Revenue growth has contracted by 35.3% year-over-year, while operating margins remain strained at -9.8%, indicating a lack of operational leverage.
| Sales/Revenue | 439.35M | 541.92M | 585.37M | 682.29M | 933.79M | 766.01M | 319.18M | 225.27M | 192.03M |
| Revenue Growth % | -28.14% | -7.42% | -14.21% | -26.93% | 21.9% | 139.99% | 41.69% | 17.31% | - |
| Cost of Goods Sold | 320.85M | 387.95M | 411.66M | 539.25M | 684.22M | 596.58M | 146.17M | 85.41M | 79.18M |
| COGS % of Revenue | - | 71.59% | 70.33% | 79.03% | 73.27% | 77.88% | 45.79% | 37.92% | 41.23% |
| Gross Profit | 118.5M | 153.98M | 173.7M | 143.05M | 249.57M | 169.43M | 173.01M | 139.86M | 112.85M |
| Gross Margin % | 26.97% | 28.41% | 29.67% | 20.97% | 26.73% | 22.12% | 54.21% | 62.08% | 58.77% |
| Gross Profit Growth % | - | -11.35% | 21.43% | -42.68% | 47.29% | -2.07% | 23.71% | 23.93% | - |
| Operating Expenses | 162.74M | 183.06M | 790.77M | 451.75M | 513.22M | 322.85M | 60.16M | 39.05M | 35.55M |
| OpEx % of Revenue | - | 33.78% | 135.09% | 66.21% | 54.96% | 42.15% | 18.85% | 17.34% | 18.51% |
| Selling, General & Admin | 54.99M | 36.5M | 160.68M | 50.87M | 76.42M | 38.04M | 40.23M | 31.03M | 25.85M |
| SG&A % of Revenue | - | 6.73% | 27.45% | 7.46% | 8.18% | 4.97% | 12.6% | 13.78% | 13.46% |
| Research & Development | 69.34M | 111.69M | 171.06M | 341.61M | 155.58M | 84.96M | 18.36M | 8.02M | 9.7M |
| R&D % of Revenue | - | 20.61% | 29.22% | 50.07% | 16.66% | 11.09% | 5.75% | 3.56% | 5.05% |
| Other Operating Expenses | 1.74M | 34.87M | 459.03M | 59.27M | 281.23M | 199.85M | 1.57M | 0 | 0 |
| Operating Income | -44.24M | -29.08M | -617.06M | -308.71M | -263.66M | -153.42M | 112.85M | 100.8M | 77.3M |
| Operating Margin % | -10.07% | -5.37% | -105.41% | -45.25% | -28.23% | -20.03% | 35.36% | 44.75% | 40.25% |
| Operating Income Growth % | - | 95.29% | -99.89% | -17.09% | -71.86% | -235.95% | 11.95% | 30.41% | - |
| EBITDA | -36.77M | -23.06M | -615.76M | -298.22M | -245.13M | -138.87M | 126.74M | 114.34M | 90.08M |
| EBITDA Margin % | -8.37% | -4.26% | -105.19% | -43.71% | -26.25% | -18.13% | 39.71% | 50.76% | 46.91% |
| EBITDA Growth % | 93.73% | 96.25% | -106.48% | -21.66% | -76.52% | -209.57% | 10.84% | 26.93% | - |
| D&A (Non-Cash Add-back) | 7.47M | 6.02M | 1.3M | 10.48M | 18.53M | 14.55M | 13.88M | 13.54M | 12.78M |
| EBIT | -8.24M | 6.92M | -223.37M | -260.33M | -131.39M | -146.14M | 112.85M | 100.8M | 77.3M |
| Net Interest Income | 0 | 130.14M | 65.36M | 1.51M | -1.2M | 8.46M | -9.88M | -5.35M | -4.09M |
| Interest Income | 0 | 131.29M | 66.41M | 3.8M | 5.78M | 12.07M | 1.23M | 25.49K | 33.63K |
| Interest Expense | 0 | 1.14M | 1.05M | 2.29M | 6.98M | 3.61M | 11.11M | 5.37M | 4.12M |
| Other Income/Expense | 269.02M | 138.98M | 104.17M | -71.73M | 8.43M | 11.36M | -7.52M | -3.51M | -3.43M |
| Pretax Income | 224.78M | 109.9M | -512.89M | -380.44M | -255.23M | -142.05M | 105.33M | 97.29M | 73.87M |
| Pretax Margin % | 51.16% | 20.28% | -87.62% | -55.76% | -27.33% | -18.54% | 33% | 43.19% | 38.47% |
| Income Tax | 7.46M | 6.56M | -2.53M | -3.62M | -835.22K | 2.9M | 3.13M | 8.08M | 528.01K |
| Effective Tax Rate % | 3.32% | 5.97% | 0.49% | 0.95% | 0.33% | -2.04% | 2.97% | 8.3% | 0.71% |
| Net Income | 170.28M | 71.64M | -421.19M | -357.73M | -235.97M | -151.17M | 102.2M | 89.22M | 73.34M |
| Net Margin % | 38.76% | 13.22% | -71.95% | -52.43% | -25.27% | -19.73% | 32.02% | 39.6% | 38.19% |
| Net Income Growth % | 141.4% | 117.01% | -17.74% | -51.6% | -56.1% | -247.91% | 14.56% | 21.65% | - |
| Net Income (Continuing) | 217.32M | 103.34M | -510.37M | -376.82M | -254.39M | -144.96M | 102.2M | 89.22M | 73.34M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 943.74M | 385.75M | 8.57M | 97.9M | 75.4M | 11.81M | 0 | 0 | 0 |
| EPS (Diluted) | 7.28 | 1.46 | -4.82 | -4.36 | -3.04 | -2.24 | 1.72 | 1.51 | 1.24 |
| EPS Growth % | 485.53% | 130.29% | -10.55% | -43.42% | -35.71% | -230.23% | 13.91% | 21.77% | - |
| EPS (Basic) | - | 1.46 | -4.82 | -4.38 | -3.04 | -2.24 | 1.72 | 1.51 | 1.24 |
| Diluted Shares Outstanding | 23.39M | 49.1M | 87.23M | 86.14M | 83.53M | 64.72M | 59.31M | 59.06M | 59.06M |
| Basic Shares Outstanding | 23.41M | 49.11M | 87.23M | 85.99M | 83.53M | 64.6M | 59.31M | 59.06M | 59.06M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Revenue contraction and volatility
