Fitell Corporation Announces Fiscal Year 2025 Results

Rhea-AI Summary

Fitell (NASDAQ: FTEL) reported fiscal year ended June 30, 2025 results showing revenue $5.20M (+16.4% YoY), gross profit $2.04M (+28.8% YoY) and gross margin 39.3% (+380 bps). Total operating expenses fell to $3.68M (−61.6% YoY), driving an improved net loss of $0.68M (−92.7% YoY) and basic/diluted EPS of −$0.53. Cash and cash equivalents were $2.89M at June 30, 2025. Subsequent events include a $15M first closing under a $100M facility, a closed $50M stablecoin-linked financing, launch of a Solana-based treasury and formation of 2F Robotics with a robotics partner.

Positive

• Revenue +16.4% year-over-year to $5.20M
• Gross profit +28.8% year-over-year to $2.04M
• Gross margin expanded 380 basis points to 39.3%
• Operating expenses down 61.6% to $3.68M
• Closed $50M stablecoin-linked financing in November 2025
• First closing of $15M under $100M facility for digital treasury

Negative

• Loss from operations of $1.64M in FY2025
• Net cash used in operating activities $(1.02M) for FY2025

Insights

Corporate Finance Analyst

Revenue and margins improved; financing and new ventures materially change treasury and strategic scope.

Revenue rose to $5.20 million in FY2025, up 16.4%, and gross profit increased to $2.04 million (gross margin 39.3%, +380 bps). Operating expenses fell sharply to $3.68 million (down 61.6%), driven by lower consulting and G&A, producing a much smaller net loss of $(0.68) million versus $(9.31) million a year earlier and EPS improvement to $(0.53). Cash and cash equivalents increased to $2.89 million and total stockholders’ equity stands at $9.19 million.

The company also shifted treasury and capital strategy: it initiated a Solana-based digital-asset treasury in September 2025, executed initial PUMP token purchases, completed a first closing of $15 million under a $100 million facility, and closed a $50 million stablecoin-linked financing in November 2025. Management formed 2F Robotics and announced a product development partnership with GZ Fukonn Vanguard Intelligent Technology. The balance sheet shows increased inventory and a $2.5 million note receivable; total assets roughly unchanged year over year at $11.40 million. Change in fair value of warrants and related noncash items materially affected other income and operating cash reconciliation.

Dependencies and risks are clear in the disclosures: continued operating improvement depends on merchandise sales and the stated goal that legacy businesses generate positive operating cash flows in FY2026, a forward-looking claim included by management. The new digital-asset and stablecoin positions and the formation of a robotics platform materially change funding composition and introduce market, counterparty, and regulatory vectors not quantified in the financials. Key near-term items to monitor are cash composition and liquid balance across cash, stablecoins, SOL and PUMP, the use and terms of the $50 million stablecoin financing, inventory turnover metrics, and whether operating cash flow turns positive in FY2026.

Taren Point, Australia, Nov. 17, 2025 (GLOBE NEWSWIRE) -- Fitell Corporation (NASDAQ: FTEL) (“Fitell” or the “Company”) today reported financial results for the fiscal year ended June 30, 2025.

• Revenue was $5.20 million, up 16.4% year over year, driven by increasing merchandise sales of gym and fitness equipment and products, supported by higher order volume and improved average order value.
• Gross profit was $2.04 million, up 28.8% year over year; gross margin was 39.3%, up 380 bps, reflecting the results of the newly implemented pricing strategy.
• Total operating expenses were $3.68 million, down 61.6% year over year, primarily due to the Company’s cost cutting efforts in general and administrative expenses.
• Cash and cash equivalent as of June 30, 2025 was $2.9 million, or $2.2 per share on a post share consolidation basis as compared to $0.9 million a year ago.
• Total stockholders’ equity stood at $9.2 million, or $7.0 per share, as compared to $9.0 million a year ago.
• Loss from operations was $1.64 million, up 79.5% year over year, as higher gross profit combined with lower operating expenses.
• Net loss was $0.68 million, improved by 92.7% year over year, as a result of revenue growth and overall expense reductions, partially offset by warrant extinguishment cost and amortized expenses related to the Company’s IPO expenses.
• Basic and diluted Earning Per Share improved by 95.0% to -$0.53 in FY2025 from -$10.63 in FY2024.

