Breaking Down Tantech Holdings Ltd (TANH) Financial Health: Key Insights for Investors

You're looking at Tantech Holdings Ltd, a company that, honestly, presents a fascinatingly messy picture right now, and you need to know if the underlying financials support the recent stock volatility. The headline numbers from the most recently reported fiscal year (FY 2024) show a significant operational challenge: revenue fell to $42.9 million, a drop from the prior year, resulting in a $3.6 million net loss, a stark reversal from the previous year's net income. But here's the quick math that complicates the story: despite that loss, the company reported a massive current ratio of 10.0:1 and $35.2 million in cash and cash equivalents on the balance sheet, suggesting they have plenty of runway to fund their new focus on bamboo charcoal and biodegradable packaging. Still, the market isn't buying it yet; as of November 2025, the stock is hovering around $0.99 after a 1-for-40 reverse stock split earlier this year, giving the company a tiny market capitalization of just $2.4 million. We need to defintely dig into what this disconnect between strong cash reserves and weak earnings means for your investment decision.

Revenue Analysis

You're looking at Tantech Holdings Ltd (TANH) and seeing a company in the middle of a major pivot, so the revenue trend is less about organic growth and more about strategic cleanup. The direct takeaway is that annual revenue is contracting, hitting $42.9 million in the last reported fiscal year (FY 2024), but the future revenue mix will be fundamentally different due to a major divestiture.

For the fiscal year ending December 31, 2024, Tantech Holdings Ltd reported annual revenue of $42.9 million. This figure represents a decline of -3.8% year-over-year from the previous fiscal year's $44.6 million. That's a clear deceleration, and it's a red flag when compared to the broader US Household & Personal Products industry. Here's the quick math on the recent trend:

The real story isn't just the number, but the drastic change in the underlying revenue streams. Historically, the company operated through two primary segments: Consumer Products and Electric Vehicle (EV). The Consumer Products segment centers on bamboo-based charcoal products, like the Charcoal Doctor brand, for industrial and household use, primarily in the People's Republic of China.

The most significant change impacting the near-term 2025 revenue composition is the strategic restructuring that occurred in 2024. Specifically, Tantech Holdings Ltd executed the divestiture of its entire electric vehicle business and several other subsidiaries. This means the EV segment-which previously included solar cells, lithium-ion batteries, and electric control systems-will no longer be a material contributor to the top line in the current fiscal year. Honestly, that's a massive shift.

So, looking ahead into 2025, the revenue contribution is overwhelmingly shifting back to the core bamboo charcoal business. Plus, the company is actively expanding two new areas: biodegradable packaging and commercial factoring services (a type of financing for businesses). What this estimate hides is the speed and scale at which these new ventures can replace the divested EV revenue, which is the key risk right now. For more on the long-term vision behind these moves, you can check out the Mission Statement, Vision, & Core Values of Tantech Holdings Ltd (TANH).

• Core Revenue: Bamboo-based charcoal products (Consumer Products segment).
• New Growth Streams: Biodegradable packaging and commercial factoring services.
• Divested Stream: Electric Vehicle business (no longer contributing to 2025 revenue).

The focus for investors defintely needs to be on the quarterly reports throughout 2025 to see the revenue breakdown for the new segments versus the legacy charcoal business, which will show if the pivot is gaining traction.

Profitability Metrics

You're looking for a clear picture of Tantech Holdings Ltd (TANH)'s financial engine, not just the glossy brochure. The direct takeaway is that while the company maintains a decent gross margin, operational costs and other expenses are eating up all the profit, resulting in a net loss for the most recent reporting period.

As of the latest available annual data for the 2025 fiscal year assessment, Tantech Holdings Ltd reported total revenue of $42.94 million. Here's the quick math on their core profitability margins, based on the trailing twelve months (TTM) ending December 31, 2024, which is the most current annual data we have in November 2025.

• Gross Profit Margin: The company posted a Gross Profit of $8.94 million, translating to a 20.83% margin. This shows they can sell their bamboo-based charcoal products for more than the direct cost of making them.
• Operating Profit Margin: The Operating Income was $3.98 million, giving an Operating Margin of 9.28%. This is the profit left after paying for the day-to-day business operations (like salaries and rent), but before interest and taxes.
• Net Profit Margin: The Net Income Applicable to Common Shareholders was a loss of -$3.24 million, resulting in a Net Profit Margin of -7.55%. This is your bottom line, and it's negative.

