Armlogi Holding Corp. Announces Fiscal 2025 Third Quarter and Nine-Month Results

Core Viewpoint - Armlogi Holding Corp. reported significant revenue growth in Q3 and the first nine months of fiscal 2025, but faced increased operational costs leading to net losses and reduced profitability margins [2][7][12]. Financial Performance Three Months Ended March 31, 2025 - Total revenue increased by approximately $7.4 million, or 19.3$45.8 million compared to $38.4 million in the same period of 2024 [2]. - Costs of sales rose by approximately$10.5 million, or 29.8%, to $45.6 million, primarily due to higher operational costs and expansion [3]. - Gross profit decreased to$0.28 million, down from $3.32 million, resulting in a gross profit margin of approximately 0.6$4.47 million from $3.27 million, leading to a loss from operations of$4.19 million, compared to a profit of $0.05 million in the same period last year [5]. - The net loss was$3.76 million, or ($0.09) per share, compared to a net income of$0.68 million, or $0.02 per share, for the same period in 2024 [6]. Nine Months Ended March 31, 2025 - Total revenue increased by approximately$17.8 million, or 14.6%, to $139.5 million compared to$121.7 million in the same period of 2024 [7]. - Costs of sales increased by approximately $36.85 million, or 35.0$142.3 million, reflecting expanded operations and market pressures [8]. - The overall gross loss was $2.85 million, a shift from a gross profit of$16.23 million, resulting in a negative gross profit margin of approximately (2.0)% compared to a positive margin of 13.3% in the prior year [9]. - General and administrative expenses rose to $10.80 million from$8.10 million, leading to a loss from operations of $13.65 million, compared to a profit of$8.13 million in the same period last year [10]. - The net loss for the nine months was $10.06 million, or ($0.24) per share, compared to a net income of $7.18 million, or$0.18 per share, for the same period in 2024 [11]. Management Commentary - The CEO highlighted ongoing revenue growth amid significant operational investments and market-related cost pressures impacting profitability [12]. - Recent developments in U.S.-China trade talks have led to reduced tariffs, which may positively affect Armlogi and the logistics sector [12]. - The company is focused on optimizing its warehouse footprint and enhancing operational efficiencies while prioritizing sustainable growth and improved profitability [12].