Foxx Posts Wider Fiscal Loss as Sales and Margins Fall

Foxx Development Holdings reported a $52.7 million net loss for fiscal 2026, compared with a $9 million loss a year earlier. Revenue fell 20.2% to $52.6 million, and loss per share widened to $7.61 from $1.47.

Gross profit dropped to $1.7 million from $4.8 million, while gross margin narrowed to 3.2% from 7.2%. Mobile phone revenue, the company’s largest product category, declined 21.2% to $47 million.

Management said lower order volumes drove the revenue decline. Tariff uncertainty and higher memory-chip prices pressured costs, while the company’s two largest customers did not accept higher prices as much as expected. Those customers represented 77.9% of sales.

Operating expenses rose 215% to $45.6 million, including $25.9 million in right-of-use asset impairment charges. Foxx said it shifted more logistics to dropshipping and decided to sublease warehouse facilities as its need for space fell.

Cash stood at $1.5 million at fiscal year-end, down from $1.9 million a year earlier. Management said ongoing losses and other conditions raised substantial doubt about the company’s ability to continue as a going concern over the following year. Operating cash outflow improved to about $0.4 million from $6.6 million.

As of 18:09 UTC on Oct. 1, FOXX traded at $2.68, up 6.77% since the previous close.