Foxx Development Holdings Inc. reported its financial results for the three and six months ended December 31, 2025, revealing a decline in revenue and a significant net loss compared to the same period in the previous year. The company generated $16.7 million in revenue for the three months ended December 31, 2025, a decrease of 4.4% from $17.5 million in the prior year. For the six-month period, revenue fell by 9.0% to $36.9 million from $40.6 million. The decline was primarily attributed to reduced sales in mobile phone products, which accounted for 89% of total sales, as well as a decrease in wearable product revenues.
The company's cost of goods sold (COGS) also decreased, falling by 5.2% to $14.5 million for the three months ended December 31, 2025, and by 15.9% to $32.0 million for the six months ended December 31, 2025. This reduction in COGS was consistent with the decline in revenue, particularly in mobile phone production costs. Gross profit for the three months increased slightly to $2.2 million, while gross profit for the six months surged by 91.6% to $5.0 million, largely due to improved margins on mobile phone products.
Operating expenses saw a modest increase of 0.2% for the three months ended December 31, 2025, totaling approximately $4.4 million. However, general and administrative expenses rose significantly by 52.0% to $3.1 million, driven by increased professional fees and rent associated with new facilities. The company reported a net loss of $4.3 million for the three months ended December 31, 2025, compared to a net income of $1.4 million in the same period of 2024. For the six months, the net loss increased to $7.2 million from $0.8 million in the prior year.
In terms of operational metrics, Foxx Development Holdings Inc. has been focusing on diversifying its customer base and supplier relationships to mitigate risks associated with reliance on a limited number of partners. The company has expanded its product offerings and is preparing to enter the U.S. IoT market. As of December 31, 2025, the company had approximately 7 million shares of common stock outstanding and reported a working capital deficit of $14.1 million. The management has expressed concerns about the company's ability to continue as a going concern, citing the need for additional financing to meet operational requirements.
Looking ahead, Foxx Development Holdings Inc. aims to enhance its market position by launching new products and expanding its e-commerce operations. The company is also monitoring compliance with Nasdaq listing requirements, as it received a deficiency letter regarding its market value of listed securities. The management is actively exploring options to regain compliance and improve its financial standing.
About Foxx Development Holdings Inc.
Foxx Development Holdings Inc. designs and markets communication devices, including smartphones, tablets, wearables, and IoT products. Serving consumers, carriers, and distributors in the U.S., it emphasizes innovation, quality, and affordability. The company leverages strategic partnerships, a build-to-order model, and a developing IoT cloud platform to deliver integrated, customizable solutions across consumer electronics and smart environment markets.
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