UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38474 Jerash Holdings (US), Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or or ...

Financial Data and Key Metrics Changes - Revenue for the fiscal 2026 first quarter was $39.6 million, a slight decline from $40.9 million in the same quarter last year, primarily due to shipment delays [12] - Gross profit increased by 31.2% to $6.1 million from $4.6 million in the same quarter last year, with gross margin rising to 15.4% from 11.3% [12][13] - Operating income improved to $959,000 from an operating loss of $829,000 in the prior year quarter [13] - Net income for the fiscal 2026 first quarter was $324,000, recovering from a net loss of $1.4 million in the same quarter last year [14] - Cash and restricted cash totaled $7.5 million, with net working capital at $34.6 million [15] Business Line Data and Key Metrics Changes - The company successfully completed production of the first phase of a major order from a U.S.-based multinational retailer, indicating strong operational performance [5] - The expansion of manufacturing facilities in Amman was completed in June, with an estimated 15% increase in production capacity expected to contribute to performance starting in the second fiscal quarter [10][11] Market Data and Key Metrics Changes - The company is experiencing increased inquiries from global brands seeking to diversify their manufacturing away from Asia, particularly in light of the 15% U.S. tariff on products from Jordan [3][9] - Shipping logistics have improved significantly since mid-July 2025, allowing for more reliable shipping routes to support global customers [9] Company Strategy and Development Direction - The company is focused on diversifying its customer base and product mix to optimize production capacity and improve margins [10] - Future expansion plans are being evaluated, with a cautious approach due to geopolitical instability and tariff uncertainties [23][24] - The company aims to enhance operational efficiency while exploring larger-scale expansion plans for the coming year [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growing customer demand and the potential impacts of tariff changes and geopolitical instability [6] - The company is consulting with international tax experts to optimize its tax structure, which is currently affected by local taxes in Jordan and Hong Kong [14][36] Other Important Information - The company declared a quarterly regular dividend of $0.05 per share, payable on August 29, 2025 [17] - The company is booked through February 2026, with additional capacity expected to be gradually integrated [37] Q&A Session Summary Question: Are there now tariffs being paid for products from Jordan? - Yes, currently there is a 15% tariff [19] Question: Was there a sales shift from the first quarter into the second quarter? - Yes, a few orders were shifted to July, but it was not significant [21] Question: Can you provide details on longer-term expansion plans? - The company is planning a longer-term expansion but is cautious due to geopolitical uncertainties and tariffs, focusing on training new workers and expanding existing facilities for now [23][24] Question: Can you elaborate on the relationship with Hansel and order activity? - The company has secured two significant orders from Hansel, with ongoing discussions for further collaboration [28][29] Question: What is the effective tariff rate compared to other countries? - The current tariff for Jordan is 15%, which is competitive compared to other countries like Bangladesh and Vietnam [46][50] Question: How is the joint venture with Busana performing? - The joint venture has been terminated as the company can directly deal with customers [56]

"I am pleased to report that we have successfully completed production of the first phase of a major initial order from one of the largest U.S.-based multinational and omnichannel retailers, through our strategic collaboration with Hansoll Textile. Shipments are scheduled to begin in September and continue through February 2026. We continue to seek further collaborations that create mutual value and strengthen long-term partnerships. "As previously announced, the expansion of our existing manufacturing faci ...

