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Wetouch Technology Inc Financials

WETH
Source SEC Filings (10-K/10-Q) Updated Mar 31, 2026 Currency USD FYE December

This page shows Wetouch Technology Inc (WETH) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 7 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 WETH FY2025

Wetouch’s operating model now looks less margin-rich, while a cash-heavy, near-debt-free balance sheet keeps the business financially unconstrained.

FY2025 profit converted into cash far better than FY2024: operating cash flow of $7.4M nearly matched net income of $7.2M, after a FY2024 gap where $6.0M of earnings produced only $1.1M of operating cash flow. Coupled with cash rising to $118.4M while liabilities fell to $3.2M, that suggests the FY2024 cash shortfall was a working-capital interruption, not dependence on borrowing or heavy reinvestment.

Margins have reset lower since FY2023, but not because revenue collapsed: sales reached $45.1M in FY2025 versus $39.7M in FY2023, while gross margin fell from 43.3% to 31.8% and operating margin from 31.9% to 22.1%. That pattern points to changed cost mix or weaker unit economics, rather than simple fixed-cost absorption from scale.

The balance sheet is doing more storing cash than funding expansion: cash equals about 84.2% of FY2025 assets, inventory is only $45K, and capex was just $322K. So assets have swollen, but the operating business still looks light on physical reinvestment, which helps explain why return on assets remained only 5.1% despite ongoing profitability.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 67 / 100
Financial Profile 67/100

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 Wetouch Technology Inc'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
76

Wetouch Technology Inc has an operating margin of 22.1%, meaning the company retains $22 of operating profit per $100 of revenue. This strong profitability earns a score of 76/100, reflecting efficient cost management and pricing power. This is up from 22.0% the prior year.

Growth
44

Wetouch Technology Inc's revenue grew 6.8% year-over-year to $45.1M, a solid pace of expansion. This earns a growth score of 44/100.

Leverage
100

Wetouch Technology Inc carries a low D/E ratio of 0.02, meaning only $0.02 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.

Liquidity
100

With a current ratio of 38.88, Wetouch Technology Inc holds $38.88 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 100/100.

Cash Flow
59

Wetouch Technology Inc has a free cash flow margin of 15.7%, earning a moderate score of 59/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns
23

Wetouch Technology Inc generates a 5.2% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 23/100. This is up from 4.8% the prior year.

Altman Z-Score Safe
5.66

Wetouch Technology Inc scores 5.66, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($17.5M) relative to total liabilities ($3.2M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Neutral
6/9

Wetouch Technology Inc passes 6 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 2 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Cash-Backed
1.03x

For every $1 of reported earnings, Wetouch Technology Inc generates $1.03 in operating cash flow ($7.4M OCF vs $7.2M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Key Financial Metrics

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Earnings & Revenue

Revenue
$45.1M
YoY+6.8%
5Y CAGR+7.6%

Wetouch Technology Inc generated $45.1M in revenue in fiscal year 2025. This represents an increase of 6.8% from the prior year.

EBITDA
$10.0M
YoY+7.1%
5Y CAGR-5.0%

Wetouch Technology Inc's EBITDA was $10.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 7.1% from the prior year.

Net Income
$7.2M
YoY+18.7%
5Y CAGR-4.3%

Wetouch Technology Inc reported $7.2M in net income in fiscal year 2025. This represents an increase of 18.7% from the prior year.

EPS (Diluted)
$0.60
YoY+15.4%

Wetouch Technology Inc earned $0.60 per diluted share (EPS) in fiscal year 2025. This represents an increase of 15.4% from the prior year.

Cash & Balance Sheet

Free Cash Flow
$7.1M
YoY+786.7%

Wetouch Technology Inc generated $7.1M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 786.7% from the prior year.

Cash & Debt
$118.4M
YoY+14.1%
5Y CAGR+37.6%

Wetouch Technology Inc held $118.4M in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share
N/A
Shares Outstanding
12M
YoY+0.0%

Wetouch Technology Inc had 12M shares outstanding in fiscal year 2025. This represents an increase of 0.0% from the prior year.

Margins & Returns

Gross Margin
31.8%
YoY-0.3pp
5Y CAGR-18.0pp

Wetouch Technology Inc's gross margin was 31.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.3 percentage points from the prior year.

Operating Margin
22.1%
YoY+0.0pp
5Y CAGR-15.8pp

Wetouch Technology Inc's operating margin was 22.1% in fiscal year 2025, reflecting core business profitability. This is up 0.0 percentage points from the prior year.

