Revenue growth has contracted significantly, with a 23.2% year-over-year decline in 2025Q4 alongside a gross margin compression to 17.8% from historical peaks exceeding 30%.
| Sales/Revenue | 22.86M | 30.3M | 20.32M | 26.91M | 18.63M | 14.12M | 8.95M |
| Revenue Growth % | -24.57% | 49.1% | -24.48% | 44.45% | 31.92% | 57.8% | - |
| Cost of Goods Sold | 17.98M | 26.31M | 15.38M | 20.29M | 12.91M | 10.28M | 6.69M |
| COGS % of Revenue | 78.68% | 86.82% | 75.69% | 75.4% | 69.3% | 72.77% | 74.8% |
| Gross Profit | 4.87M | 3.99M | 4.94M | 6.62M | 5.67M | 3.8M | 2.25M |
| Gross Margin % | 21.32% | 13.18% | 24.31% | 24.6% | 30.45% | 26.9% | 25.2% |
| Gross Profit Growth % | 22.02% | -19.2% | -25.35% | 16.69% | 49.31% | 68.48% | - |
| Operating Expenses | 6.32M | 5.56M | 4.19M | 2.55M | 2.19M | 1.49M | 1.41M |
| OpEx % of Revenue | 27.67% | 18.34% | 20.64% | 9.48% | 11.74% | 10.55% | 15.79% |
| Selling, General & Admin | 4.66M | 3.11M | 2.79M | 1.51M | 1.06M | 824.87K | 837.23K |
| SG&A % of Revenue | 20.38% | 10.27% | 13.72% | 5.61% | 5.69% | 5.84% | 9.36% |
| Research & Development | 1.61M | 1.67M | 1.18M | 932.27K | 986.88K | 605.12K | 508.86K |
| R&D % of Revenue | 7.04% | 5.51% | 5.79% | 3.46% | 5.3% | 4.29% | 5.69% |
| Other Operating Expenses | 58.02K | 775.38K | 230.08K | 109.63K | 139.74K | 60.18K | 67.09K |
| Operating Income | -1.45M | -1.57M | 746.77K | 4.07M | 3.49M | 2.31M | 892.68K |
| Operating Margin % | -6.35% | -5.17% | 3.67% | 15.12% | 18.71% | 16.35% | 9.97% |
| Operating Income Growth % | 7.2% | -309.58% | -81.65% | 16.72% | 50.98% | 158.63% | - |
| EBITDA | -189.07K | -443.2K | 1.65M | 4.34M | 3.7M | 2.46M | 1.01M |
| EBITDA Margin % | -0.83% | -1.46% | 8.12% | 16.11% | 19.87% | 17.4% | 11.31% |
| EBITDA Growth % | 57.34% | -126.87% | -61.96% | 17.15% | 50.66% | 142.82% | - |
| D&A (Non-Cash Add-back) | 1.26M | 1.12M | 902.69K | 267.74K | 215.86K | 148.19K | 119.13K |
| EBIT | -1.02M | -1.03M | 1.9M | 4.07M | 3.49M | 2.86M | 1.16M |
| Net Interest Income | 48.04K | -122.98K | -404K | -484.49K | -425.87K | -262.6K | -52.93K |
| Interest Income | 389.73K | 27.18K | 88.11K | 26.66K | 0 | 0 | 0 |
| Interest Expense | 341.69K | 150.16K | 492.1K | 511.14K | 425.87K | 262.6K | 52.93K |
| Other Income/Expense | 91.38K | 382.73K | 665.19K | -154.84K | 210.96K | 290.42K | 216.57K |
| Pretax Income | -1.36M | -1.18M | 1.41M | 3.91M | 3.7M | 2.6M | 1.11M |
| Pretax Margin % | -5.95% | -3.9% | 6.95% | 14.54% | 19.84% | 18.4% | 12.39% |
| Income Tax | 28.93K | -66.34K | 193.25K | 437.77K | 301.92K | 385.74K | 158.07K |
| Effective Tax Rate % | -2.13% | 5.61% | 13.69% | 11.19% | 8.17% | 14.84% | 14.25% |
| Net Income | -1.39M | -1.12M | 1.22M | 3.48M | 3.39M | 2.21M | 951.18K |
| Net Margin % | -6.08% | -3.68% | 6% | 12.92% | 18.22% | 15.67% | 10.63% |
| Net Income Growth % | -24.55% | -191.57% | -64.94% | 2.4% | 53.37% | 132.7% | - |
| Net Income (Continuing) | -1.39M | -1.12M | 1.22M | 3.48M | 3.39M | 2.21M | 951.18K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -272.80 | -0.08 | 0.10 | 0.29 | 0.28 | 0.18 | 0.08 |
| EPS Growth % | -363633.33% | -175% | -65.52% | 3.57% | 55.56% | 126.99% | - |
| EPS (Basic) | -272.80 | -0.08 | 0.10 | 0.29 | 0.28 | 0.18 | 0.08 |
| Diluted Shares Outstanding | 5.09K | 14.92M | 12M | 12M | 12M | 12M | 12M |
| Basic Shares Outstanding | 5.09K | 14.92M | 12M | 12M | 12M | 12M | 12M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Liquidity and solvency constraints
