WiMi Hologram Cloud (NASDAQ:WIMI) reported a massive surge in annual profitability for 2025, underscoring a successful transition toward leaner operations and a significantly fortified balance sheet.
The Beijing-based holographic augmented reality (AR) provider filed its annual Form 20-F today, reporting net income of RMB 347.1 million ($49.4 million) for the fiscal year ended December 31, 2025.
The result represents a staggering 235.9% increase compared to the RMB 103.3 million reported in 2024.
The performance marks the company’s second consecutive year of positive net income, signaling a departure from the capital-intensive growth phase that characterized its earlier years.
The bottom-line expansion was driven largely by aggressive cost-management initiatives.
Operating expenses for the year fell to RMB 147.6 million, a 19.4% reduction from the previous year.
Management attributed the savings to streamlined research and development processes and optimized administrative overhead as the company's core holographic AR technology matures across its advertising and entertainment segments.
Beyond profitability, the company’s liquidity position saw a substantial upgrade.
Working capital rose to RMB 2,611.6 million as of December 31, 2025—a 105.8% increase from the prior year.
This stronger capital buffer provides WiMi with significant flexibility to fund future technical innovations, including its recent push into AI-generated content (AIGC) and holographic digital twins, without immediate reliance on external financing.