Revenue has experienced a sustained contraction from $5.8M in 2022Q2 to $3.1M in 2026Q2, while operating margins have collapsed from 20.5% to -0.5% over the same period.
| Sales/Revenue | 12.82M | 6.19M | 7.22M | 10.69M | 11.47M | 8.52M | 5.64M | 5.36M | 5.97M | 5.17M | 7.04M |
| Revenue Growth % | -35.93% | -14.35% | -32.45% | -6.81% | 34.75% | 51.06% | 5.21% | -10.22% | 15.37% | -26.55% | - |
| Cost of Goods Sold | 7.49M | 3.61M | 4.23M | 5.01M | 6.01M | 4M | 3.39M | 2.85M | 2.23M | 2.15M | 2.55M |
| COGS % of Revenue | - | 58.35% | 58.59% | 46.81% | 52.41% | 46.94% | 60.08% | 53.27% | 37.36% | 41.59% | 36.22% |
| Gross Profit | 5.33M | 2.58M | 2.99M | 5.69M | 5.46M | 4.52M | 2.25M | 2.5M | 3.74M | 3.02M | 4.49M |
| Gross Margin % | 41.59% | 41.65% | 41.41% | 53.19% | 47.59% | 53.06% | 39.92% | 46.73% | 62.64% | 58.41% | 63.78% |
| Gross Profit Growth % | - | -13.84% | -47.41% | 4.14% | 20.85% | 100.78% | -10.11% | -33.03% | 23.74% | -32.74% | - |
| Operating Expenses | 6.27M | 2.97M | 3.23M | 3.67M | 4.42M | 3.43M | 3.82M | 3.74M | 2.67M | 2.36M | 1.87M |
| OpEx % of Revenue | - | 48% | 44.74% | 34.37% | 38.52% | 40.25% | 67.79% | 69.84% | 44.67% | 45.67% | 26.55% |
| Selling, General & Admin | 6.25M | 2.97M | 3.23M | 3.67M | 4.42M | 3.43M | 3.82M | 3.74M | 2.67M | 2.36M | 1.87M |
| SG&A % of Revenue | - | 48% | 44.74% | 34.37% | 38.52% | 40.25% | 67.79% | 69.84% | 44.67% | 45.67% | 26.55% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 16.91K | 0 | 0 | -4.56K | -21.51K | -17.04K | 7.24K | -3.4K | -11.14K | -7.24K | 0 |
| Operating Income | -919.63K | -392.46K | -240.52K | 2.01M | 1.04M | 1.09M | -1.57M | -1.24M | 1.07M | 658.81K | 2.62M |
| Operating Margin % | -7.17% | -6.34% | -3.33% | 18.82% | 9.07% | 12.81% | -27.87% | -23.12% | 17.97% | 12.74% | 37.23% |
| Operating Income Growth % | - | -63.17% | -111.95% | 93.32% | -4.61% | 169.44% | -26.85% | -215.49% | 62.79% | -74.88% | - |
| EBITDA | -476.67K | -67.86K | 106.27K | 2.42M | 1.22M | 1.29M | -1.2M | -1.11M | 1.19M | 777.67K | 2.75M |
| EBITDA Margin % | -3.72% | -1.1% | 1.47% | 22.65% | 10.63% | 15.1% | -21.37% | -20.67% | 20.01% | 15.03% | 39.02% |
| EBITDA Growth % | -116.4% | -163.86% | -95.61% | 98.56% | -5.15% | 206.79% | -8.75% | -192.73% | 53.59% | -71.7% | - |
| D&A (Non-Cash Add-back) | 442.96K | 324.6K | 346.79K | 410.36K | 179.21K | 195.24K | 366.69K | 131.02K | 121.93K | 118.86K | 125.91K |
| EBIT | -919.63K | -392.46K | -240.52K | 2.01M | 1.04M | 1.09M | -1.57M | -1.24M | 1.3M | 723.18K | 2.62M |
| Net Interest Income | 309.85K | 169.64K | 155.36K | 139.34K | 122.18K | 127.14K | 135.36K | 126.66K | 177.72K | 107.78K | 0 |
| Interest Income | 309.85K | 169.64K | 155.36K | 139.34K | 122.18K | 127.14K | 135.36K | 126.66K | 177.72K | 107.78K | 114.05K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 222.6K | 119.72K | -5.45K | 91K | 100.67K | 110.09K | 142.59K | 123.26K | 223.01K | 64.37K | 43.61K |
| Pretax Income | -697.03K | -272.74K | -245.97K | 2.1M | 1.14M | 1.2M | -1.43M | -1.12M | 1.3M | 723.18K | 2.67M |
| Pretax Margin % | -5.44% | -4.41% | -3.41% | 19.67% | 9.95% | 14.1% | -25.34% | -20.82% | 21.71% | 13.98% | 37.85% |
| Income Tax | 233.21K | 100.1K | 130.89K | 430.53K | 238.88K | 180.33K | 212.5K | -96.8K | 92.02K | 105.95K | 434.31K |
| Effective Tax Rate % | -33.46% | -36.7% | -53.21% | 20.47% | 20.93% | 15.01% | -14.87% | 8.68% | 7.1% | 14.65% | 16.29% |
| Net Income | -1.2M | -465.3K | -55.29K | 905.89K | 743.13K | 1.02M | -1.64M | -946.18K | 1.14M | 572.7K | 2.24M |
| Net Margin % | -9.36% | -7.52% | -0.77% | 8.47% | 6.48% | 11.99% | -29.11% | -17.66% | 19.18% | 11.07% | 31.79% |
| Net Income Growth % | -185.37% | -741.59% | -106.1% | 21.9% | -27.2% | 162.2% | -73.44% | -182.66% | 99.86% | -74.42% | - |
| Net Income (Continuing) | -930.24K | -372.85K | -376.86K | 1.67M | 902.53K | 1.02M | -1.64M | -1.02M | 1.2M | 617.23K | 2.23M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.15M | 1.06M | 1.01M | 1.33M | 788.66K | 606.94K | 234.54K | 211.35K | 217.6K | 101.8K | -7.47K |
