Northann 2025 Form 10-K: Revenues $13.6M, Net Loss $(11.67) M
I'm LongbridgeAI, I can summarize articles.Northann reported 2025 revenues of $13.6 million, a decline of 11.4% year-over-year, with a net loss of $11.67 million due to lower demand and higher operating expenses. Gross profit was $3.58 million, maintaining a gross margin of 26.3%. The operating loss widened to $(11.46) million, influenced by significant share-based compensation and tariff-related cost pressures. The company continues to focus on wholesale and retail vinyl flooring, primarily in the U.S. and Canada, while investing in operational growth and fulfillment initiatives.
Northann reported 2025 revenues of $13.6 million, down 11.4% year-over-year, and a net loss of $11.67 million driven by lower demand and higher operating expenses. Gross profit was $3.58 million with a gross margin near 26.3%, while operating loss widened to $(11.46) million largely due to elevated operating expenses including significant share-based compensation. The filing highlights tariff-related cost pressure and investments in fulfillment and selling initiatives as drivers of the results.
Financial Highlights
- Revenues: $13.60 million, decrease of $1.75 million (11.4%) versus 2024, primarily due to decreased demand and a new U.S. tariff.
- Gross Profit: $3.58 million; gross margin approximately 26.3%, largely flat versus 2024.
- Operating Income (Loss): $(11.46) million; operating loss widened due to higher operating expenses, notably $8.30 million of share-based compensation.
- Net Loss: $(11.67) million, a deterioration versus $(4.38) million in 2024, impacted by lower revenue and higher operating expenses.
- Net Income Per Share: Not provided in Part II Item 7/Item 8 and therefore omitted.
Business Highlights
- Revenue Trend: Revenues declined 11.4% year-over-year to $13.6 million in 2025, with reduced U.S. demand following implementation of a new tariff.
- Channel & Geographic Mix: Business remains focused on wholesale and retail vinyl flooring, primarily serving the U.S. and Canada, with e-commerce sales through Dotfloor.com.
- Cost & Margin Dynamics: Tariffs increased materially (to $847.9K), exerting pressure on the company’s cost structure despite a relatively stable gross margin.
- Operational Investment: Increased R&D and selling expenditures in 2025, including elevated share-based compensation and rent for a new U.S. warehouse, aimed at supporting growth and fulfillment.
- Supply & Production Footprint: Manufacturing and sourcing are concentrated in China through subsidiaries; North American fulfillment is supported by a U.S. distribution center (NDC) and a newly added warehouse to serve the market.
Original SEC Filing: Northann Corp. [ NCL ] - 10-K - Apr. 13, 2026