Revenue has contracted by 22.37% year-over-year, while gross margins have compressed to a razor-thin 3.2%, reflecting limited pricing power in a highly competitive market.
| Metric | TTM | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Jul'08 | Jul'07 |
|---|
| Sales/Revenue | 258.74M | 119.97M | 154.54M | 148.81M | 164.39M | 133.13M | 117.33M | 107.55M | 96.11M | 81.5M | 89.07M | 76.9M | 66.15M | 89.5M | 94.35M | 69.97M | 55.17M | 0 | 0 |
| Revenue Growth % | -17.41% | -22.37% | 3.85% | -9.48% | 23.48% | 13.47% | 9.09% | 11.9% | 17.93% | -8.5% | 15.83% | 16.24% | -26.08% | -5.15% | 34.85% | 26.81% | - | - | - |
| Cost of Goods Sold | 237.27M | 116.13M | 123.43M | 114.53M | 127.87M | 103.89M | 91.8M | 82.44M | 75.99M | 64.87M | 71.55M | 64.46M | 60.43M | 74.86M | 66.79M | 48.83M | 38.28M | 0 | 0 |
| COGS % of Revenue | - | 96.8% | 79.87% | 76.96% | 77.79% | 78.03% | 78.24% | 76.65% | 79.06% | 79.6% | 80.34% | 83.82% | 91.34% | 83.65% | 70.79% | 69.78% | 69.37% | - | - |
| Gross Profit | 21.48M | 3.84M | 31.11M | 34.28M | 36.52M | 29.24M | 25.53M | 25.11M | 20.13M | 16.63M | 17.51M | 12.44M | 5.73M | 14.63M | 27.56M | 21.14M | 16.9M | 0 | 0 |
| Gross Margin % | 8.3% | 3.2% | 20.13% | 23.04% | 22.21% | 21.97% | 21.76% | 23.35% | 20.94% | 20.4% | 19.66% | 16.18% | 8.66% | 16.35% | 29.21% | 30.22% | 30.63% | - | - |
| Gross Profit Growth % | - | -87.66% | -9.25% | -6.13% | 24.88% | 14.56% | 1.67% | 24.76% | 21.04% | -5.05% | 40.79% | 117.16% | -60.86% | -46.9% | 30.37% | 25.12% | - | - | - |
| Operating Expenses | 26.23M | 4.87M | 34.64M | 55.21M | 39.21M | 38.08M | 32.53M | 25.98M | 38.15M | 22.73M | 17.54M | 10.73M | 24.96M | 27.22M | 17.08M | 32.72M | 4.14M | 28.75K | 3.74K |
| OpEx % of Revenue | - | 4.06% | 22.42% | 37.1% | 23.85% | 28.6% | 27.73% | 24.16% | 39.69% | 27.88% | 19.69% | 13.95% | 37.73% | 30.41% | 18.1% | 46.77% | 7.5% | - | - |
| Selling, General & Admin | 26.38M | 4.87M | 34.64M | 55.21M | 39.06M | 37.85M | 31.9M | 25.98M | 36.56M | 20.61M | 17.54M | 10.73M | 24.96M | 27.22M | 17.08M | 9.56M | 4.14M | 28.75K | 3.74K |
| SG&A % of Revenue | - | 4.06% | 22.42% | 37.1% | 23.76% | 28.43% | 27.19% | 24.16% | 38.04% | 25.29% | 19.69% | 13.95% | 37.73% | 30.41% | 18.1% | 13.67% | 7.5% | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -148.59K | 0 | 0 | 0 | 148.79K | 228.51K | 628.19K | 0 | 1.58M | 2.12M | 0 | 0 | 0 | 0 | 0 | 23.16M | 0 | 0 | 0 |
| Operating Income | -4.75M | -1.04M | -3.53M | -20.93M | -2.69M | -8.84M | -7M | -876.13K | -18.02M | -6.1M | -24.77K | 1.71M | -19.23M | -12.58M | 10.48M | -11.58M | 12.76M | -28.75K | -3.74K |
| Operating Margin % | -1.84% | -0.86% | -2.29% | -14.06% | -1.64% | -6.64% | -5.97% | -0.81% | -18.75% | -7.48% | -0.03% | 2.22% | -29.07% | -14.06% | 11.11% | -16.55% | 23.12% | - | - |
| Operating Income Growth % | - | 70.71% | 83.11% | -676.77% | 69.52% | -26.18% | -699.4% | 95.14% | -195.52% | -24523.19% | -101.45% | 108.88% | -52.83% | -220.04% | 190.52% | -190.77% | 44477.19% | -669.28% | - |
| EBITDA | 1.75M | 4.98M | 1.85M | -20.21M | -1.44M | -7.09M | -4.92M | 800.28K | -16.64M | -4.78M | 1.43M | 4.53M | -16M | -9.82M | 12.82M | -10.77M | 13.15M | -28.75K | -3.74K |
| EBITDA Margin % | 0.67% | 4.15% | 1.2% | -13.58% | -0.87% | -5.32% | -4.19% | 0.74% | -17.31% | -5.87% | 1.61% | 5.89% | -24.18% | -10.97% | 13.59% | -15.39% | 23.84% | - | - |
| EBITDA Growth % | 108.19% | 169.23% | 109.16% | -1305.83% | 79.72% | -44% | -714.9% | 104.81% | -247.96% | -434.07% | -68.4% | 128.31% | -62.92% | -176.57% | 219.07% | -181.87% | 45856.67% | -669.28% | - |
