Foxx Development Holdings Inc. Reports 2,117.1% Revenue Growth in Latest 10-Q Filing

Foxx Development Holdings Inc. reported significant financial growth in its latest 10-Q filing for the quarter ending March 31, 2025. The company generated revenues of $11.4 million, a substantial increase of 2,117.1% compared to $513,836 in the same quarter of the previous year. This surge in revenue was primarily driven by the addition of three major wholesale customers, which collectively accounted for 65% of sales, and the launch of new product lines, including wearable electronics.

In terms of profitability, Foxx recorded a gross profit of $663,313 for the quarter, a notable turnaround from a gross loss of $39,682 in the prior year. However, the company reported a net loss of $4.1 million, which was a 360.7% increase from the net loss of $886,570 in the same quarter of 2024. The increase in net loss was attributed to higher operating expenses, which rose to $4.2 million, up from $752,927 a year earlier, largely due to increased selling and administrative costs associated with business expansion efforts.

Operationally, Foxx has made strategic moves to diversify its customer base and product offerings. The company has expanded its presence across various U.S. locations and is actively pursuing entry into the Internet of Things (IoT) market. As of March 31, 2025, Foxx reported a total of 6,780,597 shares outstanding, reflecting its recent reverse recapitalization and business combination with Acri Capital Acquisition Corporation. The company also noted a significant increase in inventory, which rose to $16.7 million from $1.8 million, indicating preparations to meet anticipated demand.

The filing also highlighted the company's ongoing challenges, including a substantial accumulated deficit of $16 million and a net cash outflow from operating activities of approximately $4.7 million for the nine months ended March 31, 2025. Foxx's management expressed concerns about its ability to continue as a going concern if it cannot generate sufficient funds to meet its working capital requirements. The company is exploring various financing options, including potential equity financing and support from related parties, to address its liquidity needs.

Looking ahead, Foxx Development Holdings Inc. aims to leverage its recent growth and strategic initiatives to enhance its market position. The company plans to continue expanding its product lines and customer base while navigating the challenges posed by market conditions and operational costs.