Despite an 86.3% revenue expansion in 2025Q4, the company's gross margin collapsed to 10.4%, indicating significant pricing pressure and rising operational costs.
| Sales/Revenue | 192.02M | 182.16M | 163.69M | 136.45M | 117.57M | 11.45M |
| Revenue Growth % | 5.41% | 11.29% | 19.97% | 16.06% | 926.52% | - |
| Cost of Goods Sold | 161.34M | 134.57M | 115.65M | 12.43M | 10.51M | 8.04M |
| COGS % of Revenue | 84.02% | 73.87% | 70.65% | 9.11% | 8.94% | 70.18% |
| Gross Profit | 30.69M | 47.6M | 48.04M | 5.01M | 4.63M | 3.42M |
| Gross Margin % | 15.98% | 26.13% | 29.35% | 3.68% | 3.94% | 29.82% |
| Gross Profit Growth % | -35.53% | -0.93% | 858.03% | 8.23% | 35.65% | - |
| Operating Expenses | 48.63M | 36.66M | 37.29M | 3.9M | 4.09M | 1.57M |
| OpEx % of Revenue | 25.32% | 20.13% | 22.78% | 2.86% | 3.48% | 13.74% |
| Selling, General & Admin | 48.63M | 36.03M | 36.81M | 3.88M | 4.09M | 1.57M |
| SG&A % of Revenue | 25.32% | 19.78% | 22.48% | 2.84% | 3.48% | 13.74% |
| Research & Development | 0 | 0 | 0 | 25.57K | 2.21K | 0 |
| R&D % of Revenue | - | - | - | 0.02% | 0% | - |
| Other Operating Expenses | 0 | 636.29K | 485.96K | 0 | 0 | 0 |
| Operating Income | -17.94M | 10.93M | 10.75M | 6.83M | 8.14M | 1.84M |
| Operating Margin % | -9.34% | 6% | 6.57% | 5% | 6.93% | 16.08% |
| Operating Income Growth % | -264.14% | 1.67% | 57.53% | -16.19% | 342.08% | - |
| EBITDA | -14.24M | 14.17M | 13.45M | 9.08M | 10.92M | 2.26M |
| EBITDA Margin % | -7.42% | 7.78% | 8.21% | 6.65% | 9.29% | 19.74% |
| EBITDA Growth % | -200.48% | 5.42% | 48.11% | -16.85% | 382.99% | - |
| D&A (Non-Cash Add-back) | 3.7M | 3.24M | 2.69M | 2.25M | 2.78M | 418.59K |
| EBIT | -18.94M | 12.15M | 12.2M | 8.69M | 4.21M | 1.95M |
| Net Interest Income | -148.59K | -189.75K | -55.08K | -82.84K | -244.2K | -40.3K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 6.4K |
| Interest Expense | 148.59K | 189.75K | 55.08K | 82.84K | 244.2K | 46.7K |
| Other Income/Expense | -1.15M | 1.03M | 1.39M | 3.4M | 963.13K | 67.93K |
| Pretax Income | -19.09M | 11.96M | 12.14M | 10.22M | 9.11M | 1.91M |
| Pretax Margin % | -9.94% | 6.57% | 7.42% | 7.49% | 7.75% | 16.68% |
| Income Tax | -642.07K | 1.31M | 2.34M | 1.97M | 3.08M | 322.13K |
| Effective Tax Rate % | 3.36% | 10.93% | 19.26% | 19.3% | 33.87% | 16.87% |
| Net Income | -18.45M | 10.65M | 9.7M | 7.76M | 5.8M | 1.59M |
| Net Margin % | -9.61% | 5.85% | 5.92% | 5.69% | 4.93% | 13.86% |
| Net Income Growth % | -273.18% | 9.86% | 24.92% | 33.86% | 265.21% | - |
| Net Income (Continuing) | -18.45M | 10.65M | 9.8M | 8.25M | 6.02M | 1.59M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 200.76K | 145.01K | -9.16K |
| EPS (Diluted) | -13.33 | 0.82 | 0.81 | 0.59 | 0.44 | 0.32 |
| EPS Growth % | -1725.61% | 1.23% | 37.29% | 34.09% | 37.5% | - |
| EPS (Basic) | -13.33 | 0.82 | 0.81 | 0.59 | 0.44 | 0.32 |
| Diluted Shares Outstanding | 1.38M | 13.03M | 12M | 13.25M | 13.25M | 5M |
| Basic Shares Outstanding | 1.38M | 13.03M | 12M | 13.25M | 13.25M | 5M |
| Dividend Payout Ratio | - | - | - | 103.06% | 292.28% | - |
Margin compression and labor costs
According to the most recent quarterly filings, SUGP reported a significant revenue expansion of 86.3% in 2025Q4, yet this top-line growth appears disconnected from the company's ability to generate sustainable profit, as evidenced by the concurrent collapse in net margins to negative 16.5% during the period.
While the 86.3% revenue jump suggests a potential scaling of operations or new contract wins, the lack of corresponding profitability implies that the company may be sacrificing pricing power to capture market share. Investors should monitor whether this growth is organic or driven by low-margin projects that exacerbate the firm's existing cost inefficiencies.
As reported in financial statements, SUGP's gross margin has experienced a notable contraction, falling from a peak of 33.8% in 2023 to just 10.4% in 2025Q4, signaling that the company is struggling to maintain pricing power amidst rising labor and regulatory compliance costs in Hong Kong.
The sharp decline in gross margins suggests that the firm's integrated hardware-plus-human model is becoming increasingly expensive to maintain. This trend warrants further investigation into whether the company can successfully pass through statutory wage increases to its clients or if it remains trapped in a low-margin utility service cycle.
Based on the company's reported figures, operating expenses have outpaced gross profit growth, resulting in an operating margin of negative 17.8% in 2025Q4, which indicates that the firm's current administrative overhead is not scaling efficiently with its recent revenue expansion efforts.
The inability to achieve positive operating leverage suggests that the company's fixed cost base is currently too heavy for its revenue profile. This may imply that management is over-investing in infrastructure or personnel ahead of actual demand, creating a drag on earnings that requires a fundamental shift in cost discipline.
Data from recent income statements suggests that SUGP's transition to a net loss of $13.9 million in 2025Q4, despite significant revenue growth, raises serious questions regarding the long-term viability of its current business model and the potential for further shareholder dilution to fund ongoing operational cash burn.
Short-sellers would likely focus on the divergence between top-line growth and bottom-line performance as a sign of fundamental value destruction. The reliance on a large cash balance to offset persistent operating losses may mask underlying operational weaknesses that could become critical if the company fails to reach a profitable scale.
Quick answers to the most common questions about buying SUGP stock.
For fiscal year 2025, SU Group Holdings Limited Ordinary Shares (SUGP) reported total revenue of $192.0M. This represents a 1576.6% increase compared to $11.5M in 2019.
SU Group Holdings Limited Ordinary Shares (SUGP) reported a net loss of $18.4M for the fiscal year ending 2025.
SU Group Holdings Limited Ordinary Shares (SUGP) reported an operating income of $-17.9M, resulting in an operating profit margin of -9.3%. This margin reflects the operational efficiency of the business before interest and taxes.
SU Group Holdings Limited Ordinary Shares (SUGP) generated $30.7M in gross profit for the year, representing a gross profit margin of 16.0%. This demonstrates the company's core pricing power and production efficiency.