HAPPY CITY HLDGS LTD Financials

HCHL

Source SEC Filings (10-K/10-Q) Updated Aug 31, 2025 Currency USD FYE August

This page shows HAPPY CITY HLDGS LTD (HCHL) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 3 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI HCHL FY2025 2026-04-22

External financing is carrying a thin-margin operating model whose brief recovery faded, leaving cash holdings less self-generated than they appear.

Cash finished the latest year at $3.37M, but the same period also required $2.90M of financing inflow to offset operating and investment outflows. With free cash flow still deeply negative and leverage much lower than the prior year, the balance sheet looked stronger because funding terms changed, not because operations began paying for themselves.

The prior year's profit burst was not a stable new base: gross margin fell from 27.3% to 12.6% in the latest year. That collapse drove operating margin to -33.5%, implying a cost structure that did not shrink fast enough when volume and/or mix weakened after the earlier spike.

Inventory and receivables were only about $67K combined against current liabilities of $4.99M, a light working-capital footprint for the revenue base. So liquidity pressure is less about cash being trapped in stock or customer balances and more about the timing of obligations, especially with the current ratio still below 1.0x.

Financial Health Signals

Financial Profile 26/100

Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →

Health score ≠ stock price. This rates the quality of HAPPY CITY HLDGS LTD's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability

HAPPY CITY HLDGS LTD has an operating margin of -33.5%, meaning the company retains $-33 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is down from 15.8% the prior year.

Growth

HAPPY CITY HLDGS LTD's revenue declined 18% year-over-year, from $8.3M to $6.8M. This contraction results in a growth score of 34/100.

Leverage

HAPPY CITY HLDGS LTD carries a low D/E ratio of 1.43, meaning only $1.43 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 73/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

HAPPY CITY HLDGS LTD's current ratio of 0.83 is below the typical benchmark, resulting in a score of 11/100. However, the company holds substantial cash reserves (67% of current liabilities), which buffers actual liquidity risk. Large mature operators often run tight current ratios by design.

Cash Flow

While HAPPY CITY HLDGS LTD generated -$1.3M in operating cash flow, capex of $908K consumed most of it, leaving -$2.2M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.

Returns

HAPPY CITY HLDGS LTD's ROE of -110.1% shows moderate profitability relative to equity, earning a score of 41/100. This is down from 219.2% the prior year.

Piotroski F-Score Weak

3/9

HAPPY CITY HLDGS LTD passes 3 of 9 financial strength tests. 1 of 4 profitability signals pass, all 2 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Low Quality

0.52x

For every $1 of reported earnings, HAPPY CITY HLDGS LTD generates $0.52 in operating cash flow (-$1.3M OCF vs -$2.4M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.

Interest Coverage At Risk

-10.0x

HAPPY CITY HLDGS LTD earns $-10.0 in operating income for every $1 of interest expense (-$2.3M vs $229K). This narrow margin raises concern about the company's ability to service its debt if operating income declines.

Key Financial Metrics

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Earnings & Revenue

Revenue

$6.8M

YoY-18.0%

HAPPY CITY HLDGS LTD generated $6.8M in revenue in fiscal year 2025. This represents a decrease of 18.0% from the prior year.

EBITDA

-$1.7M

YoY-188.4%

HAPPY CITY HLDGS LTD's EBITDA was -$1.7M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 188.4% from the prior year.

Net Income

-$2.4M

YoY-284.1%

HAPPY CITY HLDGS LTD reported -$2.4M in net income in fiscal year 2025. This represents a decrease of 284.1% from the prior year.

EPS (Diluted)

N/A

Cash & Balance Sheet

Free Cash Flow

-$2.2M

YoY-541.0%

HAPPY CITY HLDGS LTD generated -$2.2M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 541.0% from the prior year.

Cash & Debt

$3.4M

YoY+14.8%

HAPPY CITY HLDGS LTD held $3.4M in cash against $3.2M in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

N/A

Margins & Returns

Gross Margin

12.6%

YoY-14.7pp

HAPPY CITY HLDGS LTD's gross margin was 12.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 14.7 percentage points from the prior year.

Operating Margin

-33.5%

YoY-49.3pp

HAPPY CITY HLDGS LTD's operating margin was -33.5% in fiscal year 2025, reflecting core business profitability. This is down 49.3 percentage points from the prior year.

Net Margin

-35.7%

YoY-51.6pp

HAPPY CITY HLDGS LTD's net profit margin was -35.7% in fiscal year 2025, showing the share of revenue converted to profit. This is down 51.6 percentage points from the prior year.

