The company achieved an 84% year-over-year revenue growth rate, yet remains constrained by a 29.67% gross margin that reflects the inherent limitations of its commodity-heavy business model.
| Metric | Dec'24 | Dec'23 | Dec'22 |
|---|
| Sales/Revenue | 237.01K | 128.53K | 715.2K |
| Revenue Growth % | 84.4% | -82.03% | - |
| Cost of Goods Sold | 166.69K | 110.53K | 93.5K |
| COGS % of Revenue | 70.33% | 85.99% | 13.07% |
| Gross Profit | 70.32K | 18.01K | 621.69K |
| Gross Margin % | 29.67% | 14.01% | 86.93% |
| Gross Profit Growth % | 290.54% | -97.1% | - |
| Operating Expenses | 2.38M | 1.73M | 2.6M |
| OpEx % of Revenue | 1004.35% | 1345.35% | 363.99% |
| Selling, General & Admin | 1.57M | 1.12M | 2.05M |
| SG&A % of Revenue | 663.12% | 869.3% | 286.66% |
| Research & Development | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - |
| Other Operating Expenses | 808.75K | 611.87K | 553.05K |
| Operating Income | -2.31M | -1.71M | -1.98M |
| Operating Margin % | -974.68% | -1331.34% | -277.06% |
| Operating Income Growth % | -35% | 13.64% | - |
| EBITDA | -2.28M | -1.66M | -1.97M |
| EBITDA Margin % | -962.91% | -1292.94% | -275.7% |
| EBITDA Growth % | -37.33% | 15.72% | - |
| D&A (Non-Cash Add-back) | 27.9K | 49.36K | 9.75K |
| EBIT | -2.21M | -1.67M | -1.8M |
| Net Interest Income | -158.88K | -119.49K | -124.93K |
| Interest Income | 598 | 226 | 185 |
| Interest Expense | 159.48K | 119.72K | 125.11K |
| Other Income/Expense | -57.44K | -82.26K | 55.77K |
| Pretax Income | -2.37M | -1.79M | -1.93M |
| Pretax Margin % | -998.91% | -1395.34% | -269.26% |
| Income Tax | -3.75K | 2.9K | 2.3K |
| Effective Tax Rate % | 0.16% | -0.16% | -0.12% |
| Net Income | -2.36M | -1.77M | -1.91M |
| Net Margin % | -994.96% | -1379.49% | -266.54% |
| Net Income Growth % | -33% | 6.99% | - |
| Net Income (Continuing) | -2.36M | -1.8M | -1.93M |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 0 | -47.75K | -27.27K |
| EPS (Diluted) | -0.09 | -0.07 | -0.08 |
| EPS Growth % | -32.95% | 10.7% | - |
| EPS (Basic) | -0.09 | -0.07 | -0.08 |
| Diluted Shares Outstanding | 25.3M | 25.3M | 24.27M |
| Basic Shares Outstanding | 25.3M | 25.3M | 24.27M |
| Dividend Payout Ratio | - | - | - |
Severe liquidity and solvency
As reported in recent financial disclosures, TGHL achieved an 84% year-over-year revenue growth rate, suggesting a rapid expansion of its trading activities or initial software client onboarding that warrants careful scrutiny regarding the sustainability of such momentum in the current competitive landscape.
The reported 84% growth rate appears to be driven by a hybrid model that blends physical commodity trading with nascent software services. Investors should monitor whether this trajectory reflects genuine market adoption of the GrowHub platform or merely a temporary surge in low-margin physical product fulfillment.
Based on the company's reported figures, the 29.67% gross margin reflects the inherent limitations of a commodity-heavy business model, which currently lacks the necessary scale to support the high-fixed-cost structure required for its proprietary blockchain-based traceability and carbon management software solutions.
The current margin profile suggests that the software component has not yet reached the critical mass required to lift consolidated profitability. Without a significant shift in revenue mix toward higher-margin SaaS subscriptions, the company may remain structurally tethered to the low-margin dynamics of physical trading.
According to the provided financial data, the company's operating margin of -974.68% indicates that expenses are currently far outstripping revenue generation, suggesting that the firm is in a heavy investment phase that necessitates immediate and substantial capital infusion to maintain its ongoing operations.
The extreme negative operating margin implies that the company is aggressively burning cash to build its data moat. This level of inefficiency suggests that management is prioritizing market capture over operational discipline, which may create significant risks if external financing conditions tighten.
As indicated by the company's financial structure, the market may be mispricing TGHL by conflating its physical trading operations with high-multiple software firms, potentially ignoring the significant operational drag and liquidity risks inherent in its current business model as reported in recent filings.
Short-sellers would likely focus on the disconnect between the company's tech-focused branding and its reliance on low-margin commodity trading. The lack of margin improvement suggests that the cost of acquiring growth is currently unsustainable, warranting further investigation into the company's long-term viability.
Quick answers to the most common questions about buying TGHL stock.
For fiscal year 2024, The GrowHub Limited Class A Ordinary Shares (TGHL) reported total revenue of $0.2M. This represents a 66.9% decline compared to $0.7M in 2022.
The GrowHub Limited Class A Ordinary Shares (TGHL) reported a net loss of $2.4M for the fiscal year ending 2024.
The GrowHub Limited Class A Ordinary Shares (TGHL) reported an operating income of $-2.3M, resulting in an operating profit margin of -974.7%. This margin reflects the operational efficiency of the business before interest and taxes.
The GrowHub Limited Class A Ordinary Shares (TGHL) generated $0.1M in gross profit for the year, representing a gross profit margin of 29.7%. This demonstrates the company's core pricing power and production efficiency.