“Fitell delivered double-digit revenue growth and meaningfully improved profitability metrics in FY2025. Our focus last year was strengthening our legacy gym equipment business and positioning the Company for healthy growth with financial discipline,” said Sam Lu, CEO of Fitell.

“Following year-end, we initiated two exciting and game changing corporate strategies in digital assets and AI robotics designed to leverage our existing platform and embrace new and potentially hyper growth verticals while remaining disciplined in our legacy businesses, which are expected to generate positive operation cash flows in FY2026 subjected to business and operating conditions, plus other factors uncontrollable by the management. We’re investing in the future to capitalize on emerging opportunities.”

FY 2025 Financial Highlights

The following table summarizes our financial results for the fiscal years ended June 30, 2025 and 2024 (in thousands, except percentages and per share amounts).

		Year Ended June 30,
		2025				2024				% Change
Revenues		$	5,200				4,467				16.4	%
Gross profit		$	2,042				1,586				28.8	%
Gross margin		$	39.3	%		$	35.5	%
Total operating expenses		$	3,683				9,584				(61.6	)%
Loss from operations		$	(1,641	)			(7,999	)			(79.5	)%
Net loss		$	(683	)			(9,312	)			92.7	%
Basic and diluted EPS		$	(0.53	)			(10.63	)			95.0	%

Recent Developments and Subsequent Events

• September 2025 – Digital-asset treasury. Fitell launched a Solana-based digital-asset treasury initiative and executed initial PUMP token acquisitions to seed the program, following the first closing of $15 million under the Company’s $100 million facility.
• November 2025 – $50 million Stablecoin financing & robotics. In November 2025, Fitell secured and closed a $50 million stablecoin-linked financing. Following the financing, the Company formed 2F Robotics, a platform for AI-driven advanced robotic systems. Product development will be in partnership with GZ Fukonn Vanguard Intelligent Technology, an Asia-based robotics company.
• Dymanic treasury mix. As a result, Fitell’s corporate treasury is now positioned to be diversified across cash, stablecoins, Solana (SOL), and PUMP.
  

FITELL CORPORATION
CONSOLIDATED BALANCE SHEETS

		June 30,				June 30,
		2025				2024
ASSETS
Current assets
Cash and cash equivalents		$	2,890,822			$	939,014
Investment in marketable securities			-				124,963
Accounts receivable, net			242,079				60,042
Inventory, at cost			3,042,629				2,439,793
Capital receivables of convertible notes			-				1,472,000
Note receivable			2,500,000				2,500,000
Deposits and prepaids			313,979				316,869
Prepaid offering costs			600,000				1,200,000
Total current assets			9,589,509				9,052,681
Property and equipment, net			20,122				27,133
Operating right of use asset, net			287,322				557,798
Deferred tax asset, net			-				342,122
Brand names			337,504				337,504
Goodwill			1,161,052				1,161,052
Total assets		$	11,395,509			$	11,478,290
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses		$	1,326,988			$	1,210,956
Deferred revenue			335,956				209,100
Income tax payable			196,587				408,681
Due to related parties			15,283				38,808
Current portion of operating lease liability			286,378				278,432
Total current liabilities			2,161,192				2,145,977
Accrued employee benefits, non-current			32,177				21,520
Operating lease liability, less current portion			12,182				301,921
Total liabilities			2,205,551				2,469,418
Commitments and contingencies (Note 11)			-
Stockholders’ equity:
Class A Common stock, $0.0001 par value; 493,560,000 and 500,000,000 shares authorized at June 30, 2025 and 2024, respectively, 21,020,597 and 20,123,386 Class A shares issued and outstanding at June 30, 2025 and 2024, respectively			2,102				2,012
Class B Common stock, $0.0001 par; 6,440,000 shares and nil shares authorized at June 30, 2025 and 2024 respectively. No Class B Common stock was issued at June 30, 2025 and 2024.			-				-
Common stock, value
Additional paid-in capital			19,874,591				19,014,389
Accumulated other comprehensive loss			(10,219	)			(13,737	)
Accumulated deficit			(10,676,516	)			(9,993,792	)
Total stockholders’ equity			9,189,958				9,008,872
Total liabilities and stockholders’ equity		$	11,395,509			$	11,478,290