As reported in recent financial filings, WiMi's revenue has experienced a significant downturn, with the most recent quarterly figures showing a 35.3% year-over-year decline, signaling that the company's core holographic advertising and semiconductor segments are struggling to maintain market share in a cooling domestic environment.
The consistent downward trajectory in top-line performance suggests that the company's pivot toward semiconductor-related services has failed to offset the volatility in its advertising business. Investors should monitor whether this contraction reflects a structural loss of competitive positioning or merely a cyclical sensitivity to broader Chinese digital marketing spend.
Based on the provided income statement data, WiMi's gross margins have hovered near 27-30%, which indicates that the company's business model functions more like a low-margin reseller than a high-value software developer, limiting its ability to absorb fluctuations in production and content acquisition costs.
The inability to expand gross margins despite the specialized nature of its holographic middleware suggests limited pricing power within its target markets. This margin profile warrants further investigation into whether the company can achieve the scale necessary to transition from its current value-added service model to a more profitable software-licensing structure.
According to recent SEC filings, WiMi exhibits a concerning disconnect where operating margins remain consistently negative at -9.8%, yet the company reports positive net income, suggesting that non-operating items or investment gains are currently masking the underlying unprofitability of the firm's core operational activities.
This reliance on non-core income to drive bottom-line results raises questions regarding the sustainability of reported earnings. Analysts should scrutinize the nature of these non-operating gains to determine if they represent recurring financial benefits or one-time events that do not reflect the company's long-term earning potential.
As indicated by the financial statements, the company's operating expenses, particularly R&D and SG&A, frequently outpace gross profit, resulting in persistent operating losses that suggest a lack of operational leverage and a potential over-investment in projects that have yet to yield meaningful commercial returns.
The high variable cost structure, combined with the recent volatility in SG&A spending, indicates that management has struggled to align its cost base with the declining revenue environment. This lack of expense discipline appears to be a primary driver of the company's inability to achieve consistent operating profitability.
Based on the reported figures, the massive cash position of over $1 billion relative to the company's market capitalization suggests that the market is heavily discounting the firm's assets, likely reflecting deep skepticism regarding the accessibility of these funds or the viability of future growth initiatives.
Short-sellers may focus on the potential for these cash reserves to be deployed in non-accretive ventures or the possibility that the holographic content library is overvalued on the balance sheet. The market's current pricing implies a high probability that the company's reported liquidity will not translate into shareholder value.
Quick answers to the most common questions about buying WIMI stock.
For fiscal year 2024, WiMi Hologram Cloud Inc. (WIMI) reported total revenue of $541.9M. This represents a 182.2% increase compared to $192.0M in 2017.
WiMi Hologram Cloud Inc. (WIMI) is profitable, generating $71.6M in net income for the fiscal year ending 2024 with a net profit margin of 13.2%.
WiMi Hologram Cloud Inc. (WIMI) reported an operating income of $-29.1M, resulting in an operating profit margin of -5.4%. This margin reflects the operational efficiency of the business before interest and taxes.
WiMi Hologram Cloud Inc. (WIMI) generated $154.0M in gross profit for the year, representing a gross profit margin of 28.4%. This demonstrates the company's core pricing power and production efficiency.