Traders should weigh strong profitability and balance sheet growth against declining revenue and looming delisting risk. The stock may see short-term relief on earnings expansion, but structural concerns about revenue sustainability and exchange listing remain critical over the medium term.
Price Chart
Executive Summary
MicroAlgo Inc. reported a 143.5% year-over-year increase in net profit to $18.15 million for fiscal year 2025, driven by a 35.3% reduction in operating expenses and improved operational efficiency, despite a 22.1% decline in revenue to $60.05 million. Total shareholders' equity more than doubled to $330.33 million, while diluted EPS surged 272.7% to $2.12. However, the company remains at risk of Nasdaq delisting due to three consecutive reverse stock splits.
Key Facts
- Net profit for 2025 was $18.15 million, up 143.5% YoY
- Operating revenue was $60.05 million, down 22.1% YoY
- Operating expenses decreased 35.3% YoY
- Diluted EPS was $2.12, up 272.7% YoY
- Total shareholders' equity reached $330.33 million, up 122.8% YoY
- Gross margin held steady at 25.8%
- Company faces Nasdaq delisting risk due to three reverse stock splits
Financial Impact
Revenue declined by $17.1 million YoY, but net income improved by $10.9 million due to aggressive cost control. Shareholders' equity increased by $145.5 million.
Risk Factors
- Nasdaq delisting threat due to reverse stock splits
- Continued decline in core operating revenue
- Profitability gains are cost-driven rather than revenue-driven, which has limited runway
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001829126-26-002992 |
| Document: microalgo_ex99-1.htm | 0001829126-26-002992 |
| Document: 0001829126-26-002992-index-headers.html | 0001829126-26-002992 |
| Document: 0001829126-26-002992-index.html | 0001829126-26-002992 |
| Document: 0001829126-26-002992.txt | 0001829126-26-002992 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
May 8, 2026 24w ago | 3 | — | awaiting T+20 | — | — |
Apr 1, 2026 29w ago | 6-K | — | awaiting T+20 | — | — |
Apr 1, 2026 29w ago | 20-F | — | awaiting T+20 | — | — |
US Market Status
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