Financial Performance - Revenue for the three months ended December 31, 2025, was $41,769,186, a 17.5% increase from $35,384,737 in the same period of 2024[12] - Gross profit for the nine months ended December 31, 2025, reached $19,427,721, up 13.7% from $17,080,544 in 2024[12] - Net income attributable to Jerash Holdings (US), Inc.'s common stockholders for the three months ended December 31, 2025, was $1,170,575, compared to a net loss of $5,806 in the same period of 2024[12] - For the nine months ended December 31, 2025, net income was $1,959,393 compared to a net loss of $695,834 for the same period in 2024[18] - The company reported a basic earnings per share of $0.09 for the three months ended December 31, 2025, compared to $(0.00) in the same period of 2024[12] - Net income for the three months ended December 31, 2025, was approximately $1.2 million, a significant increase from approximately $6,000 in the same period last year[148] - Net income for the nine months ended December 31, 2025, was approximately $2.0 million, compared to a net loss of approximately $0.7 million for the same period last year[166] Assets and Liabilities - Total current assets increased to $56,769,635 as of March 31, 2025, from $54,420,209 as of December 31, 2024[10] - Total assets rose to $84,214,930 as of March 31, 2025, compared to $82,975,526 as of December 31, 2024[10] - Total liabilities increased to $20,563,722 as of March 31, 2025, from $20,106,417 as of December 31, 2024[10] - Cash and cash equivalents decreased to $11,454,016 as of December 31, 2025, from $13,346,791 as of March 31, 2025[10] - Total cash and restricted cash at the end of the period was $13,155,768, down from $14,782,918 at the end of December 2024[18] - Current assets as of December 31, 2025, were approximately $56.8 million, with current liabilities of approximately $20.4 million, resulting in a current ratio of approximately 2.8 to 1[169] Cash Flow - Operating cash flows showed a net cash used of $3,491,495 for the nine months ended December 31, 2025, compared to $581,275 for the same period in 2024[18] - The company had a net cash provided by financing activities of $2,922,305 for the nine months ended December 31, 2025, compared to $3,123,718 in 2024[18] - Net cash used in operating activities was approximately $3.5 million for the nine months ended December 31, 2025, compared to $581,000 for the same period in fiscal 2024[178] - Net cash provided by financing activities was approximately $2.9 million for the nine months ended December 31, 2025, compared to $3.1 million for the same period in fiscal 2024[180] Dividends - The company declared a dividend of $0.05 per share for the three months ended December 31, 2025, consistent with the same period in 2024[12] - Dividend payments totaled $1,904,991 for the nine months ended December 31, 2025, compared to $1,844,226 in 2024[18] - The Company declared cash dividends of $0.05 per share on three occasions during the nine months ended December 31, 2025, totaling $634,997 each time[89] Inventory and Receivables - Accounts receivable increased by $4,755,479 in the nine months ended December 31, 2025, compared to an increase of $1,803,392 in 2024[18] - As of December 31, 2025, accounts receivable amounted to $7,831,553, with no allowances for credit loss[78] - Total inventory as of December 31, 2025, was $26,030,818, with raw materials valued at $9,550,953[79] - Advances to suppliers as of December 31, 2025, were $8,092,421, with no allowances for impairment[80] Expenses - The Company recorded total selling, general, and administrative expenses of $14,756,182 for the nine months ended December 31, 2025, compared to $14,650,105 in 2024[112] - The Company incurred total operating lease expenses of $573,910 for the three months ended December 31, 2025, compared to $561,102 for the same period in 2024[83] - The company reported stock-based compensation expenses of $680,320 for the nine months ended December 31, 2025, a decrease from $1,417,111 in 2024[18] Taxation - The Company is subject to a corporate income tax rate of 20% plus a 1% social contribution in Jordan, effective January 1, 2024, with a tax concession reducing the rate to 10% plus a 1% social contribution starting October 1, 2025[55] - Income tax expenses for the nine months ended December 31, 2025, were approximately $851,000, an increase from approximately $667,000 for the same period last year[165] Business Operations - Revenue is primarily derived from product sales of customized ready-made outerwear, with contracts typically being short-term, and payment terms ranging from 14 to 150 days[49] - The company recognizes revenue upon shipment of goods, with minimal returns historically impacting revenue recognition[50] - The United States represented 85% of total revenue, with sales of $35.4 million, an increase of 14% from the previous year[139] - Outerwear accounted for approximately 90.8% of total revenue for the three months ended December 31, 2025, compared to 91.4% in the same period of 2024[113] Risk Factors - The Company’s operations are subject to risks associated with the political and economic environment in Jordan, which may impact financial performance[73] - The company is not currently involved in any material legal proceedings, but anticipates potential future litigation that could adversely affect financial statements[201] - As a smaller reporting company, the company is not required to disclose specific risk factors[202] Future Outlook - The company expects capital expenditures to increase to approximately $7.8 million in fiscal year ending March 31, 2026, and further in subsequent years[188] - The company is evaluating the potential impact of new accounting standards on its consolidated financial statements[75][76][77]