Return on Equity

-110.1%

YoY-329.3pp

HAPPY CITY HLDGS LTD's ROE was -110.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 329.3 percentage points from the prior year.

Capital Allocation

R&D Spending

N/A

Share Buybacks

N/A

Capital Expenditures

$908K

YoY+17.7%

HAPPY CITY HLDGS LTD invested $908K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 17.7% from the prior year.

HCHL Income Statement

Metric	FY25	FY24	FY23
Revenue	$6.8M-18.0%	$8.3M+22.8%	$6.8M
Cost of Revenue	$5.9M-1.5%	$6.0M+0.8%	$6.0M
Gross Profit	$857K-62.1%	$2.3M+193.8%	$770K
R&D Expenses	N/A	N/A	N/A
SG&A Expenses	N/A	N/A	N/A
Operating Income	-$2.3M-273.5%	$1.3M+232.2%	-$992K
Interest Expense	$229K+25.5%	$182K+9.1%	$167K
Income Tax	-$24K-515.9%	-$4K-106.4%	$61K
Net Income	-$2.4M-284.1%	$1.3M+221.5%	-$1.1M
EPS (Diluted)	N/A	N/A	N/A

Metric	Q4'25	Q4'24
Revenue	N/A	N/A
Cost of Revenue	N/A	N/A
Gross Profit	N/A	N/A
R&D Expenses	N/A	N/A
SG&A Expenses	N/A	N/A
Operating Income	N/A	N/A
Interest Expense	N/A	N/A
Income Tax	N/A	N/A
Net Income	N/A	N/A
EPS (Diluted)	N/A	N/A

HCHL Balance Sheet

Metric	FY25	FY24	FY23
Total Assets	$8.0M+15.0%	$7.0M	N/A
Current Assets	$4.2M+32.5%	$3.1M	N/A
Cash & Equivalents	$3.4M+14.8%	$2.9M+1489.3%	$185K
Inventory	$35K-7.8%	$38K	N/A
Accounts Receivable	$32K-10.4%	$35K	N/A
Goodwill	N/A	N/A	N/A
Total Liabilities	$5.8M-8.8%	$6.4M	N/A
Current Liabilities	$5.0M-9.8%	$5.5M	N/A
Long-Term Debt	$3.2M-9.2%	$3.5M	N/A
Total Equity	$2.2M+266.5%	$602K+141.1%	-$1.5M
Retained Earnings	-$2.6M-1674.4%	-$145K	N/A

Metric	Q4'25	Q4'24
Total Assets	$8.0M+15.0%	$7.0M
Current Assets	$4.2M+32.5%	$3.1M
Cash & Equivalents	$3.4M+14.8%	$2.9M
Inventory	$35K-7.8%	$38K
Accounts Receivable	$32K-10.4%	$35K
Goodwill	N/A	N/A
Total Liabilities	$5.8M-8.8%	$6.4M
Current Liabilities	$5.0M-9.8%	$5.5M
Long-Term Debt	$3.2M-9.2%	$3.5M
Total Equity	$2.2M+266.5%	$602K
Retained Earnings	-$2.6M-1674.4%	-$145K

HCHL Cash Flow Statement

Metric	FY25	FY24	FY23
Operating Cash Flow	-$1.3M-200.2%	$1.3M+287.1%	-$676K
Capital Expenditures	$908K+17.7%	$772K+7984.4%	$10K
Free Cash Flow	-$2.2M-541.0%	$493K+171.9%	-$686K
Investing Cash Flow	-$1.2M-57.8%	-$772K-7984.4%	-$10K
Financing Cash Flow	$2.9M+28.3%	$2.3M+475.7%	$392K
Dividends Paid	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A

Metric	Q4'25	Q4'24
Operating Cash Flow	N/A	N/A
Capital Expenditures	N/A	N/A
Free Cash Flow	N/A	N/A
Investing Cash Flow	N/A	N/A
Financing Cash Flow	N/A	N/A
Dividends Paid	N/A	N/A
Share Buybacks	N/A	N/A

