How HOLO (MicroCloud Hologram) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a technology company like HOLO makes money is essential for investors and anyone interested in the business of technology. 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 technology-focused company, likely specializing in innovative digital solutions or software services based on its cost structure emphasizing R&D. Revenue comes from core operations, with no detailed segment breakdowns available, suggesting a streamlined or unified business model. Additional context includes heavy emphasis on research and development, positioning HOLO for long-term growth in competitive tech markets.

Revenue Breakdown

• Total Revenue (Q2 2025): $18.1M (+24.0% YoY)
  • No specific segment breakdowns provided; revenue appears consolidated under primary operations.
  • Growth is powered by strong demand in core technology offerings and operational scaling.

Gross Profit and Margins

• Gross Profit: $4,047.6 (22.4% gross margin)
  • Cost of Revenue: $14.0M (+17.7% YoY)
  • HOLO maintains moderate margins due to a scalable technology business model with controlled cost growth.
• Most costs come from cost of revenue (primarily production or service delivery), followed by R&D and SG&A.

Operating Income and Expenses

• Operating Income: $75.8 (+0.0% YoY, 0.4% margin)
• Operating Expenses: $3,971.8 (-77.7% YoY)
  • R&D: $2,728.1 (-82.9% YoY, 15.1% of revenue) — focused on product development and innovation in core technology areas
  • SG&A: $1,243.8 (-33.9% YoY, 6.9% of revenue) — covering sales, administration, and general overhead
  • HOLO continues to prioritize innovation while maintaining efficiency through sharp cost reductions.

Net Income

• Pre-Tax Income: $27.0 (+0.0% YoY, 149.2% margin)
• Income Tax: $540.1 (0.0% effective tax rate)
• Net Income: $26.9 (+0.0% YoY, 149.0% net margin)
• HOLO converts a significant portion of sales into profit due to sharp operating expense reductions and scalability.

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What Drives HOLO's Money Machine?

• Core Operations: 100% of revenue from primary technology activities, with 24.0% YoY growth signaling robust demand.
• R&D Investment: 15.1% of revenue allocated to R&D, down 82.9% YoY but still a key driver for future tech advancements.
• Cost Efficiency: Massive 77.7% YoY cut in operating expenses, enabling positive operating income despite thin margins.
• Future growth areas: Expansion in technology applications, though not yet segmented; other income of $26.9 supports bottom line.

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 tax expenses, 149.0% of revenue drops to the bottom line due to other income adjustments.

Key Takeaways

• HOLO's money comes overwhelmingly from core technology operations
• High gross and net margins illustrate the power of HOLO's cost discipline and scalability
• Heavy investment in R&D, balanced by efficiency in operating costs
• Ongoing growth is driven by 24.0% revenue increase and 77.7% op ex reduction

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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 100% of its revenue from core operations with no segmented breakdowns. Revenue reached $18.1M in Q2 2025, up 24.0% YoY.

2. How profitable is HOLO in Q2 2025?

HOLO reported net income of $26.9 in Q2 2025, with a net margin of approximately 149.0%, reflecting strong profitability driven by drastic operating expense cuts.

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) and Sales, General & Administrative (SG&A) costs. R&D investment reached $2,728.1 in Q2 2025, as HOLO prioritizes technology innovation.

4. Why does [segment/division] operate at a loss?

No specific loss-making segments detailed; however, thin 0.4% operating margin stems from high R&D at 15.1% of revenue. HOLO aggressively invests in R&D for long-term growth, even if it pressures short-term operating income.

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 data trends. This low rate is primarily due to potential tax benefits or structuring, with taxes at $540.1 despite positive pre-tax income.