The company exhibits severe negative operating leverage, with 2025Q4 SG&A expenses of $397.1K consuming approximately 73% of total revenue.
| Sales/Revenue | 7.52M | 8.25M | 7.99M | 9.03M | 1.41M | 9.11M |
| Revenue Growth % | -8.81% | 3.22% | -11.49% | 541.17% | -84.54% | - |
| Cost of Goods Sold | 5.74M | 6.55M | 6.35M | 6.74M | 8.66M | 6.58M |
| COGS % of Revenue | 76.29% | 79.47% | 79.48% | 74.69% | 615.19% | 72.17% |
| Gross Profit | 1.78M | 1.69M | 1.64M | 2.28M | 2.28M | 2.53M |
| Gross Margin % | 23.71% | 20.53% | 20.52% | 25.31% | 162.1% | 27.83% |
| Gross Profit Growth % | 5.31% | 3.26% | -28.24% | 0.11% | -9.96% | - |
| Operating Expenses | 8.21M | 8.6M | 8.05M | 3.93M | 2.49M | 2.83M |
| OpEx % of Revenue | 109.14% | 104.24% | 100.79% | 43.52% | 177.09% | 31.09% |
| Selling, General & Admin | 8.21M | 8.6M | 8.05M | 3.93M | 2.49M | 2.83M |
| SG&A % of Revenue | 109.14% | 104.24% | 100.79% | 43.52% | 177.09% | 31.09% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -6.43M | -6.9M | -6.41M | -1.64M | -70.8K | -297.43K |
| Operating Margin % | -85.43% | -83.71% | -80.27% | -18.21% | -5.03% | -3.26% |
| Operating Income Growth % | 6.93% | -7.65% | -290.23% | -2221.69% | 76.2% | - |
| EBITDA | -6.4M | -6.9M | -6.4M | -1.62M | -67.53K | -210.16K |
| EBITDA Margin % | -85.04% | -83.67% | -80.11% | -17.9% | -4.8% | -2.31% |
| EBITDA Growth % | 7.32% | -7.8% | -296.2% | -2292.92% | 67.87% | - |
| D&A (Non-Cash Add-back) | 29.94K | 3.83K | 12.42K | 27.92K | 3.27K | 87.27K |
| EBIT | -8.45M | -6.88M | -6.3M | -1.6M | -2.27K | -86.29K |
| Net Interest Income | 18.21K | -403.28K | -283.19K | -206.84K | -193.74K | -175.82K |
| Interest Income | 181.22K | 6.61K | 7.56K | 0 | 0 | 0 |
| Interest Expense | 163.01K | 409.88K | 290.75K | 206.84K | 193.74K | 175.82K |
| Other Income/Expense | -2.19M | -388.19K | -180.18K | -163.5K | -140.58K | 35.32K |
| Pretax Income | -8.61M | -7.29M | -6.59M | -1.81M | -211.38K | -262.11K |
| Pretax Margin % | -114.49% | -88.42% | -82.52% | -20.02% | -15.01% | -2.88% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -8.61M | -7.29M | -6.59M | 3.53M | -232.62K | -262.11K |
| Net Margin % | -114.49% | -88.42% | -82.52% | 39.05% | -16.52% | -2.88% |
| Net Income Growth % | -18.08% | -10.59% | -287.07% | 1615.41% | 11.25% | - |
| Net Income (Continuing) | -8.61M | -7.29M | -6.59M | -1.81M | -211.38K | -262.11K |
| Discontinued Operations | 0 | 0 | 0 | -11.8K | -21.25K | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.40 | -2.40 | -46.20 | 3.60 | -0.21 | -0.23 |
| EPS Growth % | 83.33% | 94.81% | -1383.33% | 1814.29% | 7.89% | - |
| EPS (Basic) | -0.40 | -2.40 | -46.20 | 3.60 | -0.21 | -0.23 |
| Diluted Shares Outstanding | 2.75M | 399.67K | 142.86K | 1M | 1.15M | 1.15M |
| Basic Shares Outstanding | 2.75M | 399.67K | 142.86K | 1M | 1.15M | 1.15M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Imminent liquidity shortfall
As reported in recent financial statements, VSME's revenue trajectory remains under pressure, with quarterly figures showing persistent volatility and a lack of sustained growth, evidenced by the most recent quarterly revenue of $546.5K, which highlights the difficulty in scaling within the competitive Hong Kong creator ecosystem.
The inconsistent revenue performance suggests that the company's agency-based model is struggling to capture market share against platform-native monetization tools. Investors should monitor whether the current revenue levels represent a structural floor or if further erosion is likely as the creator economy shifts toward decentralized models.
Based on the provided income statement data, VSME's gross margin has fluctuated between 14.9% and 26.6% over the last ten quarters, indicating that the company lacks the pricing power necessary to offset the high variable costs associated with creator payouts and third-party production services.
The inability to maintain a consistent gross margin suggests that the company is frequently forced to concede value to talent to retain its roster. This margin volatility complicates any attempt to forecast a path to profitability, as the core service offering appears to be a commodity with limited differentiation.
According to the historical income statement, VSME exhibits severe negative operating leverage, with SG&A expenses frequently exceeding gross profit, as seen in the 2025Q2 period where operating losses reached $540.9K against a gross profit of only $111.3K, signaling a failure to achieve necessary economies of scale.
The persistent gap between fixed overhead and gross profit generation implies that the current cost structure is unsustainable for the company's revenue scale. Without a significant increase in top-line volume, the company appears trapped in a cycle of operating losses that continue to erode shareholder equity.
Analysis of the company's cost structure reveals that SG&A expenses remain disproportionately high relative to revenue, as evidenced by the 2025Q4 period where SG&A of $397.1K consumed nearly 73% of total revenue, leaving little room for operational flexibility or investment in future growth initiatives.
The company's reliance on high fixed costs in the Hong Kong market appears to be a significant drag on performance. Management's inability to rationalize these expenses in the face of declining or stagnant revenue suggests that the current operating model may require a fundamental restructuring to survive.
As indicated by the consistent net losses, which reached $534.3K in 2025Q4, the company's cash position appears increasingly precarious, suggesting that the primary risk for investors is not just operational performance, but the potential for an imminent liquidity event or significant shareholder dilution to fund operations.
Short-sellers would likely focus on the widening gap between cash reserves and the burn rate, which suggests that the company's runway is rapidly diminishing. The lack of a clear path to positive net income makes the current valuation appear disconnected from the underlying financial reality of the business.
Quick answers to the most common questions about buying VSME stock.
For fiscal year 2025, VS Media Holdings Limited Class A Ordinary Shares (VSME) reported total revenue of $7.5M. This represents a 17.4% decline compared to $9.1M in 2020.
VS Media Holdings Limited Class A Ordinary Shares (VSME) reported a net loss of $8.6M for the fiscal year ending 2025.
VS Media Holdings Limited Class A Ordinary Shares (VSME) reported an operating income of $-6.4M, resulting in an operating profit margin of -85.4%. This margin reflects the operational efficiency of the business before interest and taxes.
VS Media Holdings Limited Class A Ordinary Shares (VSME) generated $1.8M in gross profit for the year, representing a gross profit margin of 23.7%. This demonstrates the company's core pricing power and production efficiency.