Revenue remains highly erratic, evidenced by a 367.5% sequential growth spike in 2025Q4 followed by a collapse to just $20,000 in 2026Q1.
| Sales/Revenue | 15.61M | 15.61M | 82K | 27K | 40K | 18K | 94K | 5.36K |
| Revenue Growth % | 14764.76% | 18937.8% | 203.7% | -32.5% | - | -80.85% | 1654.71% | - |
| Cost of Goods Sold | 259.1K | 272K | 32K | 23K | 33K | 8K | 55K | 392.98K |
| COGS % of Revenue | - | 1.74% | 39.02% | 85.19% | 82.5% | 44.44% | 58.51% | 7335.8% |
| Gross Profit | 15.35M | 15.34M | 50K | 4K | 7K | 10K | 39K | -387.62K |
| Gross Margin % | 98.34% | 98.26% | 60.98% | 14.81% | 17.5% | 55.56% | 41.49% | -7235.8% |
| Gross Profit Growth % | - | 30578% | 1150% | -42.86% | - | -74.36% | 110.06% | - |
| Operating Expenses | 13.47M | 14.39M | 10.51M | 9.99M | 9.71M | 14.98M | 4.59M | 7.2M |
| OpEx % of Revenue | - | 92.17% | 12821.95% | 37018.52% | 24262.5% | 83238.89% | 4881.91% | 134419.34% |
| Selling, General & Admin | 7.09M | 7.37M | 6.34M | 5.19M | 5.07M | 8.07M | 1.71M | 1.48M |
| SG&A % of Revenue | - | 47.22% | 7734.15% | 19214.81% | 12677.5% | 44827.78% | 1815.96% | 27632.14% |
| Research & Development | 6.49M | 7.02M | 5.11M | 5.56M | 5.8M | 8.2M | 4.32M | 5.72M |
| R&D % of Revenue | - | 44.95% | 6232.93% | 20577.78% | 14505% | 45550% | 4594.68% | 106787.19% |
| Other Operating Expenses | -518.1K | 0 | -939K | -749K | -1.17M | -1.28M | -1.44M | 0 |
| Operating Income | 1.87M | 951K | -10.46M | -9.99M | -9.7M | -14.97M | -4.55M | -7.59M |
| Operating Margin % | 12.01% | 6.09% | -12760.98% | -37003.7% | -24245% | -83183.33% | -4840.43% | -141655.22% |
| Operating Income Growth % | - | 109.09% | -4.73% | -3.02% | - | -229.08% | 40.04% | - |
| EBITDA | 1.86M | -1.42M | -9.94M | -9.58M | -9.24M | -14.53M | -4.18M | -7.2M |
| EBITDA Margin % | 11.9% | -9.12% | -12119.51% | -35492.59% | -23090% | -80722.22% | -4443.62% | -134395.15% |
| EBITDA Growth % | 116.15% | 85.67% | -3.7% | -3.76% | - | -247.86% | 41.98% | - |
| D&A (Non-Cash Add-back) | -15.9K | 0 | 526K | 408K | 462K | 443K | 373K | 388.92K |
| EBIT | -1.83M | -1.42M | -10.39M | -9.9M | -9.69M | -17.11M | -16.3M | -7.89M |
| Net Interest Income | -433K | -73K | 7K | 12K | 5K | -16K | -6.83M | -1.04M |
| Interest Income | -10K | 0 | 7K | 12K | 5K | 3K | 3K | 5.37K |
| Interest Expense | 423K | 73K | 0 | 0 | 0 | 19K | 6.83M | 1.04M |
| Other Income/Expense | -29.62M | -11.48M | 135K | 1.49M | -1.78M | -2.15M | -18.58M | -1.35M |
| Pretax Income | -27.74M | -10.53M | -10.33M | -8.5M | -11.47M | -17.13M | -23.13M | -8.93M |
| Pretax Margin % | -177.75% | -67.47% | -12596.34% | -31477.78% | -28677.5% | -95144.44% | -24609.57% | -166762.74% |
| Income Tax | 1K | -24K | 1K | 0 | 24K | 0 | 0 | 0 |
| Effective Tax Rate % | -0% | 0.23% | -0.01% | 0% | -0.21% | 0% | 0% | 0% |
| Net Income | -27.74M | -10.51M | -10.33M | -8.5M | -11.49M | -17.14M | -23.13M | -8.93M |
| Net Margin % | -177.75% | -67.32% | -12597.56% | -31477.78% | -28737.5% | -95250% | -24609.57% | -166762.74% |
| Net Income Growth % | -157.65% | -1.73% | -21.54% | 26.06% | - | 25.89% | -158.95% | - |
| Net Income (Continuing) | -27.74M | -10.51M | -10.33M | -8.5M | -11.49M | -17.13M | -23.13M | -8.93M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.92 | -1.29 | -3.17 | -6.32 | -13.94 | -23.78 | -33.71 | -12.29 |
| EPS Growth % | -197.88% | 59.31% | 49.84% | 54.66% | - | 29.46% | -174.29% | - |
| EPS (Basic) | - | -1.29 | -3.17 | -6.32 | -13.94 | -23.78 | -33.71 | -12.29 |
| Diluted Shares Outstanding | 14.44M | 8.16M | 3.26M | 1.34M | 824.62K | 720.95K | 726.77K | 726.77K |
| Basic Shares Outstanding | 14.44M | 8.16M | 3.26M | 1.34M | 824.62K | 720.95K | 726.77K | 726.77K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Liquidity and Milestone Dependency
