Revenue growth to $407.8M in 2026Q1 has been accompanied by severe margin compression, with gross margins falling from a 2025 peak of 59.0% to 38.2%.
| Sales/Revenue | 765.97M | 462.06M | 420.57M | 390.63M | 378.48M |
| Revenue Growth % | 82.18% | 9.86% | 7.67% | 3.21% | - |
| Cost of Goods Sold | 404.7M | 201.84M | 201.34M | 181.55M | 158.83M |
| COGS % of Revenue | - | 43.68% | 47.87% | 46.48% | 41.97% |
| Gross Profit | 361.26M | 260.21M | 219.23M | 209.08M | 219.64M |
| Gross Margin % | 47.16% | 56.32% | 52.13% | 53.52% | 58.03% |
| Gross Profit Growth % | - | 18.7% | 4.85% | -4.81% | - |
| Operating Expenses | 250.63M | 116.95M | 92.55M | 105.23M | 95.96M |
| OpEx % of Revenue | - | 25.31% | 22% | 26.94% | 25.36% |
| Selling, General & Admin | 250.63M | 116.95M | 92.55M | 105.23M | 95.96M |
| SG&A % of Revenue | - | 25.31% | 22% | 26.94% | 25.36% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 111.84M | 143.26M | 126.68M | 103.86M | 123.68M |
| Operating Margin % | 14.6% | 31% | 30.12% | 26.59% | 32.68% |
| Operating Income Growth % | - | 13.09% | 21.98% | -16.03% | - |
| EBITDA | 118.94M | 152.64M | 135.86M | 112.24M | 132.26M |
| EBITDA Margin % | 15.53% | 33.03% | 32.3% | 28.73% | 34.94% |
| EBITDA Growth % | -14.24% | 12.35% | 21.04% | -15.13% | - |
| D&A (Non-Cash Add-back) | 7.1M | 9.38M | 9.17M | 8.39M | 8.57M |
| EBIT | 121.53M | 148.1M | 131.54M | 103.72M | 125.24M |
| Net Interest Income | -5.42M | -7.73M | -16.7M | -19.25M | -22.54M |
| Interest Income | 4.69M | 5.47M | 4.58M | 4.94M | 0 |
| Interest Expense | -20.29M | 13.2M | 21.28M | 24.19M | 22.54M |
| Other Income/Expense | -142.52M | -8.36M | -16.42M | -24.33M | -20.99M |
| Pretax Income | -30.68M | 134.9M | 110.26M | 79.52M | 102.69M |
| Pretax Margin % | -4.01% | 29.2% | 26.22% | 20.36% | 27.13% |
| Income Tax | 48.35M | -885K | 0 | -6.18M | 0 |
| Effective Tax Rate % | -157.58% | -0.66% | 0% | -7.77% | 0% |
| Net Income | -121.44M | 135.79M | 110.26M | -3.18M | 102.69M |
| Net Margin % | -15.85% | 29.39% | 26.22% | -0.81% | 27.13% |
| Net Income Growth % | -192.21% | 23.15% | 3563.96% | -103.1% | - |
| Net Income (Continuing) | -79.03M | 135.79M | 110.26M | 85.7M | 102.69M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 3.05B | 71.24M | 0 | 0 | 0 |
| EPS (Diluted) | -14.21 | -0.69 | 3.28 | -0.38 | 12.10 |
| EPS Growth % | 102.53% | -121.04% | 963.16% | -103.14% | - |
| EPS (Basic) | - | -0.69 | 3.28 | -0.38 | 12.10 |
| Diluted Shares Outstanding | 8.55M | 8.52M | 8.49M | 8.49M | 8.49M |
| Basic Shares Outstanding | 8.46M | 8.52M | 8.49M | 8.49M | 8.49M |
| Dividend Payout Ratio | - | - | 14.12% | - | - |
Earnings volatility and instability
According to the latest quarterly data, RHLD reported a revenue surge to $407.8M in 2026Q1, representing a notable departure from the previous $100M-$120M range, though this expansion appears disconnected from historical organic growth patterns and warrants careful scrutiny regarding the sustainability of such a rapid top-line increase.
The sudden revenue spike in 2026Q1 suggests either a significant acquisition or a non-recurring recognition event rather than consistent organic scaling. Investors should monitor whether this trajectory reflects a permanent shift in the firm's AUM capacity or merely a temporary accounting anomaly that masks underlying stagnation.
As reported in financial statements, RHLD's gross margin plummeted to 38.2% in 2026Q1 from a 2025 peak of 59.0%, indicating that the firm's recent revenue growth has come at the expense of significant cost efficiency and potential dilution of its core platform profitability.
The sharp contraction in gross margins suggests that the firm may be onboarding lower-margin business or incurring higher direct costs to support its expanded revenue base. This trend appears to challenge the platform's 'plug-and-play' efficiency narrative, suggesting that scaling may be more capital-intensive than previously anticipated.
Based on reported figures, RHLD's net income has exhibited extreme volatility, swinging from a $107.2M profit in 2024Q4 to a $192.2M loss in 2026Q1, which suggests that GAAP earnings are heavily influenced by non-operating items or significant mark-to-market adjustments within the investment portfolio.
The erratic nature of the bottom line makes it difficult to assess the firm's core operating health, as these fluctuations likely stem from unrealized gains or losses on assets rather than operational performance. Analysts should focus on fee-related earnings to strip away the noise created by these non-recurring accounting impacts.
Data from recent filings reveals that SG&A expenses spiked to $162.6M in 2026Q1, a substantial increase from the $28M-$30M range maintained throughout 2025, indicating that the firm's cost structure is currently failing to scale efficiently with its recent revenue expansion.
This surge in overhead suggests that the platform is absorbing significant integration or administrative costs, which may be necessary for growth but currently undermines the firm's operating leverage. Investors should investigate whether this cost inflation is a temporary investment in infrastructure or a permanent increase in the firm's fixed-cost burden.
While the platform model is marketed as a high-margin service business, the 2026Q1 operating loss of $5.8M suggests that RHLD's current business model may be more sensitive to market cycles and cost inflation than the firm's historical performance would lead investors to believe.
The shift from healthy operating margins in 2025 to a loss in 2026Q1 raises concerns about the firm's ability to maintain profitability during periods of rapid expansion. This performance warrants further investigation into whether the platform's competitive moat is as durable as the initial business description implies.
Quick answers to the most common questions about buying RHLD stock.
For fiscal year 2025, Resolute Holdings Management, Inc. (RHLD) reported total revenue of $462.1M. This represents a 22.1% increase compared to $378.5M in 2022.
Resolute Holdings Management, Inc. (RHLD) is profitable, generating $135.8M in net income for the fiscal year ending 2025 with a net profit margin of 29.4%.
Resolute Holdings Management, Inc. (RHLD) reported an operating income of $143.3M, resulting in an operating profit margin of 31.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Resolute Holdings Management, Inc. (RHLD) generated $260.2M in gross profit for the year, representing a gross profit margin of 56.3%. This demonstrates the company's core pricing power and production efficiency.