Core Insights - Jerash Holdings (NASDAQ: JRSH) reported strong fiscal 2026 third-quarter results, with earnings per share (EPS) of $0.09, exceeding consensus estimates of $0.05 to $0.07, and a significant increase from approximately $0.00 in the prior-year quarter [1] - Revenue for the third quarter reached $41.8 million, an 18% increase from $35.4 million in the same quarter the previous year, also surpassing expectations of $39.3 million [1] - The company anticipates fourth-quarter revenue growth of 23% to 26% over the $29.3 million recorded in the prior-year quarter, contributing to a record annual revenue for fiscal 2026 [2] Financial Performance - Gross margin improved by 170 basis points to 16.9% from 15.2% in the prior-year quarter, driven by a favorable product mix and economies of scale [4] - Gross profit rose 31% to $7 million from $5.4 million [4] - Operating income nearly tripled to $1.9 million from $708,000, and net income increased to $1.2 million from $6,000 in the previous year quarter [4] Operational Efficiency - The company demonstrated effective cost management and higher shipment volumes, including to the U.S. and a new customer in Korea, contributing to improved operational efficiency [1] - JRSH maintains a conservative balance sheet with a low debt-to-equity ratio of 0.089 and a current ratio of 2.73, indicating strong liquidity [3] - Recent results show positive cash generation trends aligned with profitability growth, despite historical challenges in the apparel sector [3]

Financial Data and Key Metrics Changes - Revenue for the fiscal 2026 third quarter grew 18% to $41.8 million from $35.4 million in the same quarter last year, driven by higher shipment volumes to major export markets, including the U.S. and a new customer in Korea [10][11] - Gross profit increased 31% to $7 million for the fiscal 2026 third quarter from $5.4 million in the same quarter last year, with gross profit margin improving to 16.9% from 15.2% [10][11] - Operating income nearly tripled to $1.9 million in the fiscal 2026 third quarter from $708,000 in the same quarter last year [11] - Net income rose to $1.2 million or $0.09 per diluted share for the fiscal 2026 third quarter from $6,000 or $0.00 per diluted share for the same quarter last year [11] Business Line Data and Key Metrics Changes - The company is expanding its manufacturing capacity by acquiring a 184,000 sq ft manufacturing building in Amman, Jordan, with an investment of approximately $5 million for renovations and equipment [4][5] - The new facility is expected to increase manufacturing capacity by at least 40% and employ up to approximately 2,500 workers [8][9] - The company is also pursuing additional facilities in rural towns to support growth objectives and local employment, which is expected to add an additional 5%-10% to total production capacity [9] Market Data and Key Metrics Changes - Buyers from major customers have submitted increased order projections for calendar year 2026, with facilities fully booked through July [9] - The company is recognized as one of the world's preferred manufacturing hubs, particularly in response to shifts in tariff policy [7] Company Strategy and Development Direction - The company plans to diversify its customer base and product mix to support stable year-round production and reduce seasonality impacts [5][10] - The long-term strategy aims to more than double current production capacities in the next five years while focusing on operational efficiency and cost control [10] - The company is working with the Jordan Ministry of Labor to develop additional facilities, enhancing local employment opportunities [9][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future prospects, expecting revenue for the fiscal 2026 fourth quarter to increase by 23%-26% over the same quarter last year [14] - The company is focused on cost controls and improving operating efficiency while implementing its long-term expansion strategy [14] - Management is closely monitoring the political situation in the region and has contingency plans in place to ensure stability in operations [43][45] Other Important Information - As of December 31, 2025, the company had cash and restricted cash totaling $13.2 million, with net working capital of $36.4 million [12] - A regular quarterly dividend of $0.05 per share was approved, payable on February 20, 2026 [13] Q&A Session Summary Question: How will the expansions impact the income statement and balance sheet? - The $5 million needed for renovations will be financed by the Housing Bank, showing up as long-term debt on the balance sheet [16][18] Question: Can you provide more detail on the other facilities being considered? - The company plans to set up two satellite factories in rural areas to create job opportunities and improve efficiency [22][23] Question: How quickly will the new capacity ramp up? - Renovations are expected to be completed by the end of 2026, with a gradual ramp-up of operations over 1-2 years [31] Question: What are the expectations for gross margins going forward? - Margins may decrease as the company returns to more complex styles, but efficiency improvements and new technology will help control costs [33] Question: What is the contingency plan regarding political instability in the region? - The company is monitoring the situation closely and has been assured that Jordan will remain stable [43][45] Question: What are the plans for cash on the balance sheet? - The company is utilizing cash for growth and working capital, with plans to consider other financing alternatives once a comfortable level is reached [46][48] Question: How is the relationship with major customers, particularly VF Corp? - There is pricing pressure due to tariffs, but the company maintains strong relationships by providing high-quality manufacturing [50][51]

