Revenue volatility remains high, with a 50.6% decline in 2026Q3 contributing to a deeply negative operating margin of -38.4%.
| Sales/Revenue | 980K | 917K | 637K | 279K | 410K | 802K | 4.91M | 4.93M | 4.37M | 5.62M | 5.59M |
| Revenue Growth % | 33.88% | 43.96% | 128.32% | -31.95% | -48.88% | -83.67% | -0.43% | 12.81% | -22.2% | 0.52% | - |
| Cost of Goods Sold | 251K | 422K | 154K | 0 | 0 | 70K | 0 | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 46.02% | 24.18% | - | - | 8.73% | - | - | - | - | - |
| Gross Profit | 729K | 495K | 483K | 279K | 410K | 802K | 4.91M | 4.93M | 4.37M | 5.62M | 5.59M |
| Gross Margin % | 74.39% | 53.98% | 75.82% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | 2.48% | 73.12% | -31.95% | -48.88% | -83.67% | -0.43% | 12.81% | -22.2% | 0.52% | - |
| Operating Expenses | 37.21M | 26.6M | 103.11M | 15.32M | 60.89M | 29M | 13.38M | 11.63M | 8.21M | 5.4M | 4.4M |
| OpEx % of Revenue | - | 2901.2% | 16186.81% | 5491.76% | 14850.49% | 3616.08% | 272.4% | 235.79% | 187.87% | 96.07% | 78.67% |
| Selling, General & Admin | 12.74M | 13.78M | 8.85M | 8.93M | 16.98M | 20.42M | 9.12M | 8.82M | 5.52M | 3.73M | 2.75M |
| SG&A % of Revenue | - | 1502.84% | 1389.95% | 3201.43% | 4140.98% | 2545.64% | 185.7% | 178.89% | 126.26% | 66.36% | 49.28% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - |
| Operating Income | -36.43M | -26.11M | -102.63M | -15.04M | -60.48M | -21.2M | -8.46M | -6.7M | -3.84M | 221K | 1.19M |
| Operating Margin % | -3717.24% | -2847.22% | -16110.99% | -5391.76% | -14750.49% | -2643.27% | -172.4% | -135.79% | -87.87% | 3.93% | 21.33% |
| Operating Income Growth % | - | 74.56% | -582.22% | 75.13% | -185.28% | -150.43% | -26.42% | -74.33% | -1838.01% | -81.46% | - |
| EBITDA | -36.23M | -25.82M | -102.4M | -14.96M | -60.41M | -21.13M | -6.6M | -4.92M | -2.14M | 1.89M | 2.83M |
| EBITDA Margin % | -3696.53% | -2815.81% | -16075.67% | -5363.8% | -14732.93% | -2634.54% | -134.4% | -99.72% | -49.03% | 33.64% | 50.72% |
| EBITDA Growth % | -81.72% | 74.78% | -584.28% | 75.23% | -185.89% | -220.18% | -34.21% | -129.44% | -213.39% | -33.33% | - |
| D&A (Non-Cash Add-back) | 203K | 288K | 225K | 78K | 72K | 70K | 1.87M | 1.78M | 1.7M | 1.67M | 1.64M |
| EBIT | -35.21M | -32.54M | -67.01M | -8.74M | -139.97M | -23.41M | -6.88M | -4.94M | -3.64M | 221K | 1.19M |
| Net Interest Income | 994K | 1.34M | 2.13M | 3.25M | 195K | -10K | -32K | 469K | 16K | 10K | -20K |
| Interest Income | 1.49M | 2M | 2.38M | 3.25M | 201K | 2K | 52K | 1.13M | 16K | 10K | 0 |
| Interest Expense | 0 | - | - | - | - | - | - | - | - | - | - |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | -31.19M | -33.2M | -67.68M | -8.95M | -140.55M | -23.04M | -6.92M | -4.94M | -3.64M | 204K | 1.16M |
| Pretax Margin % | -3182.24% | -3620.07% | -10625.27% | -3207.17% | -34279.76% | -2873.19% | -140.86% | -100.24% | -83.25% | 3.63% | 20.74% |
| Income Tax | -122K | -2.55M | -2.68M | -255K | 0 | 18K | 29K | -19K | 8.44M | 66K | 449K |
| Effective Tax Rate % | 0.39% | 7.69% | 3.96% | 2.85% | 0% | -0.08% | -0.42% | 0.38% | -231.85% | 32.35% | 38.74% |
| Net Income | -32.55M | -30.52M | -34.41M | -1.88M | -124.66M | -24.54M | -10.41M | -4.92M | -11.65M | 138K | 710K |
| Net Margin % | -3321.73% | -3328.24% | -5401.88% | -672.4% | -30404.39% | -3060.35% | -212.12% | -99.86% | -266.51% | 2.46% | 12.7% |
| Net Income Growth % | -42.19% | 11.3% | -1734.22% | 98.5% | -407.9% | -135.66% | -111.52% | 57.73% | -8541.3% | -80.56% | - |
| Net Income (Continuing) | -31.08M | -30.64M | -65M | -8.69M | -140.55M | -23.06M | -6.95M | -4.92M | -12.08M | 138K | 710K |
| Discontinued Operations | 0 | 0 | 0 | 6.48M | -1.83M | -1.71M | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 5.42M | 3.98M | 4.07M | -3.66M | -3.31M | 14.42M | 13.73M | 13.78M | 8.87M | 9.34M | 0 |
| EPS (Diluted) | -0.64 | -1.04 | -1.45 | -0.08 | -6.31 | -1.47 | -0.44 | -0.37 | -0.93 | 0.01 | 0.06 |
