The company's gross margin plummeted to -9.3% in 2025Q4, signaling a severe decoupling of service delivery costs from revenue generation despite a 36.6% quarterly revenue increase.
| Sales/Revenue | 7.38M | 12.35M | 8.69M | 4.42M | 4.06M |
| Revenue Growth % | -40.25% | 42.17% | 96.55% | 9.02% | - |
| Cost of Goods Sold | 46.13M | 5.9M | 5.84M | 3.42M | 2.6M |
| COGS % of Revenue | 624.82% | 47.73% | 67.25% | 77.33% | 64.07% |
| Gross Profit | -38.74M | 6.46M | 2.85M | 1M | 1.46M |
| Gross Margin % | -524.82% | 52.27% | 32.75% | 22.67% | 35.93% |
| Gross Profit Growth % | -699.92% | 126.91% | 183.99% | -31.22% | - |
| Operating Expenses | 18.99M | 12.71M | 9.43M | 3.72M | 2.38M |
| OpEx % of Revenue | 257.24% | 102.89% | 108.49% | 84.05% | 58.75% |
| Selling, General & Admin | 18.99M | 11.11M | 6.53M | 3.4M | 2.38M |
| SG&A % of Revenue | 257.24% | 89.9% | 75.17% | 76.82% | 58.73% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 0 | 1.61M | 2.9M | 319.79K | 450 |
| Operating Income | -57.73M | -6.25M | -6.58M | -2.71M | -925.24K |
| Operating Margin % | -782.06% | -50.62% | -75.73% | -61.39% | -22.81% |
| Operating Income Growth % | -823.19% | 4.98% | -142.48% | -193.34% | - |
| EBITDA | -56.54M | -5.53M | -5.81M | -2.58M | -881.07K |
| EBITDA Margin % | -765.91% | -44.78% | -66.87% | -58.28% | -21.73% |
| EBITDA Growth % | -922.02% | 4.8% | -125.54% | -192.43% | - |
| D&A (Non-Cash Add-back) | 1.19M | 721.45K | 770.21K | 137.59K | 44.17K |
| EBIT | -70.2M | -5.39M | -6.5M | -2.5M | -908.74K |
| Net Interest Income | -1.14M | -102.16K | -74.59K | -86.62K | -47.74K |
| Interest Income | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.14M | 102.16K | 74.59K | 86.62K | 47.74K |
| Other Income/Expense | -13.6M | 765.92K | 2.55K | 123.83K | -31.24K |
| Pretax Income | -71.34M | -5.49M | -6.58M | -2.59M | -956.48K |
| Pretax Margin % | -966.35% | -44.42% | -75.7% | -58.59% | -23.59% |
| Income Tax | -1.06M | 0 | 252.41K | 73.32K | 24.55K |
| Effective Tax Rate % | 1.49% | 0% | -3.84% | -2.83% | -2.57% |
| Net Income | -70.28M | -5.49M | -6.83M | -2.66M | -981.03K |
| Net Margin % | -951.99% | -44.42% | -78.61% | -60.24% | -24.19% |
| Net Income Growth % | -1180.62% | 19.66% | -156.46% | -171.5% | - |
| Net Income (Continuing) | -70.28M | -5.49M | -6.83M | -2.66M | -981.03K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -4.27 | -0.36 | -0.54 | -0.18 | -0.07 |
| EPS Growth % | -1086.11% | 33.33% | -200% | -175.23% | - |
| EPS (Basic) | -4.27 | -0.36 | -0.54 | -0.18 | -0.07 |
| Diluted Shares Outstanding | 16.46M | 15.26M | 13.25M | 15M | 15M |
| Basic Shares Outstanding | 16.46M | 15.26M | 13.25M | 15M | 15M |
| Dividend Payout Ratio | - | - | - | - | - |
Unsustainable Operational Burn Rate
According to the latest quarterly data, ATGL experienced a 36.6% revenue increase in 2025Q4, yet this follows a period of significant contraction, suggesting that the company's project-based revenue model lacks the consistency required for sustainable long-term growth in the competitive Hong Kong IT services market.
The recent revenue spike appears to be an outlier rather than a trend, given the historical volatility and the reliance on discrete, non-recurring project wins. Investors should monitor whether this growth is driven by genuine market expansion or simply the timing of project completions, as the underlying business lacks a recurring subscription base.
As reported in recent financial statements, ATGL's gross margin plummeted to -9.3% in 2025Q4, a stark reversal from the 58.3% peak observed in 2024Q4, indicating that the cost of service delivery has become fundamentally decoupled from the company's ability to generate profitable project revenue.
This extreme margin volatility suggests that the company is struggling to manage its direct labor and infrastructure costs relative to its contract pricing. The inability to maintain positive gross margins implies a lack of pricing power and suggests that the current service-heavy model may be inherently unprofitable at this scale.
Based on the company's reported figures, operating expenses of $10.1M in 2025Q4 significantly outpaced revenue, resulting in an operating margin of -12.0% and highlighting a failure to achieve the necessary economies of scale to offset the firm's high fixed-cost base.
The data indicates that SG&A expenses are not scaling efficiently with revenue, which places immense pressure on the bottom line. Without a significant reduction in overhead or a massive increase in billable utilization, the company appears unlikely to reach operational break-even in the near term.
Analysis of the income statement reveals that the company's net loss of $64.5M in 2025Q4, compared to much smaller losses in previous periods, suggests that the current trajectory is unsustainable and may necessitate a fundamental pivot in the firm's operational strategy to avoid further capital erosion.
Short-sellers would likely focus on the widening gap between revenue and expenses, which points to a potential structural failure in the business model. The reliance on cash reserves to fund these mounting losses warrants further investigation into how long the company can maintain operations without a significant improvement in unit economics.
Quick answers to the most common questions about buying ATGL stock.
For fiscal year 2025, Alpha Technology Group Limited (ATGL) reported total revenue of $7.4M. This represents a 82.0% increase compared to $4.1M in 2021.
Alpha Technology Group Limited (ATGL) reported a net loss of $70.3M for the fiscal year ending 2025.
Alpha Technology Group Limited (ATGL) reported an operating income of $-57.7M, resulting in an operating profit margin of -782.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Alpha Technology Group Limited (ATGL) generated $-38.7M in gross profit for the year, representing a gross profit margin of -524.8%. This demonstrates the company's core pricing power and production efficiency.