DONGGUAN, China and PLANO, Texas, Oct. 17, 2025 /PRNewswire/ -- Dogness (International) Corporation ("Dogness" or the "Company") $(DOGZ)$, a developer and manufacturer of a comprehensive line of Dogness-branded, OEM and private label pet products, today announced its financial results for the fiscal year ended June 30, 2025.

Silong Chen, Chairman and Chief Executive Officer of Dogness, commented, "We are glad to announce the robust financial results for fiscal year 2025. Our revenues increased by 39.5% from fiscal year 2025 to approximately $20.7 million, with gross profit up by 60.9% to nearly $5.0 million. The revenue growth has greatly been driven by the significant increase in sales of intelligent pet products and climbing hooks and others, which up by 43.7% and 325.2% respectively from fiscal 2025. Our effective cost efficiency initiatives also contributed to the profitability in fiscal 2025. These results reflect our strong ability to sustain growth momentum while enhancing operational efficiency and sales performance. Although U.S. tariff policies have not yet materially impacted on the Company's operations and financial performance in fiscal 2025, we continue to closely monitor the potential future impact. We seek to diversify our markets, by actively exploring emerging markets to reduce our reliance on any single market, and enhance our presence in China's domestic market. We are also investing in R&D to strengthen our e-commerce and cross-border online business, thereby enhancing our operational resilience and competitiveness."

"Despite the increasing industry competition, we remain focused on executing our international growth strategy with continued emphasis on product innovation and expansion into both domestic and international markets. Meanwhile, we will also continuously broaden our customer base and enhance the stickiness of our existing customers in order to maintain sustainable, long-term growth. Looking ahead, we will continue to pursue our international development objectives, enhance product quality, and maintain operational excellence, with the goal of strengthening our overall business performance and long-term corporate value."

Financial Results for The Fiscal Year Ended June 30, 2025

Revenues

Revenues increased by approximately $5.9 million, or 39.5%, to approximately $20.7 million in fiscal 2025 from approximately $14.8 million in fiscal 2024. The increase in revenue was primarily attributable to an approximately $4.4 million increase in the revenue of climbing hooks and others and an approximately $1.9 million increase in the revenue of intelligent pet products, offset by an approximately $0.4 million decrease in the revenue of traditional pet products.

The breakdown of our revenue by products and services categories is as follows:

 
                      For the Years ended June 30, 
                      -------------------------------- 
                            2025             2024 
                      -----------------  ------------- 
Products and 
 services category         Revenue          Revenue     Variance % 
-------------------   -----------------  -------------  ---------- 
Products 
Traditional pet 
 products              $      8,647,605  $   9,020,839       (4.1)% 
Intelligent pet               6,298,625      4,384,631        43.7% 
Climbing hooks and 
 others                       5,761,477      1,355,016       325.2% 
                          -------------   ------------  ---------- 
Total revenue from 
 products                    20,707,707     14,760,486        40.3% 
 
Services 
Dyeing services                       -         87,416     (100.0)% 
Total revenue from 
 services                             -         87,416     (100.0)% 
                          -------------   ------------  ---------- 
Total                  $     20,707,707  $  14,847,902        39.5% 
                          =============   ============  ========== 
 

-- Traditional pet products

Revenue from traditional pet products decreased by approximately $0.4 million, or 4.1%, from approximately $9.0 million in fiscal 2024 to approximately $8.6 million in fiscal 2025. The decrease was mainly due to a decrease of $0.02 in average selling price in fiscal 2025 compared to fiscal 2024. Among the total revenue decrease, approximately $0.7 million decrease was from sales in Chinese domestic markets, offset by an increase of approximately $0.3 million in international market.

-- Intelligent pet products

Revenue from intelligent pet products increased by approximately $1.9 million, or 43.7%, from approximately $4.4 million in fiscal 2024 to approximately $6.3 million in fiscal 2025. The increase was mainly driven by an increase of 61.7% in sales volume in fiscal 2025 compared to fiscal 2024. Among the total revenue increase, approximately $1.2 million increase was from sales to customers in international markets primarily due to newly acquired customers and approximately $0.7 million was from sales to customers in China domestic market primarily due to increased orders from our current customers.

