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Sunon aims to expand under its own brand and move beyond contract manufacturing.

Increased spending on supply chains and merchant support also weighed on its 2025 results.

Heavy reliance on Labubu and “The Monsters” franchise weighed on investor sentiment after the latest report.

The company leaned on cost reductions to deliver a full-year profit.

The segment accounted for more than 70% of revenue in 2025, even as higher infrastructure costs pressured margins.

Its multi-brand strategy helped offset weaker performance at the core label.

Early signs of strain are emerging as the company approaches 60,000 locations.

Rising AI costs weighed on investor sentiment despite the company’s financial capacity.