| D&A (Non-Cash Add-back) | 6.5M | 6.02M | 5.38M | 718K | 1.26M | 1.75M | 2.08M | 1.68M | 1.38M | 1.32M | 1.46M | 2.82M | 3.23M | 2.76M | 2.34M | 810.37K | 396.57K | 0 | 0 |
| EBIT | -4.9M | -1.04M | -4.16M | -20.68M | -1.84M | -7.89M | -5.74M | -1.18M | -16.44M | -5.56M | 699.48K | 1.71M | -19.23M | -12.58M | 10.48M | 11.58M | 12.77M | -28.75K | -3.74K |
| Net Interest Income | 430.06K | 92.83K | 503.03K | 818.05K | 139.7K | 252.69K | 365.23K | 112.89K | 478.98K | 378.44K | 143.93K | 0 | 0 | 0 | 0 | -23.87K | -65.01K | 0 | 0 |
| Interest Income | 379.28K | 92.83K | 516.64K | 883.91K | 401.92K | 707.88K | 1.06M | 112.89K | 478.98K | 379.79K | 299.51K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 13.6K | 65.85K | 262.22K | 455.19K | 698.52K | 0 | 0 | 1.35K | 155.58K | 0 | 0 | 0 | 0 | 23.87K | 65.01K | 0 | 0 |
| Other Income/Expense | 461.05K | 84.68K | -636.82K | 181.15K | 595.25K | 493.3K | 562.32K | -306.88K | 1.04M | 538.36K | 568.66K | -795.16K | -6.08M | -1.4M | 306.67K | 23.54M | -55.52K | 28.75K | 3.74K |
| Pretax Income | -4.29M | -950.66K | -4.17M | -20.74M | -2.1M | -8.34M | -6.44M | -1.18M | -16.98M | -5.56M | 543.9K | 913.03K | -25.31M | -13.98M | 10.79M | 11.96M | 12.7M | 0 | 0 |
| Pretax Margin % | -1.66% | -0.79% | -2.7% | -13.94% | -1.28% | -6.27% | -5.49% | -1.1% | -17.67% | -6.82% | 0.61% | 1.19% | -38.26% | -15.62% | 11.43% | 17.09% | 23.02% | - | - |
| Income Tax | 534.36K | 503.52K | 62.86K | 394.54K | 1.1M | 31.64K | 16.26K | 134.76K | 76.26K | 84.39K | 96.74K | 57.4K | 44.87K | 353.8K | 2.65M | 3.52M | 2.88M | 0 | 0 |
| Effective Tax Rate % | -12.46% | -52.97% | -1.51% | -1.9% | -52.4% | -0.38% | -0.25% | -11.39% | -0.45% | -1.52% | 17.79% | 6.29% | -0.18% | -2.53% | 24.55% | 29.47% | 22.68% | - | - |
| Net Income | 6.82M | 10.19M | -4.23M | -21.14M | -3.19M | -8.12M | -5.81M | -926.28K | -17.06M | -5.64M | 447.16K | 856.56K | -25.36M | -14.33M | 8.14M | 8.43M | 9.82M | -28.75K | -3.74K |
| Net Margin % | 2.64% | 8.5% | -2.74% | -14.2% | -1.94% | -6.1% | -4.95% | -0.86% | -17.75% | -6.93% | 0.5% | 1.11% | -38.33% | -16.02% | 8.63% | 12.05% | 17.8% | - | - |
| Net Income Growth % | 127.31% | 340.76% | 79.97% | -562.21% | 60.69% | -39.68% | -527.61% | 94.57% | -202.26% | -1362.24% | -47.8% | 103.38% | -76.9% | -276.05% | -3.45% | -14.14% | 34264.95% | -669.28% | - |
| Net Income (Continuing) | -4.82M | -1.45M | -4.23M | -21.14M | -3.2M | -8.38M | -6.46M | -1.32M | -17.06M | -5.64M | 447.16K | 855.63K | -25.36M | -14.33M | 8.14M | 8.43M | 9.82M | -28.75K | -3.74K |
| Discontinued Operations | 1000K | 11.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | -1.35M | -1.35M | -1.35M | -1.34M | -1.81M | -1.19M | 0 | 0 | 0 | 39.06K | 40.54K | -1.88K | -1.07K | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 26247.31 | 41400.00 | -65925.00 | -932850.00 | -412875.00 | -999999.00 | -971550.00 | -162000.00 | -999999.00 | -999999.00 | 162000.00 | 324000.00 | -999999.00 | -999999.00 | 999999.00 | 999999.00 | 999999.00 | -108000.00 | -15300.00 |
| EPS Growth % | 99.72% | 162.8% | 92.93% | -125.94% | 61.77% | -11.16% | -499.72% | 95.59% | -142.86% | -1033.33% | -50% | 103.28% | -72.64% | -276.67% | -6.25% | -41.28% | 5550% | -605.88% | - |
| EPS (Basic) | - | 41400.00 | -65925.00 | -932850.00 | -412875.00 | -999999.00 | -971550.00 | -162000.00 | -999999.00 | -999999.00 | 162000.00 | 324000.00 | -999999.00 | -999999.00 | 999999.00 | 999999.00 | 999999.00 | -108000.00 | -15300.00 |
