Why did CCIXU's operating profit stay negative in Q4 2024?

The negative operating income of $250,640 for Churchill-U in Q4 2024 was primarily driven by higher operating expenses, as indicated by the company's financial results. These increased expenses include stock-based compensation, which is reflective of the company's stock performance and other personnel costs. Despite the negative operating income, the company reported record net sales of $43.3 million for the fiscal year 2024, with significant growth in net sales in the fourth quarter. The growth in net sales was driven by strong sales on Amazon.com and significant improvements in media efficiency in the e-commerce channel, as well as growth in wholesale sales due to distribution expansion and velocity improvement at shelf, led by club sales outlets. The contraction in gross margin to 38.6% compared to 40.4% in the corresponding prior year period was primarily driven by increased gross to net sales promotional spend related to prior periods, including higher slotting expenses due to distribution expansion and velocity improvement at shelf, led by club sales outlets. In summary, the negative operating profit of Churchill-U in Q4 2024 was primarily due to higher operating expenses, including stock-based compensation and other personnel costs, and increased gross to net sales promotional spend, despite record net sales and significant growth in net sales in the fourth quarter, driven by strong sales on Amazon.com and growth in wholesale sales.