HCHL Financial Ratios

Metric	FY25	FY24	FY23
Gross Margin	12.6%-14.7pp	27.3%+15.9pp	11.4%
Operating Margin	-33.5%-49.3pp	15.8%+30.5pp	-14.7%
Net Margin	-35.7%-51.6pp	15.9%+32.0pp	-16.1%
Return on Equity	-110.1%-329.3pp	219.2%	N/A
Return on Assets	-30.3%-49.2pp	18.9%	N/A
Current Ratio	0.83+0.3	0.57	N/A
Debt-to-Equity	1.43-4.3	5.78	N/A
FCF Margin	-32.0%-37.9pp	5.9%+16.1pp	-10.2%

Metric	Q4'25	Q4'24
Gross Margin	N/A	N/A
Operating Margin	N/A	N/A
Net Margin	N/A	N/A
Return on Equity	N/A	N/A
Return on Assets	N/A	N/A
Current Ratio	0.83+0.3	0.57
Debt-to-Equity	1.43-4.3	5.78
FCF Margin	N/A	N/A

Note: The current ratio is below 1.0 (0.83), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

Frequently Asked Questions

What is HAPPY CITY HLDGS LTD's annual revenue?

HAPPY CITY HLDGS LTD (HCHL) reported $6.8M in total revenue for fiscal year 2025. This represents a -18.0% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is HAPPY CITY HLDGS LTD's revenue growing?

HAPPY CITY HLDGS LTD (HCHL) revenue declined by 18% year-over-year, from $8.3M to $6.8M in fiscal year 2025.

Is HAPPY CITY HLDGS LTD profitable?

No, HAPPY CITY HLDGS LTD (HCHL) reported a net income of -$2.4M in fiscal year 2025, with a net profit margin of -35.7%.

What is HAPPY CITY HLDGS LTD's EBITDA?

HAPPY CITY HLDGS LTD (HCHL) had EBITDA of -$1.7M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does HAPPY CITY HLDGS LTD have?

As of fiscal year 2025, HAPPY CITY HLDGS LTD (HCHL) had $3.4M in cash and equivalents against $3.2M in long-term debt.

What is HAPPY CITY HLDGS LTD's gross margin?

HAPPY CITY HLDGS LTD (HCHL) had a gross margin of 12.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is HAPPY CITY HLDGS LTD's operating margin?

HAPPY CITY HLDGS LTD (HCHL) had an operating margin of -33.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is HAPPY CITY HLDGS LTD's net profit margin?

HAPPY CITY HLDGS LTD (HCHL) had a net profit margin of -35.7% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is HAPPY CITY HLDGS LTD's return on equity (ROE)?

HAPPY CITY HLDGS LTD (HCHL) has a return on equity of -110.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is HAPPY CITY HLDGS LTD's free cash flow?

HAPPY CITY HLDGS LTD (HCHL) generated -$2.2M in free cash flow during fiscal year 2025. This represents a -541.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is HAPPY CITY HLDGS LTD's operating cash flow?

HAPPY CITY HLDGS LTD (HCHL) generated -$1.3M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are HAPPY CITY HLDGS LTD's total assets?

HAPPY CITY HLDGS LTD (HCHL) had $8.0M in total assets as of fiscal year 2025, including both current and long-term assets.

What are HAPPY CITY HLDGS LTD's capital expenditures?

HAPPY CITY HLDGS LTD (HCHL) invested $908K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

What is HAPPY CITY HLDGS LTD's current ratio?

HAPPY CITY HLDGS LTD (HCHL) had a current ratio of 0.83 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.

What is HAPPY CITY HLDGS LTD's debt-to-equity ratio?

HAPPY CITY HLDGS LTD (HCHL) had a debt-to-equity ratio of 1.43 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is HAPPY CITY HLDGS LTD's return on assets (ROA)?

HAPPY CITY HLDGS LTD (HCHL) had a return on assets of -30.3% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is HAPPY CITY HLDGS LTD's cash runway?

Based on fiscal year 2025 data, HAPPY CITY HLDGS LTD (HCHL) had $3.4M in cash against an annual operating cash burn of $1.3M. This gives an estimated cash runway of approximately 32 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.

What is HAPPY CITY HLDGS LTD's Piotroski F-Score?

HAPPY CITY HLDGS LTD (HCHL) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are HAPPY CITY HLDGS LTD's earnings high quality?

HAPPY CITY HLDGS LTD (HCHL) has an earnings quality ratio of 0.52x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can HAPPY CITY HLDGS LTD cover its interest payments?

HAPPY CITY HLDGS LTD (HCHL) has an interest coverage ratio of -10.0x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is HAPPY CITY HLDGS LTD?

HAPPY CITY HLDGS LTD (HCHL) scores 26 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.