Hitek Global (NASDAQ:HKIT) returned to profitability in fiscal 2025, fueled by a dramatic expansion in hardware sales that more than doubled the company’s top-line revenue and offset a significant compression in gross margins.
The Xiamen, China-based IT solutions provider reported total revenue of $6.5 million for the fiscal year ended Dec. 31, 2025, a 124% increase from the $2.9 million recorded in 2024.
The growth was almost exclusively attributed to the company’s hardware sales segment, which generated $6.1 million in revenue as Hitek intensified its focus on large-scale IT infrastructure procurement for its client base.
The strategic shift toward a hardware-intensive business model fundamentally altered the company’s profitability profile.
Gross profit for the year stood at $0.7 million, with a gross margin of 10.6%, a sharp decline from the 34.6% margin reported in 2024.
Despite the margin pressure, Hitek achieved a net income of $180,142 for the year, a successful turnaround from the net loss of $896,690 reported in 2024.
The bottom line was significantly supported by a roughly $1 million increase in "other income," which management primarily attributed to gains from investment activities rather than core operations.