Erayak Power Sol Financials

RAYA

Source SEC Filings (10-K/10-Q) Data as of Dec 31, 2025 Currency USD FYE December

This page shows Erayak Power Sol (RAYA) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 6 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 RAYA FY2025 2026-07-06

Erayak’s cash drain now comes more from working-capital build and reinvestment than from the reported loss alone.

In FY2025, revenue fell while accounts receivable and inventory still rose, helping push operating cash flow to -$3.2M despite a smaller net loss of -$1.4M; that gap shows cash is being absorbed before sales turn into cash. The same pattern made the current ratio look comfortable at 2.1x even as cash shrank to $437K, so liquidity sits mainly in stock and customer balances rather than in cash.

FY2025’s gross margin rebound to 21.3% from 13.2% did not fix profitability because SG&A expanded faster than product margin recovered. With R&D roughly steady, the heavier drag appears to be administrative and selling overhead rather than development spending.

The balance sheet is still lightly levered at 0.1x debt-to-equity, but free cash flow remained deeply negative at -$8.4M because capex jumped to $5.2M on top of negative operating cash flow. That means the business funded both operations and asset growth with external financing instead of internally generated cash.

Financial Health Signals

Financial Health Score 43/100

Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →

Health score ≠ stock price. This rates the quality of Erayak Power Sol'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

Erayak Power Sol has an operating margin of -7.2%, meaning the company retains $-7 of operating profit per $100 of revenue. This below-average margin results in a low score of 25/100, suggesting thin profitability after operating expenses. This is down from -5.1% the prior year.

Growth

Erayak Power Sol's revenue declined 24.6% year-over-year, from $30.3M to $22.9M. This contraction results in a growth score of 55/100.

Leverage

Erayak Power Sol carries a low D/E ratio of 0.10, meaning only $0.10 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 81/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

Erayak Power Sol's current ratio of 2.09 indicates adequate short-term liquidity, earning a score of 59/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow

While Erayak Power Sol generated -$3.2M in operating cash flow, capex of $5.2M consumed most of it, leaving -$8.4M in free cash flow. This results in a low score of 11/100, reflecting heavy capital investment rather than weak cash generation.

Returns

Erayak Power Sol generates a -3.9% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 28/100. This is up from -4.2% the prior year.

Altman Z-Score Distress

1.00

Erayak Power Sol scores 1.00, below the 1.81 distress threshold. This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Partial

3/8

Erayak Power Sol passes 3 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 1 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality Low Quality

2.28x

For every $1 of reported earnings, Erayak Power Sol generates $2.28 in operating cash flow (-$3.2M OCF vs -$1.4M 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

-34.2x

Erayak Power Sol earns $-34.2 in operating income for every $1 of interest expense (-$1.6M vs $48K). 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

$22.9M

YoY-24.6%

5Y CAGR+10.1%

Erayak Power Sol generated $22.9M in revenue in fiscal year 2025. This represents a decrease of 24.6% from the prior year.

EBITDA

-$1.1M

YoY+5.3%

Erayak Power Sol's EBITDA was -$1.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 5.3% from the prior year.

Net Income

-$1.4M

YoY-24.5%

Erayak Power Sol reported -$1.4M in net income in fiscal year 2025. This represents a decrease of 24.5% from the prior year.

EPS (Diluted)

N/A

Cash & Balance Sheet

Free Cash Flow

-$8.4M

YoY+48.7%

Erayak Power Sol generated -$8.4M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 48.7% from the prior year.

Cash & Debt

$437K

YoY-67.0%

Erayak Power Sol held $437K in cash against $3.4M in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

854,094

Erayak Power Sol had 854,094 shares outstanding in fiscal year 2025.

Margins & Returns

Gross Margin

21.3%

YoY+8.1pp

5Y CAGR-5.6pp

Erayak Power Sol's gross margin was 21.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 8.1 percentage points from the prior year.

Operating Margin

-7.2%

YoY-2.0pp

5Y CAGR-23.5pp

Erayak Power Sol's operating margin was -7.2% in fiscal year 2025, reflecting core business profitability. This is down 2.0 percentage points from the prior year.