As reported in recent financial filings, RAYA has experienced significant volatility, culminating in a 23.2% year-over-year revenue decline in 2025Q4, which underscores the company's struggle to maintain market share within its core international distribution channels amid cooling demand for off-grid power solutions.
The erratic revenue performance suggests that the company lacks a stable, recurring customer base, leaving it highly susceptible to macroeconomic shifts in European markets. This downward trajectory indicates that previous geographic expansion efforts have failed to offset the cyclical downturn in discretionary outdoor and recreational equipment spending.
Based on the provided income statement data, RAYA's gross margin has compressed from historical peaks above 30% to just 17.8% in 2025Q4, reflecting an inability to maintain pricing power or effectively manage input costs in a highly commoditized electrical equipment manufacturing environment.
The consistent decline in gross margins suggests that the company is likely forced to engage in aggressive price competition to move inventory, which is unsustainable given its current cost structure. Investors should monitor whether this margin compression is a permanent feature of the business model or a temporary byproduct of inventory liquidation.
According to the latest quarterly results, RAYA's operating income has fallen into negative territory, with a -7.2% operating margin in 2025Q4, demonstrating that the company's fixed overhead costs are currently too high to be supported by its diminished revenue scale.
The failure to achieve operating leverage indicates that management has not successfully right-sized the SG&A and R&D expense base in response to falling top-line performance. This suggests that the company is currently trapped in a cycle where it must spend to maintain market presence while simultaneously suffering from declining returns on those expenditures.
Financial statements indicate a precarious cash position of only $184,856, which, when viewed alongside persistent net losses, suggests that the company may face severe liquidity constraints that could impede its ability to fund ongoing operations or meet short-term obligations without external capital.
The combination of negative net income and a negligible cash balance warrants significant concern regarding the company's solvency. Short-sellers would likely focus on the high probability of future dilutive financing or the risk of operational disruption if the company cannot secure immediate working capital to bridge its current funding gap.
Quick answers to the most common questions about buying RAYA stock.
For fiscal year 2025, Erayak Power Solution Group Inc. (RAYA) reported total revenue of $22.9M. This represents a 155.4% increase compared to $8.9M in 2019.
Erayak Power Solution Group Inc. (RAYA) reported a net loss of $1.4M for the fiscal year ending 2025.
Erayak Power Solution Group Inc. (RAYA) reported an operating income of $-1.5M, resulting in an operating profit margin of -6.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Erayak Power Solution Group Inc. (RAYA) generated $4.9M in gross profit for the year, representing a gross profit margin of 21.3%. This demonstrates the company's core pricing power and production efficiency.