Revenue growth remains highly volatile with a 28.8% decline in 2026Q2, while gross margins remain compressed at a precarious 5.6% level.
| Sales/Revenue | 1.14B | 251M | 172.16M | 200.55M | 275.51M | 246.9M | 193.09M | 35.48M | 60.08M |
| Revenue Growth % | 367.03% | 45.8% | -14.16% | -27.21% | 11.59% | 27.87% | 444.29% | -40.95% | - |
| Cost of Goods Sold | 1.12B | 243.91M | 163.29M | 170.48M | 261.72M | 228.73M | 173.74M | 31.75M | 55.45M |
| COGS % of Revenue | - | 97.18% | 94.85% | 85.01% | 95% | 92.64% | 89.98% | 89.5% | 92.3% |
| Gross Profit | 24.37M | 7.08M | 8.87M | 30.07M | 13.79M | 18.17M | 19.35M | 3.72M | 4.63M |
| Gross Margin % | 2.13% | 2.82% | 5.15% | 14.99% | 5% | 7.36% | 10.02% | 10.5% | 7.7% |
| Gross Profit Growth % | - | -20.14% | -70.5% | 118.1% | -24.12% | -6.13% | 419.6% | -19.53% | - |
| Operating Expenses | 4.1B | 671.71M | 39.01M | 117.21M | 45.51M | 27.7M | 38.72M | 5.21M | 9.49M |
| OpEx % of Revenue | - | 267.62% | 22.66% | 58.44% | 16.52% | 11.22% | 20.05% | 14.69% | 15.8% |
| Selling, General & Admin | 244.94M | 144.62M | 47.07M | 117.8M | 44.96M | 29.82M | 39.05M | 6.24M | 7.23M |
| SG&A % of Revenue | - | 57.62% | 27.34% | 58.74% | 16.32% | 12.08% | 20.23% | 17.59% | 12.04% |
| Research & Development | 28.58M | 1.31M | 16.65M | 2.33M | 2.22M | 1.1M | 1.52M | 1.57M | 2.31M |
| R&D % of Revenue | - | 0.52% | 9.67% | 1.16% | 0.81% | 0.44% | 0.79% | 4.41% | 3.85% |
| Other Operating Expenses | -1000K | 527.09M | -24.7M | -79K | -109K | -464K | 4K | 0 | 0 |
| Operating Income | -4.07B | -664.62M | -30.14M | -84.04M | -34.5M | -14.53M | -19.71M | -2.14M | -3.6M |
| Operating Margin % | -355.71% | -264.79% | -17.51% | -41.91% | -12.52% | -5.88% | -10.21% | -6.04% | -5.98% |
| Operating Income Growth % | - | -2105.12% | 64.14% | -143.6% | -137.45% | 26.28% | -819.11% | 40.36% | - |
| EBITDA | -4.05B | -658.95M | -23.4M | -78.25M | -30.17M | -10.58M | -15.68M | -1.67M | -3.34M |
| EBITDA Margin % | -353.35% | -262.53% | -13.59% | -39.02% | -10.95% | -4.28% | -8.12% | -4.7% | -5.57% |
| EBITDA Growth % | -4549.2% | -2715.56% | 70.09% | -159.38% | -185.25% | 32.56% | -839.68% | 50.1% | - |
| D&A (Non-Cash Add-back) | 26.98M | 5.67M | 6.74M | 5.79M | 4.33M | 3.95M | 4.03M | 475.6K | 251.54K |
| EBIT | -4.07B | -664.62M | -30.14M | -77.61M | -34.5M | -14.53M | -19.71M | -9.97M | -30.5M |
| Net Interest Income | -3.81M | -3.93M | -3.62M | -6.15M | -4.88M | -2.46M | -1.75M | -1.48M | -779K |
| Interest Income | 1.66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 5.6M | 3.93M | 3.62M | 6.15M | 4.88M | 2.46M | 1.75M | 1.48M | 779K |
| Other Income/Expense | -7.42M | -3.93M | -3.62M | -6.15M | -4.88M | -2.46M | -1.75M | -1.48M | -779K |
| Pretax Income | -4.08B | -668.55M | -33.76M | -90.19M | -39.38M | -16.99M | -21.45M | -1.71M | -4.99M |
| Pretax Margin % | -356.36% | -266.36% | -19.61% | -44.97% | -14.29% | -6.88% | -11.11% | -4.81% | -8.3% |
| Income Tax | -145K | -59K | -171K | -171K | -46K | -364K | 247K | 74.2K | 16.9K |
| Effective Tax Rate % | 0% | 0.01% | 0.51% | 0.19% | 0.12% | 2.14% | -1.15% | -4.35% | -0.34% |
| Net Income | -714.46M | -670.09M | -60.88M | -87.62M | -38.83M | -16.63M | -21.7M | -1.62M | -2.89M |
| Net Margin % | -62.4% | -266.97% | -35.37% | -43.69% | -14.1% | -6.73% | -11.24% | -4.58% | -4.81% |
| Net Income Growth % | -695.45% | -1000.6% | 30.51% | -125.62% | -133.55% | 23.38% | -1236.84% | 43.86% | - |
| Net Income (Continuing) | -684.97M | -668.49M | -33.59M | -83.58M | -39.33M | -16.63M | -21.7M | -11.95M | -31.39M |
| Discontinued Operations | -2M | -1.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -5.19M | -5.19M | -5.19M | -3.36M | -520K | 0 | 0 | -210.83K | -48.3K |
| EPS (Diluted) | -8644.39 | -5151.54 | -14401.00 | -56914.00 | -37054.00 | -13883.00 | -17637.00 | -9194.11 | -15489.00 |
| EPS Growth % | 68.89% | 64.23% | 74.7% | -53.6% | -166.9% | 21.28% | -91.83% | 40.64% | - |
| EPS (Basic) | - | -5151.54 | -14401.00 | -56914.00 | -37054.00 | -13883.00 | -17637.00 | -9194.11 | -15489.00 |
| Diluted Shares Outstanding | 82.65K | 18.02K | 331 | 225 | 163 | 177 | 177 | 177 | 177 |
