STAK Inc. Announces First Half of Fiscal Year 2025 Financial Results

PR Newswire

CHANGZHOU, China, April 23, 2025

CHANGZHOU, China, April 23, 2025 /PRNewswire/ -- STAK Inc. (the "Company" or "STAK") (Nasdaq: STAK), a fast-growing company specializing in the research, development, manufacturing, and sale of oilfield-specialized production and maintenance equipment, today announced its unaudited financial results for the first half of fiscal year 2025 ended December 31, 2024.

Mr. Chuanbo Jiang, Chairman and Chief Executive Officer of STAK, commented, "Driven by rising market demand and our strategic focus on higher-margin, specialized oilfield vehicles, the first half of fiscal year 2025 recorded a solid performance for our company, reflecting both operational and strategic progress. We delivered robust financial results, with revenues reaching $17.0 million, representing a 24.44% increase year over year. Our gross profit margin also improved to 30.65%, up from 28.54% in same period of the prior year, underscoring the success of our product strategy transformation. Net income rose to $2.0 million, representing a 23.81% year-over-year increase, highlighting the effectiveness of our strategic initiatives, as well as our commitment to sustainable, profitable growth. We also maintained a solid pace of investment in research and development, aiming to enhance our existing product portfolio and enter new markets through technical innovation and distinctive designs.

In addition to our financial achievements, the completion of our Initial Public Offering was a significant milestone. On February 26, 2025, we commenced trading on the Nasdaq Capital Market under the ticker symbol 'STAK.' This achievement reflects the market's confidence in our vision and provides a strong foundation to accelerate our growth trajectory and push the boundaries for long-term value.

As we move forward, we remain confident in our market position and the opportunities emerging in the recovering oil field services industry. Innovation will remain central to our strategy as we continue to advance our product offerings to help customers reduce costs, enhance efficiency, and meet evolving operational needs. Moreover, diversifying our portfolio to support international expansion will be another key pillar for our long-term vision, positioning STAK to embrace emerging opportunities in global oilfield markets."

First Half of Fiscal Year 2025 Financial Highlights

   -- Revenues were $17.0 million for the first half of fiscal year 2025, an 
      increase of 24.44% from $13.6 million for the first half of fiscal year 
      2024. 
 
   -- Gross profit was $5.2 million for the first half of fiscal year 2025, an 
      increase of 33.63% from $3.9 million for the first half of fiscal year 
      2024. 
 
   -- Gross profit margin was 30.65% for the first half of fiscal year 2025, 
      compared to 28.54% for the first half of fiscal year 2024. 
 
   -- Research and development expenses was $1.5 million for the first half of 
      fiscal year 2025, an increase of 52.71% from $1.0 million for the first 
      half of fiscal year 2024. 
 
   -- Net income was $2.0 million for the first half of fiscal year 2025, an 
      increase of 23.81% from $1.6 million for the first half of fiscal year 
      2024. 
 
   -- Basic and diluted earnings per share were $0.20 for the first half of 
      fiscal year 2025, compared to $0.16 for the first half of fiscal year 
      2024. 

First Half of Fiscal Year 2025 Financial Results

Revenues

Revenues were $17.0 million for the first half of fiscal year 2025, an increase of 24.44% from $13.6 million for the first half of fiscal year 2024. The increase in revenues was mainly driven by the increase in demand for specialized oilfield equipment and increase in average sales price for specialized oilfield vehicles and partially offset by the decrease in demand for sales of raw materials and parts.

Sales of specialized oilfield equipment were $9.5 million for the first half of fiscal year 2025, an increase of 73.54% from $5.5 million for the first half of fiscal year 2024. The increase was mainly due to the Company's decision to expand production capacity of higher-pricing specialized oilfield equipment in order to allocate more resources towards research and development for the Company's new specialized oilfield equipment products with higher profit margins, given that all specialized oilfield equipment shares the same production facilities.