The gap between the 20.83% Gross Margin and the -7.55% Net Profit Margin is the key issue. It tells me that while the core product is profitable, the Selling, General, and Administrative (SG&A) expenses, plus other non-operating costs, are defintely too high. The operational efficiency needs a serious overhaul.

Operational Efficiency and Cost Management

The trend in profitability over the past three fiscal years highlights a significant deterioration in the bottom line, even as the Gross Profit has remained relatively stable. This points directly to a cost management problem outside of the Cost of Goods Sold (COGS). Look at the shift:

In FY 2023, Tantech Holdings Ltd was profitable with a Net Income of $5.58 million, but by FY 2024, that swung to a loss of -$3.24 million on only a small drop in revenue. This is a red flag for control over non-production expenses. You need to scrutinize the line items between Gross Profit and Operating Income to see where the spending ballooned.

Industry Comparison: A Sobering Reality

When you stack Tantech Holdings Ltd against its peers, the negative Net Profit Margin of -7.55% looks particularly weak. For context, the median Net Income margin for the Household & Personal Products industry-which Tantech Holdings Ltd is often benchmarked against-is around 5.3%. Simply put, the industry is profitable; Tantech Holdings Ltd is not.

This negative margin means the company is currently destroying shareholder value with every dollar of sales. It's a tough spot, but it defines the risk. The company's stock also underperformed the US Chemicals industry, which returned -16.8% over the past year, indicating operational struggles are not fully offset by market-wide tailwinds. To get a deeper understanding of the company's direction, you should review their Mission Statement, Vision, & Core Values of Tantech Holdings Ltd (TANH).

Next Step: Strategy team: Request a detailed breakdown of FY 2024 SG&A and 'Other Expenses' to pinpoint the $7.22 million increase in costs that pushed the company into a net loss.

Debt vs. Equity Structure

Tantech Holdings Ltd (TANH) has an exceptionally low debt-to-equity (D/E) ratio, signaling a very conservative financing strategy that relies heavily on shareholder equity, not debt. For investors, this means lower financial risk from interest payments and debt covenants, but it also raises questions about whether the company is effectively utilizing financial leverage (borrowing money to boost returns) for growth.

The company's total debt is minimal. As of the most recent data, Tantech Holdings Ltd holds total debt of approximately $4.51 million. This is a small figure relative to their overall financial position. The Debt-to-Equity ratio (D/E) is a remarkably low 0.04 (or 4%) on a trailing twelve-month basis, which is significantly below the industry average.

Here's the quick math: A D/E ratio of 0.04 means for every dollar of shareholder equity, Tantech Holdings Ltd has only four cents of debt. This is defintely a low-leverage profile.

For context, the broader Chemicals sector, which Tantech Holdings Ltd is often classified under due to its bamboo charcoal products, has an average D/E ratio of around 0.85 as of November 2025. The Materials sector average is typically in the range of 0.20 to 1.29. Tantech Holdings Ltd's ratio is far below even the low end of this range, suggesting a deliberate avoidance of debt financing.

The company's debt is primarily short-term, which is a key risk factor to watch. In October 2025, Tantech Holdings Ltd secured a new financing arrangement, issuing a promissory note with an original principal amount of $3,230,000. This note, which provided $3,000,000 in gross proceeds, matures in just 12 months, making it a short-term liability that will require repayment or refinancing quickly. What this estimate hides is the potential strain of a large, near-term repayment on cash flow.

Tantech Holdings Ltd balances its financing through a mix of debt and equity, but the scale is heavily tilted toward equity. They recently engaged in equity funding by exchanging portions of a previous note for 365,343 common shares, reducing the principal of that note by $520,000 in October 2025. This is a common move for smaller companies looking to clean up their balance sheet and conserve cash, but it also dilutes existing shareholders.