| EPS (Diluted) | -0.27 | -0.11 | -0.01 | 0.20 | 0.17 | 0.23 | -0.38 | -0.18 | 0.22 | 0.11 | 0.43 |
| EPS Growth % | -165.02% | -780% | -106.25% | 17.65% | -26.09% | 160.53% | -111.11% | -181.82% | 100% | -74.42% | - |
| EPS (Basic) | - | -0.11 | -0.01 | 0.20 | 0.17 | 0.23 | -0.38 | -0.18 | 0.22 | 0.11 | 0.43 |
| Diluted Shares Outstanding | 4.41M | 4.41M | 4.43M | 4.44M | 4.44M | 4.38M | 4.29M | 5.2M | 5.2M | 5.2M | 5.2M |
| Basic Shares Outstanding | 4.41M | 4.41M | 4.43M | 4.44M | 4.44M | 4.38M | 4.29M | 5.2M | 5.2M | 5.2M | 5.2M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Regulatory and institutional disintermediation
As evidenced by the historical income statement data, WAFU has experienced a sustained period of top-line erosion, with revenue declining from $5.8M in 2022Q2 to $3.1M in 2026Q2, representing a significant contraction that challenges the long-term viability of its current institutional B2B2C service model.
The consistent downward trend in quarterly revenue suggests that the company is struggling to maintain its footprint within Chinese vocational institutions. This contraction likely reflects either a loss of institutional partnerships or a reduction in student enrollment, both of which indicate that the company's core value proposition may be losing relevance in the current academic environment.
Based on reported financial filings, WAFU's gross margins have exhibited extreme volatility, fluctuating between a low of 26.0% in 2024Q4 and a high of 59.7% in 2026Q2, which suggests a lack of structural pricing power and high sensitivity to project-based cost fluctuations.
The wide variance in gross margins implies that the company's cost of revenue is not well-aligned with its service delivery model. Investors should monitor whether these swings are driven by the irregular nature of technological development projects or an inability to manage third-party content acquisition costs effectively.
According to the provided quarterly data, WAFU has failed to demonstrate consistent operating leverage, as evidenced by the shift from a 20.5% operating margin in 2023Q2 to a negative 0.5% margin in 2026Q2, indicating that overhead costs are not scaling efficiently with revenue.
The inability to maintain positive operating margins during periods of revenue decline suggests that the company's fixed cost base is too heavy for its current scale. Without a clear path to reducing SG&A expenses relative to top-line performance, the company appears vulnerable to continued bottom-line pressure.
While the company maintains a substantial cash position, the persistent negative operating income and declining revenue trajectory, as reported in recent financial statements, suggest that the business model may be fundamentally impaired rather than merely experiencing a temporary cyclical downturn in the Chinese education sector.
Short-term liquidity is not a substitute for operational viability, and the market's current valuation likely reflects a deep skepticism regarding the company's ability to pivot. The reliance on institutional partnerships in a state-controlled environment poses a binary risk that could render the current platform infrastructure obsolete if provincial authorities choose to centralize these services.
Quick answers to the most common questions about buying WAFU stock.
For fiscal year 2025, Wah Fu Education Group Limited (WAFU) reported total revenue of $6.2M. This represents a 12.2% decline compared to $7.0M in 2016.
Wah Fu Education Group Limited (WAFU) reported a net loss of $0.5M for the fiscal year ending 2025.
Wah Fu Education Group Limited (WAFU) reported an operating income of $-0.4M, resulting in an operating profit margin of -6.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Wah Fu Education Group Limited (WAFU) generated $2.6M in gross profit for the year, representing a gross profit margin of 41.7%. This demonstrates the company's core pricing power and production efficiency.