Wetouch Technology Inc. reported its financial results for the first quarter of 2026, revealing a revenue increase to $16.3 million, up from $15.3 million in the same period last year, marking a growth of approximately 6.7%. The company's gross profit also saw a rise, reaching $5.8 million compared to $5.6 million in the prior year. Net income for the quarter was $3.9 million, a significant increase from $2.6 million in Q1 2025, resulting in earnings per share of $0.32, up from $0.21.
The company’s operational expenses decreased substantially, with total operating expenses falling to $737,000 from $1.7 million in the previous year. This reduction was primarily driven by lower general and administrative expenses, which dropped from $1.6 million to $579,000. The decrease in expenses contributed to a higher income from operations of $5.1 million, compared to $4.0 million in the same quarter of 2025. Additionally, Wetouch's cash position improved, with cash and cash equivalents increasing to $120.5 million from $118.4 million at the end of 2025.
Wetouch Technology has also made strides in its operational metrics, with accounts receivable rising to $11.1 million from $6.5 million, indicating increased sales activity. The company reported a foreign currency translation adjustment of $1.9 million, contributing to a comprehensive income of $5.8 million for the quarter. The total stockholders' equity increased to $143.2 million, up from $137.4 million at the end of 2025, reflecting the company's strong financial health.
In terms of strategic developments, Wetouch continues to focus on expanding its market presence, particularly in the touchscreen display sector, which serves various industries including automotive and medical applications. The company is also in the process of completing a new facility, which is expected to be operational by the end of 2027, following delays due to COVID-19 and supply chain issues. This facility is anticipated to enhance production capabilities and support future growth.
Looking ahead, Wetouch Technology remains optimistic about its growth trajectory, citing ongoing demand for its products and the potential for market expansion. The company is evaluating the impact of recent accounting standards and is committed to maintaining its financial stability while pursuing strategic initiatives to enhance shareholder value.
About Wetouch Technology Inc.
Wetouch Technology Inc. designs and manufactures medium- to large-sized capacitive touchscreens for diverse industries including automotive, POS, gaming, medical, and industrial applications. Its products emphasize durability, high performance, and compliance with quality standards. Serving global markets, the company leverages direct sales, online marketing, and industry expos, with a focus on innovation, proprietary IP, and strong customer relationships in China and internationally.
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