CompanyGraph
Use to find companies where this pattern is active.
Revenue growth on a compound basis sits alongside falling gross profit and net income. Revenue CAGR over the trailing six years is positive, gross profit decreased year-over-year over the trailing four years, and net income decreased year-over-year over the trailing four years. Growth is happening on the top line while gross profit and net income are moving the other way.
State
Revenue CAGR positive (6-year) while gross profit decreased year-over-year and net income decreased year-over-year
Emergence
Revenue has grown on a 6-year compound basis while two profitability line items have moved in the opposite direction. Gross profit has decreased year-over-year over the trailing four years and net income has decreased year-over-year over the trailing four years. The composition note: top-line compound growth alongside falling gross profit and net income — revenue is rising while the profit lines that should follow it are falling.
Limits
This interpretation identifies a directional split between revenue compounding and the trajectories of gross profit and net income, not the cause. The decrease-count observations only record year-over-year decreases with no claim about cause (margin compression, mix shift, one-offs, FX, restructuring, etc.). The revenue CAGR obs uses centered mapping; firing means positive 6-year revenue CAGR. It does not predict whether margins will stabilize, assess whether growth-at-any-cost is strategic, or claim the stock will underperform.
Explanation
This diagnostic clarifies a directional split: Surface reading: Strong revenue growth suggests a successful, expanding business. Structural reality: Revenue CAGR (6 years, centered mapping) is positive — the top line has compounded over the trailing six years. However, Gross Profit Decreased Year-Over-Year (4 years) indicates gross profit has fallen consistently. And Net Income Decreased Year-Over-Year (4 years) indicates net income has fallen consistently. The combination shows revenue compounding while gross profit and net income contract. The observations do not identify the cause — it could be unit-economics deterioration, mix shift, restructuring charges, FX, or any combination.
Interpretation
Co-occurrence of a revenue-growth reading with gross-profit and net-income decrease trajectories. The formulas record direction-of-change on different income-statement lines; they do not identify cause or predict future margins.
Required Observations
Cagr Income Revenue
Configured income-statement field has grown on a 6-year compound basis (which field depends on the instance).
Gross Profit Decreased Yoy 4y
Gross profit has decreased year-over-year across the most recent 4 fiscal years.
Net Income Decreased Yoy 4y
Net income has decreased year-over-year across the most recent 4 fiscal years.