Dogness Reports Financial Results for the Six Months Ended December 31, 2025
Rhea-AI Summary
Dogness (NASDAQ: DOGZ) reported results for the six months ended December 31, 2025: revenue $7.7M (down 36.2% YoY), gross margin 11.2%, and net loss $5.2M (up 185%). U.S. tariff impacts reduced intelligent and other product sales; traditional pet products rose 14.6%.
The company cut G&A ~20% and cites a >200-patent portfolio and expanded R&D plans.
Positive
- Traditional pet products revenue +14.6% H1 FY2026
- General and administrative expenses -20.3% H1 FY2026
- Patent portfolio >200 patents held
Negative
- Total revenue -36.2% H1 FY2026 to $7.7M
- Gross margin fell to 11.2% from 28.3%
- Net loss increased 185% to $5.2M
Key Figures
Market Reality Check
Peers on Argus
Momentum scanner only flagged YYAI moving down, with no aligned multi-stock move and no DOGZ direction provided. Sector peers like JAKK, ESCA, PLBY, FNKO, and SRM show mixed individual moves, suggesting stock-specific factors matter more than a broad sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 17 | Annual results | Positive | +2.6% | Fiscal 2025 revenue and gross profit rose sharply; net loss narrowed. |
| Mar 31 | Half-year results | Positive | -2.3% | H2 2024 revenue and margins surged across all product categories. |
| Oct 16 | Annual results | Negative | -8.2% | Fiscal 2024 revenue declined despite slight margin improvement and cost cuts. |
| Apr 18 | Half-year results | Neutral | +0.5% | Half-year 2023 earnings release with limited disclosed detail in summary. |
Earnings reactions have been mixed: three prior earnings moves generally aligned with the news tone and one divergence, with an average move of about -1.83% around earnings.
Recent earnings history shows Dogness swinging between contraction and growth. The half-year to Dec 31, 2024 delivered strong revenue and margin gains, followed by fiscal 2024 results that still showed revenue decline but improved net loss. Fiscal 2025 then reported a sharp rebound in revenue and gross profit with a narrower net loss. Today’s half-year 2025 results contrast with that prior momentum, marking a notable step-down from the previously strong H2 2024 base.
Historical Comparison
Across four prior earnings releases, DOGZ saw an average move of -1.83%, with both positive and negative fundamentals producing modest, often cautious, price reactions.
Earnings updates from H2 2023 through fiscal 2025 show Dogness moving from revenue declines in fiscal 2024 to strong revenue and margin growth in H2 2024 and fiscal 2025, before this half-year 2025 report reflects renewed pressure off that elevated base.
Market Pulse Summary
This announcement highlights a sharp reset from strong H2 2024 momentum, with revenue declining to about $7.7 million, gross margin compressing to 11.2%, and net loss widening to roughly $5.2 million. Traditional pet products grew, but intelligent products and climbing hooks contracted significantly. Compared with earlier earnings that averaged a -1.83% move, investors may focus on category mix, tariff impacts, and whether cost controls and R&D plans can stabilize margins.
AI-generated analysis. Not financial advice.
DONGGUAN,
Mr. Silong Chen, Chief Executive Officer of the Company, commented: "The first half of fiscal 2026 presented challenges as
"To mitigate external pressures, we took proactive steps to optimize operations, successfully reduced our general and administrative expenses by over
"Looking ahead, our outlook remains highly optimistic. We are accelerating our R&D initiatives to introduce a new generation of intelligent, eco-friendly pet products that meet evolving consumer demands. Backed by a robust portfolio of over 200 patents and a fully integrated supply chain, Dogness is well-positioned to navigate these temporary trade fluctuations, return to sustainable growth, and deliver long-term shareholder value."
Financial Results for the Half Year Ended December 31, 2025
Revenue decreased by approximately
The following table breaks down Dogness' revenue by product and service type for the six months ended December 31, 2025 and 2024:
For the six months ended December 31, | ||||||||
2025 | 2024 | |||||||
Products and services | Revenue | Revenue | Variance % | |||||
Products | ||||||||
Traditional pet products | $ | 5,343,190 | $ | 4,660,824 | 14.6 | % | ||
Intelligent pet | 1,701,321 | 4,546,642 | (62.6) | % | ||||
Climbing hooks and | 666,390 | 2,878,245 | (76.8) | % | ||||
Total revenue from | 7,710,901 | 12,085,711 | (36.2) | % | ||||
─ Traditional pet products
Revenue from traditional pet products increased by approximately
─ Intelligent pet products
Revenue from intelligent pet products decreased by approximately
─ Climbing hooks and others
Revenue from climbing hooks and other products decreased by about
─ International vs. Domestic sales
Total international sales decreased by about
Domestic sales decreased by approximately
Cost of revenues decreased by
Gross profit decreased by approximately
Total operating expenses increased by approximately
─ Selling expenses
Selling expenses increased by about
─ General and Administrative Expenses
General and administrative expenses decreased by approximately
─ Research and Development Expenses
Research and development expenses decreased by
Net loss increased by approximately
About Dogness
Dogness (International) Corporation was founded in 2003 from the belief that pet dogs and cats are important, well-loved family members. Through its smart products, hygiene products, health and wellness products, and leash products, Dogness is able to simplify pet lifestyles, make them more scientific, and enhance the relationship between pets and pet caregivers. The Company ensures industry-leading quality through its fully integrated vertical supply chain and world-class research and development capabilities, which has resulted in over 200 patents and patents pending. Dogness products reach families worldwide through global chain stores and distributors. For more information, please visit: ir.dogness.com.
