Massimo Group Achieves Strong Profit Recovery and Margin Expansion in Q3 2025

GARLAND, Texas, Nov. 10, 2025 /PRNewswire/ -- Massimo Group (NASDAQ: MAMO), a provider of powersports vehicles and related equipment, today announced its financial results for the three months ended September 30, 2025, highlighting an improved gross margin, and solid operational efficiency across its core business segment.

Third Quarter 2025 Highlights

• Revenue: $16.99 million, compared to $25.60 million in Q3 2024
• Gross Profit: $7.13 million, up from $6.95 million in Q3 2024
• Gross Margin: 42%, compared to 27% in the prior-year period
• Net Income: $1.53 million, compared to a net loss of $2.50 million in Q3 2024
• Earnings per Share (Basic and Diluted): $0.04, compared to $(0.06) in the prior year

Management Discussion

Supported by steady sales growth and effective operating expense controls, the Company's financial performance improved significantly from the first to the third quarter of 2025. Revenue followed an overall upward trend, rising from $14.9 million in Q1 to $18.9 million in Q2, before moderating slightly to $17.0 million in Q3 due to a strategic price optimization initiative..

Gross profit continued to grow quarter over quarter, increasing from $4.2 million in Q1 to $6.9 million in Q2, and reaching $7.1 million in Q3, supported by a more profitable product mix and effective cost control.

As a result, the Company successfully transitioned from a net loss of $2.1 million in Q1 to net income to $1.5 million in Q3, demonstrating strong margin resilience and operational efficiency.

Financial Overview

For the third quarter of 2025, Massimo Group reported revenues of $16.99 million, primarily reflecting a refined pricing strategy and a temporary adjustment in sales volume. Despite the lower revenue base compared to the prior year, the Company achieved gross profit of $7.13 million, an increase from $6.95 million in Q3 2024, supported by improved gross margins through higher selling prices and supply chain efficiency.

Total operating expenses were $5.35 million, down 20% year-over-year, reflecting lower selling expenses and continued cost optimization initiatives. The Company reported income from operations of $1.79 million, compared to $0.30 million in the same quarter of 2024.

Other income totaled $0.15 million, compared to a loss of $3.43 million in the prior-year period, which included a litigation-related charge. As a result, income before income taxes reached $1.97 million, versus a loss of $3.12 million last year. After accounting for income taxes of $0.41 million, the Company recorded net income of $1.53 million, marking a strong turnaround from a net loss of $2.50 million in Q3 2024.

Nine-Month 2025 Highlights

• Revenue: $50.9 million vs. $91.2 million in 2024
• Gross Profit: $18.2 million vs. $28.9 million
• Net (Loss) Income: $(0.48) million vs. $3.50 million
• EPS (Basic and Diluted): $(0.01) vs. $0.09

Management Commentary

"During the third quarter, we delivered meaningful improvement in profitability despite a lower top line," said David Shan, Chief Executive Officer of Massimo Group. "Our continued focus on strategic execution, operational discipline, and cost leadership drove a solid recovery in gross margins and a return to profitability. We are confident that our ongoing initiatives in product innovation, supply chain optimization, and dealer expansion will continue to strengthen Massimo's position and create long-term value for our shareholders."

About Massimo Group

Massimo Group (NASDAQ: MAMO) is a U.S.-based manufacturer and distributor of powersports vehicles, utility terrain vehicles (UTVs), and related equipment. The Company's diverse product portfolio includes off-road vehicles, electric mobility solutions, and accessories distributed through a nationwide dealer network.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws with respect to Massimo Group. All statements other than statements of historical facts contained in this press release, including statements regarding Massimo Group's future results of operations and financial position, Massimo Group's business strategy, prospective costs, timing and likelihood of success, plans and objectives of management for future operations, future results of current and anticipated operations of Massimo Group are forward-looking statements. In some cases, forward-looking statements can be identified because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "predict," "project," "target," "potential," "seek," "will," "would," "could," "should," "continue," "contemplate," "plan," and other words and terms of similar meaning. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including, but not limited to, risks relating to Massimo Group which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth economically and hire and retain key employees; costs; changes in applicable laws or regulations; the possibility that Massimo Group may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties, including those under "Risk Factors" in filings with the SEC made by Massimo Group. Moreover, Massimo Group operates in very competitive and rapidly changing environments. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond Massimo Group's control, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements speak only as of the date they are made. No assurance can be given regarding the forward-looking statements, and actual results may differ materially from those as indicated. Massimo Group undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contact
Dr. Yunhao Chen
Chief Financial Officer
Massimo Group
[email protected]

SOURCE Massimo Group