Reports strong top-line growth and net income expansion but with a notable gross margin compression that signals the growth came via higher costs. Monitor next quarter/next year's filings for margin trajectory and cost control commentary, as the current sustainability of the business model partially depends on commission rate discipline.
Price Chart
Executive Summary
QDM International reported strong fiscal year 2026 results for the period ended March 31, 2026. Total revenue surged 156.2% to $21.48M from $8.38M in FY2025, driven by a 179.2% increase in insurance brokerage revenue. Net income rose 56.2% to $7.53M from $4.82M, with basic EPS improving to $0.88 from $0.56. However, gross profit margin plunged 33.7 percentage points due to cost of sales growing 836.5%, signaling the revenue growth came at steeply higher input costs.
Key Financial Metrics
Key Facts
- Total revenue for FY2026 (year ended March 31, 2026) was $21,475,746, up from $8,381,274 in FY2025.
- Fourth quarter revenue was $4,301,065, up 88.85% vs the prior-year Q4.
- Net income for FY2026 was $7,533,321, a 56.22% increase from $4,823,338 in FY2025.
- FY2026 basic EPS was $0.88, compared to $0.56 in FY2025.
- Gross profit margin fell ~33.7 percentage points for FY2026, with cost of sales increasing 836.5% (to $9.96M from $1.06M).
- Cash and cash equivalents were $10.33 million as of March 31, 2026, up from $8.56 million a year earlier.
Financial Impact
Revenue up $13.09M, net income up $2.71M. Gross margin collapse of 33.7pp indicates revenue generated at much higher referral fees and commission costs.
Risk Factors
- Gross profit margin decline of 33.7pp suggests structurally higher cost base from increased referral fees.
- Reliance on expanding insurance partner relationships and commission rates for growth — competitive/market shifts could pressure revenue.
- Hong Kong regulatory changes (Insurance Authority) could impact commission structures and operating environment.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001213900-26-073710 |
| Document: ea0296123-8k_qdminter.htm | 0001213900-26-073710 |
| Document: 0001213900-26-073710-index-headers.html | 0001213900-26-073710 |
| Document: 0001213900-26-073710-index.html | 0001213900-26-073710 |
| Document: 0001213900-26-073710.txt | 0001213900-26-073710 |
| 8-K Data (Synthetic) | 0001213900-26-073710 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 24, 2026 8w ago | S-1/A | $8.00 $8.50 | ▲ +6.25% | ▲ +5.01% | $10.20 (+27.50%) |
Jun 30, 2026 16w ago | 8-K | $8.00 $6.00 | ▼ −25.00% | ▼ −22.81% | $10.20 (+27.50%) |
US Market Status
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