SOS Limited Reports 2025 Semi-Annual Financial Results

Rhea-AI Summary

SOS Limited (NYSE:SOS) reported its H1 2025 financial results, showing mixed performance. The company achieved revenue of $89.6 million, a 48.1% increase year-over-year, primarily driven by natural rubber sales in its Commodities Trading segment, which represented 94.9% of total revenue.

However, SOS reported a GAAP net loss of $14.2 million, up 30.3% from the previous year's loss, with a negative gross margin of -1.5%. The company's cash position decreased significantly to $4.2 million from $246.7 million, largely due to a $228.4 million strategic prepayment for blockchain commodity trading platform development.

The company has temporarily suspended its Bitcoin mining operations to focus on hosting services and announced plans to seek additional capital through a registered direct offering.

Positive

• None.

Negative

• GAAP net loss increased 30.3% to $14.2 million
• Negative gross margin of -1.5% compared to positive 4% in previous period
• Cash position severely decreased to $4.2M from $246.7M
• Loss of over $1.6M due to falling rubber spot prices
• Operating costs increased 56.5% to $90.9 million
• Company needs additional capital through registered direct offering

Insights

Financial Analyst

SOS reports 48% revenue growth but posts net loss with concerning cash position, raising questions about strategic prepayments.

SOS Limited's H1 2025 results paint a complex financial picture. While revenue grew 48.1% to $89.6 million compared to H1 2024, the company swung from a gross profit of $2.4 million to a gross loss of $1.3 million, resulting in a negative gross margin of -1.5%. This deterioration occurred despite higher sales, primarily due to falling commodity prices affecting their rubber and petroleum coke trading business, which now comprises 94.9% of revenue.

The company's net loss expanded to $14.2 million, up 30.3% from the prior year's $10.9 million loss. Operating costs increased 56.5% to $90.9 million, outpacing revenue growth. While general and administrative expenses decreased 35% to $9.4 million due to fully impaired mining machines requiring no depreciation, this operational benefit was offset by other challenges.

Most concerning is the dramatic cash position reduction from $246.7 million to just $4.2 million - a 98.3% decrease. This precipitous drop resulted primarily from a $228.4 million strategic prepayment for blockchain commodity trading platform development. Such a massive allocation of cash reserves to a single development initiative represents a substantial risk, especially when core operations are unprofitable.

The company has pivoted away from cryptocurrency self-mining to focus on commodity trading and hosting services. Their explicit strategy of pursuing market share over profitability explains the negative margins but creates significant near-term financial vulnerability. Management indicates they're pursuing both internal optimizations and external capital through registered offerings to address liquidity concerns, which appears increasingly urgent given the current cash position.

QINGDAO, China, Sept. 26, 2025 /PRNewswire/ -- SOS Limited ("SOS" or the "Company") (NYSE: SOS) today reported its semi-annual financial results for the six-months ended June 30, 2025.

In compliance with the New York Stock Exchange rules, the Form 6-K is available on the Company's website at http://www.sosyun.com/. In addition, all shareholders of the Company may request, free of charge, a hard copy of the Company's complete audited financial statements filed with the SEC. To request a hard copy of the Company's audited financial statements, or for any other inquiry in respect of this press release, please contact the Investor Relations Department of the Company, whose contact information is as follows: ir@sosyun.com.

Interim Financial Results from Operations

Six months ended June 30, 2025 compared to June 30, 2024

Results of operations

Revenue 

As of June 30, 2025, SOS focuses on three product and service lines including Commodities Trading, Hosting Service and Others. Commodities Trading contributes 94.9% of the total revenue, 4.3% from Hosting Services and 0.8% from Others, (i.e. legacy data mining which was disposed of in November 2022).

