Despite achieving 36.2% revenue growth in 2024Q4, the company's operating margin has deteriorated to 3.1%, reflecting a failure to capture economies of scale.
| Sales/Revenue | 24.57B | 3.46B | 3.01B |
| Revenue Growth % | 609.88% | 14.93% | - |
| Cost of Goods Sold | 19.92B | 2.68B | 2.43B |
| COGS % of Revenue | 81.07% | 77.45% | 80.68% |
| Gross Profit | 4.65B | 780.56M | 581.8M |
| Gross Margin % | 18.93% | 22.55% | 19.32% |
| Gross Profit Growth % | 496% | 34.16% | - |
| Operating Expenses | 4.26B | 620.29M | 509.44M |
| OpEx % of Revenue | 17.32% | 17.92% | 16.92% |
| Selling, General & Admin | 5.17B | 554.49M | 482.24M |
| SG&A % of Revenue | 21.03% | 16.02% | 16.01% |
| Research & Development | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - |
| Other Operating Expenses | -910.21M | 65.8M | 27.2M |
| Operating Income | 396.08M | 160.27M | 72.36M |
| Operating Margin % | 1.61% | 4.63% | 2.4% |
| Operating Income Growth % | 147.13% | 121.49% | - |
| EBITDA | 880.37M | 419.57M | 300.27M |
| EBITDA Margin % | 3.58% | 12.12% | 9.97% |
| EBITDA Growth % | 109.83% | 39.73% | - |
| D&A (Non-Cash Add-back) | 484.3M | 259.3M | 227.91M |
| EBIT | -622.47M | 253.21M | 72.36M |
| Net Interest Income | -151.23M | -21.61M | -21.14M |
| Interest Income | 0 | 0 | 0 |
| Interest Expense | 146.78K | 21.61M | 21.14M |
| Other Income/Expense | -54.31M | 71.33M | -21.14M |
| Pretax Income | 341.77M | 231.6M | 51.22M |
| Pretax Margin % | 1.39% | 6.69% | 1.7% |
| Income Tax | 236.85M | 94.19M | 18.27M |
| Effective Tax Rate % | 69.3% | 40.67% | 35.67% |
| Net Income | 104.92M | 137.41M | 32.95M |
| Net Margin % | 0.43% | 3.97% | 1.09% |
| Net Income Growth % | -23.65% | 316.99% | - |
| Net Income (Continuing) | 104.92M | 137.41M | 32.95M |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
| EPS (Diluted) | 0.00 | 2.75 | 0.66 |
| EPS Growth % | -99.92% | 316.67% | - |
| EPS (Basic) | 0.00 | 2.75 | 0.66 |
| Diluted Shares Outstanding | 50.75B | 50.05M | 50.05M |
| Basic Shares Outstanding | 50.75B | 50.05M | 50.05M |
| Dividend Payout Ratio | - | - | - |
Regulatory and Margin Fragility
As indicated by the quarterly financial data, THH has achieved a 36.2% revenue growth rate in 2024Q4, yet this top-line expansion appears disconnected from bottom-line performance, suggesting that the company is prioritizing market share acquisition over the realization of sustainable, profitable growth within its Osaka-based entertainment ecosystem.
The rapid revenue growth trajectory warrants caution, as it does not appear to be translating into meaningful earnings expansion. Investors should monitor whether this growth is driven by high-volume, low-margin event contracts that lack the recurring revenue characteristics necessary to justify a premium valuation.
Based on the reported figures, gross margins have contracted from 26.1% in 2023Q3 to 16.2% by 2024Q4, reflecting a significant deterioration in pricing power as the company struggles to manage rising production costs within its highly variable and competitive specialty business services model.
The consistent decline in gross margin suggests that THH is facing intense pressure from third-party talent and logistics providers. This trend implies that the company may lack the necessary leverage to pass through cost increases to its end customers, leaving the business vulnerable to further margin erosion.
According to the income statement analysis, operating margins have compressed from 10.6% in 2023Q3 to 3.1% in 2024Q4, demonstrating a failure to achieve economies of scale despite the substantial increase in quarterly revenue volume reported over the same period.
The inability to scale operating income alongside revenue suggests that the company's cost structure is heavily weighted toward fixed operational requirements that do not benefit from volume growth. This lack of operating leverage indicates that the business model may be fundamentally limited by its reliance on high-cost, labor-intensive event production.
As reported in financial statements, the company's net margin has plummeted to 1.0% in 2024Q4, highlighting a precarious earnings profile where even minor fluctuations in event attendance or regulatory compliance costs could easily push the firm into a net loss position for future reporting periods.
Short-term profitability appears highly sensitive to non-operating items and seasonal volatility, which may mask underlying operational weaknesses. Investors should be wary of the sustainability of these earnings, as the current thin margin buffer provides almost no protection against potential macroeconomic or regulatory headwinds in the Kansai region.
Quick answers to the most common questions about buying THH stock.
For fiscal year 2024, TryHard Holdings Limited (THH) reported total revenue of $24.57B. This represents a 715.9% increase compared to $3.01B in 2022.
TryHard Holdings Limited (THH) is profitable, generating $104.9M in net income for the fiscal year ending 2024 with a net profit margin of 0.4%.
TryHard Holdings Limited (THH) reported an operating income of $396.1M, resulting in an operating profit margin of 1.6%. This margin reflects the operational efficiency of the business before interest and taxes.
TryHard Holdings Limited (THH) generated $4.65B in gross profit for the year, representing a gross profit margin of 18.9%. This demonstrates the company's core pricing power and production efficiency.