As reported in financial statements, SmartKem's revenue trajectory remains highly volatile, highlighted by a massive 367.5% sequential growth spike in 2025Q4 that appears to be a non-recurring licensing milestone rather than a sustainable trend, given the subsequent revenue collapse to $20,000 in 2026Q1.
The extreme fluctuations in top-line performance suggest that the company lacks a predictable, recurring revenue stream. Investors should interpret these spikes as isolated events rather than evidence of market penetration, as the business model currently relies on sporadic technology transfer fees.
Based on reported figures, SmartKem's gross margin profile is erratic, swinging from a peak of 99.3% in 2025Q4 to negative territory in 2026Q1, which indicates that the company's cost structure is not yet optimized for consistent, high-margin intellectual property delivery.
The near-perfect margins observed in 2025Q4 suggest that the company can achieve significant profitability on individual licensing deals when they occur. However, the inability to maintain these margins suggests that the underlying cost of supporting these projects remains high relative to the irregular revenue inflows.
According to recent SEC filings, SmartKem's operating leverage is currently non-existent, as the company consistently fails to scale operating income, with net losses reaching $19.4 million in 2026Q1 despite previous attempts to manage SG&A expenses within the $1.1 million to $2.4 million range.
The persistent gap between operating expenses and revenue indicates that the company is still in a heavy investment phase. Without a consistent revenue base, the fixed costs associated with R&D and administrative overhead continue to exert significant downward pressure on the bottom line.
As indicated by the financial data, the quality of earnings is poor, with a significant disconnect between operating results and net income, exemplified by the $19.4 million net loss in 2026Q1 that far exceeds the operating loss of $2.6 million.
This discrepancy suggests that significant non-operating items, such as interest expenses or derivative liabilities, are severely impacting the company's financial health. Analysts should monitor these below-the-line charges, as they appear to be masking the true extent of the company's cash burn and financial obligations.
Based on the provided data, the most significant risk to the income statement narrative is the company's inability to generate consistent cash flow, with a critically low cash balance that warrants further investigation into the potential for future dilutive equity raises.
Short-sellers would likely focus on the binary nature of the company's revenue, which leaves it vulnerable to any delays in partner adoption. The current financial structure appears unsustainable without a fundamental shift toward recurring royalty-based revenue or a major strategic partnership that provides long-term capital stability.
Quick answers to the most common questions about buying SMTK stock.
For fiscal year 2025, SmartKem, Inc. (SMTK) reported total revenue of $15.6M. This represents a 291313.1% increase compared to $0.0M in 2019.
SmartKem, Inc. (SMTK) reported a net loss of $10.5M for the fiscal year ending 2025.
SmartKem, Inc. (SMTK) reported an operating income of $1.0M, resulting in an operating profit margin of 6.1%. This margin reflects the operational efficiency of the business before interest and taxes.
SmartKem, Inc. (SMTK) generated $15.3M in gross profit for the year, representing a gross profit margin of 98.3%. This demonstrates the company's core pricing power and production efficiency.