DSS, Inc. Reports 26% Revenue Decline and $53.7 Million Net Loss for Fiscal Year 2024

DSS, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenue decreasing by 26% to approximately $19.1 million, down from $25.9 million in 2023. The decline was primarily attributed to reduced sales in the printed products segment, which fell 13% due to delayed orders and decreased demand from key customers. Additionally, the company’s direct marketing revenue dropped to zero as it shifted its business model from maintaining its own sales force to licensing products, a transition that has yet to yield significant revenue. The commercial lending segment also saw a 41% decrease in revenue, reflecting challenges in the loan portfolio.

In terms of profitability, DSS reported a net loss of approximately $53.7 million for 2024, compared to a loss of $77.5 million in the previous year. This improvement in net loss was influenced by a reduction in total costs and expenses, which decreased by 20% to $61.7 million, largely due to lower sales, general, and administrative expenses, as well as a significant reduction in research and development costs. The company also recorded impairments of goodwill and real estate assets, totaling $25.1 million and $7.3 million, respectively, which contributed to the overall loss.

Strategically, DSS has made several organizational changes, including the appointment of Jason Grady as Interim CEO following the departure of Frank D. Heuszel. The company also successfully completed the initial public offering (IPO) of its subsidiary, Impact BioMedical, which raised approximately $3.7 million and is expected to enhance shareholder value. Furthermore, DSS is focusing on optimizing operational efficiencies and reducing costs by 15-20% in the upcoming fiscal year, while exploring high-growth markets and enhancing accountability across its business units.

Operationally, DSS reported a total employee headcount of 100 as of December 31, 2024, a reduction from previous years, reflecting the company's efforts to streamline operations. The company continues to face challenges in its commercial lending segment, with nearly $26 million in new loans issued since 2021, and is actively working to transition its focus towards more specialized lending areas. The company’s market presence remains concentrated, with two customers accounting for approximately 35% of its consolidated revenue, highlighting the need for further diversification.

Looking ahead, DSS remains cautiously optimistic about its future, emphasizing a commitment to long-term growth and innovation across its business lines. The company plans to leverage its recent IPO and strategic partnerships to drive advancements in biotechnology and product packaging, while also addressing operational inefficiencies. DSS aims to provide regular updates to stakeholders on its progress and strategic objectives, reinforcing its focus on maximizing shareholder value.