West Ham made an operating profit of £2.9 million sterling last season despite being relegated from the Premiership.
Chairman Terence Brown confirmed in a statement the club recorded a profit before player trading and after interest for the first time in four years over the year ending May 2003.
But the revelation will fuel the frustration of Hammers supporters who have long called for Brown to resign. Record season-ticket sales, average attendances of 34,200 at Upton Park and a profitable hospitality wing of the business boosted revenue in the period - but West Ham's bank debts rose by £11.4 million to £44.1million.
The Hammers went down with the highest points total of any club relegated from the Premiership, after an appalling start to the season during which they failed to win at home until January.
They then released 10 out-of-contract players but were also forced to sell prize assets Joe Cole, Glen Johnson, Frederic Kanoute and Trevor Sinclair - much to the anger of fans.
Brown claims such drastic squad-cutting was essential for the club's survival - and while he apologised for "testing the patience" of fans, he insists the Hammers are now in a stable financial position.