Haoxi Health Technology (HAO) Q4 2024 earnings summary

Executive summary

• Revenue for FY2025 was $32.80 million, down 32% from $48.52 million in FY2024, primarily due to heightened industry competition and lower sales volume and pricing pressure.

• Net income for FY2025 was $3.88 million, up 200% from $1.29 million in FY2024, mainly due to a $6.76 million gain from change in fair value of warrant liability.

• The company completed a $12 million follow-on offering in September 2024 and a $11 million IPO in January 2024, strengthening liquidity.

• The business is focused on online marketing solutions for healthcare advertisers in China, with 473 advertiser customers in FY2025, down from 543 in FY2024.

Financial highlights

• Gross profit for FY2025 was $0.93 million (gross margin 2.83%), down from $2.75 million (5.67%) in FY2024, due to increased cost of revenues for overseas advertising.

• General and administrative expenses rose to $2.80 million in FY2025 from $0.91 million in FY2024, mainly due to bonus distribution and increased amortization.

• Research and development expenses remained stable at $79,544 in FY2025.

• Net cash used in operating activities was $3.36 million in FY2025, compared to $0.75 million in FY2024.

• Cash and cash equivalents at June 30, 2025 were $8.62 million.

Outlook and guidance

• Management expects current cash and anticipated cash flows from equity financing to be sufficient for working capital and bank loan repayment needs for the next 12 months.

• The company plans to continue investing in R&D for its Bidding Compass software and expand its advertiser base in the healthcare sector.