FITELL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

		For the years ended
		June 30,
		2025				2024
Revenues:
Merchandise revenue		$	5,200,138			$	3,956,962
Sales of consumable products			-				358,536
Revenue from licensing customers			-				151,277
Total revenues			5,200,138				4,466,775
Cost of goods sold			(3,157,996	)			(2,881,060	)
Gross profit			2,042,142				1,585,715
Operating expenses:
Consulting fees			619,108				5,468,126
General and administrative expenses			1,138,266				2,452,954
Personnel expenses			1,195,958				951,451
Sales and marketing expenses			416,596				351,298
Operating lease expense			303,869				284,169
Licensing fees			-				65,839
Depreciation expense			9,467				10,385
Total operating expenses			3,683,264				9,584,222
Loss from operations			(1,641,122	)			(7,998,507	)
Other income (expenses):
Change in fair value of warrants			2,024,942				-
Loss on extinguishment of warrants			(285,346	)			-
IPO related expenses			(600,000	)			(50,523	)
Unrealized loss on investments			-				(354,781	)
Realized gain on investments			50,675				-
Other income			44				121,889
Interest income			215,586				2,574
Interest expense			(114,006	)			(1,242,140	)
Total other incomes (expenses)			1,291,895				(1,522,981	)
Loss before taxes			(349,227	)			(9,521,488	)
Income tax expense (benefit)			333,497				(209,343	)
Net loss			(682,724	)			(9,312,145	)
Foreign currency translation adjustment			3,518				(13,673	)
Comprehensive loss		$	(679,206	)		$	(9,325,818	)
Basic and diluted loss per share on net loss		$	(0.53	)		$	(10.63	)
Weighted average shares outstanding - basic and diluted			1,277,346				876,266

FITELL CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED JUNE 30, 2025 AND 2024

		Common Stock								Additional Paid-in				Accumulated Other Comprehensive				Retained Earnings (Accumulated
		Shares				Amount				Capital				Income (Loss)				Deficit)				Total
Balance July 1, 2023			8,120,000			$	812			$	7,097,822			$	(64	)		$	(681,647	)		$	6,416,923
Funds raised in IPO			3,000,000				300				7,497,342				-				-				7,497,642
Shares issued for conversion of debt			4,090,909				409				3,599,591				-				-				3,600,000
Shares issued for conversion of debt			4,892,727				489				819,599				-				-				820,088
Shares issued pursuant to underwriter’s warrants			19,750				2				35				-				-				37
Foreign currency translation adjustment			-				-				-				(13,673	)			-				(13,673	)
Net loss			-				-				-				-				(9,312,145	)			(9,312,145	)
Balance June 30, 2024			20,123,386			$	2,012			$	19,014,389			$	(13,737	)		$	(9,993,792	)		$	9,008,872
Funds raised in Registered Direct Offering			796,813				80				869,750				-				-				869,830
Share issued for repurchase of warrants			100,398				10				(9,548	)			-				-				(9,538	)
Foreign currency translation adjustment			-				-				-				3,518				-				3,518
Net loss			-				-				-				-				(682,724	)			(682,724	)
Balance June 30, 2025			21,020,597			$	2,102			$	19,874,591			$	(10,219	)		$	(10,676,516	)		$	9,189,958

