Revenue growth has accelerated to $1.6M in 2026Q1, though gross margins have deteriorated sharply from 98.3% in 2024Q1 to 11.7% due to a changing asset mix.
| Sales/Revenue | 5.66M | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - |
| Gross Profit | 742.7K | 804.78K | 784.39K | 471.93K | 174.13K | 0 |
| Gross Margin % | 13.12% | 16.26% | 97.19% | 96.6% | 97.39% | - |
| Gross Profit Growth % | - | 2.6% | 66.21% | 171.01% | - | - |
| Operating Expenses | 1.01M | 1.1M | 1.1M | 777.6K | 2.45M | 1.02M |
| OpEx % of Revenue | - | 22.19% | 135.89% | 159.17% | 1372.57% | - |
| Selling, General & Admin | 969.88K | 1.04M | 1.04M | 669.1K | 428.96K | 1.02M |
| SG&A % of Revenue | - | 21.01% | 128.65% | 136.97% | 239.91% | - |
| Research & Development | 0 | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - |
| Operating Income | -269.21K | -293.62K | -312.36K | -305.67K | -2.28M | -1.02M |
| Operating Margin % | -4.75% | -5.93% | -38.7% | -62.57% | -1275.18% | - |
| Operating Income Growth % | - | 6% | -2.19% | 86.59% | -124.23% | - |
| EBITDA | -187.5K | -195.6K | -249.04K | -226.6K | -2.25M | 2.32M |
| EBITDA Margin % | -3.31% | -3.95% | -30.86% | -46.38% | -1261.09% | - |
| EBITDA Growth % | 46.13% | 21.46% | -9.9% | 89.95% | -197.33% | - |
| D&A (Non-Cash Add-back) | 81.72K | 98.02K | 63.32K | 79.08K | 25.19K | 0 |
| EBIT | -742.83K | -707.82K | 21.12K | -398.54K | -1.99M | 2.32M |
| Net Interest Income | 156.38K | 138.12K | 16.74K | -610.89K | -697.1K | 113.15K |
| Interest Income | 170.33K | 157.2K | 152.12K | 104.21K | 25.62K | 113.15K |
| Interest Expense | 13.96K | 19.07K | 135.38K | 715.1K | 722.72K | 0 |
| Other Income/Expense | 0 | - | - | - | - | - |
| Pretax Income | -1.32M | -726.89K | -114.26K | -1.11M | -2.71M | 2.32M |
| Pretax Margin % | -23.32% | -14.68% | -14.16% | -227.96% | -1515.76% | - |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -1.32M | -726.89K | -114.26K | -1.11M | -2.71M | 2.32M |
| Net Margin % | -23.32% | -14.68% | -14.16% | -227.96% | -1515.76% | - |
| Net Income Growth % | -311.56% | -536.17% | 89.74% | 58.91% | -216.98% | - |
| Net Income (Continuing) | -1.32M | -726.89K | -114.26K | -1.11M | -2.71M | 2.32M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.09 | -0.05 | -0.01 | -0.08 | -0.19 | -0.02 |
| EPS Growth % | -279.57% | - | 90.5% | 57.89% | -900% | - |
| EPS (Basic) | - | -0.05 | -0.01 | -0.08 | -0.19 | -0.02 |
| Diluted Shares Outstanding | 15.15M | 14.98M | 14.96M | 14.27M | 14.27M | 13.23M |
| Basic Shares Outstanding | 15.15M | 14.98M | 14.96M | 14.27M | 14.27M | 13.23M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Severe Liquidity and Margin Constraints
As reported in recent financial statements, RMCO has achieved a significant revenue expansion, with quarterly figures climbing from $162.1K in 2024Q1 to $1.6M by 2026Q1, suggesting a successful transition from a developmental phase to an active monetization strategy across its diversified natural resource and intellectual property asset base.
The rapid top-line growth appears to be driven by aggressive asset acquisition rather than organic yield from existing holdings. Investors should monitor whether this trajectory is sustainable or if it relies on non-recurring patent settlements that may mask the underlying volatility of the royalty streams.
Based on the provided income statement data, RMCO's gross margin has deteriorated significantly from 98.3% in 2024Q1 to 11.7% in 2026Q1, indicating that the company's current asset mix carries substantial direct costs that deviate sharply from the high-margin profiles typical of traditional royalty aggregators.
This margin compression suggests that the company is bearing significant depletion or direct operating expenses associated with its physical land assets. The inability to maintain high gross margins implies that the firm lacks the pricing power or structural efficiency required to scale its royalty model profitably.
According to historical income statements, RMCO's operating expenses consistently exceed gross profit, resulting in a persistent negative operating margin that reached -5.3% in 2026Q1, demonstrating that the company has yet to achieve the necessary scale to leverage its corporate infrastructure against its growing revenue base.
The high SG&A burden relative to revenue suggests that the firm is currently prioritizing asset acquisition and legal defense over operational efficiency. Without a meaningful reduction in overhead or a substantial increase in high-margin royalty income, the company may continue to struggle with negative operating leverage.
Analysis of the reported figures reveals that RMCO has consistently posted negative net income, with losses deepening to $652.4K in 2026Q1, which suggests that the company's current business model is not yet generating sufficient cash flow to cover its corporate and administrative obligations.
The presence of stock-based compensation and the lack of a clear path to profitability warrant further investigation into the sustainability of the current capital structure. Investors should be cautious of the potential for future dilutive equity raises to fund these ongoing operational deficits.
As indicated by the company's reported cash position of only $133,064, RMCO faces a severe liquidity constraint that may impede its ability to acquire new assets or sustain its current growth trajectory without resorting to dilutive financing or further debt accumulation in the near term.
Short-sellers would likely focus on the disconnect between the company's aggressive revenue growth and its inability to generate positive cash flow. The reliance on external capital to fund operations in a high-rate environment poses a significant risk to the long-term viability of the current business model.
Quick answers to the most common questions about buying RMCO stock.
Royalty Management Holding Corporation (RMCO) reported a net loss of $0.7M for the fiscal year ending 2025.
Royalty Management Holding Corporation (RMCO) reported an operating income of $-0.3M, resulting in an operating profit margin of -5.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Royalty Management Holding Corporation (RMCO) generated $0.8M in gross profit for the year, representing a gross profit margin of 16.3%. This demonstrates the company's core pricing power and production efficiency.