Financial Data and Key Metrics Changes - Revenue for the fiscal 2026 third quarter grew 18% to $41.8 million from $35.4 million in the same quarter last year, driven by higher shipment volumes to major export markets, including the U.S. and a new customer in Korea [9][10] - Gross profit increased 31% to $7 million for the fiscal 2026 third quarter from $5.4 million in the same quarter last year, with gross profit margin improving to 16.9% from 15.2% [10] - Operating income nearly tripled to $1.9 million in the fiscal 2026 third quarter from $708,000 in the same quarter last year [10] - Net income rose to $1.2 million or $0.09 per diluted share for the fiscal 2026 third quarter from $6,000 or $0.00 per diluted share for the same quarter last year [10] Business Line Data and Key Metrics Changes - The company is expanding its manufacturing capacity by acquiring a 184,000 sq ft manufacturing building in Amman, Jordan, with an investment of approximately $5 million for renovations and equipment [4][5] - The new facility is expected to increase manufacturing capacity by at least 40% and employ up to approximately 2,500 workers [7][9] - The company is also developing additional facilities in two rural towns, expected to add an additional 5%-10% to total production capacity [8] Market Data and Key Metrics Changes - Buyers from major customers have submitted increased order projections for calendar year 2026, with facilities fully booked through July [8] - The company is recognized as one of the world's preferred manufacturing hubs, particularly in response to shifts in tariff policy [6][7] Company Strategy and Development Direction - The company aims to diversify its customer base and product mix to support stable year-round production and reduce seasonality impacts [5][9] - Long-term strategy includes more than doubling current production capacities in the next five years while focusing on operational efficiency and cost control [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future prospects, expecting revenue for the fiscal 2026 fourth quarter to increase by 23%-26% over the same quarter last year [13] - The company is closely monitoring the political situation in the region and has contingency plans in place to ensure stability in operations [41][43] Other Important Information - The effective tax rate for the quarter was lower at 24%, attributed to higher income and adjustments for global operations [58][59] - The company plans to utilize cash more extensively for growth and working capital needs, while also considering debt financing for expansion [45] Q&A Session Summary Question: How will the expansions impact the income statement and balance sheet? - The $5 million needed for renovations will be financed by the Housing Bank, showing up as long-term debt on the balance sheet [15][16] Question: Can you provide details on the new facilities? - The new satellite factories will help create job opportunities in rural areas and are expected to improve overall efficiency [21][22] Question: How quickly will the new capacity ramp up? - Renovations are anticipated to be completed by the end of 2026, with a gradual ramp-up of operations [29] Question: What are the expectations for gross margins going forward? - Margins may decrease as the company returns to more complex styles, but efficiency improvements are expected to help maintain margins [30][31] Question: What is the contingency plan regarding political instability? - The company is monitoring the political situation closely and has been assured that Jordan will remain stable [41][42] Question: What are the plans for cash on the balance sheet? - The company plans to utilize cash for growth and working capital, while also considering debt financing for expansion [45] Question: How is the relationship with major customers like VF Corp? - There is pricing pressure from customers due to tariffs, but the company maintains strong relationships by providing high-quality manufacturing [47][48]

