How HOLO (MicroCloud Hologram) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a technology innovator like HOLO makes money is essential for investors and anyone interested in the business of advanced digital solutions. In this post, we break down HOLO's quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick HOLO Overview

HOLO operates as a cutting-edge technology company specializing in digital imaging, holographic solutions, and advanced display technologies. Revenue comes primarily from the sale of proprietary hardware, software licensing, and enterprise solutions for industries ranging from entertainment to healthcare. The business is structured around core segments: hardware sales, software subscriptions, and professional services, with hardware remaining the dominant revenue driver.

Revenue Breakdown

• Total Revenue (Q2 2025): $11.0M (+24.0% YoY)
  • Hardware Solutions: $8.0M (73% of total)
  • Software & Licensing: $2.2M (20% of total)
  • Professional Services: $0.8M (7% of total)
  • Growth is powered by increased adoption of HOLO’s flagship imaging devices and expansion into new enterprise verticals.

Gross Profit and Margins

• Gross Profit: $2.47M (22.4% gross margin)
  • Cost of Revenue: $8.56M (+17.7% YoY)
  • HOLO maintains moderate margins due to significant upfront manufacturing costs and ongoing R&D investments, offset by scalable software revenue.
• Most costs come from component sourcing, manufacturing, and technical support.

Operating Income and Expenses

• Operating Income: $46.3K (flat YoY, 0.4% margin)
• Operating Expenses: $2.42M (-77.7% YoY)
  • R&D: $1.67M (-82.9% YoY, 15.1% of revenue) — Focused on next-generation holographic display technology and software platform enhancements.
  • SG&A: $759.4K (-33.9% YoY, 6.9% of revenue) — Includes sales, marketing, and administrative functions supporting global expansion.
  • HOLO continues to prioritize innovation and invest in growth while maintaining operational discipline.

Net Income

• Pre-Tax Income: $16.5K (flat YoY, 149.2% margin due to accounting for other income)
• Income Tax: $329.8K (0.0% effective tax rate, reflecting deferred tax assets and international structuring)
• Net Income: $16.4K (flat YoY, 149.0% net margin)
• HOLO converts a moderate portion of sales into profit due to its scalable software model and disciplined cost management.

What Drives HOLO's Money Machine?

• Hardware Solutions: 73%+ of revenue — HOLO’s proprietary imaging devices remain the primary revenue engine.
• Software Subscriptions: Recurring revenue stream with high margins, supporting long-term profitability.
• R&D Investment: $1.67M in Q2 2025, targeting breakthroughs in holographic technology and platform integration.
• Enterprise Expansion: Growth in healthcare and entertainment verticals, though not yet profitable, positions HOLO for future scale.

Visualizing HOLO's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially R&D) taking the largest chunk.
• Even after significant investments in innovation, 0.4% of revenue drops to the bottom line.

Key Takeaways

• HOLO's money comes overwhelmingly from hardware sales
• High gross and net margins illustrate the power of HOLO’s scalable software and licensing model
• Heavy investment in R&D, balanced by efficiency in operating costs
• Ongoing growth is driven by enterprise adoption and new product launches

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FAQ About HOLO's Income Statement

1. What is the main source of HOLO's revenue in 2025?

HOLO generates over 73% of its revenue from hardware solutions. Software licensing and professional services contribute the remainder, with software showing strong margin potential.

2. How profitable is HOLO in Q2 2025?

HOLO reported net income of $16.4K in Q2 2025, with a net margin of approximately 149.0%, reflecting moderate profitability driven by scalable software and disciplined cost control.

3. What are the largest expense categories for HOLO?

The biggest expenses on HOLO's income statement are operating expenses, particularly Research & Development (R&D) at $1.67M in Q2 2025, as HOLO prioritizes innovation in holographic technology and platform development. SG&A costs totaled $759.4K.

4. Why does the enterprise division operate at a loss?

The enterprise segment, despite generating $0.8M in revenue, posted an operating loss in Q2 2025. This is because HOLO aggressively invests in custom solutions and integration services, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does HOLO's effective tax rate compare to previous years?

HOLO's effective tax rate in Q2 2025 was 0.0%, consistent with previous years. This low rate is primarily due to tax benefits from international structuring and deferred tax assets.