Net Margin

-6.1%

YoY-2.4pp

5Y CAGR-21.8pp

Erayak Power Sol's net profit margin was -6.1% in fiscal year 2025, showing the share of revenue converted to profit. This is down 2.4 percentage points from the prior year.

Return on Equity

-3.9%

YoY+0.3pp

5Y CAGR-69.5pp

Erayak Power Sol's ROE was -3.9% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 0.3 percentage points from the prior year.

Capital Allocation

R&D Spending

$1.6M

YoY-3.7%

5Y CAGR+21.6%

Erayak Power Sol invested $1.6M in research and development in fiscal year 2025. This represents a decrease of 3.7% from the prior year.

Share Buybacks

N/A

Capital Expenditures

$5.2M

YoY+911.8%

5Y CAGR+97.0%

Erayak Power Sol invested $5.2M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 911.8% from the prior year.

RAYA Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$22.9M-24.6%	$30.3M+49.1%	$20.3M-24.5%	$26.9M+44.4%	$18.6M+31.9%	$14.1M
Cost of Revenue	$18.0M-31.6%	$26.3M+71.9%	$15.3M-24.6%	$20.3M+57.2%	$12.9M+25.1%	$10.3M
Gross Profit	$4.9M+22.0%	$4.0M-20.5%	$5.0M-24.1%	$6.6M+15.7%	$5.7M+50.6%	$3.8M
R&D Expenses	$1.6M-3.7%	$1.7M+41.9%	$1.2M+26.2%	$932K-5.5%	$987K+63.1%	$605K
SG&A Expenses	$4.0M+73.7%	$2.3M+13.8%	$2.0M+117.7%	$930K+34.6%	$691K+26.8%	$545K
Operating Income	-$1.6M-5.3%	-$1.6M-310.4%	$741K-81.8%	$4.1M+16.7%	$3.5M+51.0%	$2.3M
Interest Expense	-$48K-134.5%	$139K-65.4%	$403K-14.9%	$473K+13.3%	$418K+69.8%	$246K
Income Tax	$29K+143.6%	-$66K-134.3%	$193K-55.9%	$438K+45.0%	$302K-21.7%	$386K
Net Income	-$1.4M-24.5%	-$1.1M-191.6%	$1.2M-64.9%	$3.5M+2.4%	$3.4M+53.4%	$2.2M
EPS (Diluted)	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q4'25	Q2'25	Q4'24	Q2'24	Q4'23	Q2'23	Q4'22	Q4'21
Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
EPS (Diluted)	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

RAYA Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$59.4M+29.1%	$46.0M+30.5%	$35.3M-6.2%	$37.6M+60.2%	$23.5M	N/A
Current Assets	$43.4M+31.0%	$33.1M+49.7%	$22.1M-21.7%	$28.2M+109.2%	$13.5M	N/A
Cash & Equivalents	$437K-67.0%	$1.3M-77.5%	$5.9M-16.8%	$7.1M+36.6%	$5.2M	N/A
Inventory	$9.7M+10.1%	$8.8M+25.2%	$7.1M+13.3%	$6.2M+59.6%	$3.9M	N/A
Accounts Receivable	$13.6M+12.8%	$12.0M+92.5%	$6.3M-37.2%	$10.0M+468.0%	$1.8M	N/A
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A
Total Liabilities	$24.2M+24.3%	$19.4M+28.9%	$15.1M-17.4%	$18.3M+10.2%	$16.6M	N/A
Current Liabilities	$20.8M+33.7%	$15.5M+17.6%	$13.2M-26.8%	$18.0M+52.0%	$11.9M	N/A
Long-Term Debt	$3.4M-12.9%	$3.9M+109.1%	$1.9M+760.4%	$218K-95.4%	$4.7M	N/A
Total Equity	$35.3M+32.6%	$26.6M+31.6%	$20.2M+4.4%	$19.3M+180.6%	$6.9M+104.2%	$3.4M
Retained Earnings	$7.8M	N/A	$9.2M	N/A	N/A	N/A

