RAYA Erayak Power Solution Group Inc.

Overview and Growth

Fiscal 2025 results for Erayak Power Solution Group Inc. combined $22.86M of revenue with net loss of $1.39M and an operating cash outflow of $3.17M. Revenue of $22.86M sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $30.30M in fiscal 2024, revenue decreased 24.6%, a top-line contraction that reduced operating scale. The company employed $59.45M of total assets, the balance-sheet base supporting its current operating and cash-flow results. Revenue equaled 0.38x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Gross profit was $4.87M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross profit represented 21.3% of revenue, showing how much of the top line remained after direct costs. The company recorded an operating loss of $1.64M after the reported operating expense base. Relative to revenue, the operating deficit measured 7.2%, showing the shortfall after operating costs. The company ended the period with a net loss of $1.39M, extending the operating result through all remaining items. Net margin was -6.1%, reflecting a loss equal to 6.1% of reported revenue. EBITDA was negative $1.07M, showing a deficit before interest, taxes, depreciation, and amortization. Before income taxes, the company recorded a loss of $1.36M, bridging the operating result to the final net loss. Measured against revenue, the pretax deficit represented 6.0%. Income tax expense totaled $28.93K, providing the reported tax component that separates pretax and after-tax earnings. Relative to period-end equity, the net loss represented 3.9%. Relative to total assets, the net loss represented 2.3%. Compared with a $1.12M net loss in fiscal 2024, the current loss increased to $1.39M.

Liquidity and Capital Structure

Total assets were $59.45M, supported by $24.18M of liabilities and $35.27M of shareholder equity. The near-term balance sheet paired $43.36M of current assets with $20.77M of current liabilities at the reporting date. Current assets covered current liabilities by 2.09x, leaving a positive buffer for near-term obligations. Reported cash and equivalents were $436.79K, separating immediately recognizable cash resources from the rest of the current-asset base. The cash balance equaled 2.1% of current liabilities, showing how much near-term coverage came from cash alone. The company carried $4.19M of total debt at period end, which frames its leverage and debt-service burden. Against book equity, debt measured 0.12x, placing the company’s financial leverage in clear balance-sheet terms. The debt-to-assets relationship was 7.0%, comparing borrowing with the total asset balance. The equity-to-assets relationship was 59.3%, placing book capital against the total resource base. The liabilities-to-assets relationship was 40.7%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 0.7%, comparing reported cash and equivalents with the full positive asset balance. Compared with $46.03M in fiscal 2024, the current asset base moved 29.1% and finished higher. Book equity was 32.6% higher than fiscal 2024 equity of $26.59M, showing how shareholder capital changed year over year. Compared with $1.32M in fiscal 2024, the current cash balance moved 67.0% and finished lower.

Cash Flow and Earnings Quality

The company reported an operating cash outflow of $3.17M, rather than cash generation from operations. Capital expenditures used $5.24M in addition to the operating cash outflow, increasing the total cash consumed by operations and investment during the period. Negative free cash flow was $8.41M, leaving a cash deficit after capital spending and reducing financial flexibility. Free-cash-flow margin was -36.8%, reflecting a cash deficit equal to 36.8% of revenue after capital spending. Relative to total assets, the post-investment cash deficit measured 14.1%.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.