| Diluted Shares Outstanding | 260 | 246 | 64 | 23 | 8 | 8 | 6 | 5 | 5 | 4 | 3 | 3 | 3 | 3 | 3 | 2 | 2 | 0 | 0 |
| Basic Shares Outstanding | 260 | 246 | 64 | 23 | 8 | 8 | 6 | 5 | 5 | 4 | 3 | 3 | 3 | 3 | 3 | 2 | 2 | 0 | 0 |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Regulatory Consolidation and Margin Erosion
As reported in recent financial filings, Ridgetech Inc. has experienced a significant 22.37% year-over-year revenue decline, signaling a potential loss of market share within the highly competitive and increasingly consolidated Chinese medical distribution sector, which warrants further investigation into the company's ability to retain key procurement tenders.
The consistent downward trajectory in top-line performance suggests that the company is struggling to maintain its competitive position against larger, state-backed distributors. This contraction likely reflects the impact of the Two-Invoice System and centralized procurement policies, which appear to be squeezing smaller, regional players out of the supply chain.
Based on the latest income statement data, Ridgetech's gross margin has compressed to a razor-thin 3.2%, reflecting the company's limited pricing power as a price-taker in a market dominated by government-mandated volume-based procurement and intense regional competition for medical distribution contracts.
The inability to maintain historical gross margins suggests that the company's core distribution business is facing severe pricing pressure. Without a shift toward higher-margin specialized logistics or medical devices, the current margin profile appears insufficient to cover the company's fixed operating costs.
According to the provided quarterly data, a notable divergence exists between the negative operating margin of -0.86% and the positive net margin of 8.50%, suggesting that reported profitability is likely driven by non-recurring items rather than the underlying health of the distribution operations.
Investors should monitor this discrepancy closely, as it indicates that core business performance is likely weaker than the headline net income figure implies. The reliance on non-operating gains to achieve positive net margins suggests a lack of sustainable profitability in the primary business model.
As indicated by the persistent operating losses and declining revenue, the company's current business model appears increasingly unsustainable, with the risk that the existing cash position may be rapidly depleted by ongoing operating deficits rather than being deployed for a strategic pivot.
Short-sellers would likely focus on the company's inability to scale its operations effectively, as evidenced by the negative operating income despite the presence of a $12.7M cash balance. The lack of recurring service revenue further exacerbates the risk that the company will continue to lose ground in a consolidating market.
Quick answers to the most common questions about buying RDGT stock.
For fiscal year 2025, Ridgetech Inc. (RDGT) reported total revenue of $120.0M.
Ridgetech Inc. (RDGT) is profitable, generating $10.2M in net income for the fiscal year ending 2025 with a net profit margin of 8.5%.
Ridgetech Inc. (RDGT) reported an operating income of $-1.0M, resulting in an operating profit margin of -0.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Ridgetech Inc. (RDGT) generated $3.8M in gross profit for the year, representing a gross profit margin of 3.2%. This demonstrates the company's core pricing power and production efficiency.