The company's financial performance is characterized by an 18.20% revenue contraction and a deeply negative gross margin of -18.22%, indicating significant structural headwinds.
| Metric | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Sales/Revenue | 5.54M | 6.78M | 10.64M | 17.04M | 1.96M |
| Revenue Growth % | -18.2% | -36.3% | -37.56% | 770.62% | - |
| Cost of Goods Sold | 6.55M | 6.32M | 9.5M | 15.77M | 1.05M |
| COGS % of Revenue | 118.22% | 93.26% | 89.28% | 92.58% | 53.91% |
| Gross Profit | -1.01M | 457K | 1.14M | 1.26M | 902K |
| Gross Margin % | -18.22% | 6.74% | 10.72% | 7.42% | 46.09% |
| Gross Profit Growth % | -321.01% | -59.91% | -9.81% | 40.13% | - |
| Operating Expenses | 6.9M | 7.83M | 8.61M | 17.72M | 620K |
| OpEx % of Revenue | 124.46% | 115.53% | 80.89% | 103.98% | 31.68% |
| Selling, General & Admin | 6.26M | 6.84M | 7.18M | 17.16M | 232K |
| SG&A % of Revenue | 112.88% | 100.9% | 67.48% | 100.73% | 11.85% |
| Research & Development | 642K | 853K | 476K | 419K | 348K |
| R&D % of Revenue | 11.58% | 12.59% | 4.47% | 2.46% | 17.78% |
| Other Operating Expenses | 0 | 138K | 951K | 135K | 40K |
| Operating Income | -7.91M | -7.37M | -7.46M | -16.45M | 282K |
| Operating Margin % | -142.68% | -108.78% | -70.17% | -96.56% | 14.41% |
| Operating Income Growth % | -7.3% | 1.26% | 54.63% | -5934.04% | - |
| EBITDA | -6.01M | -5.8M | -5.64M | -16.14M | 365K |
| EBITDA Margin % | -108.42% | -85.64% | -53.06% | -94.7% | 18.65% |
| EBITDA Growth % | -3.57% | -2.82% | 65.02% | -4520.55% | - |
| D&A (Non-Cash Add-back) | 1.9M | 1.57M | 1.82M | 317K | 83K |
| EBIT | -7.91M | -7.23M | -6.51M | -16.32M | 322K |
| Net Interest Income | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 2.02M | 1.25M | -1.38M | -228K | 174K |
| Pretax Income | -5.89M | -6.12M | -8.85M | -16.68M | 456K |
| Pretax Margin % | -106.19% | -90.32% | -83.15% | -97.9% | 23.3% |
| Income Tax | 0 | 0 | 0 | 24K | 53K |
| Effective Tax Rate % | 0% | 0% | 0% | -0.14% | 11.62% |
| Net Income | -5.89M | -6.12M | -8.85M | -16.7M | 403K |
| Net Margin % | -106.19% | -90.32% | -83.15% | -98.04% | 20.59% |
| Net Income Growth % | 3.82% | 30.81% | 47.05% | -4244.91% | - |
| Net Income (Continuing) | -5.89M | -6.12M | -8.85M | -16.7M | 403K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -3.46 | -3.91 | -6.90 | -20.13 | 0.00 |
| EPS Growth % | 11.51% | 43.33% | 65.72% | - | - |
| EPS (Basic) | -3.46 | -3.91 | -6.90 | -20.13 | 0.00 |
| Diluted Shares Outstanding | 1.7M | 1.56M | 1.28M | 829.85K | 0 |
| Basic Shares Outstanding | 1.7M | 1.56M | 1.28M | 829.85K | 0 |
| Dividend Payout Ratio | - | - | - | - | - |
Critical liquidity and insolvency
As indicated by the company's recent financial disclosures, SAIHEAT experienced an 18.20% year-over-year revenue decline, reflecting a significant loss of market traction that suggests the firm's transition toward specialized liquid-cooling infrastructure is currently failing to offset the broader downturn in its legacy computing and hosting segments.
The double-digit revenue contraction implies that the company is struggling to maintain its hosting client base amidst a highly competitive and volatile high-performance computing environment. This downward trend warrants further investigation into whether the firm is losing key contracts or if the market for its specific thermal management solutions is smaller than previously anticipated.
According to the reported financial data, SAIHEAT operates with a deeply negative gross margin of -18.22%, which suggests that the direct costs associated with power consumption and facility maintenance currently exceed the revenue generated by its data center operations, highlighting a fundamental lack of operational pricing power.
The inability to cover basic variable costs suggests that the company's current business model is not yet economically viable at its existing scale. Investors should monitor whether this margin profile is a temporary result of underutilized capacity or a structural issue inherent to the high energy intensity of its liquid-cooling technology.
Based on the provided figures, the company's operating margin of -142.68% demonstrates that corporate overhead and development expenses are significantly outpacing revenue, indicating that SAIHEAT lacks the necessary scale to achieve operating leverage in its current configuration as an infrastructure provider for high-performance computing.
The extreme disparity between revenue and operating expenses suggests that the firm is heavily burdened by fixed costs that are not being adequately absorbed by its current service volume. This level of inefficiency implies that any future path to profitability would require a massive increase in throughput or a drastic reduction in corporate spending.
With cash and equivalents reported at approximately $1.038 million, the company faces a precarious financial position, as the current rate of cash burn appears unsustainable relative to the annual operating losses, which likely exceed $7 million based on the company's reported negative margin profile.
The limited cash runway suggests that the company may be forced to seek dilutive financing or face significant operational disruptions in the near term. This liquidity risk is compounded by the lack of access to traditional debt markets, which may leave the firm vulnerable to unfavorable capital raises that could further erode shareholder value.
Quick answers to the most common questions about buying SAIHW stock.
For fiscal year 2024, SAIHEAT Limited (SAIHW) reported total revenue of $5.5M. This represents a 183.2% increase compared to $2.0M in 2020.
SAIHEAT Limited (SAIHW) reported a net loss of $5.9M for the fiscal year ending 2024.
SAIHEAT Limited (SAIHW) reported an operating income of $-7.9M, resulting in an operating profit margin of -142.7%. This margin reflects the operational efficiency of the business before interest and taxes.
SAIHEAT Limited (SAIHW) generated $-1.0M in gross profit for the year, representing a gross profit margin of -18.2%. This demonstrates the company's core pricing power and production efficiency.