Sales of specialized oilfield vehicles were $5.6 million for the first half of fiscal year 2025, an increase of 58.27% from $3.6 million for the first half of fiscal year 2024. The increase was mainly due to the Company's decision to optimize its product portfolio.

Service revenue was $1.8 million for the first half of fiscal year 2025, an increase of 1.51% from $1.7 million for the first half of fiscal year 2024. The increase was because the Company earned cultivate positive word-of-mouth recommendations within the oilfield industry and a good reputation in the market.

Other revenue was $0.04 million for the first half of fiscal year 2025, a decrease of 98.57% from $2.8 million for the first half of fiscal year 2024. The Company sold chassis parts of $2.8 million for the first half of fiscal year 2024.

Cost of Revenues

Cost of revenues was $11.8 million for the first half of fiscal year 2025, an increase of 20.77% from $9.7 million for the first half of fiscal year 2024. The increase in cost was mainly due to the increase in revenues of 24.44%.

Gross Profit and Gross Profit Margin

Gross profit was $5.2 million for the first half of fiscal year 2025, an increase of 33.63% from $3.9 million for the first half of fiscal year 2024. Gross profit margin was 30.65% for the first half of fiscal year 2025, increased from 28.54% for the first half of fiscal year 2024. The increase in both gross profit and gross profit margin was mainly driven by higher margin achieved in sales of specialized oilfield vehicles, which was partially offset by the decreasing unsustainable sales of the Company's parts and materials.

Operating Expenses

Total operating expenses were $2.9 million for the first half of fiscal year 2025, compared to $2.0 million for the first half of fiscal year 2024.

   -- Selling and marketing expenses have been consistently maintained at $0.6 
      million for the first half of fiscal year 2025 and 2024. The observed 
      revenue expansion reflects the Company's management team's direct 
      business development efforts rather than commission-based sales channels, 
      thereby maintaining stable commission expenditures. 
 
   -- General and administrative expenses were $0.8 million for the first half 
      of fiscal year 2025, an increase of 91.78% from $0.4 million for the 
      first half of fiscal year 2024. The increase was attributed to the 
      increase in provision for credit losses of $0.4 million on accounts 
      receivables. 
 
   -- Research and development expenses were $1.5 million for the first half of 
      fiscal year 2025, an increase of 52.71% from $1.0 million for the first 
      half of fiscal year 2024. The increase was attributed to the increase of 
      design and development expenses to develop new products and refine 
      existing products. The research and development expenses are mainly 
      driven by the stage and scale of the Company's equipment development. 

Net Income

Net income was $2.0 million for the first half of fiscal year 2025, an increase of 23.81% from $1.6 million for the first half of fiscal year 2024.

Basic and Diluted Earnings per Share

Basic and diluted earnings per share were $0.20 for the first half of fiscal year 2025, compared to $0.16 for the first half of fiscal year 2024.

Financial Condition

As of December 31, 2024, the Company had cash and cash equivalents of $0.4 million, compared to $0.7 million as of June 30, 2024.

Net cash used in operating activities was $1.0 million for the first half of fiscal year 2025, compared to $1.4 million for the first half of fiscal year 2024.

Net cash provided by investing activities was $0.1 million for the first half of fiscal year 2025, compared to $0.3 million for the first half of fiscal year 2024.

Net cash provided by financing activities was $0.6 million for the first half of fiscal year 2025, compared to $1.1 million for the first half of fiscal year 2024.

Recent Development

On February 27, 2025, the Company completed its initial public offering (the "Offering") of 1,250,000 ordinary shares at a price of $4.00 per share. On March 4, 2025, the underwriters of the Offering partially exercised their over-allotment option to purchase an additional 160,349 ordinary shares at the public offering price of $4.00 per share. The gross proceeds were $5.64 million, before deducting underwriting discounts and other related expenses. The Company's ordinary shares began trading on the Nasdaq Capital Market on February 26, 2025, under the ticker symbol "STAK."

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