1. SOS reported revenue of $89.6 million, a 48.1% increase year-over-year. 2. The commodity trading segment accounted for 94.9% of total revenue. 3. Operating costs rose to $90.9 million, up 56.5% from the prior year. 4. GAAP net loss increased to $14.2 million, up from $10.9 million last year. 5. Bitcoin mining operations were shut down to focus on third-party hosting services.
Despite revenue growth, increasing losses and rising operating costs signal concerns. Past instances show similar patterns led to stock declines.
Earnings reports significantly influence stock prices; substantial losses may drive negative sentiment.
The immediate impact of financial losses and high operating costs may affect investor sentiment quickly.
QINGDAO, China, Sept. 26, 2025 /PRNewswire/ -- SOS Limited ("SOS" or the "Company") (NYSE: SOS) today reported its semi-annual financial results for the six-months ended June 30, 2025.
In compliance with the New York Stock Exchange rules, the Form 6-K is available on the Company's website at http://www.sosyun.com/. In addition, all shareholders of the Company may request, free of charge, a hard copy of the Company's complete audited financial statements filed with the SEC. To request a hard copy of the Company's audited financial statements, or for any other inquiry in respect of this press release, please contact the Investor Relations Department of the Company, whose contact information is as follows: ir@sosyun.com.
Interim Financial Results from Operations
Six months ended June 30, 2025 compared to June 30, 2024
Results of operations
Revenue
As of June 30, 2025, SOS focuses on three product and service lines including Commodities Trading, Hosting Service and Others. Commodities Trading contributes 94.9% of the total revenue, 4.3% from Hosting Services and 0.8% from Others, (i.e. legacy data mining which was disposed of in November 2022).
Six months ended | ||||||||
30-Jun-25 | ||||||||
Revenue by Products and | US$ | 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 | 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 | 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 | 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 | (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 | (53,396) | (246,366) | ||||||
Net cash used in in generating | 1 | - | ||||||
Net cash used in operating | (53,395) | (246,366) | ||||||
Cash flows from financing | ||||||||
Repayment of principle portion of | (288) | - | ||||||
Proceeds from share issuance, net | 24,836 | 6,817 | ||||||
Net cash generated from/(Used in) | 24,548 | 6,817 | ||||||
Net decrease in cash and cash | (28,847) | (233,549) | ||||||
Cash and cash equivalents at | 279,177 | 237,484 | ||||||
Effect of exchange rates on cash | (3,603) | 228 | ||||||
Cash and cash equivalents at end of | 246,727 | 4,163 | ||||||
Supplemental cash flow | ||||||||
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.
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SOURCE SOS Limited