CUCKOO International (MAL) Berhad (“CUCKOO Malaysia” or the “Company”, KLSE:5336), a Healthy Home Creator, today announced its unaudited financial results for the fourth quarter ended 31 December 2025 (“Q4FYE2025”). The result reflected an improving earnings stability and strengthened balance sheet fundamentals following the Company’s ongoing prudent and deliberate operational and credit management initiatives.
For the financial year ended 31 December 2025 (“FYE2025”), CUCKOO Malaysia concluded its first full financial year as a Main Market-listed company with a revenue of RM1.1 billion and profit after tax (“PAT”) of RM105.2 million. Meanwhile, gross profit (“GP”) for the year stood at RM378.7 million, representing a healthy gross margin of 34.4%
In Q4FYE2025, the Company delivered revenue of RM233.6 million and PAT of RM36.5 million. These results signal a clear stabilisation the CUCKOO Malaysia’s financial trajectory and validated its operational resilience. On a quarter-on-quarter (“QoQ”) basis, revenue is moderated by RM30.7 million or 11.6% compared to the preceding quarter, mainly due to lower units sold from both the CUCKOO-branded and CUCKOO Co-Created segments.
Mr. Hoe Kian Choon (KC Hoe), CUCKOO Malaysia’s Non-Independent Executive Director and Chief Executive Officer said, “Q4FYE2025 demonstrated the positive impact of our prudent credit management initiatives and operational discipline. While consumer spending remains measured, our improved gross margins and strengthening collection performance reflect the resilience of our rental-led business model. We remain focused on enhancing asset quality, expanding our ecosystem of wellness solutions and strengthening our omni-channel presence to capture the growing preference for rental solutions in the home wellness segment.”
Despite the softer topline, the Company remained focused on a disciplined operational strategy and rigorous credit management efforts, leading to a 171.0% QoQ recovery in PAT. The bottom-line strength was underpinned by a 20.1% increase in gross profit improved to RM102.6 million, benefiting from lower imported product costs and reduced service costs. The quarter also saw net losses on impairment of financial instruments moderated to RM13.5 million in Q4FYE2025, almost halved from the RM29.4 million recorded in the preceding quarter. This is driven by better collection performance and improved repayment behaviour across the rental portfolio. While administrative expenses were higher due to a one-off impairment expense on trademark, overall profitability strengthened. As a result, profit before tax increased by RM47.5 million in Q4FYE2025, reflecting improved margin dynamics and tighter operational discipline.
The CUCKOO-branded segment remained the primary revenue contributor for FYE2025 at RM875.8 million (79.6% of total revenue), while the CUCKOO Co-Created segment contributed RM221.1 million (20.1%).
Following its successful listing in June 2025, the Company significantly enhanced its balance sheet. Equity attributable to owners rose to RM1.11 billion, while total borrowings reduced to RM139.6 million after repayment using IPO proceeds, ending with a gross gearing ratio of 12.6%. Cash and cash equivalents stood at RM66.9 million as at 31 December 2025.
Moving into financial year ending 31 December 2026 (“FYE2026”), the Company will continue executing on clearly defined operational initiatives to strengthen earnings quality and expand market reach. Following its successful listing in June 2025, CUCKOO Malaysia has allocated IPO proceeds towards funding product purchases for rental expansion and repayment of borrowings, reinforcing its balance sheet flexibility. On the commercial front, the Company will continue the rollout of cash-and-carry Brandshops, complementing its existing nationwide retail network of 240 outlets and 2 cash-and-carry Brandshops. These retail outlets will enhance customer accessibility, reach a broader consumer base and diversify revenue streams beyond pure rental.
The Company is also expanding its product portfolio with additional SKUs across its ecosystem of wellness solutions, while strengthening home care service offerings to deepen customer lifetime value. Concurrently, investments in logistics capabilities, warehouse management systems and IT infrastructure upgrades are also underway to improve fulfilment efficiency, inventory turnover and portfolio monitoring.
While consumer spending may remain measured amid cost-of-living pressures, CUCKOO Malaysia believes that the structural shift towards rental arrangements positions the Company to deliver more stable and sustainable profitability. This outlook is further supported by disciplined credit underwriting and targeted retail expansion in the coming year.
