Revenue growth remains highly volatile, as evidenced by the 118.9% year-over-year increase in 2025Q4, which failed to prevent a -67.4% operating margin.
| Sales/Revenue | 3.37M | 1.83M | 10.78K | 6.47M | 3.6M | 8.34M | 29.55M | 29.29M | 35.55M | 32.42M | 17.38M | 13.76M |
| Revenue Growth % | 84.3% | 16864.81% | -99.83% | 79.82% | -56.83% | -71.78% | 0.88% | -17.6% | 9.64% | 86.51% | 26.3% | - |
| Cost of Goods Sold | 2.18M | 1M | 9.24K | 5.67M | 3.21M | 6.34M | 22.19M | 15.27M | 17.59M | 18.27M | 9.27M | 8M |
| COGS % of Revenue | 64.71% | 54.88% | 85.71% | 87.54% | 89.29% | 76.04% | 75.09% | 52.12% | 49.47% | 56.35% | 53.3% | 58.14% |
| Gross Profit | 1.19M | 825.2K | 1.54K | 806.66K | 385.73K | 2M | 7.36M | 14.03M | 17.96M | 14.15M | 8.12M | 5.76M |
| Gross Margin % | 35.29% | 45.12% | 14.29% | 12.46% | 10.71% | 23.96% | 24.91% | 47.88% | 50.53% | 43.65% | 46.7% | 41.86% |
| Gross Profit Growth % | 44.16% | 53449.9% | -99.81% | 109.13% | -80.69% | -72.86% | -47.52% | -21.92% | 26.92% | 74.31% | 40.91% | - |
| Operating Expenses | 4.15M | 4.96M | 6.48M | 15.04M | 8.04M | 6.3M | 14.03M | 9.26M | 7.71M | 5.96M | 4.53M | 4.26M |
| OpEx % of Revenue | 123.15% | 270.99% | 60138.88% | 232.31% | 223.4% | 75.57% | 47.48% | 31.61% | 21.69% | 18.39% | 26.05% | 30.95% |
| Selling, General & Admin | 3.7M | 4.26M | 6.51M | 5.85M | 7.7M | 5.97M | 13.59M | 8.6M | 7.11M | 5.46M | 4.07M | 3.63M |
| SG&A % of Revenue | 109.77% | 232.82% | 60345.78% | 90.29% | 213.76% | 71.55% | 46% | 29.37% | 19.99% | 16.84% | 23.41% | 26.38% |
| Research & Development | 361.08K | 498.17K | 0 | 960.6K | 346.95K | 334.9K | 438.37K | 656.56K | 603.45K | 503.69K | 458.25K | 629.24K |
| R&D % of Revenue | 10.71% | 27.24% | - | 14.84% | 9.64% | 4.02% | 1.48% | 2.24% | 1.7% | 1.55% | 2.64% | 4.57% |
| Other Operating Expenses | 89.72K | 199.81K | -22.31K | 8.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -2.96M | -4.13M | -6.48M | -14.23M | -7.66M | -4.3M | -6.67M | 4.77M | 10.25M | 8.19M | 3.59M | 1.5M |
| Operating Margin % | -87.85% | -225.87% | -60124.59% | -219.85% | -212.69% | -51.61% | -22.58% | 16.27% | 28.84% | 25.26% | 20.66% | 10.91% |
| Operating Income Growth % | 28.31% | 36.27% | 54.46% | -85.88% | -77.89% | 35.48% | -239.97% | -53.51% | 25.2% | 128.05% | 139.1% | - |
| EBITDA | -2.55M | -4.09M | -6.47M | -13.13M | -6.61M | -3.43M | -4.3M | 6.37M | 11.82M | 9.55M | 4.68M | 2.47M |
| EBITDA Margin % | -75.58% | -223.64% | -60043.14% | -202.86% | -183.47% | -41.19% | -14.54% | 21.76% | 33.25% | 29.45% | 26.95% | 17.93% |
| EBITDA Growth % | 37.71% | 36.81% | 50.71% | -98.82% | -92.31% | 20.09% | -167.44% | -46.07% | 23.76% | 103.87% | 89.78% | - |
| D&A (Non-Cash Add-back) | 413.73K | 40.8K | 8.78K | 1.1M | 1.05M | 869.73K | 2.37M | 1.61M | 1.57M | 1.36M | 1.09M | 966.59K |
| EBIT | -2.96M | -8.31M | -6.43M | -14.23M | -7.66M | -4.3M | -6.67M | 4.77M | 10.25M | 8.19M | 3.59M | 1.5M |
| Net Interest Income | -981.76K | -2.02K | -92.08K | -318.45K | -101.44K | -857.55K | -1.25M | -1.06M | -1.01M | -1.45M | -1.03M | -1.07M |
| Interest Income | 516 | 1.17K | 63 | 3.23K | 1.9K | 0 | 4.55K | 5.94K | 0 | 0 | 0 | 0 |
| Interest Expense | 982.28K | 3.18K | 92.14K | 321.69K | 103.34K | 857.55K | 1.25M | 1.07M | 1.01M | 1.45M | 1.03M | 1.07M |
| Other Income/Expense | -9.65M | -4.18M | -44.29K | -1.16M | -12.82M | -413.78K | -4.62M | -1.07M | -845.96K | -1.73M | -939.45K | -625.64K |
| Pretax Income | -12.61M | -8.31M | -6.53M | -15.4M | -20.47M | -4.72M | -11.29M | 3.7M | 9.41M | 6.46M | 2.65M | 876.15K |
| Pretax Margin % | -374.2% | -454.49% | -60535.4% | -237.84% | -568.71% | -56.58% | -38.2% | 12.62% | 26.46% | 19.91% | 15.25% | 6.37% |
| Income Tax | 0 | 0 | 0 | -17.56K | 3.47K | 569.97K | 1.01M | 1.04M | 2.76M | 1.95M | 295.76K | 208K |
| Effective Tax Rate % | 0% | 0% | 0% | 0.11% | -0.02% | -12.08% | -8.92% | 28.21% | 29.34% | 30.24% | 11.15% | 23.74% |
| Net Income | -12.34M | -8.35M | -15.64M | -14.63M | -21.1M | -11.77M | -14.8M | 4.48M | 5.98M | 4.1M | 2.31M | 650.39K |
| Net Margin % | -366.08% | -456.68% | -145086.12% | -225.98% | -586.23% | -141.19% | -50.09% | 15.29% | 16.82% | 12.66% | 13.31% | 4.73% |
| Net Income Growth % | -47.74% | 46.6% | -6.92% | 30.68% | -79.25% | 20.46% | -430.37% | -25.05% | 45.69% | 77.31% | 255.84% | - |
