The firm's operating margin has deteriorated to -74.19% in recent periods, reflecting a failure to align $8.9M in quarterly SG&A expenses with the current $2.0M revenue base.
| Sales/Revenue | 10.96M | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - |
| Gross Profit | 10.96M | -1.42M | 12.35M | 6.57M | 36.07M | 19.02M |
| Gross Margin % | 100% | -14.6% | 56.3% | 34.06% | 83.89% | 79.57% |
| Gross Profit Growth % | - | -111.52% | 88.15% | -81.8% | 89.6% | - |
| Operating Expenses | 23.17M | 5.81M | 19.63M | 7.6M | 10.63M | 5.19M |
| OpEx % of Revenue | - | 59.59% | 89.48% | 39.44% | 24.72% | 21.73% |
| Selling, General & Admin | 20.66M | 7.21M | 8.69M | 7.6M | 8.89M | 2.61M |
| SG&A % of Revenue | - | 73.98% | 39.6% | 39.44% | 20.67% | 10.9% |
| Research & Development | 0 | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - |
| Operating Income | -12.21M | -7.23M | -7.28M | -1.04M | 25.44M | 13.83M |
| Operating Margin % | -111.38% | -74.19% | -33.18% | -5.38% | 59.17% | 57.85% |
| Operating Income Growth % | - | 0.65% | -601.93% | -104.08% | 83.96% | - |
| EBITDA | -12.21M | -6.88M | -7.27M | -1M | 27.18M | 15.13M |
| EBITDA Margin % | -111.38% | -70.6% | -33.14% | -5.21% | 63.23% | 63.3% |
| EBITDA Growth % | -72.44% | 5.35% | -624.2% | -103.69% | 79.62% | - |
| D&A (Non-Cash Add-back) | 0 | 350K | 8K | 33K | 1.74M | 1.3M |
| EBIT | -11.44M | -7.13M | -7.28M | -719K | 25.61M | 14.4M |
| Net Interest Income | -117.5K | 0 | 0 | 0 | 0 | -30K |
| Interest Income | 117.5K | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 235K | 0 | 0 | 0 | 0 | 30K |
| Other Income/Expense | 0 | - | - | - | - | - |
| Pretax Income | -11.44M | -6.64M | -7.07M | -612K | 25.71M | 14.37M |
| Pretax Margin % | -104.36% | -68.08% | -32.23% | -3.17% | 59.8% | 60.1% |
| Income Tax | 1.45M | -1.11M | -1.06M | 332K | 4.24M | 2.3M |
| Effective Tax Rate % | -12.63% | 16.77% | 14.96% | -54.25% | 16.48% | 16.01% |
| Net Income | -9.99M | -5.52M | -6.01M | -944K | 21.47M | 12.07M |
| Net Margin % | -91.17% | -56.66% | -27.41% | -4.9% | 49.94% | 50.48% |
| Net Income Growth % | -75.89% | 8.16% | -537.08% | -104.4% | 77.93% | - |
| Net Income (Continuing) | -12.88M | -5.52M | -6.01M | -944K | 21.47M | 12.07M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.75 | -0.39 | -0.43 | -0.07 | 1.52 | 0.71 |
| EPS Growth % | -65.14% | 9.3% | -541.79% | -104.41% | 114.08% | - |
| EPS (Basic) | - | -0.39 | -0.43 | -0.07 | 1.52 | 0.71 |
| Diluted Shares Outstanding | 13.31M | 14.1M | 14.1M | 14.1M | 17M | 17M |
| Basic Shares Outstanding | 13.31M | 14.1M | 14.1M | 14.1M | 17M | 17M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Structural operating loss persistence
As indicated by the historical financial data, Plutus Financial Group has experienced a severe revenue decline, with quarterly figures dropping from $12.7M in 2021Q4 to just $2.0M in 2025Q1, highlighting the firm's extreme vulnerability to the cyclical volatility of the Hong Kong capital markets.
The precipitous drop in top-line performance suggests that the firm's boutique service model lacks the scale to withstand prolonged downturns in regional trading activity. Investors should monitor whether this trend represents a permanent loss of market share or merely a temporary pause in deal-flow-dependent advisory revenue.
According to the provided income statement, the company's profitability has deteriorated significantly, with operating margins reaching -74.19% in recent periods, a stark reversal from the 59.0% operating margin reported in 2021Q4 as the firm struggles to align its cost base with diminished transaction volumes.
The inability to maintain positive operating margins suggests that the current fixed-cost structure is fundamentally misaligned with the firm's reduced revenue capacity. This persistent negative profitability warrants further investigation into whether management can successfully implement a leaner operating model or if the business remains structurally unviable.
Based on reported figures, SG&A expenses have remained stubbornly high relative to revenue, reaching $8.9M in 2025Q1, which indicates that the firm's overhead burden is currently unsustainable given the significant contraction in core brokerage and advisory income streams observed over the last several quarters.
The high fixed-cost base, likely driven by regulatory compliance and professional staffing in Wan Chai, appears to be the primary driver of the firm's ongoing losses. Without a meaningful recovery in transaction volumes, the current expense discipline suggests a continued erosion of the company's cash reserves.
While the income statement paints a picture of persistent operational distress, the firm's $30.6M cash position suggests that the market may be mispricing the entity by focusing solely on its negative earnings rather than its potential value as a clean, licensed shell for future acquisition.
Short-sellers would likely focus on the rapid depletion of capital through operating losses, yet this perspective may overlook the strategic value of the firm's SFC licenses. Investors should consider whether the company's ultimate path is a turnaround of core operations or a potential reverse takeover by a larger entity.
Quick answers to the most common questions about buying PLUT stock.
Plutus Financial Group Limited (PLUT) reported a net loss of $5.5M for the fiscal year ending 2024.
Plutus Financial Group Limited (PLUT) reported an operating income of $-7.2M, resulting in an operating profit margin of -74.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Plutus Financial Group Limited (PLUT) generated $-1.4M in gross profit for the year, representing a gross profit margin of -14.6%. This demonstrates the company's core pricing power and production efficiency.