		Six months ended
		30-Jun-25
Revenue by Products and Services		US$				Percentage
Commodities Trading			85,011				94.9	%
Hosting Services			3,850				4.3	%
Others			734				0.8	%
Total revenue -net		$	89,595				100	%
		Six months ended
		30-Jun-24
Revenue by Products and Services		US$				Percentage
Commodity Trading			55,466				91.7	%
Hosting Services			4,719				7.8	%
Others			329				0.5	%
Total revenue -net		$	60,514				100	%

Net revenue was $89.6 million, up 48.1% from $60.5 million period-on-period. An increase in revenue is primarily due to higher sales of natural rubber, one of the key industrial materials, as the Chinese economy has continued to recover over the past six months. The ongoing recovery of the Chinese economy over the past six months has fueled increased demand for rubber products. There was no output of production from cryptocurrency mining business: to optimize the use of our limited infrastructure—specifically, physical space and electrical power—the company has decided to strategically reallocate resources toward our higher-growth segment. Effective immediately, the Company shut down temporary (at least during first half of the year) the internal Bitcoin mining operations (self-mining) to prioritize and expand our third-party mining hosting services, which have demonstrated strong and increasing demand.

Unaudited Condensed Consolidated Statements of Comprehensive Loss
(US$ thousands, except share data and per share data, or otherwise notes)
		Six months ended
		30-Jun-24				30-Jun-25
		US$				US$
Revenue			60,514				89,595
Operating costs			(58,083)				(90,904)
Gross profit			2,431				(1,309)
Gross profit ratio			4	%			(1.5)	%

 

Revenue and Service by Products
		Six months ended								Six months ended
		30-Jun-24								30-Jun-25
Revenue by Products and Services		US$				Percentage				US$				Percentage
Commodity Trading			55,466				91.7	%			85,011				94.9	%
Hosting Services			4,719				7.8	%			3,850				4.3	%
Others			329				0.5	%			734				0.8	%
Total			60,514				100	%			89,595				100	%

Costs of revenue

Operating costs were $90.9 million, up 56.5% period-on-period from $58.1 million in the six months ended June 30, 2024 which is consistent with our revenue increase. Operating costs comprised of depreciation of hardware, electricity power and depreciation from property equipment for cryptocurrency mining as well as costs of goods sold & warehouse rental for commodity trading.

Operating expenses

Selling Expenses

Selling expenses mainly relate to our commodity business and include freight-out expenses, custom clearing agency fee, warehouse rental expense, promotional expense, sales commission and payroll expenses to sales team. Selling expenses increased to $2.3 million from $2.2 million for the same period last year mainly attributable to the higher transportation costs.

General and Administrative Expenses

General and administrative expenses were $9.4 million, 35.0% down period-on-period from $14.5 million in the end of 2024. The decrease was mainly due to the fact that the mining machines have been fully impaired and no depreciation expense is recorded for them in this period.

Operating Loss

GAAP net loss was $14.2 million, compared to a net loss of $10.9 million in the six months ended of 2024, representing an increase of 30.3%. We concluded the period with a gross margin of -1.5%. This result is attributed to a sharp decline in the fair market price of our key products, rubber and petroleum coke. Specifically, we sold off a backlog of low-quality petroleum coke inventory at cost, and falling rubber spot prices caused a loss of over $1.6 million. In the face of slowing low market demand in petroleum code, our strategy has been to prioritize market share over immediate profitability for certain products. We are consciously offering competitive pricing with thin or negative margins to establish a foothold for future business expansion.

Income Tax

The Company paid $3,000 of corporate income tax for the current period as compared to NIL at the end of the six months ended June 30, 2024.

GAAP net loss attributable to ordinary shareholders was $14.2 million, as compared to a net loss of $10.9 million in the six months ended June 30, 2024.

GAAP Basic EPS was $(0. 0139) per share, as compared to $(0.0299) per share in the six months ended June 30, 2024.

 