-- Climbing hooks and others

Revenue from climbing hooks and others increased by approximately $4.4 million, or 325.2%, from approximately $1.4 million in fiscal 2024 to approximately $5.8 million in fiscal 2025. The increase was mainly driven by increased sales volume and average selling price in fiscal 2025 compared to fiscal 2024. Among the total revenue increase, approximately $2.1 million increase was from sales to customers in international markets and approximately $2.3 million was from sales to customers in China domestic market, primarily due to the increased orders of the climbing hooks from our customers.

-- Dyeing service

The Company earned dyeing services fees of $nil and $0.1 million in fiscal 2025 and 2024, respectively.

-- Sales to related parties

Dogness Network Technology Co., Ltd. ("Dogness Network") and Dogness Technology Co., Ltd ("Dogness Technology") were related parties of the Company. Dogness Technology ceased being a related party after December 31, 2023. Sales to Dogness Network and Dogness Technology Co., Ltd totaled $nil and $0.1 million, which accounted for nil and 0.7% of our total revenue in fiscal 2025 and 2024, respectively. Cost of revenue associated with the sales to these two related parties amounted to $nil and $0.1 million in fiscal 2025 and 2024, respectively.

-- International vs. Domestic sales

International sales increased by approximately $3.6 million, or 35.4%, from approximately $10.1 million in fiscal 2024 to approximately $13.6 million in fiscal 2025 due to a significant increase in international sales orders.

Domestic sales increased by approximately $2.3 million or 48.1%, from approximately $4.8 million in fiscal 2024 to approximately $7.1 million in fiscal 2025. The increase in our domestic market sales is due to a significant increase in intelligent pet products and climbing hooks and others.

Cost of revenues

Cost of revenues increased by approximately $4.0 million or 33.7%, from approximately $11.7 million in fiscal 2024 to approximately $15.7 million in fiscal 2025, due to a significant increase in sales volume. As a percentage of revenues, the cost of revenues decreased by approximately 3.3 percentage points, decreasing to 75.7% in fiscal 2025 from 79.0% in fiscal 2024.

Gross profit

Gross profit increased by approximately $1.9 million or 60.9%, from approximately $3.1 million in fiscal 2024 to approximately $5.0 million in fiscal 2025, primarily attributable to the increase in sales volume and improved operational efficiency. Overall gross profit margin was 24.3% in fiscal 2025, an increase of 3.3 percentage points, as compared to 21.0% in fiscal 2024.

Expenses

Selling expenses

-- Selling expenses increased by approximately $0.2 million, or 16.1%, from approximately $1.1 million in fiscal 2024 to approximately $1.3 million in fiscal 2025. The increase was primarily attributable to the increase of the entertainment fees and the advertising fees in fiscal 2025. As a percentage of sales, our selling expenses were 6.3% and 7.6% of our total revenues in fiscal 2025 and 2024, respectively.

-- General and administrative expenses

General and administrative expenses increased by approximately $1.3 million or 16.9% from approximately $7.8 million in fiscal 2024 to approximately $9.2 million in fiscal 2025. The increase was mainly due to the renovation expenses incurred at our new office in Dongguan and increased professional consultant fees, offset by less share-based compensation and an impairment loss on assets. As a percentage of sales, our general and administrative expenses were 44.3% and 52.8% of our total revenues in fiscal 2025 and 2024, respectively.

-- Research and development expenses

Research and development expenses increased by approximately $0.5 million or 82.7%, from approximately $0.6 million in fiscal 2024 to approximately $1.1 million in fiscal 2025. As a percentage of sales, research and development expenses were 5.4% and 4.1% of the total revenues for fiscal 2025 and 2024, respectively.

Net loss

Net loss decreased by approximately $1.0 million or 15.8%, from approximately $6.1 million in fiscal 2024 to approximately $5.1 million in fiscal 2025.

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October 17, 2025 08:00 ET (12:00 GMT)