Revenue growth remains highly volatile, swinging to 113.1% in 2026Q3 while gross margins simultaneously compressed from historical 75-80% levels to just 5.6%.
| Sales/Revenue | 15.97M | 12.82M | 5.2M | 9.92M | 16.1M | 10.8M | 686.18K | 0 | 13.24K | 14.7K |
| Revenue Growth % | 17.69% | 146.7% | -47.64% | -38.38% | 49.04% | 1474.55% | - | -100% | -9.93% | - |
| Cost of Goods Sold | 8.81M | 2.98M | 1.18M | 7.14M | 11.88M | 7.68M | 5.11M | 2.6K | 0 | 0 |
| COGS % of Revenue | - | 23.22% | 22.65% | 72% | 73.76% | 71.11% | 745.18% | - | - | - |
| Gross Profit | 7.16M | 9.84M | 4.02M | 2.78M | 4.22M | 3.12M | -4.43M | -2.6K | 0 | 0 |
| Gross Margin % | 44.82% | 76.78% | 77.35% | 28% | 26.24% | 28.89% | -645.18% | - | - | - |
| Gross Profit Growth % | - | 144.88% | 44.64% | -34.23% | 35.35% | 170.5% | -170173.62% | - | - | - |
| Operating Expenses | 5.9M | 3.26M | 164.38K | 24.74M | 50.93M | 6.85M | 2.29M | 25.69K | 18.55K | 10.66K |
| OpEx % of Revenue | - | 25.44% | 3.16% | 249.3% | 316.3% | 63.38% | 333.97% | - | 140.14% | 72.5% |
| Selling, General & Admin | 5.9M | 3.26M | 164.38K | 24.67M | 50.2M | 6.51M | 2.11M | 25.69K | 18.55K | 10.66K |
| SG&A % of Revenue | - | 25.44% | 3.16% | 248.64% | 311.73% | 60.24% | 307.75% | - | 140.14% | 72.5% |
| Research & Development | 0 | 0 | 0 | 65.16K | 736.14K | 339.38K | 179.98K | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | 0.66% | 4.57% | 3.14% | 26.23% | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 1.26M | 6.58M | 3.85M | -21.96M | -46.71M | -3.73M | -6.72M | -28.29K | -7.78K | 3.79K |
| Operating Margin % | 7.89% | 51.33% | 74.19% | -221.3% | -290.06% | -34.49% | -979.16% | - | -58.76% | 25.8% |
| Operating Income Growth % | - | 70.71% | 117.55% | 52.99% | -1153.39% | 44.54% | -23650.5% | -263.61% | -305.17% | - |
| EBITDA | 4.24M | 9.56M | 5.03M | -10.4M | -46.66M | -3.72M | -6.72M | -25.69K | -5.31K | 4.04K |
| EBITDA Margin % | 26.53% | 74.56% | 96.84% | -104.84% | -289.79% | -34.47% | -979.06% | - | -40.14% | 27.5% |
| EBITDA Growth % | -61.92% | 89.94% | 148.36% | 77.71% | -1153.14% | 44.57% | -26051.77% | -383.42% | -231.47% | - |
| D&A (Non-Cash Add-back) | 2.98M | 2.98M | 1.18M | 11.56M | 43.53K | 2.73K | 650 | 2.6K | 2.47K | 250 |
| EBIT | 1.26M | 6.58M | 3.85M | -65.88M | -36.29M | -3.73M | -6.72M | -28.29K | -7.78K | 3.79K |
| Net Interest Income | 117.87K | 65.37K | 14.24K | -5.27M | -10.24M | -13.73M | -2.31M | 0 | 0 | 0 |
| Interest Income | 117.87K | 65.37K | 14.24K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 5.27M | 10.24M | 13.73M | 2.31M | 0 | 0 | 0 |
| Other Income/Expense | 117.87K | 65.36K | 14.24K | -49.19M | 182.06K | -14.87M | -2.51M | 0 | 0 | 0 |
| Pretax Income | 1.38M | 6.65M | 3.87M | -71.15M | -46.53M | -18.59M | -9.23M | -28.29K | -7.78K | 3.79K |
| Pretax Margin % | 8.63% | 51.84% | 74.46% | -717.07% | -288.93% | -172.11% | -1344.8% | - | -58.76% | 25.8% |
| Income Tax | 1.37M | 2.01M | 1.24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 99.38% | 30.27% | 32.13% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -565.97K | 3.49M | 2.63M | -71.15M | -51.77M | -18.59M | -9.23M | -28.29K | -7.78K | 3.79K |
| Net Margin % | -3.54% | 27.24% | 50.53% | -717.07% | -321.52% | -172.11% | -1344.8% | - | -58.76% | 25.8% |
| Net Income Growth % | -110.68% | 32.97% | 103.69% | -37.43% | -178.43% | -101.51% | -32519.55% | -263.61% | -305.17% | - |
| Net Income (Continuing) | 8.57K | 4.63M | 2.63M | -71.15M | -46.53M | -18.59M | -9.23M | -28.29K | -7.78K | 3.79K |
| Discontinued Operations | 0 | 0 | 0 | -45.88M | -5.25M | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 1.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.69 | 54.16 | 45.24 | -20338.32 | -43072.00 | -999999.00 | -598000.00 | -1855.48 | -535.40 | 152.00 |
| EPS Growth % | -95.85% | 19.72% | 100.22% | 52.78% | 96.13% | -86.18% | -32128.86% | -246.56% | -452.24% | - |
| EPS (Basic) | - | 54.16 | 45.24 | -20338.32 | -43072.00 | -999999.00 | -598000.00 | -1855.48 | -535.40 | 152.00 |
| Diluted Shares Outstanding | 818.08K | 64.48K | 58.05K | 3.5K | 1.2K | 17 | 15 | 15 | 15 | 25 |
