The company exhibits structural margin weakness, evidenced by a consistent negative operating margin of -24.8% reported in 2026Q1 despite top-line revenue of $6.0 million.
| Sales/Revenue | 21.51M | 21.08M | 22.39M | 22.3M | 15.64M | 29.26M |
| Revenue Growth % | -0.04% | -5.86% | 0.4% | 42.63% | -46.56% | - |
| Cost of Goods Sold | 16.37M | 17.13M | 17.73M | 16.97M | 6.61M | 29.11M |
| COGS % of Revenue | - | 81.25% | 79.16% | 76.1% | 42.29% | 99.47% |
| Gross Profit | 5.14M | 3.95M | 4.67M | 5.33M | 9.02M | 154.91K |
| Gross Margin % | 23.88% | 18.75% | 20.84% | 23.9% | 57.71% | 0.53% |
| Gross Profit Growth % | - | -15.3% | -12.46% | -40.93% | 5725.68% | - |
| Operating Expenses | 9.66M | 8.6M | 10.22M | 5.36M | 2.09M | 889.1K |
| OpEx % of Revenue | - | 40.81% | 45.66% | 24.02% | 13.39% | 3.04% |
| Selling, General & Admin | 9.56M | 8.6M | 10.2M | 5.36M | 2.09M | 889.1K |
| SG&A % of Revenue | - | 40.81% | 45.54% | 24.02% | 13.39% | 3.04% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 481.8K | 0 | 25.37K | 0 | 0 | 0 |
| Operating Income | -4.53M | -4.65M | -5.56M | -26.03K | 6.93M | -734.18K |
| Operating Margin % | -21.05% | -22.06% | -24.82% | -0.12% | 44.32% | -2.51% |
| Operating Income Growth % | - | 16.33% | -21246.58% | -100.38% | 1044.09% | - |
| EBITDA | 563.86K | 284.87K | -655.91K | 3.34M | 8.34M | 3.1M |
| EBITDA Margin % | 2.62% | 1.35% | -2.93% | 14.97% | 53.31% | 10.59% |
| EBITDA Growth % | 129.59% | 143.43% | -119.65% | -59.95% | 168.92% | - |
| D&A (Non-Cash Add-back) | 5.09M | 4.93M | 4.9M | 3.36M | 1.41M | 3.83M |
| EBIT | 12.62M | 5.68M | 5.74M | 11.26M | 6.93M | -841.03K |
| Net Interest Income | 1.37M | 4.52M | 8.49M | 2.02M | -735.67K | -597.33K |
| Interest Income | 1.37M | 4.58M | 8.72M | 2.05M | 212.94K | 771 |
| Interest Expense | 0 | 68.12K | 230.53K | 31.82K | 948.61K | 598.1K |
| Other Income/Expense | 9.19M | 10.26M | 11.07M | 11.25M | -11.38K | -490.03K |
| Pretax Income | 4.66M | 5.61M | 5.51M | 11.23M | 6.92M | -1.22M |
| Pretax Margin % | 21.67% | 26.63% | 24.61% | 50.34% | 44.25% | -4.18% |
| Income Tax | 0 | 0 | 0 | 47.07K | 0 | 206.17K |
| Effective Tax Rate % | 0% | 0% | 0% | 0.42% | 0% | -16.84% |
| Net Income | 4.88M | 5.93M | 25.21M | 140.64M | 49.93M | -1.43M |
| Net Margin % | 22.67% | 28.15% | 112.56% | 630.53% | 319.27% | -4.89% |
| Net Income Growth % | 4.52% | -76.46% | -82.08% | 181.69% | 3590.4% | - |
| Net Income (Continuing) | 4.66M | 5.61M | 5.51M | 11.18M | 6.92M | -1.43M |
| Discontinued Operations | 216.6K | 321.39K | 19.7M | 129.46M | 43.01M | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.27 | 0.08 | 1.09 | 7.56 | 5.28 | -0.15 |
| EPS Growth % | 669.42% | -92.39% | -85.58% | 43.18% | 3620% | - |
| EPS (Basic) | - | 0.08 | 1.09 | 9.05 | 5.55 | -0.15 |
| Diluted Shares Outstanding | 18.23M | 17.89M | 17.4M | 18.47M | 9.46M | 9.46M |
| Basic Shares Outstanding | 18.23M | 17.89M | 17.4M | 15.44M | 9.46M | 9.46M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Operational cash flow insolvency
As reported in financial statements, Toro Corp.'s revenue has experienced significant volatility, with the most recent quarterly figure of $6.0 million reflecting a broader trend of top-line instability that suggests the company's current spot-market-exposed business model lacks the necessary scale to sustain consistent organic growth.
The revenue trajectory appears heavily influenced by transactional vessel activity rather than stable, long-term charter agreements. Investors should monitor whether the current revenue base can support the company's fixed-cost structure, as the lack of consistent growth suggests a reliance on opportunistic asset turnover.
Based on the provided income statement data, Toro Corp. consistently reports negative operating margins, including a -24.8% margin in 2026Q1, which indicates that the core shipping operations are currently unable to cover essential vessel operating expenses and depreciation without relying on non-operating income sources.
The persistent gap between gross and operating margins suggests that the company's overhead and SG&A expenses are disproportionately high relative to its small fleet size. This structural inefficiency warrants further investigation into whether management can optimize vessel utilization or if the current cost base is fundamentally misaligned with market rates.
According to recent SEC filings, the extreme divergence between Toro's negative operating margins and positive net margins, such as the 8.8% net margin in 2026Q1, suggests that reported profitability is driven by non-operating gains rather than the underlying performance of the company's shipping fleet.
The reliance on interest income and potential vessel sales to bolster net income masks the underlying operational losses. Analysts should adjust for these non-recurring items to assess the true economic viability of the shipping business, as the current earnings profile appears highly artificial and unsustainable.
As indicated by the reported financial figures, Toro Corp. faces a rigid cost structure where vessel operating expenses and SG&A consistently outpace gross profit, leading to a recurring operating loss that highlights the company's inability to scale its expenses effectively during periods of low market utilization.
The high fixed-cost base, combined with significant stock-based compensation expenses, suggests that management's expense discipline may be secondary to other corporate objectives. Investors should be wary of the impact these overhead costs have on long-term shareholder value, particularly when the core fleet fails to generate positive operating cash flow.
Based on the company's reported figures, the market's valuation of Toro Corp. as a shipping operator may be fundamentally flawed, as the business appears to function more like a liquidating trust or a cash-heavy vehicle waiting for opportunistic asset acquisitions rather than a traditional transportation provider.
Short-sellers might focus on the persistent operating losses and the potential for management to erode the cash pile through related-party transactions or inefficient fleet expansion. The primary risk remains that the company's cash reserves are not accessible to shareholders, rendering the NAV-based investment thesis potentially misleading.
Quick answers to the most common questions about buying TORO stock.
For fiscal year 2025, Toro Corp. (TORO) reported total revenue of $21.1M. This represents a 28.0% decline compared to $29.3M in 2021.
Toro Corp. (TORO) is profitable, generating $5.9M in net income for the fiscal year ending 2025 with a net profit margin of 28.1%.
Toro Corp. (TORO) reported an operating income of $-4.6M, resulting in an operating profit margin of -22.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Toro Corp. (TORO) generated $4.0M in gross profit for the year, representing a gross profit margin of 18.8%. This demonstrates the company's core pricing power and production efficiency.