pricing power and production efficiency.