Forward Looking Statements
No statement made in this press release should be interpreted as an offer to purchase or sell any security. Such an offer can only be made in accordance with the Securities Act of 1933, as amended, and applicable state securities laws. Certain statements in this press release concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the "safe harbor" under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the impact of
For more information please contact:
WFS Investor Relations Inc
Connie Kang, Partner
Email: ckang@wealthfsllc.com
Tel: +86 1381 185 7742 (CN)
DOGNESS (INTERNATIONAL) CORPORATION | ||||||||
As of December 31, | As of June 30, 2025 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 6,633,479 | $ | 12,831,485 | ||||
Accounts receivable-third-party, net | 1,379,534 | 1,302,189 | ||||||
Accounts receivable-related party | - | 12,135 | ||||||
Inventories, net | 2,293,311 | 2,719,790 | ||||||
Due from a related party | 126,300 | 108,387 | ||||||
Prepayments and other current assets | 3,030,798 | 3,497,688 | ||||||
Total current assets | 13,463,422 | 20,471,674 | ||||||
NON-CURRENT ASSETS | ||||||||
Property, plant and equipment, net | 63,373,780 | 58,259,795 | ||||||
Intangible assets, net | 1,761,959 | 1,748,755 | ||||||
Long-term investments in equity investees | 20,015,853 | 20,656,752 | ||||||
Operating lease right-of-use lease assets | 12,989,658 | 13,166,788 | ||||||
Deferred tax assets | 2,846,502 | 2,542,822 | ||||||
Total non-current assets | 100,987,752 | 96,374,912 | ||||||
TOTAL ASSETS | $ | 114,451,174 | $ | 116,846,586 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Short-term bank loans | $ | 715,000 | $ | 698,000 | ||||
Current portion of long-term bank loans | 2,316,411 | 1,324,854 | ||||||
Accounts payable | 1,616,434 | 1,593,590 | ||||||
Accounts payable - related party | 51,294 | 22,663 | ||||||
Due to a related party | 117,202 | 32,171 | ||||||
Contract liabilities | 264,183 | 187,846 | ||||||
Taxes payable | 568,702 | 566,682 | ||||||
Operating lease liabilities, current | 663,364 | 197,130 | ||||||
Accrued expenses and other current liabilities | 1,369,078 | 1,482,981 | ||||||
Total current liabilities | 7,681,668 | 6,105,917 | ||||||
NON-CURRENT LIABILITIES | ||||||||
Long-term bank loans | 652,706 | 2,035,353 | ||||||
Operating lease liabilities, non-current | 10,975,856 | 10,952,491 | ||||||
Total non-current liabilities | 11,628,562 | 12,987,844 | ||||||
TOTAL LIABILITIES | 19,310,230 | 19,093,761 | ||||||
Commitments and Contingencies (Note 13) | ||||||||
EQUITY | ||||||||
Class A Common shares, no par value, unlimited shares | 117,636,230 | 117,349,730 | ||||||
Class B Common shares, no par value, unlimited shares | 18,138 | 18,138 | ||||||
Statutory reserve | 291,443 | 291,443 | ||||||
Accumulated deficit | (15,667,948) | (10,492,946) | ||||||
Accumulated other comprehensive loss | (7,136,963) | (9,413,583) | ||||||
Equity attributable to owners of the Company | 95,140,900 | 97,752,782 | ||||||
Non-controlling interest | 44 | 43 | ||||||
Total equity | 95,140,944 | 97,752,825 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 114,451,174 | $ | 116,846,586 | ||||
DOGNESS (INTERNATIONAL) CORPORATION STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (All amounts in USD) (Unaudited) | ||||||||
For the Six Months Ended December 31, | ||||||||
2025 | 2024 | |||||||
Revenue | $ | 7,710,901 | $ | 12,085,711 | ||||
Cost of revenue | 6,843,935 | 8,668,552 | ||||||
Gross Profit | 866,966 | 3,417,159 | ||||||
Operating expenses: | ||||||||
Selling expenses | 1,234,204 | 624,410 | ||||||
General and administrative expenses | 3,437,429 | 4,312,486 | ||||||
Research and development expenses | 533,477 | 665,494 | ||||||
Impairment of investment in equity investee | 1,123,200 | - | ||||||
Total operating expenses | 6,328,310 | 5,602,390 | ||||||
Loss from operations | (5,461,344) | (2,185,231) | ||||||
Other income (expense): | ||||||||
Interest income, net | 83,438 | 6,884 | ||||||
Foreign exchange transaction (loss) gain | (151,611) | 114,443 | ||||||
Other (expenses) income, net | (13,613) | 41,357 | ||||||
Rental income from related parties, net | 129,856 | 107,737 | ||||||
Total other income, net | 48,070 | 270,421 | ||||||
