Revenue for the first half of 2025 reached $10.6 million, a 30.7 % increase from $8.1 million in the same period a year earlier. The jump was driven by a 500 % surge in both the rackets and technical services businesses, while bicycle frame and component sales fell, offsetting the top‑line lift.
Operating income fell to $154,000 from $623,000 in 1H 2024, and gross margin contracted to 26.9 % from 30.2 %. The decline reflects a mix shift toward lower‑margin rackets and higher‑margin technical services, coupled with a 47.6 % rise in operating expenses to $2.7 million. The expense increase is largely attributable to IPO‑related fees and research and development spend for a planned automation factory in Houston.
Cash and cash equivalents stood at $909,995 as of June 30 2025, up from $649,106 at the end of 2024. The stronger liquidity position is a result of the July 2025 IPO, which raised $5.0 million in gross proceeds, and ongoing investment in U.S. manufacturing and a direct‑to‑consumer pickleball line.
CEO Sam Van said the results “reflect our ability to innovate toward high‑growth markets such as rackets, adapt to evolving market conditions in bikes, and execute with discipline.” He added that the operating income decline signals the short‑term cost burden of strategic investments, but that the company remains focused on becoming a solutions provider rather than a traditional OEM.
The earnings illustrate a company in transition: revenue growth in high‑margin segments is encouraging, but margin compression and a near‑zero operating profit raise concerns about short‑term profitability. Long‑term prospects hinge on scaling branded products and U.S. manufacturing, which could lift margins once the investment cycle matures.
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