DDC Enterprise NYSEAMERICAN: DDC used its full-year 2025 earnings call to outline what CEO Norma Chu described as a “transformational year,” highlighted by a strategic exit from U.S. operations, a tighter focus on its Asia food business, and the launch of a Bitcoin treasury strategy that management framed as a long-term capital allocation pillar alongside the operating business.
Business repositioning and operating results
Chu said the company “exited our U.S. operation in the first half and refocused our core food business in Asia, where we see the strongest demand.” She characterized DDC’s model as having “two complementary pillars,” with the food business providing “revenue and income stability” and the treasury strategy intended to “compound value on the balance sheet over time.”
On performance, management reported that the core consumer food business produced record revenue of $39.2 million for full-year 2025 and positive adjusted EBITDA. In prepared remarks, Chu said second-half revenue grew 17% year-over-year to $23.6 million, with gross margin “stable at 30.2%.” She attributed demand strength to expanded offline distribution, including a larger regional distributor network and deeper penetration into lower-tier Chinese cities.
Chief of Staff Kyu Ho added that full-year revenue was “broadly stable year-over-year,” with growth in core Asia markets offset by the U.S. exit. Ho said Asia growth was driven by offline expansion and stronger distributor partnerships, while online sales declined due to “a deliberate reduction in marketing spend and a strategic shift away from lower-margin and highly promotional channels.”
Ho also said full-year gross margin improved 303 basis points to 31.4%, citing supply chain optimization, procurement efficiency, and favorable raw material costs.
Bitcoin treasury strategy and holdings
Chu said DDC launched its Bitcoin treasury strategy in May and spent the second half building capital markets capabilities and infrastructure “to support long-term accumulation.” She said the company accumulated 1,181 Bitcoin across multiple transactions in the second half of 2025.
Chu also provided an update for 2026, saying that since year-end DDC has “more than doubled” its Bitcoin holdings to 2,383 Bitcoin “as of today,” representing “approximately $182 million of value based on current Bitcoin prices.” Chu said the increased holdings place DDC “among the top 30 publicly traded corporate holders of Bitcoin globally.”
Looking ahead, Chu said DDC plans to continue Bitcoin accumulation “in a measured and strategic manner,” and also intends to explore “selective risk managed opportunities to generate yield” on its Bitcoin holdings, emphasizing “capital preservation, high-quality counterparties, and disciplined risk management.” Ho echoed those priorities, adding that the company aims to improve cash conversion while maintaining cost discipline in the operating business.
New AI-driven “Treasury Intelligence Platform”
During the call, management introduced what Chu called the DDC Treasury Intelligence Platform, an AI-driven system designed to help manage and evaluate its Bitcoin treasury strategy. Chu said the platform integrates “internal data, market signals, and historical decisions into a unified framework,” with the goal of improving discipline and consistency in capital allocation. “Our goal is not to automate decision-making,” she said, but to strengthen decision quality across market environments.
Benchmark’s Mark Palmer asked how the platform would be used in practice. Ho said the company’s baseline intent is to use AI to compile more signals and maintain awareness across “the Bitcoin space” as well as the “macro environment, the political environment, the regulatory environment,” and other areas. Ho said the platform is intended to assist management when considering “the timing of our purchases, the size of our purchases,” and capital-raising decisions, and also to support governance around the treasury strategy.
Ho added that DDC expects the system to evolve over time into “more of a learning machine that evolves over time, as opposed to it just processing information based on parameters that we dictate.”
Financing options and accumulation targets
Palmer also asked about financing options to fund future Bitcoin purchases and how management is thinking about the pace of accumulation. Chu said DDC has “a number of untapped facilities,” including an outstanding convertible note with Anson with “over $275 million available,” as well as an equity line.
Chu said the company is also considering issuing common shares depending on partner terms, Bitcoin pricing, and the company’s mNAV, and noted the company previously issued privately held preferred shares, which she said typically carry “3.5%-5% interest” and convert to common “at a premium.” She also said DDC is in early-stage discussions with a potential U.S. investment bank partner about possibly offering listed perpetual preferreds as another financing tool.
On accumulation goals, Chu said DDC’s “North Star” is reaching 10,000 Bitcoin “as quickly as possible,” while balancing market factors. She said management expects Bitcoin may trade “more sideways for the next couple of quarters,” and after already doubling holdings in the first quarter—exceeding internal guidance—the company expects to continue acquiring throughout the remaining quarters. “Conservatively,” Chu said, management is “hoping to reach about 5,000 Bitcoin by the end of the year.”
Food business outlook, M&A/JV approach, and AI adoption
Maxim Group’s Matthew Galinko asked about the pipeline for additional joint ventures or deals in 2026 and how food expansion fits alongside Bitcoin accumulation. Chu said she expects the underlying food business to grow “organically and fairly stable 10%-15% year-over-year” without requiring additional capital for that growth.
On potential deals, Chu said DDC is assessing “a number of potential targets,” adding it is “very possible” the company could do a similar deal in the second half of the year, while noting there is “no signed term sheet at this stage.” She also said capital raises are “really more for Bitcoin accumulation,” while food-related M&A and JV structures tend to be less capital-intensive and often use earn-outs that are “typically share-based,” with shares issued at a premium to where DDC trades.
Galinko also asked whether DDC is applying similar AI initiatives to the food business. Chu said the company’s teams are already using various AI tools in day-to-day operations, and that those efforts helped inspire the development of an AI-driven approach for the Bitcoin treasury strategy as well.
About DDC Enterprise NYSEAMERICAN: DDC
DDC Enterprise Ltd is a content driven consumer brand offering easy, convenient ready-to-heat, ready-to-cook, and plant-based meal products i.e. meal products consisting largely or solely of vegetables, fruits, grains, and other foods derived from plant-based protein, rather than animal protein) while promoting healthier lifestyle choices to the Millennial and Generation Z customer-base. The company's operates in two operating segments: merchandise sales and fresh agriculture produce. It is also engaged in the provision of advertising services and the operation of experience stores to offer cooking classes.
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