• Total Debt (approximate): $4.51 million
• Debt-to-Equity Ratio: 0.04 (4%)
• New Short-Term Debt (Oct 2025): $3.23 million promissory note
• Industry Average D/E: Approx. 0.85 (Chemicals Sector)

Tantech Holdings Ltd has no publicly reported credit ratings, which is typical for a micro-cap company. The focus for investors should be on the short-term debt repayment schedule and the company's ability to generate sufficient cash flow from operations to cover that obligation, rather than long-term solvency risk. You can find more detailed analysis on this topic in Breaking Down Tantech Holdings Ltd (TANH) Financial Health: Key Insights for Investors.

Liquidity and Solvency

Tantech Holdings Ltd (TANH) presents a highly liquid balance sheet, but you shouldn't let the headline ratios completely overshadow other critical solvency indicators. The company's current and quick ratios are exceptionally high, suggesting an enormous cushion of short-term assets to cover liabilities, but the low Altman Z-Score signals a defintely higher-than-average risk profile that warrants caution.

Here's the quick math on Tantech Holdings Ltd (TANH)'s liquidity position based on the most recent trailing twelve months (TTM) data:

A Current Ratio of 10.02 is far above the typical healthy benchmark of 1.5 to 2.0. This means Tantech Holdings Ltd (TANH) has over ten times the current assets needed to pay off its current liabilities. The Quick Ratio, which strips out less-liquid inventory, is also stellar at 9.43, confirming the company holds significant cash and equivalents relative to its near-term obligations.

Working capital, the difference between current assets and current liabilities, is robust at approximately $106.05 million. This massive buffer is a clear strength, giving the company flexibility to handle unexpected expenses or fund short-term growth initiatives without needing external financing. Still, a working capital figure this high can sometimes point to inefficient asset utilization, like too much cash sitting idle or slow-moving receivables.

Cash Flow Dynamics and Financing

Looking at the cash flow statement provides a clearer picture of how Tantech Holdings Ltd (TANH) is actually generating and using cash, which is often more telling than just the balance sheet. For the last twelve months, Operating Cash Flow (OCF)-the cash generated from the core business-was positive at $3.99 million. This is a good sign; the business is cash-generative.

• Operating Cash Flow was $3.99 million, showing the core business is cash-positive.
• Capital Expenditures (CapEx), a key part of Investing Cash Flow, were minimal at only -$80,525, suggesting very little investment in long-term assets.
• Financing activities show a low Debt-to-Equity ratio of just 0.04, indicating minimal reliance on debt.

The low capital expenditure suggests a focus on maintenance rather than aggressive expansion. On the financing side, while debt is minimal, the company has significantly diluted shareholders, with shares outstanding increasing by 681.69% year-over-year. This massive dilution is a key consideration for investors, as it spreads future earnings over a much larger share base.

The Solvency Caveat

Despite the phenomenal liquidity ratios, Tantech Holdings Ltd (TANH) faces a genuine solvency risk that you must consider. The company's Altman Z-Score is 1.86. This score is a multivariate formula used to predict the probability of a company entering bankruptcy. A score below 1.81 is considered the distress zone, so a 1.86 reading puts the company firmly in the gray area of increased financial fragility.

What this estimate hides is the quality of those current assets and the sustainability of the underlying business model, which you can explore further by reviewing the Mission Statement, Vision, & Core Values of Tantech Holdings Ltd (TANH). The high liquidity and low debt are strengths, but the Altman Z-Score suggests that the overall profitability and retained earnings structure are weak enough to raise a red flag about long-term survival.

Valuation Analysis

You're looking at Tantech Holdings Ltd (TANH) and trying to figure out if the stock is a deep-value play or a classic value trap. My analysis, grounded in the latest November 2025 data, suggests the market views Tantech Holdings Ltd (TANH) as significantly challenged, pointing to an 'Undervalued' status based on some metrics, but with a strong 'Sell' consensus from the one analyst covering it. It's a high-risk situation.

The stock price trend tells a clear story of decline. Over the last 12 months leading up to November 2025, Tantech Holdings Ltd (TANH)'s stock price has plummeted by a staggering 84.01%. This kind of drop, with the stock trading near its 52-week low of $0.94, is a flashing red light that something fundamental is broken. The most recent closing prices have been around $0.99 to $1.12 per share. That's a brutal year.

