The revenue composition reflects a consistent reliance on services, which consistently represent approximately 89% to 90% of total revenues from 2021 through 2026. A temporary shift occurred in mid-2020, where services peaked at 95.38% of revenues as product contributions declined to a low of 4.62%. Since that period, product revenues have stabilized, generally contributing between 10% and 11% of the total revenue mix.
Gross Profitability and Cost Management
Gross profit margins exhibited significant volatility between 2020 and 2022, reaching a nadir of 25.12% in October 2020. This decline was driven by an increase in the cost of revenues, which peaked at 74.88% of revenues in the same period. However, a recovery trend is evident from 2023 onward, with gross profit margins stabilizing in the 35% to 38% range, suggesting improved operational efficiency and cost control relative to revenue growth.
Operating Expense Trends
Selling, general, and administrative expenses have remained relatively stable, typically fluctuating between 16% and 20% of revenues. Depreciation and amortization costs, which spiked to 11.69% in June 2020, have since moderated and normalized to a range of 5% to 6% of revenues. The most significant volatility in operating results is attributed to restructuring and impairment charges; a substantial impairment of 42.85% of revenues in June 2020 and further significant charges in mid-2023 created sharp contractions in operating income.
Operating Income Performance
Operating income has transitioned from extreme volatility to a more sustainable growth pattern. After a severe contraction in 2020, operating margins recovered and have recently trended upward, frequently exceeding 14% of revenues throughout 2024 and 2025. This indicates a successful stabilization of the core business model following the period of restructuring.
Net Income and Bottom Line Results
Net income as a percentage of revenues has mirrored the volatility of operating income, with a significant low of -38.31% in June 2020. A notable anomaly occurred in June 2025, where net income peaked at 25.13% of revenues, largely driven by a positive tax contribution of 11.55% rather than purely operational growth. Excluding this outlier, the net income attributable to the company has stabilized toward a range of 8% to 10% of revenues by early 2026.
Interest and Non-Operating Items
Interest expenses have remained relatively consistent, generally ranging between 1% and 2% of revenues, with a gradual decline toward 0.95% by March 2026. Equity in the income of investees has seen a gradual decrease from peaks above 1% in 2019-2021 to approximately 0.23% by 2026, indicating a reduced relative contribution from equity-method investments.
