Revenue contraction remains severe, with a 40.2% year-over-year decline in 2025Q2 and an operating margin of -5.9% that highlights a fundamental inability to scale operations.
| Sales/Revenue | 24.84M | 11.61M | 16.82M | 10.48M | 32.09M | 26.66M | 20.1M | 23.15M | 21.63M | 21.17M |
| Revenue Growth % | -30.08% | -30.99% | 60.5% | -67.34% | 20.36% | 32.69% | -13.2% | 7.04% | 2.14% | - |
| Cost of Goods Sold | 17.27M | 6.99M | 13.4M | 6.72M | 21.38M | 17.27M | 14.03M | 15.32M | 13.54M | 13.65M |
| COGS % of Revenue | - | 60.2% | 79.67% | 64.06% | 66.61% | 64.77% | 69.82% | 66.16% | 62.6% | 64.45% |
| Gross Profit | 7.57M | 4.62M | 3.42M | 3.77M | 10.72M | 9.39M | 6.06M | 7.83M | 8.09M | 7.53M |
| Gross Margin % | 30.47% | 39.8% | 20.33% | 35.94% | 33.39% | 35.23% | 30.18% | 33.84% | 37.4% | 35.55% |
| Gross Profit Growth % | - | 35.12% | -9.22% | -64.84% | 14.08% | 54.87% | -22.58% | -3.15% | 7.45% | - |
| Operating Expenses | 147.79M | 88.02M | 56.98M | 23.87M | 18.83M | 12.68M | 17.32M | 6.82M | 4.23M | 3.79M |
| OpEx % of Revenue | - | 758.08% | 338.68% | 227.67% | 58.67% | 47.56% | 86.18% | 29.46% | 19.55% | 17.89% |
| Selling, General & Admin | 25.92M | 14.12M | 19.67M | 20.41M | 16.22M | 9.9M | 11.86M | 4.83M | 3.08M | 2.84M |
| SG&A % of Revenue | - | 121.58% | 116.91% | 194.66% | 50.53% | 37.13% | 59.02% | 20.86% | 14.23% | 13.42% |
| Research & Development | 13.59M | 4.06M | 4.81M | 3.46M | 2.61M | 2.78M | 2.16M | 1.99M | 1.15M | 947.51K |
| R&D % of Revenue | - | 34.99% | 28.62% | 33.01% | 8.14% | 10.43% | 10.77% | 8.6% | 5.33% | 4.47% |
| Other Operating Expenses | 3M | 69.84M | 32.5M | 0 | 0 | 0 | 3.29M | 0 | 0 | 0 |
| Operating Income | -140.22M | -83.4M | -53.56M | -20.1M | -8.11M | -3.29M | -11.25M | 1.01M | 3.86M | 3.74M |
| Operating Margin % | -564.59% | -718.28% | -318.35% | -191.73% | -25.28% | -12.33% | -56% | 4.37% | 17.84% | 17.66% |
| Operating Income Growth % | - | -55.71% | -166.49% | -147.77% | -146.73% | 70.78% | -1211.23% | -73.76% | 3.19% | - |
| EBITDA | -133.73M | -76.96M | -47.93M | -17.89M | -6.1M | -1.84M | -10.3M | 1.66M | 4.17M | 3.87M |
| EBITDA Margin % | -538.47% | -662.77% | -284.88% | -170.66% | -18.99% | -6.89% | -51.26% | 7.15% | 19.29% | 18.3% |
| EBITDA Growth % | -317.54% | -60.56% | -167.92% | -193.51% | -231.94% | 82.17% | -722.04% | -60.32% | 7.71% | - |
| D&A (Non-Cash Add-back) | 6.49M | 6.45M | 5.63M | 2.21M | 2.02M | 1.45M | 952.2K | 643.26K | 313.55K | 134.35K |
| EBIT | -31.76M | -18.92M | -21.6M | -20.1M | -8.11M | -3.29M | -11.25M | 1.01M | 3.86M | 3.74M |
| Net Interest Income | -146.98K | -149.06K | -144.08K | -203.38K | 0 | 0 | 0 | -21.45K | 20.74K | -18.2K |
| Interest Income | 144.08K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 20.74K | 0 |
| Interest Expense | 291.06K | 149.06K | 144.08K | 203.38K | 0 | 0 | 0 | 21.45K | 0 | 18.2K |
| Other Income/Expense | -26.39M | -552.87K | -68.72M | -2.45M | -1.54M | -15.15M | 252.11K | 584.21K | 553.48K | 250.25K |
| Pretax Income | -166.32M | -83.96M | -122.28M | -22.55M | -9.66M | -18.44M | -11M | 1.6M | 4.41M | 3.99M |
| Pretax Margin % | -669.69% | -723.04% | -726.81% | -215.1% | -30.09% | -69.16% | -54.74% | 6.9% | 20.4% | 18.84% |
| Income Tax | 1.88M | -122.75K | -57.34K | -999.39K | -173.94K | -80.53K | -213.35K | 43.19K | 434.88K | 536.39K |
| Effective Tax Rate % | -1.13% | 0.15% | 0.05% | 4.43% | 1.8% | 0.44% | 1.94% | 2.7% | 9.85% | 13.44% |
| Net Income | -144.75M | -76.24M | -109.6M | -21.51M | -9.34M | -18.25M | -10.79M | 1.55M | 3.98M | 3.45M |
| Net Margin % | -582.84% | -656.57% | -651.41% | -205.15% | -29.11% | -68.46% | -53.68% | 6.68% | 18.42% | 16.31% |
| Net Income Growth % | -82.43% | 30.44% | -409.63% | -130.22% | 48.82% | -69.22% | -797.59% | -61.2% | 15.37% | - |
| Net Income (Continuing) | -164.82M | -83.83M | -122.23M | -21.55M | -9.48M | -18.36M | -10.79M | 1.55M | 3.98M | 3.45M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 3.86M | 3.96M | 11.18M | -263.51K | -257.3K | -112.03K | -15 | 0 | -6.93K | 0 |
| EPS (Diluted) | -169.97 | -101.97 | -1283.40 | 0.00 | -2730.60 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| EPS Growth % | 87.06% | 92.05% | - | 100% | - | - | - | - | - | - |