| Basic Shares Outstanding | 82.65K | 18.02K | 331 | 225 | 163 | 177 | 177 | 177 | 177 |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Unsustainable unit economic model
According to historical financial data, WTO has experienced erratic revenue fluctuations, with a 45.8% year-over-year growth rate that appears disconnected from operational stability, suggesting that top-line expansion is driven by transactional hardware cycles rather than a sustainable, recurring demand base in emerging consumer electronics markets.
The company's revenue trajectory remains highly inconsistent, oscillating between significant growth spurts and sharp contractions. This pattern indicates that the business lacks a predictable sales pipeline, likely relying on sporadic OEM orders that fail to build long-term brand equity or customer loyalty.
As reported in financial statements, WTO's gross margin has compressed to a razor-thin 2.82%, highlighting a precarious cost structure where minimal fluctuations in component pricing or logistics expenses could easily push the company into a state of negative gross profitability, threatening its core manufacturing operations.
The inability to maintain a healthy gross margin suggests that WTO possesses negligible pricing power within the ultra-budget smartphone segment. Without a shift toward higher-value products or significant manufacturing efficiencies, the current margin profile appears insufficient to cover even basic operating overhead.
Based on reported figures, WTO's operating margin of -264.79% demonstrates a severe lack of operating leverage, as fixed costs and administrative expenses continue to scale disproportionately to revenue, indicating that the company has yet to achieve the necessary volume to amortize its substantial underlying cost base.
The decoupling of operating expenses from gross profit suggests that management's current strategy of aggressive expansion is value-destructive. Investors should monitor whether the company can rationalize its SG&A and R&D spending, as the current burn rate appears to be outpacing any potential gains from revenue growth.
Analysis of recent filings reveals that WTO's net income is heavily impacted by non-operating items and significant stock-based compensation, which reached $108 million in 2025Q2, complicating the assessment of true operational performance and masking the underlying cash-burning nature of the company's current business model.
The massive variance between operating losses and net income figures suggests that reported earnings are not reflective of core business health. The reliance on non-cash charges and irregular items warrants further investigation into the sustainability of the company's reported bottom-line results.
While the company maintains a cash balance of $109 million, the persistent negative net margins and high variable cost structure suggest that WTO may be facing a liquidity crisis, as the current rate of cash burn appears to be rapidly eroding the company's financial runway.
Short-sellers would likely focus on the disconnect between the company's aggressive revenue growth and its inability to generate positive cash flow. The lack of a clear path to profitability suggests that the current valuation may be predicated on speculative turnaround hopes rather than tangible operational progress.
Quick answers to the most common questions about buying WTO stock.
For fiscal year 2025, UTime Limited (WTO) reported total revenue of $251.0M. This represents a 317.8% increase compared to $60.1M in 2018.
UTime Limited (WTO) reported a net loss of $670.1M for the fiscal year ending 2025.
UTime Limited (WTO) reported an operating income of $-664.6M, resulting in an operating profit margin of -264.8%. This margin reflects the operational efficiency of the business before interest and taxes.
UTime Limited (WTO) generated $7.1M in gross profit for the year, representing a gross profit margin of 2.8%. This demonstrates the company's core pricing power and production efficiency.