LOBO Technologies Ltd. reported fiscal‑year 2025 revenue of $23.2 million, a 9.6% increase from $21.2 million in 2024. The rise was driven by double‑digit growth in e‑bicycles and e‑tricycles, the company’s core product lines, while other segments remained flat. Gross profit climbed 26.0% to $3.1 million, giving a gross margin of 13.14% versus 12.0% in 2024, a modest improvement that reflects a slightly higher mix of higher‑margin products.
Operating expenses surged 62.5% to $7.1 million, largely due to expanded public‑company costs and a doubling of research and development outlays. The higher expense load pushed the net loss to $5.5 million, compared with a $0.8 million loss in 2024. Basic and diluted loss per share widened to $0.52 from $0.11. Cash and cash equivalents stood at $0.9 million as of December 31 2025, underscoring a tight liquidity position that limits near‑term operational flexibility.
R&D spending reached $3.74 million, representing 16.11% of revenue, a doubling from the prior year. The company also secured a 50‑unit order from a German distributor and expanded its dealer network to 150 dealers across roughly 60 countries, up from 50 dealers in 2024, signaling a push to broaden geographic reach and diversify revenue streams.
The results reveal a mismatch between revenue growth and cost expansion. While the company’s core product demand remains strong, the aggressive investment in R&D and the costs associated with becoming a public company have widened the loss. The company’s prior guidance in October 2025 projected revenue between $28 million and $30 million and a return to profitability; the actual revenue of $23.2 million falls short of that guidance, and the company remains unprofitable. The low cash balance and widening loss raise concerns about the company’s ability to sustain operations without additional capital, highlighting a short‑term liquidity risk.
Overall, LOBO’s FY2025 results illustrate a company in a growth‑investment phase, with solid revenue growth but significant cost pressures that have eroded profitability. Investors will likely focus on the company’s ability to convert its R&D investments into future revenue and to manage cash burn while pursuing its expansion strategy.
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