| EPS (Basic) | - | -101.97 | -1283.40 | 0.00 | -2730.60 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Diluted Shares Outstanding | 851.63K | 672.86K | 76.86K | 0 | 3.08K | 0 | 0 | 0 | 0 | 0 |
| Basic Shares Outstanding | 851.63K | 672.86K | 76.86K | 0 | 3.08K | 0 | 0 | 0 | 0 | 0 |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Liquidity and operational viability
As reported in recent financial filings, XTKG experienced a 40.2% year-over-year revenue decline in 2025Q2, signaling that the company's pivot into crypto and agriculture has failed to offset the structural decay of its legacy cross-border trade software business, which remains in a state of contraction.
The consistent downward trend in top-line performance suggests that the company's core value proposition is losing relevance within its primary trade corridors. Investors should monitor whether the current revenue base is sufficient to support the overhead of a diversified holding company model or if further contraction is inevitable.
Based on the provided income statement data, XTKG's gross margin of 45.9% in 2025Q2 masks significant volatility, as the company struggles to maintain profitability while shifting resources toward capital-intensive, lower-margin ventures that lack the defensive characteristics of its original software-based trade platform.
The inability to stabilize gross margins suggests that the company's cost of goods sold is highly sensitive to the volatile inputs of its new business lines. This lack of pricing power implies that the firm may be sacrificing long-term margin health for short-term transactional volume in non-core sectors.
According to the latest quarterly results, XTKG's operating margin of -5.9% reflects a persistent inability to scale, as the company continues to incur substantial SG&A expenses that consistently outpace its gross profit, indicating a fundamental misalignment between corporate structure and current revenue generation capabilities.
The high level of operating expenses relative to revenue suggests that the company is carrying significant fixed costs that are not being leveraged effectively. This structure appears to be a major drag on potential profitability, necessitating a rigorous review of the firm's administrative and operational cost base.
Analysis of the income statement reveals that stock-based compensation remains a material factor, with $4.0M in SBC recorded in 2025Q2, which significantly exacerbates the reported net loss and raises concerns regarding the alignment of management incentives with shareholder value creation during this period of decline.
The reliance on equity-based compensation while the company is in a state of negative net income suggests that shareholders are bearing the cost of management retention despite poor operational performance. This warrants further investigation into the company's long-term capital allocation strategy and the sustainability of its current compensation practices.
As indicated by the company's financial history, the aggressive transition into crypto mining and agriculture appears to be a high-risk strategy that has yet to yield positive returns, leaving the firm vulnerable to liquidity shocks given its limited cash position of only $4.2M.
Short-sellers would likely focus on the company's inability to achieve self-sustainability after decades of operation, viewing the recent rebranding as a potential distraction from underlying structural issues. The lack of a clear path to profitability suggests that the current business model may be unsustainable without continuous external financing.
Quick answers to the most common questions about buying XTKG stock.
For fiscal year 2024, X3 Holdings Co., Ltd. (XTKG) reported total revenue of $11.6M. This represents a 45.2% decline compared to $21.2M in 2016.
X3 Holdings Co., Ltd. (XTKG) reported a net loss of $76.2M for the fiscal year ending 2024.
X3 Holdings Co., Ltd. (XTKG) reported an operating income of $-83.4M, resulting in an operating profit margin of -718.3%. This margin reflects the operational efficiency of the business before interest and taxes.
X3 Holdings Co., Ltd. (XTKG) generated $4.6M in gross profit for the year, representing a gross profit margin of 39.8%. This demonstrates the company's core pricing power and production efficiency.