Revenue and Sales Performance - Revenue for fiscal 2025 was $145.8 million, an increase of $28.6 million or 24% compared to $117.2 million in fiscal 2024[150]. - Sales to the U.S. increased by approximately 25% during fiscal 2025, driven by higher shipments to major customers[156]. - Aggregate sales to Jordan, China, Hong Kong, Germany, and other locations increased by 18% from approximately $14.7 million in fiscal 2024 to $17.2 million in fiscal 2025[157]. Cost and Profitability - Cost of goods sold increased by approximately $23.2 million to $123.5 million in fiscal 2025, with a decrease in the percentage of revenue to 85% from 86%[158]. - Gross profit margin improved to approximately 15% in fiscal 2025, up from 14% in fiscal 2024, due to better logistics and production planning[159]. - Selling, general, and administrative expenses rose by approximately 19% to $20.9 million in fiscal 2025, primarily due to higher shipment costs and increased share-based compensation[160]. - A net loss of $0.8 million was reported in fiscal 2025, an improvement from a net loss of $2.0 million in fiscal 2024[178]. Cash Flow and Liquidity - As of March 31, 2025, cash balance was approximately $13.3 million, up from $12.4 million as of March 31, 2024[167]. - Current ratio as of March 31, 2025, was approximately 2.7 to 1, down from 3.4 to 1 as of March 31, 2024[168]. - The company participated in supply chain financing programs, allowing for early payments on approved sales invoices, enhancing liquidity[170]. - Net cash provided by operating activities decreased to approximately $1.4 million in fiscal 2025 from $2.5 million in fiscal 2024, primarily due to lower operational efficiency[176]. - Cash and restricted cash at the end of fiscal 2025 totaled $15.1 million, an increase from $14.0 million at the end of fiscal 2024[175]. Investment and Capital Expenditures - Net cash used in investing activities was approximately $2.4 million in fiscal 2025, a decrease from $5.1 million in fiscal 2024, attributed to reduced capital expenditures for dormitory construction[176]. - Capital expenditures were approximately $2.4 million in fiscal 2025, down from $5.1 million in fiscal 2024, with significant investments in plant and machinery[183]. - Projected capital expenditures for fiscal years ending March 31, 2026 and 2027 are approximately $1.3 million and $7.8 million, respectively, aimed at enhancing production capacity[185]. Accounts Receivable and Financial Guarantees - Accounts receivable decreased by $2.4 million in fiscal 2025, contrasting with an increase of $3.0 million in fiscal 2024[178]. - The company has not entered into any financial guarantees or derivative contracts that are not reflected in its consolidated financial statements[186]. Statutory Reserve - The statutory reserve remained unchanged at $414,000 as of March 31, 2025, representing 0.66% of consolidated net assets of $62.9 million[182].

Financial Performance & Outlook - FY2022 revenue reached $143.4 million with a gross margin of 19.1% and net income of $7.9 million, or $0.67 per share[16] - Q3 FY2023 revenue was $43.0 million with a gross margin of 13.5% and net income of $0.9 million, or $0.07 per share[16] - The company anticipates Q4 revenue to be between $26 million and $28 million, with a gross margin goal for FY2023 of 16-18%[16] - Jerash is operating at approximately 14 million pieces annual capacity as of March 31, 2022[19] Strategic Positioning & Growth - Jerash is the largest contract manufacturer of premium apparel brands in Jordan, operating six facilities near Amman[7] - The company has a workforce of over 5,500 employees, with 25% being local Jordanian and 75% being contracted workers from other countries[17] - Jerash is strategically positioned to capture greater opportunities in the region as apparel production moves to Jordan[11] - The company is expanding its global customer base, including its first European-based high-end apparel brand[10, 19] - Jerash is diversifying its product offerings, with pants & shorts accounting for 41%, jackets for 35%, crew neck & other for 17%, and polo shirts for 7% of total pieces sold in FY2022 (excluding PPE)[31] ESG & Operational Strengths - Jerash is recognized for its ESG responsibility, including supporting women in the supply chain and providing stable employment to Syrian refugees[26, 29] - The company is committed to environmental sustainability, including using solar energy, LED lighting, and environmentally friendly inks[29] - Jerash benefits from Jordan's low-cost, high-quality manufacturing economy and duty-free US and EU export agreements[22, 48] - The company is reducing revenue seasonality by balancing production capacity utilization, with 53% of revenue generated in the first half and 47% in the second half of FY2022[33]