| Net Income (Continuing) | -12.61M | -8.31M | -6.53M | -15.38M | -20.48M | -5.29M | -12.3M | 2.65M | 6.65M | 4.5M | 2.36M | 668.15K |
| Discontinued Operations | 0 | -74.35K | -9.54M | 0 | -1.6M | -7.61M | -2.8M | 1.91M | 0 | 0 | 0 | 0 |
| Minority Interest | 3.59M | 0 | 496.35K | 835.58K | 532.13K | 686.71K | 1.82M | 2.27M | 2.31M | 5.01M | 2.81M | 3.02M |
| EPS (Diluted) | -2.58 | -5.09 | -97.21 | -188.55 | -403.37 | -244.02 | -323.37 | 98.43 | 156.26 | 91.84 | 360.49 | 101.31 |
| EPS Growth % | 49.33% | 94.76% | 48.44% | 53.26% | -65.31% | 24.54% | -428.53% | -37.01% | 70.14% | -74.52% | 255.85% | - |
| EPS (Basic) | -2.58 | -5.09 | -97.21 | -188.55 | -403.37 | -244.02 | -323.37 | 98.43 | 156.26 | 91.84 | 360.49 | 101.31 |
| Diluted Shares Outstanding | 4.77M | 1.64M | 160.91K | 77.6K | 52.32K | 48.24K | 45.77K | 45.52K | 38.26K | 44.68K | 6.42K | 6.42K |
| Basic Shares Outstanding | 4.77M | 1.64M | 160.91K | 77.6K | 52.32K | 48.24K | 45.77K | 45.52K | 38.26K | 44.68K | 6.42K | 6.42K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
Severe liquidity and solvency risk
As reported in financial statements, RETO experienced a 118.9% year-over-year revenue increase in 2025Q4, yet this follows a history of erratic quarterly fluctuations, suggesting that the company's top-line performance remains highly dependent on lumpy, project-based municipal contracts rather than a consistent or predictable organic growth trajectory.
The extreme variance in quarterly revenue growth indicates that the business model lacks the recurring revenue streams necessary for stability. Investors should monitor whether these spikes represent sustainable market penetration or merely the timing of project completions, which often masks underlying demand weakness.
Based on the provided income statement data, gross margins have fluctuated wildly from as low as 5.8% to as high as 46.4%, indicating that the company lacks the pricing power or cost control required to maintain consistent profitability in its specialized environmental materials and equipment segments.
This margin instability suggests that RETO is highly susceptible to input cost volatility and competitive pricing pressures. Without a stable margin floor, the company remains unable to effectively leverage its proprietary technology to generate reliable gross profit to cover its substantial operating expenses.
According to recent SEC filings, RETO continues to report significant operating losses, with the 2025Q4 operating margin of -67.4% highlighting a persistent inability to scale revenue sufficiently to absorb fixed overhead costs, which remain disproportionately high relative to the company's current quarterly revenue generation capacity.
The failure to achieve positive operating leverage after years of operations implies that the current cost structure is fundamentally misaligned with the company's revenue scale. The persistent gap between gross profit and operating income suggests that SG&A expenses are not being managed with the discipline required for long-term viability.
As indicated by the company's financial disclosures, the combination of a $250,008 cash balance and recurring net losses suggests that RETO faces a critical liquidity shortfall, which may necessitate dilutive capital raises or high-cost financing to sustain operations in the near term, posing a significant risk.
Short-sellers would likely focus on the disconnect between the company's ambitious environmental mission and its inability to generate positive cash flow. The lack of a clear path to self-funding operations warrants extreme caution, as the current burn rate appears unsustainable without external capital injections.
Quick answers to the most common questions about buying RETO stock.
For fiscal year 2025, ReTo Eco-Solutions, Inc. (RETO) reported total revenue of $3.4M. This represents a 75.5% decline compared to $13.8M in 2014.
ReTo Eco-Solutions, Inc. (RETO) reported a net loss of $12.3M for the fiscal year ending 2025.
ReTo Eco-Solutions, Inc. (RETO) reported an operating income of $-3.0M, resulting in an operating profit margin of -87.9%. This margin reflects the operational efficiency of the business before interest and taxes.
ReTo Eco-Solutions, Inc. (RETO) generated $1.2M in gross profit for the year, representing a gross profit margin of 35.3%. This demonstrates the company's core pricing power and production efficiency.