Financial Data and Key Metrics Changes - Revenue for Q3 2026 increased by 18% to $41.8 million from $35.4 million in the same quarter last year, driven by higher shipment volumes to major export markets, including the U.S. and a new customer in Korea [10] - Gross profit rose by 31% to $7 million from $5.4 million year-over-year, with gross profit margin improving to 16.9% from 15.2% due to a favorable product mix and economies of scale [10][11] - Operating income nearly tripled to $1.9 million from $708,000 in the same quarter last year, while net income increased to $1.2 million or $0.09 per diluted share from $6,000 or $0.00 per diluted share [11] - Cash and restricted cash totaled $13.2 million, with net working capital at $36.4 million as of December 31, 2025 [12] Business Line Data and Key Metrics Changes - The company is expanding its manufacturing capacity by acquiring a 184,000 sq ft facility in Amman, Jordan, with an investment of approximately $5 million for renovations and equipment [4][5] - The new facility is expected to increase manufacturing capacity by at least 40%, supporting growing demand from existing customers and new business opportunities [5][9] - The company is also developing additional facilities in rural towns, which are expected to add 5%-10% to total production capacity [9] Market Data and Key Metrics Changes - The company has seen increased order projections from major customers for calendar year 2026, with facilities fully booked through July [9] - Jordan is being recognized as a preferred manufacturing hub, with many global brands diversifying their manufacturing footprint to the region [6][9] Company Strategy and Development Direction - The long-term strategy aims to more than double current production capacities in the next five years while diversifying the customer base and product mix [10] - The company is focused on cost control and operational efficiency as it implements its expansion strategy [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future prospects, expecting Q4 2026 revenue to increase by 23%-26% year-over-year, with gross margin targets of 14%-16% [13] - The company is closely monitoring the political situation in the region and has contingency plans in place to ensure stable operations [41][45] Other Important Information - The board of directors approved a regular quarterly dividend of $0.05 per share, payable on February 20, 2026 [12] - The effective tax rate for the quarter was lower at 24%, with projections for future rates between 25%-30% as the company engages in tax planning [62][64] Q&A Session Summary Question: How will the expansions impact the income statement and balance sheet? - The $5 million for renovations and equipment will be financed by the Housing Bank, showing up as long-term debt on the balance sheet [16][18] Question: Can you provide details on the new facilities being developed? - The new satellite factories will help create job opportunities in rural areas and are expected to improve overall efficiency [21][22] Question: How quickly can the new capacity be ramped up? - Renovations are expected to be completed by the end of 2026, with a ramp-up period of 1-2 years to fully utilize the new capacity [30] Question: What is the outlook for gross margins going forward? - Margins may decrease as the company returns to more complex styles, but efficiency improvements and new technology will help control costs [33] Question: What is the contingency plan regarding political instability in the region? - The company is monitoring the situation closely and has been assured that Jordan will remain stable, with efficient operations at key ports [41][45] Question: What are the plans for cash on the balance sheet? - The company is utilizing cash for growth and working capital, with plans to consider other financing alternatives once a comfortable level is reached [46][47] Question: How is the health of the largest customers affecting pricing? - There is pricing pressure due to tariffs, but the company maintains strong relationships with customers and is seen as a reliable manufacturer [50][51]