Net Margin
15.9%
YoY+1.6pp
5Y CAGR-12.6pp

Wetouch Technology Inc's net profit margin was 15.9% in fiscal year 2025, showing the share of revenue converted to profit. This is up 1.6 percentage points from the prior year.

Return on Equity
5.2%
YoY+0.4pp
5Y CAGR-14.9pp

Wetouch Technology Inc's ROE was 5.2% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 0.4 percentage points from the prior year.

Capital Allocation

R&D Spending
N/A
Share Buybacks
N/A
Capital Expenditures
$322K
YoY+18.6%

Wetouch Technology Inc invested $322K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 18.6% from the prior year.

WETH Income Statement

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Revenue $16.3M+210.8% $5.2M-56.9% $12.2M-1.9% $12.4M-18.8% $15.3M+321.1% $3.6M-68.5% $11.5M-5.7% $12.2M
Cost of Revenue $10.5M+127.6% $4.6M-43.8% $8.2M-1.3% $8.3M-13.9% $9.6M+262.9% $2.7M-62.6% $7.1M-3.7% $7.4M
Gross Profit $5.8M+811.9% $639K-84.0% $4.0M-3.2% $4.1M-27.1% $5.6M+480.6% $972K-78.1% $4.4M-8.7% $4.9M
R&D Expenses N/A N/A N/A N/A N/A N/A $44K+1.5% $43K
SG&A Expenses $579K-10.3% $646K-8.9% $709K-22.4% $914K-41.6% $1.6M+7.8% $1.5M+93.6% $750K-6.5% $803K
Operating Income $5.1M+2459.0% -$216K-106.9% $3.1M+1.4% $3.1M-22.4% $4.0M+2129.6% -$196K-105.6% $3.5M-6.5% $3.7M
Interest Expense N/A N/A N/A N/A N/A N/A N/A N/A
Income Tax $1.2M+8275.6% $15K-97.7% $636K-27.5% $877K-40.4% $1.5M+1874.0% -$83K-108.5% $979K-10.9% $1.1M
Net Income $3.9M+2357.9% -$171K-106.8% $2.5M+12.7% $2.2M-12.5% $2.6M+2232.0% $110K-95.9% $2.7M-1.5% $2.7M
EPS (Diluted) $0.32 N/A $0.21+10.5% $0.19-9.5% $0.21 N/A $0.22-4.3% $0.23

WETH Balance Sheet

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Total Assets $147.3M+4.7% $140.6M+0.5% $139.9M+2.1% $137.0M+2.5% $133.7M+4.4% $128.0M-3.8% $133.1M+5.7% $125.9M
Current Assets $132.7M+5.2% $126.1M+0.7% $125.2M+1.6% $123.2M+2.8% $119.8M+5.0% $114.1M-4.9% $120.0M+6.0% $113.2M
Cash & Equivalents $120.5M+1.8% $118.4M+4.6% $113.2M+2.5% $110.5M+3.8% $106.4M+2.6% $103.8M-2.8% $106.7M+8.5% $98.4M
Inventory $29K-35.7% $45K-3.6% $47K-67.8% $146K-0.7% $147K+30.5% $112K-40.1% $187K+4.5% $179K
Accounts Receivable $11.1M+70.0% $6.5M-39.8% $10.8M+0.7% $10.7M-3.3% $11.1M+47.9% $7.5M-22.9% $9.7M-10.1% $10.8M
Goodwill N/A N/A N/A N/A N/A N/A N/A N/A
Total Liabilities $4.1M+26.9% $3.2M-31.6% $4.7M-9.2% $5.2M-10.0% $5.8M+68.8% $3.4M-6.4% $3.7M+6.4% $3.4M
Current Liabilities $4.1M+26.9% $3.2M-30.8% $4.7M-6.5% $5.0M-7.9% $5.4M+84.5% $3.0M-14.6% $3.5M+10.9% $3.1M
Long-Term Debt N/A N/A N/A N/A N/A N/A N/A N/A
Total Equity $143.2M+4.2% $137.4M+1.6% $135.2M+2.6% $131.8M+3.1% $127.9M+2.6% $124.6M-3.8% $129.5M+5.7% $122.5M
Retained Earnings $85.7M+4.7% $81.8M-0.2% $82.0M+3.2% $79.4M+2.9% $77.2M+3.4% $74.6M-1.0% $75.4M+3.7% $72.7M