Financial Data and Key Metrics Changes - Revenue for the fiscal 2025 fourth quarter increased by 35.6% to $29.3 million from $21.6 million in the same quarter last year [13] - Gross profit for the fiscal 2025 fourth quarter advanced nearly 250% to $5.2 million from $1.5 million in the same quarter of last year, with gross margin increasing to 17.9% from 7% [14] - Net loss was reduced to $144,000 or $0.01 per share for the fiscal 2025 fourth quarter from a net loss of $3.1 million or $0.25 per share in the same period last year [17] - Total revenue for fiscal 2025 reached a record high of $146 million [18] Business Line Data and Key Metrics Changes - The company is experiencing strong demand from existing customers and an increase in inquiries from new brands and large apparel manufacturers [4] - The joint venture with Brusena is being terminated due to limited progress, with a focus on diversifying the customer base and expanding the product mix [7] Market Data and Key Metrics Changes - Global brands are seeking manufacturing alternatives out of China and Southeast Asia due to tariff uncertainties, positioning the company favorably with its established operations in Jordan [6] - The company is actively collaborating with the Jordan Ministry of Labor to expand production capacity, targeting an increase of 5% to 10% [11] Company Strategy and Development Direction - The company aims to diversify its direct customer base and expand its product mix to increase year-round capacity utilization and reduce revenue seasonality [7] - A strategic collaboration with Hanseltexa, a major South Korean apparel group, has been secured, marking one of the largest initial orders in the company's history [5] Management's Comments on Operating Environment and Future Outlook - Management noted that revenue remains affected by logistic disruptions due to geopolitical instability, with an estimated $3 million to $4 million in finished goods not shipped until early fiscal 2026 [4] - The company expects revenue for the fiscal 2026 first quarter to be approximately $38 million to $40 million, pending outbound shipping port conditions [18] Other Important Information - The Board of Directors approved a regular quarterly dividend of $0.05 per share payable on June 6, 2025 [19] - The company is exploring additional logistic channels to ensure reliable and timely deliveries amid ongoing geopolitical tensions [12] Q&A Session Summary Question: What are the incremental costs of moving ports from Haifa to the Jordanian port? - The cost to Aqaba is lower than transporting to Haifa, with truckload costs being approximately $1,200 to Aqaba compared to $3,200 to Haifa [21] Question: Are there any order cancellations or just timing issues? - No orders have been canceled; the situation is purely a timing issue due to congestion at Haifa [25] Question: What led to the decision to dissolve the Busana joint venture? - Limited progress in the joint venture and the ability to handle customers independently led to the decision to terminate it [27][28] Question: Can you elaborate on the new opportunity with Hansel? - Hansel is a major importer in South Korea and the number one supplier for Walmart, with plans to increase business through the company [32][36] Question: How are tariffs affecting sourcing decisions? - The tariff situation has prompted brands to seek alternative suppliers, increasing demand for the company's services [41][46] Question: What is the outlook for gross margins given the increased demand? - Gross margins are expected to improve as the company shifts to more FOB business, which typically yields higher margins [58][60] Question: How does the geopolitical situation affect long-term customer relationships? - Jordan is viewed as a safe and stable country, which reassures customers about the continuity of doing business [68] Question: How is the company managing supply chain risks? - The company has established multiple alternative routes for supplies and strengthened sourcing within the region to mitigate risks [73]

Financial Data and Key Metrics Changes - Revenue for the fiscal twenty twenty five fourth quarter increased by 35.6% to $29.3 million from $21.6 million in the same quarter last year [13] - Gross profit for the fiscal twenty twenty five fourth quarter advanced nearly 250% to $5.2 million from $1.5 million in the same quarter of last year, with gross margin increasing to 17.9% from 7% [14] - Net loss was reduced to $144,000 or $0.01 per share for the fiscal twenty twenty five fourth quarter from a net loss of $3.1 million or $0.25 per share in the same period last year [16] - Revenue for the fiscal year ended March 31, 2025, reached a record high of $146 million [17] Business Line Data and Key Metrics Changes - The company is experiencing strong demand from existing customers and an increase in inquiries from new brands and large apparel manufacturers [4] - The strategic collaboration with Hanseltexa is expected to enhance margins compared to traditional contract manufacturing [9] - The company plans to terminate the joint venture with Brusena due to limited progress and focus on diversifying its customer base [6] Market Data and Key Metrics Changes - Global brands are actively