 FITELL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS

		For the years ended
		June 30,
		2025				2024
Cash Flows from Operating Activities
Net loss		$	(682,724	)		$	(9,312,145	)
Adjustments to reconcile net loss to net
cash from operating activities:
Adjustments to reconcile net loss to net cash from operating activities:
Change in fair value of warrants			(2,024,942	)			-
Loss on extinguishment of warrants			285,346				-
Depreciation			9,467				10,385
Amortization of right of use assets			303,869				284,169
Valuation allowance for deferred tax asset			342,122				-
Bad debt provision			-				579,265
Unrealized loss on investments			-				354,781
Realized gain on investments			(50,675	)			-
Amortization of debt discount			-				1,108,088
Stock issued for services			-				37
Changes in operating assets and liabilities
Accounts receivable			(184,493	)			(449,210	)
Inventory, at cost			(602,836	)			(1,914,007	)
Capital receivables of convertible notes			1,472,000				-
Deposits and other current assets			2,890				(303,457	)
Prepaid offering costs			600,000				(1,999,475	)
Deferred tax asset			-				(209,768	)
Accounts payable and accrued expenses			(96,647	)			42,233
Deferred revenue			126,856				(29,251	)
Income tax payable			(212,094	)			(77,377	)
Accrued employee benefits, non-current			10,657				3,090
Operating lease liability			(315,186	)			(340,897	)
Net cash from activities			(1,016,390	)			(12,253,539	)
Cash Flows from Investing Activities
Sales of investments			175,638				-
Investment in note receivable			-				(2,500,000	)
Net cash from investing activities			175,638				(2,500,000	)
Cash Flows from Financing Activities
Net activity on due to related parties			(23,525	)			14,422
Funds raised in IPO, gross			-				13,614,983
Funds raised in Registered Direct Offering, gross			3,496,303				-
Funds raised in note payables, net			212,679				1,840,000
Repurchase of warrants			(896,415	)			-
Net cash from financing activities			2,789,042				15,469,405
Foreign currency translation adjustment			3,518				(13,673	)
Change in cash and cash equivalents			1,951,808				702,193
Cash and cash equivalents at beginning of period			939,014				236,821
Cash and cash equivalents at end of period		$	2,890,822			$	939,014
Supplemental Cash Flow Information
Cash paid for interest		$	-			$	-
Cash paid for income taxes		$	243,294			$	247,313

About Fitell Corporation

Fitell Corporation, through GD Wellness Pty Ltd (“GD”), its wholly owned subsidiary, is an online retailer of gym and fitness equipment both under its proprietary brands and other brand names in Australia. The company’s mission is to build an ecosystem with a whole fitness and wellness experience powered by technology to our customers. GD has served over 100,000 customers with large portions of sales from repeat customers over the years. The Company’s brand portfolio can be categorized into three proprietary brands under its Gym Direct brand: Muscle Motion, Rapid Motion, and FleetX, in over 2,000 stock-keeping units (SKUs). For additional information, please visit the Company’s website at www.fitellcorp.com.

Forward-Looking Statements

Certain statements in this release, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result" and similar expressions. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward-looking statements. Risks and uncertainties include without limitation: effects of global and regional economic conditions, including as a result of government policies, trade and other international disputes, geopolitical tensions, conflict, terrorism, natural disasters, and public health issues; risks relating to the design, manufacture, introduction, and transition of products and services in highly competitive and rapidly changing markets, including from reliance on third parties for components, technology, manufacturing, applications, services, support, and content; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; and effects of unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, except to the extent required by law. We cannot guarantee that future results reflected in the forward-looking statements will occur. Important factors that could cause actual results to differ materially include, but are not limited to the risks and uncertainties described in our most recently filed annual report on Form 20-F and Form 6-K reports filed in connection with our earnings result and other filings with the Securities and Exchange Commission.

For more information, please contact:

Chief Financial Officer
Edwin Tam
edwin@gymdirect.com.au

Investor Relations
ir@fitellcorp.com

FAQ

What were Fitell (FTEL) fiscal year 2025 revenues and growth rate?

Fitell reported $5.20M in revenue for FY2025, up 16.4% YoY.

How did Fitell (FTEL) profitability change in FY2025?

Gross profit rose to $2.04M (+28.8% YoY); net loss improved to $0.68M (−92.7% YoY).

What is Fitell's (FTEL) cash position at June 30, 2025?

Cash and cash equivalents were $2.89M at June 30, 2025.

What financings did Fitell (FTEL) complete after year-end in 2025?

Fitell completed a $15M first closing under a $100M facility and a closed $50M stablecoin-linked financing in November 2025.

What new business initiatives did Fitell (FTEL) announce in late 2025?

Fitell launched a Solana-based digital-asset treasury, acquired initial PUMP tokens, and formed 2F Robotics for AI-driven robotics development.

Will Fitell's (FTEL) legacy business generate positive operating cash flow in FY2026?

Management stated legacy businesses are expected to generate positive operating cash flows in FY2026, subject to business and operating conditions.