WETH Cash Flow Statement

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Operating Cash Flow $520K+147.4% -$1.1M-128.8% $3.8M+44.5% $2.6M+29.3% $2.0M+12.4% $1.8M-60.5% $4.6M+18.3% $3.9M
Capital Expenditures N/A N/A N/A N/A N/A $153K+3336.0% $4K+27.9% $3K
Free Cash Flow N/A N/A N/A N/A N/A $1.7M-63.8% $4.6M+18.3% $3.9M
Investing Cash Flow N/A N/A N/A N/A N/A -$153K-3336.0% -$4K-27.9% -$3K
Financing Cash Flow N/A N/A N/A N/A N/A -$435K-354.7% $171K-50.8% $347K
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

WETH Financial Ratios

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Gross Margin 35.7%+23.5pp 12.2%-20.5pp 32.7%-0.4pp 33.1%-3.8pp 36.9%+10.1pp 26.8%-11.7pp 38.5%-1.3pp 39.7%
Operating Margin 31.2%+35.3pp -4.1%-29.8pp 25.7%+0.8pp 24.8%-1.2pp 26.0%+31.4pp -5.4%-35.6pp 30.2%-0.3pp 30.4%
Net Margin 23.7%+27.0pp -3.3%-24.0pp 20.8%+2.7pp 18.1%+1.3pp 16.8%+13.7pp 3.0%-20.0pp 23.1%+1.0pp 22.1%
Return on Equity 2.7%+2.8pp -0.1%-2.0pp 1.9%+0.2pp 1.7%-0.3pp 2.0%+1.9pp 0.1%-2.0pp 2.1%-0.2pp 2.2%
Return on Assets 2.6%+2.7pp -0.1%-1.9pp 1.8%+0.2pp 1.6%-0.3pp 1.9%+1.8pp 0.1%-1.9pp 2.0%-0.1pp 2.1%
Current Ratio 32.24-6.6 38.88+12.2 26.69+2.1 24.56+2.6 22.01-16.7 38.68+3.9 34.75-1.6 36.36
Debt-to-Equity 0.030.0 0.02-0.0 0.040.0 0.040.0 0.05+0.0 0.030.0 0.030.0 0.03
FCF Margin N/A N/A N/A N/A N/A 45.8%+6.0pp 39.8%+8.1pp 31.7%

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Frequently Asked Questions

Wetouch Technology Inc (WETH) reported $45.1M in total revenue for fiscal year 2025. This represents a 6.8% 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.

Wetouch Technology Inc (WETH) revenue grew by 6.8% year-over-year, from $42.3M to $45.1M in fiscal year 2025.

Yes, Wetouch Technology Inc (WETH) reported a net income of $7.2M in fiscal year 2025, with a net profit margin of 15.9%.

Wetouch Technology Inc (WETH) reported diluted earnings per share of $0.60 for fiscal year 2025. This represents a 15.4% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Wetouch Technology Inc (WETH) had EBITDA of $10.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

Wetouch Technology Inc (WETH) had a gross margin of 31.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

Wetouch Technology Inc (WETH) had an operating margin of 22.1% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Wetouch Technology Inc (WETH) had a net profit margin of 15.9% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Wetouch Technology Inc (WETH) has a return on equity of 5.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

Wetouch Technology Inc (WETH) generated $7.1M in free cash flow during fiscal year 2025. This represents a 786.7% 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.

Wetouch Technology Inc (WETH) generated $7.4M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Wetouch Technology Inc (WETH) had $140.6M in total assets as of fiscal year 2025, including both current and long-term assets.

Wetouch Technology Inc (WETH) invested $322K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Wetouch Technology Inc (WETH) had 12M shares outstanding as of fiscal year 2025.

Wetouch Technology Inc (WETH) had a current ratio of 38.88 as of fiscal year 2025, which is generally considered healthy.

Wetouch Technology Inc (WETH) had a debt-to-equity ratio of 0.02 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Wetouch Technology Inc (WETH) had a return on assets of 5.1% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Wetouch Technology Inc (WETH) has an Altman Z-Score of 5.66, placing it in the Safe Zone (low 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.

Wetouch Technology Inc (WETH) has a Piotroski F-Score of 6 out of 9, indicating neutral 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.

Wetouch Technology Inc (WETH) has an earnings quality ratio of 1.03x, considered cash-backed (high quality). 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.

Wetouch Technology Inc (WETH) scores 67 out of 100 on our Financial Profile, indicating strong 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.

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