seeking manufacturing alternatives out of China and Southeast Asia due to tariff uncertainties, positioning the company favorably [6] - The company is well-positioned to meet growing demand supported by Jordan's free trade agreements with the EU, UK, and Canada [6] Company Strategy and Development Direction - The company aims to diversify its direct customer base and expand its product mix to increase year-round capacity utilization and reduce revenue seasonality [6] - Expansion at the existing manufacturing facility in Arman is expected to increase production capacity by approximately 15% starting in the second fiscal quarter [11] - The company is assessing long-term expansion plans for manufacturing and warehousing facilities on previously purchased land [11] Management's Comments on Operating Environment and Future Outlook - Management noted that revenue remains affected by logistic disruptions due to geopolitical instability, particularly at Israel's Haifa Port [4] - The company expects revenue for the fiscal twenty twenty six first quarter to be approximately $38 million to $40 million, pending shipping conditions [17] - Management expressed confidence in maintaining healthy gross margins despite competitive pressures [56] Other Important Information - The Board of Directors approved a regular quarterly dividend of $0.05 per share payable on June 6, 2025 [18] Q&A Session Summary Question: Incremental costs of moving ports - The cost to transport goods to Aqaba is lower than to Haifa, with trucking costs being approximately 34-40% less [20][22] Question: Timing of orders and cancellations - There have been no order cancellations; the shifts in timing are due to congestion at Haifa [24][25] Question: Decision to dissolve the joint venture with Brusena - The joint venture was terminated due to limited progress, and the company can handle customers independently [26][27] Question: Impact of tariffs on sourcing - The urgency to find alternative suppliers has increased due to tariffs, with Jordan being a competitive option [41][42] Question: Long-term expansion plans - The company is holding off on new facilities due to geopolitical instability but will continue to explore options [48][49] Question: Concerns about geopolitical issues - Jordan is considered a safe and stable country, and customers have shown interest in visiting and working with the company [65][66] Question: Supply chain alternatives - The company has developed multiple routes for sourcing supplies and strengthened regional sourcing to mitigate past supply chain issues [70]

Revenue Performance - Record annual revenue of $145.8 million, up 24.4% from the prior year[12] - Fiscal 2025 fourth quarter revenue rose by 35.6% to $29.3 million from $21.6 million in the same quarter last year[7] - Revenue for the fiscal 2026 first quarter is expected to be approximately $38-$40 million, pending outbound shipping port conditions[6] Profitability - Gross profit for fiscal 2025 fourth quarter advanced by nearly 250% to $5.2 million, with a gross margin increase to 17.9% from 7.0%[8] - Operating income improved to $434,000 for the fiscal 2025 fourth quarter, compared to an operating loss of $3.0 million a year ago[10] - Net loss reduced to $144,000, or $0.01 per share, for the fiscal 2025 fourth quarter, down from a net loss of $3.1 million, or $0.25 per share, in the same period last year[11] - Net loss for the fiscal year ended March 2025 was $839,929, an improvement from a net loss of $2.04 million in March 2024[23] Cash and Working Capital - Cash and restricted cash totaled $15.1 million, and net working capital was $34.6 million as of March 31, 2025[15] - Net cash provided by operating activities was $1.36 million, down from $2.48 million in the previous year[23] - Cash and restricted cash at the end of the year totaled $15.06 million, compared to $14.04 million in the prior year, reflecting an increase of 7.3%[23] Assets and Liabilities - Total assets increased to $82.98 million in March 2025, up from $80.25 million in March 2024, representing a growth of 3.4%[22] - Current assets rose to $54.42 million, compared to $50.92 million in the previous year, marking an increase of 6.8%[22] - Total liabilities increased to $20.11 million in March 2025, up from $15.81 million in March 2024, a rise of 27.5%[22] Dividends and Retained Earnings - A regular quarterly dividend of $0.05 per share was approved and paid on June 6, 2025[15] - Retained earnings decreased to $38.40 million from $41.70 million, a decline of 7.6%[22] - The company made dividend payments of $2.46 million, consistent with the previous year[23] Production and Capacity - Expansion of existing manufacturing facilities completed, with a 15% increase in production capacity expected to contribute in the second fiscal quarter of 2026[4] Interest and Accounts Receivable - Cash paid for interest increased to $1.72 million from $1.20 million, representing a rise of 43%[23] - The company reported a significant increase in accounts receivable, which improved by $2.36 million compared to a decrease of $2.99 million in the previous year[23]

