Groovy Company Swings to $7.4M Net Profit in Nine Months Ending September 2025

Groovy Company Swings to $7.4M Net Profit in Nine Months Ending September 2025

Groovy Company, Inc., a Wyoming-incorporated small-cap company, reported net income of $7.43 million for the nine months ending September 30, 2025, a sharp reversal from a net loss of $1.77 million in the same period of 2024. The swing to profitability came despite the company reporting zero revenue in the third quarter of 2025 and an operating loss of $343,184 for the nine-month period. Read more earnings reports.

For the three months ending September 30, 2025, Groovy Company reported no revenue, down from $1,350 in the same quarter of 2024. The company posted a quarterly net loss of $134,274, narrower than the $293,244 loss a year earlier. Operating expenses for the quarter totaled $134,274, down 22% from $172,975 in Q3 2024.

For the full nine months of 2025, Groovy Company generated $11,676 in total revenue, up from $2,600 in the first nine months of 2024. Cost of goods sold was $1,500 for the nine-month period, resulting in gross profit of $10,176. Operating expenses for the nine months totaled $353,360, down 34% from $534,779 in the prior-year period. The company reported an operating loss of $343,184 for the nine months, compared to an operating loss of $532,179 a year earlier.

The company reported no interest expense for the nine months ending September 30, 2025, compared to $155,686 in interest expense for the same period in 2024. Basic earnings per share for the nine months was $1.01, compared to a loss of $0.24 per share in the prior year, based on 7.38 million weighted average shares outstanding.

Balance Sheet and Cash Position

Total assets stood at $3,133 as of September 30, 2025, down sharply from $247,038 at year-end 2024. The decline was driven primarily by a reduction in property, plant, and equipment, which fell to zero from $54,854. Cash and cash equivalents totaled $3,133 as of September 30, 2025, up from $2,184 at year-end 2024 but down from $6,332 a year earlier.

Total liabilities fell to $202,158 as of September 30, 2025, from $8.42 million at year-end 2024. Current liabilities mirrored total liabilities at $202,158. The company's stockholders' equity position improved significantly, with retained earnings deficit narrowing to $3.64 million from $11.34 million at year-end 2024, reflecting the year-to-date profit.

Cash Flow and Capital Activity

Groovy Company burned $1.49 million in cash from operations during the nine months ending September 30, 2025, compared to $166,260 in the same period of 2024. The company generated $1.40 million from investing activities and $89,500 from financing activities during the nine-month period. Depreciation and amortization totaled $18,726 for the nine months, down from $28,089 a year earlier.

The company's preferred stock value increased to $500,000 as of September 30, 2025, from $350,000 at year-end 2024. Additional paid-in capital rose to $2.31 million from $2.18 million over the same period. Common shares outstanding remained unchanged at 7.38 million.