Toppoint Holdings Inc. announced financial results for the second quarter ended June 30, 2025, on August 14, 2025. Revenue for Q2 2025 decreased by 16% to $3.97 million from $4.70 million in the prior-year quarter.
For the first half of 2025, revenue fell 8% to $7.78 million from $8.43 million in H1 2024. This decline was attributed to decreased production compared to an anomalous increase in 2024 and ongoing ship volume interruptions from global tariffs.
Gross profit for Q2 2025 decreased 47% to $0.46 million, resulting in a gross margin of 11%, down from 18% in Q2 2024. General and administrative (G&A) expenses soared by 216% in Q2 2025 to $2.04 million, primarily due to professional fees, travel, and $985,550 in stock-based compensation.
Consequently, the company reported a net loss of $1.53 million for Q2 2025 and $2.06 million for H1 2025. The company's liquidity was $1.49 million in cash and $1.20 million in working capital as of June 30, 2025, bolstered by $8.28 million net IPO proceeds.
However, net cash outflow from operating activities was $1.14 million for H1 2025. Investing activities consumed $6.71 million, including $1.01 million for property and equipment and a $5.70 million temporary debt investment in Golden Bridge Capital Management Limited.
The company also noted an ongoing class action lawsuit regarding driver misclassification and reported ineffective internal control over financial reporting as of June 30, 2025. Customer concentration remains a concern, with three customers accounting for approximately 35% of Q2 2025 revenue.
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