Revenue and Income - Revenue for the three months ended December 31, 2024, was $35,384,737, representing a 28.5% increase from $27,520,121 in the same period of 2023[10]. - Net income for the three months ended December 31, 2024, was $6,314, compared to a net income of $232,170 in the same period of 2023, showing a significant decline[10]. - The company reported a net loss attributable to common stockholders of $5,806 for the three months ended December 31, 2024, compared to a net income of $220,713 in the same period of 2023[10]. - For the nine months ended December 31, 2024, the company reported a net loss of $695,834 compared to a net income of $1,096,229 for the same period in 2023[17]. - The net income for the three months ended December 31, 2023, was $232,170, a significant increase from the previous year's net income of $220,713[15]. Expenses and Costs - Selling, general and administrative expenses for the nine months ended December 31, 2024, were $14,650,105, up from $12,318,535 in 2023, reflecting an 18.9% increase[10]. - The cost of goods sold for the three months ended December 31, 2024, was $30.0 million, representing 85% of total revenue, compared to $23.1 million, or 84% of total revenue, for the same period in 2023[136]. - Operating expenses increased by 14%, or approximately $0.6 million, to approximately $4.7 million, primarily due to higher export logistic costs[149]. - The company incurred total operating lease expenses of $561,102 for the three months ended December 31, 2024, compared to $599,622 for the same period in 2023, showing a decrease in lease costs[87]. Assets and Liabilities - Total current assets as of March 31, 2024, were $51,114,063, slightly up from $50,919,660 as of December 31, 2023[9]. - Total liabilities increased to $16,653,474 as of March 31, 2024, from $15,814,903 as of December 31, 2023[9]. - Total assets as of March 31, 2024, were $79,836,715, a slight decrease from $80,245,566 as of December 31, 2023[9]. - As of March 31, 2024, total equity stands at $64,430,663, a decrease from $68,234,234 on March 31, 2023, reflecting a decline of approximately 5.3%[13]. Cash Flow - The company experienced a significant decrease in net cash provided by operating activities, dropping to $(581,275) from $7,866,954 in the previous year[17]. - Cash and cash equivalents increased to $13,219,109 as of March 31, 2024, compared to $12,428,369 as of December 31, 2023[9]. - Net cash used in investing activities was $(1,671,833), a decrease from $(4,263,959) in the prior year, showing reduced capital expenditures[17]. - Net cash used in operating activities was approximately $581,000 for the nine months ended December 31, 2024, compared to cash provided by operating activities of approximately $7.9 million for the same period in fiscal 2024[184]. Dividends - The company maintained a dividend per share of $0.05 for both the three and nine months ended December 31, 2024, consistent with the previous year[10]. - Dividend payments for the three months ended December 31, 2024, totaled $(1,844,226), consistent with the previous year[13]. - The company declared cash dividends of $0.05 per share of common stock, totaling $614,742 for each of the three dividends paid during the nine months ended December 31, 2024[96]. Inventory and Receivables - The company's total inventories decreased from $27,241,573 as of March 31, 2024, to $19,118,133 as of December 31, 2024, primarily due to a reduction in raw materials[83]. - Accounts receivable increased from $5,451,334 as of March 31, 2024, to $7,237,959 as of December 31, 2024, reflecting a growth in revenue[82]. - The company’s accounts receivable decreased by $1,803,392 compared to a decrease of $6,044,375 in the previous year, indicating improved collection efforts[17]. Accounting and Compliance - The Company adopted ASU 2016-13 on April 1, 2023, which changes the credit loss impairment methodology to an expected loss model, but it did not have a material impact on consolidated financial statements[44]. - The company failed to maintain effective controls over period-end financial reporting, particularly regarding income taxes and account level balances reconciliation, leading to errors[207]. - Enhanced communication with U.S. GAAP advisors is being implemented to strengthen compliance with new promulgations[207]. Future Plans and Investments - The company plans to invest approximately $29.9 million to establish a new fabric facility in Jordan through its joint venture Jerash Newtech[29]. - The company projects capital expenditures of approximately $2.2 million and $8.8 million for the fiscal years ending March 31, 2025, and 2026, respectively, to enhance production capacity[196]. Customer Concentration - For the three months ended December 31, 2024, three end-customers accounted for 58%, 13%, and 10% of the company's total revenue, indicating a significant customer concentration risk[74].

