Fitell Corp. reported fiscal year 2025 revenue of $5.20 million, a 16.4% increase from $4.47 million in the prior year, and a net loss of $0.68 million, a 92.7% reduction from the $9.31 million loss reported for FY 2024. The company’s gross margin expanded to 39.3% from 35.5% in FY 2024, reflecting a 3.8‑percentage‑point lift driven by a new pricing strategy and a shift toward higher‑margin product lines.
The revenue growth was largely driven by a rebound in demand for Fitell’s legacy gym‑equipment business, which accounted for roughly 73% of total sales. Early traction in the company’s digital‑asset and AI‑robotics initiatives contributed the remaining 27%, although those segments are still in the early stages of commercialization and have not yet become major revenue drivers.
Management highlighted that the company’s focus on strengthening its core retail operations and launching new high‑growth ventures has begun to pay off. CEO Sam Lu said the firm is “positioning for healthy growth with financial discipline” and expects the legacy business to generate positive operating cash flow in FY 2026, while the new digital‑asset and AI‑robotics initiatives are expected to become significant contributors as they mature.
Despite the improved profitability metrics, Fitell’s operating loss widened to $1.64 million in FY 2025, up 79.5% year‑over‑year, indicating that the company is still investing heavily in its new initiatives and facing higher operating expenses. The net loss reduction, however, signals that cost‑control measures and pricing power are beginning to offset these investments.
The company’s financial statements are available on its investor‑relations website, providing full detail on segment performance, cost structure, and future outlook. Investors and analysts will likely focus on how the company balances its legacy retail business with its emerging technology ventures as it seeks to achieve sustainable profitability in the coming years.
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