This article first appeared on GuruFocus .
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Full-Year Revenue:$39.2 million.
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Second-Half Revenue:$23.6 million, up 17% year-over-year.
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Gross Margin:Improved by 303 basis points to 31.4% for the full year; stable at 30.2% in the second half.
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Adjusted EBITDA:Positive for the full year.
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Bitcoin Holdings:Increased from 1,181 Bitcoin at the end of 2025 to 2,383 Bitcoin, valued at approximately $182 million.
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Operating Expenses:Increased due to Bitcoin treasury platform build-out and related costs.
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Offline Distribution Expansion:Growth in regional distributors and penetration into lower-tier cities in Asia.
Release Date: April 21, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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DDC Enterprise Ltd ( DDC ) achieved record revenue of $39.2 million in 2025, with positive adjusted EBITDA, indicating strong financial performance.
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The company's core consumer food business saw a 17% year-over-year revenue growth in the second half of 2025, driven by expansion in offline distribution channels.
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DDC's Bitcoin Treasury strategy has been successfully implemented, with Bitcoin holdings increasing from 1,181 to 2,383 by early 2026, reflecting a strong commitment to this strategy.
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The introduction of the DDC Treasury Intelligence Platform, an AI-driven system, aims to enhance the management and evaluation of the Bitcoin treasury, showcasing innovation in capital allocation.
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Gross margin improved by 303 basis points to 31.4% due to supply chain optimization and improved procurement efficiency, highlighting operational efficiency improvements.
Negative Points
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Operating expenses increased year-over-year, primarily due to the build-out of the Bitcoin treasury platform and associated costs, impacting overall profitability.
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The strategic exit from US operations led to a decline in online sales, reflecting a shift away from lower-margin channels.
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Despite positive adjusted EBITDA, the reported results were affected by non-cash items and strategic investments related to the Bitcoin Treasury platform.
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The focus on Bitcoin accumulation may pose risks due to market volatility and the need for careful capital allocation decisions.
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The company's operating income and net income declined year-over-year in the second half of 2025, partly due to increased operating expenses from the Bitcoin Treasury strategy.
Q & A Highlights
Q: Can you explain how the new DDC Treasury Intelligence Platform will be used to manage the Bitcoin treasury? A: Norma Chu, CEO & Chairwoman, explained that the platform is designed to leverage AI to enhance decision-making rather than automate it. Kyu Ho, Chief of Staff, added that the platform will provide insights by integrating various signals from the Bitcoin space, macro environment, and regulatory landscape. This will help inform decisions on timing, size of purchases, and capital allocation strategies.
Q: What financing options are available for funding Bitcoin purchases, and how are you prioritizing them? A: Norma Chu stated that DDC has several options, including untapped convertible notes, equity lines, and issuing common or preferred shares. The company aims to reach 10,000 Bitcoin holdings but will proceed cautiously, expecting Bitcoin to trade sideways in the near term. They plan to reach 5,000 Bitcoin by the end of the year.
Q: Are there plans for further joint ventures or expansions in the food business in 2026? A: Norma Chu mentioned that the food business is expected to grow organically by 10-15% annually. While there are potential targets for M&A or JVs, no agreements have been finalized. These deals are typically less capital-intensive and structured on an earn-out basis.
Q: How do you balance capital allocation between Bitcoin purchases and expanding the food business? A: Norma Chu explained that capital raises are primarily for Bitcoin accumulation. M&A deals in the food sector are structured to be less capital-intensive, often involving share-based transactions at a premium, minimizing the need for new equity issuance at current prices.
Q: Are there any AI initiatives in the food business similar to the Bitcoin strategy platform? A: Norma Chu noted that AI is already integrated into various functions of the food business, which inspired the development of the AI-driven Bitcoin strategy platform. AI is becoming an integral part of day-to-day operations across the company.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