Financial Data and Key Metrics Changes - Revenue for Q3 2025 increased by 28.6% to $35.4 million from $27.5 million in the same quarter last year, despite being impacted by approximately $6 million due to shipping delays [18][24] - Gross profit rose by 20.6% to $5.4 million, with a gross margin of 15.2%, down from 16.2% in the same quarter last year, primarily due to higher logistics costs [19][20] - Operating income increased by 88.3% to $708,000 from $376,000 in the same quarter last year [22] - Net income was $6,000, or zero per share, compared to $232,000, or $0.02 per diluted share, in the same quarter last year [24] Business Line Data and Key Metrics Changes - The company reported a significant increase in inquiries from new and existing customers looking to add manufacturing partners in tariff-free countries like Jordan [6][8] - The expansion of two existing manufacturing facilities is expected to increase processing capacity by 15% by June 2025 [10][11] Market Data and Key Metrics Changes - Export trade rules have improved since late January 2025, leading to more timely shipments [7][12] - The company is experiencing growing interest from international apparel companies, particularly from Europe and the Persian Gulf region [8][14] Company Strategy and Development Direction - Jerash Holdings aims to diversify its customer base and expand its product mix, leveraging its competitive advantage in Jordan [9][10] - The company is actively working with the Jordanian government to expand its facilities, which could add an additional 5% to 10% of production capacity by the end of 2025 [11][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business growth, with factories fully booked through August 2025 and expected revenue growth of 50% to 53% in Q4 2025 [25] - The geopolitical situation in the region has improved, which is expected to positively impact logistics and shipping costs [12][63] Other Important Information - The Board of Directors approved a regular quarterly dividend of $0.05 per share, payable on February 25, 2025 [26] - The company is considering various financing options, including debt and equity markets, to support its long-term expansion plans [78][79] Q&A Session Summary Question: Impact of tariffs on customer conversations - Management noted an increase in conversations with customers due to tariff concerns, with new orders anticipated to be limited by capacity growth [28][29] Question: Conversion rate from test orders to full production - The conversion rate from test orders to full production is high, with most customers placing bulk orders after trial orders, typically within six months [35][44] Question: Demand related to U.S. consumer and apparel inventories - Approximately 60% of customers have absorbed high inventory levels and are ready to place new orders, indicating a positive demand outlook [46][48] Question: Timing of delayed shipments and their impact on growth - Delayed shipments are expected to contribute to the anticipated growth of 50% to 53% in Q4 2025, with most unshipped products already shipped in January [51][52] Question: SG&A costs outlook - SG&A costs are expected to stabilize around the low $4 million range, influenced by sales volume [57][58] Question: Logistics improvements and gross margin impact - Improved logistics are expected to enhance gross margins, which are targeted to remain around 15% to 16% going forward [63][68] Question: Joint venture with Busana - The joint venture is progressing slowly due to regional turmoil, but there is potential for high-volume orders from high-end customers [71][75] Question: Financing for long-term expansion - The company is open to various financing opportunities, including potential debt and equity markets, to support its expansion plans [78][79]