MaxsMaking Inc. (NASDAQ: MAMK) reported fiscal 2025 revenue of $29.22 million, a 36.33% year‑over‑year increase from $21.43 million in fiscal 2024. The growth was largely driven by a surge in domestic sales in mainland China, which offset declines in other regions such as Asia (excluding mainland China) and Europe.
Gross profit fell to $2.62 million, down from $3.97 million in fiscal 2024, and the gross profit margin contracted to 8.95% from 18.52% the prior year. The margin compression reflects the company’s shift to a volume‑driven, penetration‑pricing strategy in the domestic market to counter a weak and volatile overseas market and intensifying competition.
Net income for the year was $18,122, a sharp drop from $1.88 million in fiscal 2024. The decline was driven by higher cost of revenue and increased operating expenses, including a larger accounts‑receivable allowance and professional fees related to the July 2025 IPO.
"The fiscal year 2025 represented a period of business adjustment for our Company amid heightened uncertainty and intensifying competition. Facing a weak and volatile overseas market, we adopted a business strategy to help us maintain stable revenue growth while improving the efficiency of resource allocation for sales and market development," said Chairman and CEO Xiaozhong Lin.
The revenue increase was primarily attributable to higher sales in mainland China, while revenue in other geographic segments declined. The company’s gross profit margin contraction and net income drop signal pricing pressure and cost challenges, but the IPO provided additional capital and the company remains focused on improving its cost structure and pursuing higher‑margin opportunities.
The results highlight a short‑term margin squeeze amid a strategic shift to volume growth, regulatory scrutiny that led to a Nasdaq trading suspension, and a need for the company to balance aggressive domestic expansion with profitability. Investors will watch how the company manages cost inflation and competitive pressures in the coming periods.
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