Metric	Q4'25	Q2'25	Q4'24	Q2'24	Q4'23	Q2'23	Q4'22	Q4'21
Total Assets	$59.4M+20.8%	$49.2M+6.9%	$46.0M+8.5%	$42.4M+20.2%	$35.3M+1.5%	$34.8M-7.6%	$37.6M+60.2%	$23.5M
Current Assets	$43.4M+20.8%	$35.9M+8.5%	$33.1M+12.5%	$29.4M+33.1%	$22.1M0.0%	$22.1M-21.8%	$28.2M+109.2%	$13.5M
Cash & Equivalents	$437K+3.4%	$422K-68.1%	$1.3M+20.4%	$1.1M-81.3%	$5.9M+1.8%	$5.8M-18.3%	$7.1M+36.6%	$5.2M
Inventory	$9.7M+9.2%	$8.9M+0.8%	$8.8M-8.0%	$9.6M+36.1%	$7.1M+3.0%	$6.9M+10.0%	$6.2M+59.6%	$3.9M
Accounts Receivable	$13.6M+1.0%	$13.5M+11.8%	$12.0M+16.2%	$10.4M+65.6%	$6.3M+5.8%	$5.9M-40.7%	$10.0M+468.0%	$1.8M
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Liabilities	$24.2M+6.1%	$22.8M+17.2%	$19.4M+23.6%	$15.7M+4.4%	$15.1M-3.3%	$15.6M-14.6%	$18.3M+10.2%	$16.6M
Current Liabilities	$20.8M+24.0%	$16.7M+7.8%	$15.5M+10.7%	$14.0M+6.2%	$13.2M-12.8%	$15.2M-16.0%	$18.0M+52.0%	$11.9M
Long-Term Debt	$3.4M-43.6%	$6.0M+54.6%	$3.9M+128.8%	$1.7M-8.6%	$1.9M+322.5%	$443K+103.6%	$218K-95.4%	$4.7M
Total Equity	$35.3M+33.6%	$26.4M-0.7%	$26.6M-0.3%	$26.7M+32.0%	$20.2M+5.4%	$19.2M-1.0%	$19.3M+180.6%	$6.9M
Retained Earnings	N/A	N/A	N/A	$8.1M-11.5%	$9.2M	N/A	N/A	N/A

RAYA Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	-$3.2M+80.1%	-$15.9M-335.9%	$6.7M+262.1%	-$4.2M-189.4%	$4.6M+158.6%	-$7.9M
Capital Expenditures	$5.2M+911.8%	$518K-24.3%	$684K-1.5%	$695K+184.7%	$244K+38.1%	$177K
Free Cash Flow	-$8.4M+48.7%	-$16.4M-371.2%	$6.0M+224.8%	-$4.8M-210.2%	$4.4M+154.3%	-$8.1M
Investing Cash Flow	-$12.4M-1173.3%	-$972K+29.5%	-$1.4M+71.9%	-$4.9M-1905.2%	-$244K-31.3%	-$186K
Financing Cash Flow	$14.3M+15.3%	$12.4M+292.3%	-$6.4M-156.9%	$11.3M+433.4%	-$3.4M-131.1%	$10.9M
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q4'25	Q2'25	Q4'24	Q2'24	Q4'23	Q2'23	Q4'22	Q4'21
Operating Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Capital Expenditures	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Free Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Investing Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Financing Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

RAYA Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	21.3%+8.1pp	13.2%-11.5pp	24.7%+0.1pp	24.6%-6.1pp	30.7%+3.8pp	26.9%
Operating Margin	-7.2%-2.0pp	-5.1%-8.8pp	3.6%-11.5pp	15.1%-3.6pp	18.7%+2.4pp	16.4%
Net Margin	-6.1%-2.4pp	-3.7%-9.7pp	6.0%-6.9pp	12.9%-5.3pp	18.2%+2.5pp	15.7%
Return on Equity	-3.9%+0.3pp	-4.2%-10.2pp	6.0%-11.9pp	18.0%-31.3pp	49.2%-16.3pp	65.5%
Return on Assets	-2.3%+0.1pp	-2.4%-5.9pp	3.5%-5.8pp	9.2%-5.2pp	14.5%	N/A
Current Ratio	2.09-0.0	2.13+0.5	1.67+0.1	1.56+0.4	1.14	N/A
Debt-to-Equity	0.10-0.1	0.15+0.1	0.09+0.1	0.01-0.7	0.68	N/A
FCF Margin	-36.8%+17.3pp	-54.1%-83.9pp	29.8%+47.8pp	-18.0%-41.6pp	23.6%+81.0pp	-57.4%