| Basic Shares Outstanding | 818.08K | 64.48K | 58.05K | 3.5K | 1.2K | 17 | 15 | 15 | 15 | 25 |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Severe liquidity and solvency risk
According to the provided income statement data, YYAI's revenue trajectory exhibits extreme volatility, highlighted by a 113.1% growth spike in 2026Q3 following multiple quarters of contraction, suggesting that the company's top-line performance remains highly inconsistent and potentially dependent on lumpy, non-recurring hardware sales cycles.
The erratic revenue shifts indicate that the company has yet to establish a predictable recurring revenue base, which is essential for a firm attempting to pivot toward an AI-driven software model. Investors should monitor whether these fluctuations are driven by seasonal demand or unsustainable promotional activity, as the lack of consistent growth durability complicates long-term valuation.
As reported in financial statements, YYAI experienced a significant gross margin collapse to 5.6% in 2026Q3, a sharp departure from the 75-80% range maintained in previous periods, which suggests that the company's core hardware-to-software transition may be facing severe cost pressures or inventory liquidation requirements.
This sudden margin erosion implies that the cost of goods sold is no longer being offset by high-margin software contributions, potentially indicating that the hardware segment is becoming a drag on profitability. Such a dramatic shift warrants further investigation into whether the company is forced to discount products to maintain market presence.
Based on the income statement history, YYAI's operating leverage appears highly unstable, with operating margins swinging from a peak of 76.0% in 2024Q4 to a negative 22.5% in 2026Q3, indicating that the company lacks the structural cost discipline required to scale its operations profitably.
The inability to maintain positive operating income during periods of revenue growth suggests that SG&A expenses are not being managed effectively relative to top-line output. This lack of operating leverage may indicate that the company is over-investing in overhead relative to its current revenue scale, creating a precarious financial position.
Analysis of the reported figures reveals that YYAI's net income is characterized by extreme swings, such as the 2026Q2 net income of $156.5K compared to a $1.6M loss in 2026Q3, which suggests that reported earnings may be heavily influenced by non-operating items or accounting adjustments.
The disconnect between the company's reported EPS and its operational performance suggests that investors should be cautious of relying on bottom-line figures as a proxy for business health. The absence of stock-based compensation in the data provided may also mask the true economic cost of talent acquisition in a competitive AI-focused labor market.
Evidence from the income statement suggests that YYAI's business model faces significant sustainability risks, as the company's transition to an AI-centric firm is currently unsupported by a stable cash position, with only $54,744 in cash reported against a backdrop of recurring operational losses.
Short-sellers would likely focus on the company's inability to generate consistent cash flow from its operations, which raises questions about its long-term viability without external financing. The reliance on hardware sales in a high-cost environment appears to be a fundamental mismatch that could lead to further liquidity crises.
Quick answers to the most common questions about buying YYAI stock.
For fiscal year 2025, AiRWA Inc. (YYAI) reported total revenue of $12.8M. This represents a 87098.5% increase compared to $0.0M in 2017.
AiRWA Inc. (YYAI) is profitable, generating $3.5M in net income for the fiscal year ending 2025 with a net profit margin of 27.2%.
AiRWA Inc. (YYAI) reported an operating income of $6.6M, resulting in an operating profit margin of 51.3%. This margin reflects the operational efficiency of the business before interest and taxes.
AiRWA Inc. (YYAI) generated $9.8M in gross profit for the year, representing a gross profit margin of 76.8%. This demonstrates the company's core pricing power and production efficiency.