Big Tree Cloud Holdings (DSY) Q4 2025 earnings summary

Executive summary

• Net revenue for FY2025 was $2.6M, down 65% from $7.3M in FY2024, mainly due to the disposal of a key manufacturing facility and a strategic shift to focus on R&D and core products.

• Gross margin dropped to 32.2% in FY2025 from 66.9% in FY2024, reflecting lower-margin sales of new hygiene materials.

• Operating loss widened to $38.2M in FY2025 from $0.03M in FY2024, driven by a $34.2M share-based compensation expense and higher G&A costs.

• Net loss for FY2025 was $32.5M, compared to net income of $0.6M in FY2024.

• The company completed a business combination and listed on Nasdaq in June 2024.

Financial highlights

• FY2025 net revenue: $2.6M (down 65% YoY); gross profit: $0.8M; gross margin: 32.2%.

• FY2025 operating expenses: $39.0M (up from $4.9M in FY2024), mainly due to share-based compensation.

• FY2025 net loss: $32.5M; FY2024 net income: $0.6M.

• Cash and cash equivalents as of June 30, 2025: $1.7M.

• Gain on disposal of subsidiary: $4.8M in FY2025.

Outlook and guidance

• Management plans to raise additional capital through equity financing to support operations over the next 12 months.

• Strategic focus is on R&D in advanced hygiene materials and innovation in personal care.

• The company expects to continue investing in product development and operational efficiency.