| EPS Growth % | 27.39% | 28.28% | -1699.01% | 98.72% | -329.25% | -234.09% | -18.92% | 60.22% | -8554.55% | -80.57% | - |
| EPS (Basic) | - | -1.04 | -1.45 | -0.08 | -6.31 | -1.47 | -0.44 | -0.37 | -0.93 | 0.01 | 0.06 |
| Diluted Shares Outstanding | 51.23M | 29.42M | 23.75M | 23.26M | 19.77M | 16.52M | 15.76M | 13.28M | 12.48M | 12.54M | 12.54M |
| Basic Shares Outstanding | 51.23M | 29.42M | 23.75M | 23.26M | 19.77M | 16.52M | 15.76M | 13.28M | 12.48M | 12.54M | 12.49M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Clinical Trial Failure Risk
According to recent quarterly filings, Rafael Holdings experienced a 50.6% revenue decline in 2026Q3, underscoring the erratic nature of its real estate-derived income stream which remains insufficient to support the company's broader corporate overhead and ongoing pharmaceutical development activities in the current fiscal environment.
The top-line performance appears highly transactional, lacking the recurring stability typically associated with commercial real estate portfolios. Investors should monitor whether the company can stabilize its Newark-based lease income, as the current downward trajectory suggests a lack of pricing power and potential occupancy challenges.
As reported in financial statements, the company's operating margin remains deeply negative, with 2026Q3 figures showing a -38.4% margin, highlighting a fundamental disconnect between the modest gross profits generated by real estate assets and the substantial administrative costs required to maintain the holding company structure.
While gross margins have fluctuated significantly, the inability to achieve positive operating income suggests that the core business model is currently unsustainable without external capital or asset divestitures. The persistent gap between gross and operating profitability indicates that overhead costs are not scaling efficiently with revenue.
Based on RFL's reported figures, SG&A expenses consistently dwarf revenue, with quarterly administrative costs frequently exceeding $2 million, which effectively drains the company's cash reserves and limits the capital available for potential future investment or strategic pivots in the pharmaceutical segment.
The cost structure appears rigid, with administrative expenses showing little correlation to the company's actual revenue generation. This lack of expense discipline warrants further investigation, as the current burn rate may necessitate future dilutive financing if the real estate segment fails to provide adequate cash flow.
Financial data from recent periods suggests that the market may be mispricing the company by focusing on its negative earnings, potentially ignoring the underlying value of its $52.7 million cash position and Newark real estate assets relative to the current depressed market capitalization.
Short-sellers might argue that the company is a value trap where cash is being systematically destroyed to fund failed clinical trials. However, the analysis of the balance sheet implies that the company's survival is currently tethered to its liquid assets rather than its operational performance, creating a complex valuation floor.
Quick answers to the most common questions about buying RFL stock.
For fiscal year 2025, Rafael Holdings, Inc. (RFL) reported total revenue of $0.9M. This represents a 83.6% decline compared to $5.6M in 2016.
Rafael Holdings, Inc. (RFL) reported a net loss of $30.5M for the fiscal year ending 2025.
Rafael Holdings, Inc. (RFL) reported an operating income of $-26.1M, resulting in an operating profit margin of -2847.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Rafael Holdings, Inc. (RFL) generated $0.5M in gross profit for the year, representing a gross profit margin of 54.0%. This demonstrates the company's core pricing power and production efficiency.