When we look at traditional valuation multiples, the picture is complex, largely because the company has been unprofitable on a trailing twelve-month (TTM) basis. The TTM Net Income for continuing operations is a loss of approximately -$2.487 million, making the Price-to-Earnings (P/E) ratio unavailable ('n/a'). However, the Price-to-Book (P/B) ratio is incredibly low at just 0.01 as of the current period. Here's the quick math: a P/B of 0.01 suggests the market cap of around $1.36 million is only a fraction of its book value, indicating a potentially massive discount, or simply that the market doesn't trust the quality of the assets on the balance sheet.

The Enterprise Value-to-EBITDA (EV/EBITDA) ratio is also 'n/a' for the TTM period. This is defintely a unique situation because the company's Enterprise Value (EV) is actually negative, sitting at approximately -$29.32 million. A negative EV usually means the company has more cash than total debt plus market capitalization, which, combined with a current ratio of 10.02, points to a very strong liquidity position, but one that is not being rewarded by investors.

Tantech Holdings Ltd (TANH) does not pay a dividend, so the dividend yield and payout ratio are both 0.00% or 'n/a'. This is common for a growth-focused or restructuring company, but it removes one potential source of return for shareholders.

• Stock Price (Nov 2025): $0.99 - $1.12
• 12-Month Price Change: -84.01%
• Price-to-Book (P/B): 0.01
• Enterprise Value (EV): -$29.32 million

What this estimate hides is the analyst sentiment. The consensus among Wall Street analysts who have issued ratings is a firm 'Sell.' The single analyst rating available has a predicted downside of -100.00% over the next 12 months, which is a rare and dire forecast. This suggests that while the P/B ratio screams 'Undervalued,' the market and analysts are pricing in a high probability of continued operational issues or further share dilution, which you should consider before making a decision. You can dive deeper into who is holding the stock by reading Exploring Tantech Holdings Ltd (TANH) Investor Profile: Who's Buying and Why?

Here is a summary of the key valuation metrics for the TTM/Current period:

Your next step should be to look closely at the balance sheet-specifically the quality of the assets that underpin that low P/B ratio and the large cash position-to see if the market is being overly pessimistic or realistically cautious.

Risk Factors

You need to look past the high current ratio and focus on the existential risks facing Tantech Holdings Ltd (TANH); the core issue is its high probability of financial distress, compounded by severe geopolitical and regulatory headwinds.

The company's Altman Z-score, a key measure of corporate health, sits at a concerning 1.86 as of the last reported fiscal year, FY 2024. A score under 3.0 suggests a heightened risk of bankruptcy within the next two years. That risk is quantified by analysts who peg Tantech Holdings Ltd (TANH)'s probability of bankruptcy at nearly 29.8%, a number that should stop any investor in their tracks. It's a high-risk proposition, plain and simple.

• High bankruptcy risk: Altman Z-score of 1.86.
• Stock volatility: Price plunged over 84% in the 52 weeks leading up to November 2025.
• Negative earnings: Net Income for FY 2024 was -$3.57 million.

External and Geopolitical Risks

The biggest external risk is the regulatory environment in the People's Republic of China (PRC), where the majority of Tantech Holdings Ltd (TANH)'s operations are based. As a British Virgin Islands holding company, it faces significant legal and operational risks from potential PRC government intervention, which could drastically affect its business model or its ability to transfer funds.

Also, the US regulatory landscape is tightening. Recent joint statements by the SEC and PCAOB call for more stringent criteria for emerging market companies, especially those with non-U.S. auditors not inspected by the PCAOB (Public Company Accounting Oversight Board). This adds a layer of compliance uncertainty that can increase the cost of capital and cause the stock value to decline significantly.

Operational and Financial Red Flags

The company's financial health shows a few conflicting signals, but the negative ones are louder. While the Current Ratio is high at 10.02 and the Debt/Equity ratio is very low at 0.04, suggesting strong short-term liquidity and low debt, the company is still unprofitable. For the fiscal year ended December 31, 2024, the company recorded a Net Income of -$3.57 million on revenues of $42.94 million. Honestly, a high current ratio doesn't matter if you can't turn a profit.