Balance Sheet and Cash Flow
Unaudited Condensed Consolidated Statement of Cash Flow
(US$ thousands, except share data and per share data, or otherwise noted)
		Six months				Six months
		ended				ended
		30-Jun-24				30-Jun-25
		Unaudited				Unaudited
		US$				US$
Cash Flow from Operating Activities:
Net loss			(10,902)				(14,216)
Less: Net income from discontinued operation			1				-
Net loss from continuing operation			(10,903)				(14,216)
Adjustments:
Depreciation and amortization			8,765				4,871
Share-based compensation			807				1,893
Amortization of right of use assets			281				-
Accretion of finance leases			6				-
Disposition of NCI			-				6,240
Operating cash flows before movements in working capital			(1,044)				(1,212)
Changes in working capital:
Inventory			(155)				1,233
Accounts receivable			297				(780)
Other receivables			(115,566)				(250,915)
Amount due from related parties			29,739				(16)
Accrued liabilities			25,642				6,916
Accounts payable			(24,016)				813
Tax payable			400				(55)
Other payables			32,588				3,650
Amount due to related parties			(999)				-
Lease liabilities			(282)				-
Net cash used in operating activities from continuing operations			(53,396)				(246,366)
Net cash used in in generating from discontinued operating activities			1				-
Net cash used in operating activities			(53,395)				(246,366)
Cash flows from financing activities:
Repayment of principle portion of lease liabilities			(288)				-
Proceeds from share issuance, net of issuance costs			24,836				6,817
Net cash generated from/(Used in) financing activities			24,548				6,817
Net decrease in cash and cash equivalents			(28,847)				(233,549)
Cash and cash equivalents at beginning of the period			279,177				237,484
Effect of exchange rates on cash and cash equivalents			(3,603)				228
Cash and cash equivalents at end of the period			246,727				4,163
Supplemental cash flow information
Cash paid for income tax			-				3

Cash Flow Used in Operating Activities

As of June 30, 2025, the Company held $4.2 million in cash and cash equivalents, a decrease of $242.5 million from the prior year. The majority of this decrease stems from a strategic $228.4 million prepayment to secure the accelerated development of our proprietary blockchain commodity trading platform.

This decisive resource allocation was a strategic move to lock in long-term value by securing essential partner resources at a favorable cost and ensuring their undivided commitment to the project's success. This upfront payment is expected to yield significant competitive advantages and cost savings over the long term.In response to the lower liquidity position, management is pursuing a dual approach to supplement operating cash flow: optimizing internal business development and securing external capital through a registered direct offering under an F-3 or F-1 registration statement.

Cash Flow Generated from Investing Activities

The Company experienced nil investing activities for this period.

Cash Flow Used in Financing Activities

The Company raised net proceeds of approximately $6.8 million via a registered direct offering using a registration statement on Form F-3 for the six months ended June 30, 2025.

About SOS Limited

SOS is currently engaged in commodity trading and cryptocurrency mining and hosting business. Our commodity trading services are primarily delivered through our subsidiaries in China, while our cryptocurrency mining and hosting operations are managed by our subsidiaries in the U.S. For more information, please visit: http://www.sosyun.com/ .

Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws, including, but not limited to, our expectations for future financial performance, business strategies or expectations for our business. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance.  SOS cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Words such as "may," "can," "should," "will," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target," "look" or similar expressions may identify forward-looking statements.

These forward-looking statements are based on information available as of the date of this press release and our management's current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but not are limited to, the risk factors described by SOS in its filings with the Securities and Exchange Commission ("SEC").

Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements in deciding whether to invest in our securities. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

View original content:https://www.prnewswire.com/news-releases/sos-limited-reports-2025-semi-annual-financial-results-302568374.html

SOURCE SOS Limited

FAQ

What was SOS Limited's (NYSE:SOS) revenue in H1 2025?

SOS reported revenue of $89.6 million for H1 2025, representing a 48.1% increase from $60.5 million in the same period of 2024.

Why did SOS Limited's cash position decrease so significantly in H1 2025?

SOS's cash decreased to $4.2 million from $246.7 million primarily due to a $228.4 million strategic prepayment for developing their proprietary blockchain commodity trading platform.

What caused SOS Limited's negative gross margin in H1 2025?

The negative gross margin of -1.5% was caused by sharp declines in rubber prices, selling low-quality petroleum coke inventory at cost, and the company's strategy to prioritize market share over immediate profitability.

What percentage of SOS Limited's H1 2025 revenue came from Commodities Trading?

Commodities Trading contributed 94.9% of total revenue in H1 2025, followed by 4.3% from Hosting Services and 0.8% from Others.

Why did SOS Limited suspend its Bitcoin mining operations in 2025?

SOS temporarily suspended its Bitcoin mining operations to strategically reallocate resources toward third-party mining hosting services, which have demonstrated stronger demand.