Revenue and Income - Revenue for the fiscal 2026 third quarter increased by 18.0% to $41.8 million, up from $35.4 million in the same quarter last year[7] - Net income rose to $1.2 million, or $0.09 per diluted share, compared to $6,000, or $0.00 per diluted share, in the same quarter last year[12] - Net income for the nine months ended December 31, 2025, was $1,959,393, a significant improvement from a net loss of $695,834 in the same period of 2024[24] Gross Margin and Operating Income - Gross margin improved by 170 basis points to 16.9%, compared to 15.2% in the prior year quarter[7] - Operating income nearly tripled to $1.9 million, from $708,000 in the same quarter last year[7] Future Revenue Expectations - Revenue for the fiscal 2026 fourth quarter is expected to increase by 23% to 26% over $29.3 million in the prior-year quarter[7] Expenses and Cash Flow - Operating expenses totaled $5.1 million in the fiscal 2026 third quarter, compared to $4.7 million in the same quarter last year[10] - The company reported a net cash used in operating activities of $3,491,495 for the nine months ended December 31, 2025, compared to $581,275 in the same period of 2024[24] Assets and Liabilities - Cash and restricted cash totaled $13.2 million, and net working capital was $36.4 million as of December 31, 2025[17] - Total current assets increased to $56,769,635 as of December 31, 2025, compared to $54,420,209 on March 31, 2025, reflecting a growth of 4.3%[23] - Accounts receivable increased to $7,831,553 as of December 31, 2025, compared to $3,076,074 on March 31, 2025, indicating a rise of 154%[23] - Total liabilities rose to $20,563,722 as of December 31, 2025, up from $20,106,417 on March 31, 2025, marking an increase of 2.3%[23] - Total equity increased to $63,651,208 as of December 31, 2025, from $62,869,109 on March 31, 2025, reflecting a growth of 1.2%[23] Dividend Information - A regular quarterly dividend of $0.05 per share was approved, payable on February 20, 2026[17] - The company made dividend payments totaling $1,904,991 during the nine months ended December 31, 2025, compared to $1,844,226 in the same period of 2024[24] Depreciation and Interest - The company incurred depreciation expenses of $2,274,388 for the nine months ended December 31, 2025, compared to $1,968,992 in the same period of 2024[24] - Cash paid for interest was $1,242,520 for the nine months ended December 31, 2025, slightly lower than $1,348,291 in the same period of 2024[24] Production Capacity - The acquisition of a bank-owned manufacturing building is expected to increase production capacity by at least 40%[5] Comprehensive Income - Comprehensive income attributable to common stockholders advanced to $1.2 million in the fiscal 2026 third quarter, from a comprehensive loss of $147,000 in the same quarter last year[12]

Core Viewpoint - Jerash Holdings (US), Inc. reported significant financial improvements for its fiscal 2026 third quarter, indicating strong growth in revenue and overall performance [1]. Financial Performance - Revenue increased by 18.0 percent to $41.8 million, compared to $35.4 million in the same quarter of the previous year [1].

Core Viewpoint - Jerash Holdings has received approval to acquire a manufacturing building and land in Amman, Jordan for approximately $3.4 million, which will enhance its production capacity and operational efficiency [1] Group 1: Acquisition Details - The acquisition involves a bank-owned manufacturing building of about 184,000 square feet [1] - Jerash Holdings made a down payment of $0.6 million, with the remaining $2.8 million financed by the Housing Bank over an eight-year period [1] - The first principal payment is scheduled for February 2027 [1] Group 2: Strategic Implications - This acquisition is expected to support Jerash's manufacturing capabilities for custom and ready-made sportswear and outerwear [1] - The expansion aligns with the company's strategy to cater to leading global brands [1]

Core Viewpoint - Jerash Holdings (US), Inc. is set to release its financial results for the third quarter of fiscal 2026 on February 9, 2026, before market opening [1] Group 1 - The company specializes in manufacturing and exporting custom, ready-made sportswear and outerwear for leading global brands [1] - An investor conference call will be held on the same day as the financial results release [1]

Core Insights - Jerash Holdings (NASDAQ:JRSH) reported an earnings per share (EPS) of $0.04, missing the estimated $0.14, indicating a shortfall in profitability expectations [1][6] - The company achieved a revenue of approximately $41.97 million, surpassing the estimated $41 million, reflecting a 4.3% year-over-year increase from $40.2 million [2][6] Financial Performance - The gross margin decreased to 15% from 17.5% in the prior year quarter, indicating challenges in maintaining profitability despite revenue growth [3] - Operating income slightly declined to $1.09 million from $1.13 million, and net income fell to $479,000 from $665,000 in the previous year [3] Financial Ratios and Liquidity - The price-to-earnings (P/E) ratio is approximately 50.92, suggesting investors are willing to pay about 51 times the company's earnings over the past year [4] - The current ratio stands at 2.85, indicating a strong liquidity position with nearly three times current assets compared to current liabilities [5][6] - The debt-to-equity ratio is 0.08, reflecting a relatively low level of debt compared to equity [5] Future Outlook - Jerash Holdings anticipates a revenue increase of 19 to 21% for the fiscal 2026 third quarter, with a gross margin target of approximately 13 to 15% [5]