Operational execution is also a concern. The company recently announced a delayed 20-F filing, which is a significant red flag for investors and often signals internal control or accounting issues. This kind of delay erodes trust and makes it defintely harder to get a clear picture of the true financial state.

Mitigation and Strategy Caveats

Tantech Holdings Ltd (TANH)'s primary mitigation strategy is financial self-reliance. The company anticipates retaining all future earnings to support operations and finance growth, meaning they do not expect to pay cash dividends in the foreseeable future. This is a common-sense move for a small-cap firm, but it means no shareholder payout is coming.

Strategically, there's a small positive trend in efficiency: the Return on Capital Employed (ROCE) has improved to 3.0% as of the trailing twelve months to December 2024, showing that capital reinvestment is becoming more profitable. What this estimate hides, however, is that 3.0% ROCE is still significantly lower than the Chemicals industry average of 9.2%. For a deeper dive into the company's full financial picture, you can read more at Breaking Down Tantech Holdings Ltd (TANH) Financial Health: Key Insights for Investors. Your next step should be to model the cash burn rate against their current cash reserves to see how long they can operate without external funding.

Growth Opportunities

You need to see a clear path for Tantech Holdings Ltd (TANH) to move beyond its core bamboo charcoal business, and the strategic moves in 2025 point toward a significant pivot into the green building materials market, particularly in the U.S. and Europe. While consensus analyst estimates for the full 2025 fiscal year revenue and earnings per share (EPS) are currently unavailable, we can anchor our view on the most recent financial data and the concrete deals announced this year.

The company's trailing twelve months (TTM) revenue, as of the fiscal year ending December 31, 2024, was $42.94 million, with a consolidated net loss of $-3.57 million. The near-term growth story is not about the historical charcoal segment, but about the new global trading initiatives.

Here's the quick math: A single, significant annual purchase agreement was secured by the U.S. subsidiary, Gohomeway Group Inc., with Heidi Enterprise Group, for flooring products. This contract, which spans the entire 2025 calendar year, is valued at $5 million annually, representing a clear, near-term revenue boost. That's a solid, immediate win for the new segment.

• Secure $5 million annual U.S. flooring contract.
• Expand green building materials distribution.
• Strengthen intellectual property (IP) in key markets.

Strategic Initiatives and Market Expansions

Tantech Holdings Ltd is defintely executing on a clear market expansion strategy, moving its focus to higher-margin, less volatile markets outside of China. The company's future growth is being driven by its 'Tanhome' brand, launched in 2024, which focuses on wholesale distribution and a franchise system for green building materials like engineered wood and bamboo flooring.

This push is supported by two crucial 2025 milestones that protect their intellectual property (IP) and distribution channels:

• U.S. Trademark Registration: Gohomeway Group Inc. successfully registered the 'GOHOMEWAY' trademark in the United States on January 16, 2025, covering wood flooring, furniture, and e-commerce services.
• European Expansion: In May 2025, the subsidiary secured a European Union Trademark Registration Certificate, which strengthens the brand's position and accelerates its cross-border e-commerce strategy across Europe.

These actions show a commitment to building a defensible, international distribution network, which is a necessary step to sustain growth beyond a single large contract. You can find more detail on the players involved in this shift by Exploring Tantech Holdings Ltd (TANH) Investor Profile: Who's Buying and Why?

Competitive Advantages and Earnings Outlook

The company's competitive advantage lies in its long-standing focus on eco-friendly products, specifically its bamboo-based charcoal and its extension into green building materials. This aligns well with increasing global demand for sustainable construction and household products. Plus, the company maintains ISO-certified production processes, which is a non-negotiable standard for international wholesale distribution.

While an official 2025 earnings estimate is not available, the Return on Capital Employed (ROCE) has been trending positively over the last five years, growing to 3.0% as of the trailing twelve months to December 2024. What this estimate hides is that this 3.0% ROCE is still low compared to the Chemicals industry average of 9.2%. The key is that the trend is moving in the right direction, suggesting the company has profitable initiatives it can reinvest in.

To see how the new growth drivers stack up against the historical business, here is a snapshot of the segments:

The immediate action you should take is to monitor the quarterly reports for 2025, specifically looking for the realized revenue from the Gohomeway Group Inc. contract and any new deals in the sustainable mobility segment.