Loss before income tax | (5,413,274) | (1,914,810) | ||||||
Income tax benefit | (238,272) | (98,967) | ||||||
Net loss | (5,175,002) | (1,815,843) | ||||||
Less: net income attributable to non-controlling interest | - | - | ||||||
Net loss attributable to Dogness (International) | (5,175,002) | (1,815,843) | ||||||
Other comprehensive loss | ||||||||
Foreign currency translation adjustments | 2,276,621 | (300,478) | ||||||
Comprehensive loss | (2,898,381) | (2,116,321) | ||||||
Less: comprehensive income attributable to non- | 1 | - | ||||||
Comprehensive loss attributable to Dogness | $ | (2,898,382) | $ | (2,116,321) | ||||
Loss per share | ||||||||
Basic and diluted | $ | (0.29) | $ | (0.14) | ||||
Weighted Average Shares Outstanding | ||||||||
Basic and diluted | 17,807,886 | 12,755,658 | ||||||
DOGNESS (INTERNATIONAL) CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (All amounts in USD) (Unaudited) | ||||||||
For the Six Months Ended December 31, | ||||||||
2025 | 2024 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (5,175,002) | $ | (1,815,843) | ||||
Adjustments to reconcile loss income to net cash (used in) | ||||||||
Depreciation and amortization | 1,360,710 | 1,395,756 | ||||||
Share-based compensation | 286,500 | 399,470 | ||||||
Change in inventory reserve | 688,689 | - | ||||||
Loss from disposal of property, plant and equipment | - | 176,347 | ||||||
Reversal of allowance for credit losses | (31,553) | (232,600) | ||||||
Impairment of long-term investment | 1,123,200 | - | ||||||
Deferred tax benefit | (238,652) | (108,490) | ||||||
Amortization of right-of-use lease assets | 488,760 | 585,466 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable-third parties | (3,983) | (824,001) | ||||||
Accounts receivable-related party | 2,910 | 272,429 | ||||||
Inventories | (208,212) | (121,257) | ||||||
Due from a related party | (14,995) | (4,959) | ||||||
Prepayments and other current assets | (30,691) | (61,720) | ||||||
Advances to supplier-related party | - | 51,537 | ||||||
Accounts payable | (15,678) | 999,703 | ||||||
Accounts payable-related party | 27,568 | 13,130 | ||||||
Accrued expenses and other current liabilities | (147,295) | 24,691 | ||||||
Contract liabilities | 70,460 | (39,639) | ||||||
Operating lease liabilities | 214,082 | 200,827 | ||||||
Taxes payable | (11,568) | 26,242 | ||||||
Net cash (used in) provided by operating activities | (1,614,750) | 937,089 | ||||||
Cash flows from investing activities: | ||||||||
Purchase of property, plant and equipment | (4,386,993) | (1,050,711) | ||||||
Proceeds from disposition of property, plant and | - | 787 | ||||||
Net cash used in investing activities | (4,386,993) | (1,049,924) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from short-term bank loans | 702,000 | 696,500 | ||||||
Repayment of short-term bank loans | (702,000) | (696,500) | ||||||
Repayment of long-term bank loans | (464,331) | (316,297) | ||||||
Proceeds from (repayment of) related party loans | 82,716 | (451,201) | ||||||
Net cash used in financing activities | (381,615) | (767,498) | ||||||
Effect of exchange rate changes on cash and restricted | 185,352 | (18,339) | ||||||
Net decrease in cash and cash equivalents | (6,198,006) | (898,672) | ||||||
Cash and cash equivalents, beginning of period | 12,831,485 | 6,956,434 | ||||||
Cash and cash equivalents, end of period | $ | 6,633,479 | $ | 6,057,762 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW | ||||||||
Cash paid for interest | $ | 71,272 | $ | 115,430 | ||||
Non-Cash Investing Activities | ||||||||
Liabilities incurred for purchase of property and | $ | - | $ | 34,909 | ||||
View original content:https://www.prnewswire.com/news-releases/dogness-reports-financial-results-for-the-six-months-ended-december-31-2025-302731514.html
SOURCE Dogness (International) Corporation
FAQ
Why did DOGZ revenue fall 36.2% for the six months ended December 31, 2025?
How did Dogness (DOGZ) perform by product category in H1 FY2026?
What caused Dogness gross margin to drop to 11.2% in H1 FY2026?
How did operating expenses change for DOGZ in the six months ended December 31, 2025?
What is Dogness' outlook and strategic response after the H1 FY2026 results (DOGZ)?
