Dogness (NASDAQ:DOGZ) reported its financial results for the six months ended December 31, 2025, on Thursday, April 2, 2026.
Revenue for the six-month period fell to $7.7 million, a 36.2% decrease compared to the same period in 2024.
This decline was primarily driven by the impact of U.S. tariffs, which increased the landed cost and reduced the sell-through of the company's smart feeders, cameras, and automated water fountains.
Despite the downturn in tech-enabled goods, the company saw a 14.6% increase in sales of traditional pet products, such as leashes and harnesses, reflecting a shift in consumer demand toward essential, non-electronic supplies.
The revenue contraction, combined with higher logistics and material costs, compressed the company’s gross margin to 11.2%.
Consequently, Dogness reported a net loss of $5.2 million, a 185% increase in losses compared to the prior-year period.
In response to these financial pressures, management implemented a rigorous expense-reduction plan, successfully cutting general and administrative (G&A) expenses by approximately 20%.
To navigate the current trade environment, Dogness is leaning into its intellectual property and research capabilities.
The company currently holds a portfolio of more than 200 patents and announced plans to expand its R&D initiatives.
The goal is to develop a new generation of pet products that are either more cost-efficient to manufacture or designed to bypass current trade-related pricing hurdles.