Toppoint Holdings Reports $16.04 Million Revenue Decline and 68% Drop in Net Income for Fiscal Year 2024

Toppoint Holdings Inc. reported a revenue of $16.04 million for the fiscal year ending December 31, 2024, a decline of 11% from $18.04 million in 2023. This decrease was primarily attributed to a significant drop in scrap paper export volumes, which reached a 19-year low in the U.S. market. Despite an increase in the number of orders, the average load count per order and the price per load fell, prompting the company to accept a higher volume of smaller orders at lower prices to maintain fleet activity. The company's net income also decreased by 68%, falling to $174,871 from $542,351 in the previous year, reflecting the challenges faced in the waste paper export sector.

In terms of operational metrics, Toppoint completed 22,665 loads in 2024, down from 24,189 in 2023, marking a 6.3% decrease. The decline was particularly pronounced in the waste paper segment, where loads dropped by 8% to 16,641. However, the company saw growth in its waste metal and import verticals, with a 46.1% increase in loads for the "Others" category, which includes plastic waste. This diversification strategy has allowed Toppoint to mitigate some of the revenue losses from its core waste paper business.

Strategically, Toppoint has expanded its operations into new geographic markets, including Florida and Maryland, and has plans to enter international markets such as Canada, the United Kingdom, and Australia. The company has also launched new service offerings, including cold-chain logistics, to enhance its service portfolio and stabilize revenue streams. Additionally, Toppoint secured partnerships with major clients, which are expected to generate significant additional revenue in the coming years.

The company’s workforce as of December 31, 2024, included 2 full-time employees and approximately 100 independent contractor drivers. Toppoint's operational model relies heavily on these independent contractors, which presents unique risks compared to traditional fleet ownership. The company has emphasized its commitment to maintaining a satisfactory safety rating and compliance with regulatory standards, which is crucial for its operations in the highly regulated trucking industry.

Looking ahead, Toppoint Holdings anticipates continued challenges in the waste paper export market but remains optimistic about its growth potential through geographic expansion and diversification of services. The company plans to utilize proceeds from its recent initial public offering, which raised approximately $8.28 million, to support these strategic initiatives. However, the ongoing economic uncertainties and fluctuations in market demand for recycled materials could impact the company's financial performance in the near term.