TDH Holdings (NASDAQ:PETZ) today announced its audited financial results for the fiscal year ended December 31, 2025.
The report highlights a significant top-line expansion as the company continues to pivot its business model, resulting in a 121.96% surge in annual revenue to $1.25 million, up from $0.56 million in the prior year.
The company reported net income attributable to common stockholders in the range of $1.78 million to $1.80 million, resulting in an earnings per share (EPS) of $0.17.
The fiscal year was marked by a sharp decline in profitability metrics at the direct level.
Gross margin fell to -0.94%, a stark contrast to the 42.29% reported in 2024.
Management attributed this contraction primarily to the reclassification of certain costs associated with its shifting operational focus.
Consequently, the operating loss remained steady at approximately $1.83 million, reflecting the ongoing costs of maintaining its corporate infrastructure during the pivot.
Historically known for its pet food and treats business, TDH Holdings has increasingly looked toward commercial real estate leasing to drive growth.
This new vertical has become a mechanical necessity for the company to stabilize its revenue streams as it scales back more volatile manufacturing segments.
Despite the operating losses, TDH Holdings ended 2025 with a significantly strengthened capital position.
Cash and equivalents rose to $19.16 million, providing a substantial runway for further investment in its real estate portfolio.
The company’s working capital stood at $27.40 million as of December 31, 2025, offering a buffer against near-term market fluctuations.