Haoxi Health Technology (HAO) Q4 2026 earnings summary

Executive summary

• The company operates as a holding entity with its main business conducted through a wholly owned PRC subsidiary, focusing on online marketing solutions for healthcare advertisers in China.

• Revenue is generated from providing one-stop online marketing services, especially short video ads, with a client base primarily in the healthcare sector.

• The company experienced significant revenue volatility over the past three years, with a sharp increase in FY2026 but a swing from net income to a substantial net loss.

• The business is highly dependent on a single supplier, Ocean Engine (ByteDance), and faces intense competition and regulatory risks in China.

• The company completed several equity financings and share structure changes, including multiple reverse splits and an increase in Class B share voting rights.

Financial highlights

• FY2026 revenue was $54.83 million, up 67% from $32.80 million in FY2025, which had declined 32% from $48.52 million in FY2024.

• Net loss for FY2026 was $9.54 million, compared to net income of $3.88 million in FY2025 and $1.29 million in FY2024.

• Gross margin declined to 1.15% in FY2026 from 2.83% in FY2025 and 5.67% in FY2024, due to higher costs and lower rebates from media partners.

• General and administrative expenses rose sharply to $8.61 million in FY2026, mainly due to a $6.02 million allowance for credit losses and increased labor costs.

• Cash and cash equivalents at June 30, 2026 were $10.93 million, with net cash used in operating activities of $2.57 million and net cash provided by financing activities of $9.32 million.

• The company recognized a $1.5 million impairment loss on intangible assets in FY2026 and a $6.07 million allowance for credit losses.

Outlook and guidance

• Management expects continued investment in R&D and technology, particularly in its Bidding Compass software, and plans to expand its advertiser base in the healthcare sector.

• The company does not anticipate paying dividends in the foreseeable future, prioritizing business expansion and liquidity.

• Capital expenditures are expected to increase moderately over the next two to three years to support business growth.