Metric	Q4'25	Q2'25	Q4'24	Q2'24	Q4'23	Q2'23	Q4'22	Q4'21
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Equity	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Assets	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Current Ratio	2.09-0.1	2.14+0.0	2.13+0.0	2.10+0.4	1.67+0.2	1.46-0.1	1.56+0.4	1.14
Debt-to-Equity	0.10-0.1	0.23+0.1	0.15+0.1	0.06-0.0	0.09+0.1	0.02+0.0	0.01-0.7	0.68
FCF Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

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Frequently Asked Questions

What is Erayak Power Sol's annual revenue?

Erayak Power Sol (RAYA) reported $22.9M in total revenue for fiscal year 2025. This represents a -24.6% 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 Erayak Power Sol's revenue growing?

Erayak Power Sol (RAYA) revenue declined by 24.6% year-over-year, from $30.3M to $22.9M in fiscal year 2025.

Is Erayak Power Sol profitable?

No, Erayak Power Sol (RAYA) reported a net income of -$1.4M in fiscal year 2025, with a net profit margin of -6.1%.

What is Erayak Power Sol's EBITDA?

Erayak Power Sol (RAYA) had EBITDA of -$1.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Erayak Power Sol have?

As of fiscal year 2025, Erayak Power Sol (RAYA) had $437K in cash and equivalents against $3.4M in long-term debt.

What is Erayak Power Sol's gross margin?

Erayak Power Sol (RAYA) had a gross margin of 21.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is Erayak Power Sol's operating margin?

Erayak Power Sol (RAYA) had an operating margin of -7.2% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is Erayak Power Sol's net profit margin?

Erayak Power Sol (RAYA) had a net profit margin of -6.1% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is Erayak Power Sol's return on equity (ROE)?

Erayak Power Sol (RAYA) has a return on equity of -3.9% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Erayak Power Sol's free cash flow?

Erayak Power Sol (RAYA) generated -$8.4M in free cash flow during fiscal year 2025. This represents a 48.7% 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 Erayak Power Sol's operating cash flow?

Erayak Power Sol (RAYA) generated -$3.2M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Erayak Power Sol's total assets?

Erayak Power Sol (RAYA) had $59.4M in total assets as of fiscal year 2025, including both current and long-term assets.

What are Erayak Power Sol's capital expenditures?

Erayak Power Sol (RAYA) invested $5.2M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does Erayak Power Sol spend on research and development?

Erayak Power Sol (RAYA) invested $1.6M in research and development during fiscal year 2025.

How many shares does Erayak Power Sol have outstanding?

Erayak Power Sol (RAYA) had 854,094 shares outstanding as of fiscal year 2025.

What is Erayak Power Sol's current ratio?

Erayak Power Sol (RAYA) had a current ratio of 2.09 as of fiscal year 2025, which is generally considered healthy.

What is Erayak Power Sol's debt-to-equity ratio?

Erayak Power Sol (RAYA) had a debt-to-equity ratio of 0.10 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Erayak Power Sol's return on assets (ROA)?

Erayak Power Sol (RAYA) had a return on assets of -2.3% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Erayak Power Sol's cash runway?

Based on fiscal year 2025 data, Erayak Power Sol (RAYA) had $437K in cash against an annual operating cash burn of $3.2M. This gives an estimated cash runway of approximately 2 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 Erayak Power Sol's Altman Z-Score?

Erayak Power Sol (RAYA) has an Altman Z-Score of 1.00, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Erayak Power Sol's Piotroski F-Score?

Erayak Power Sol (RAYA) has a Piotroski F-Score of 3 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 Erayak Power Sol's earnings high quality?

Erayak Power Sol (RAYA) has an earnings quality ratio of 2.28x, 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 Erayak Power Sol cover its interest payments?

Erayak Power Sol (RAYA) has an interest coverage ratio of -34.2x, 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 Erayak Power Sol?

Erayak Power Sol (RAYA) scores 43 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.