Foxx Development Holdings Inc.

Foxx Development Holdings Inc. reported a fiscal 2026 loss per share of $7.61, wider than the prior year's loss of $1.47, as revenue fell 20.2% year over year to $52.6 million from $65.9 million. Gross profit dropped 64.6% to $1.7 million from $4.8 million and gross margin contracted to 3.2% from 7.2%, while the net loss widened to $52.7 million from $9 million in fiscal 2025. Mobile phone revenue, the company's largest product category, declined 21.2% to $47 million from $59.7 million, wearable products and other revenue fell 11.5% to $3.1 million, and app service commission revenue dropped 27.1% to $1.6 million, though tablet revenue rose 82.6% to approximately $0.9 million. Management attributed the decline mainly to lower order volumes, tariff-driven volatility in landed costs and selling prices, and higher memory-chip prices, noting that its two largest customers, representing 77.9% of sales, did not accept higher pricing to the extent anticipated. Operating expenses rose 215% to $45.6 million, driven largely by $25.9 million of right-of-use asset impairment charges tied to a sublease of warehouse facilities after the company shifted logistics toward dropshipping beginning in January 2026. Foxx ended the year with cash of $1.5 million, total liabilities of $81.2 million and a stockholders' deficit of $56.8 million, and management said these conditions raise substantial doubt about its ability to continue as a going concern over the following year.