Armlogi Holding Corp.(BTOC) - 2025 Q3 - Quarterly Results

Financial Highlights Third Quarter Fiscal 2025 Results (Three Months Ended March 31, 2025) Revenue grew 19.3% in Q3 FY2025, but a significant cost surge led to a gross margin collapse and a net loss of $3.76 million Q3 FY2025 vs. Q3 FY2024 Financial Performance | Financial Metric | Q3 FY2025 (ended Mar 31, 2025) | Q3 FY2024 (ended Mar 31, 2024) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $45.8 million | $38.4 million | +19.3% | | Costs of Sales | $45.6 million | $35.1 million | +29.8% | | Gross Profit | $0.28 million | $3.32 million | -91.6% | | Gross Margin | 0.6% | 8.6% | -8.0 p.p. | | Loss from Operations | ($4.19 million) | $0.05 million (Income) | - | | Net (Loss) Income | ($3.76 million) | $0.68 million | - | | (Loss) Earnings Per Share | ($0.09) | $0.02 | - | - The increase in costs of sales is primarily attributed to higher operational costs associated with service delivery and the expansion of the company's operational footprint[3] - General and administrative expenses rose from $3.27 million to $4.47 million, reflecting investments to support growing operations and strategic initiatives[5] Nine-Month Fiscal 2025 Results (Nine Months Ended March 31, 2025) For the nine months of FY2025, revenue rose 14.6%, but a 35.0% cost increase resulted in a gross loss and a significant net loss of $10.06 million Nine-Month FY2025 vs. FY2024 Financial Performance | Financial Metric | Nine Months FY2025 (ended Mar 31, 2025) | Nine Months FY2024 (ended Mar 31, 2024) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $139.5 million | $121.7 million | +14.6% | | Costs of Sales | $142.3 million | $105.5 million | +35.0% | | Gross (Loss) Profit | ($2.85 million) | $16.23 million | - | | Gross Margin | (2.0)% | 13.3% | -15.3 p.p. | | Loss from Operations | ($13.65 million) | $8.13 million (Income) | - | | Net (Loss) Income | ($10.06 million) | $7.18 million | - | | (Loss) Earnings Per Share | ($0.24) | $0.18 | - | - The increase in costs of sales was driven by an expanded operational footprint, investments in service capabilities, and market pressures on resource costs[8] - The company is actively working on initiatives to address margin challenges and mitigate potential risks from U.S.-China trade developments[9] Management Commentary Management acknowledged strong revenue growth offset by cost pressures and expressed cautious optimism regarding recent U.S.-China tariff reductions - The company faces a challenge where revenue growth is offset by significant operational investments and market-related cost pressures impacting profitability[12] - Strategic priorities include optimizing the expanded warehouse footprint and enhancing operational efficiencies across all service lines[12] - A recent reduction in U.S.-China trade tariffs is viewed with 'cautious optimism' as a potentially positive development for Armlogi and the broader logistics sector[12] Financial Statements Condensed Consolidated Balance Sheets Total assets grew to $178.0 million while a larger increase in total liabilities to $147.9 million led to a decrease in stockholders' equity Balance Sheet Summary (as of March 31, 2025 vs. June 30, 2024) | Account | March 31, 2025 (Unaudited) | June 30, 2024 | | :--- | :--- | :--- | | Cash | $5.63 million | $7.89 million | | Total Current Assets | $39.75 million | $37.98 million | | Total Assets | $178.04 million | $167.03 million | | Total Current Liabilities | $42.80 million | $32.96 million | | Total Liabilities | $147.86 million | $127.80 million | | Total Stockholders' Equity | $30.18 million | $39.24 million | Condensed Consolidated Statements of Operations The statements of operations show increased revenues offset by disproportionately higher costs, leading to operating losses for both the three and nine-month periods Statement of Operations Summary (Three Months Ended March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | $45,844,322 | $38,439,935 | | Gross Profit | $278,120 | $3,324,199 | | Income (Loss) from Operations | ($4,194,693) | $54,706 | | Net Income (Loss) | ($3,755,053) | $682,220 | Statement of Operations Summary (Nine Months Ended March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | $139,469,900 | $121,689,863 | | Gross Profit (Loss) | ($2,845,678) | $16,228,480 | | Income (Loss) from Operations | ($13,646,472) | $8,131,284 | | Net Income (Loss) | ($10,062,164) | $7,181,821 | Condensed Consolidated Statements of Cash Flows The company experienced a significant negative shift in operating cash flow, using $5.6 million, with financing activities providing the main source of cash Cash Flow Summary (Nine Months Ended March 31) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash (Used in) Provided from Operating Activities | ($5,641,142) | $3,954,416 | | Net Cash Used in Investing Activities | ($1,531,752) | ($4,680,643) | | Net Cash Provided by Financing Activities | $6,633,329 | $214,804 | | Net Decrease in Cash and Restricted Cash | ($539,565) | ($511,423) | | Cash and Restricted Cash, End of Period | $9,410,819 | $6,046,676 | Company Information & Events About Armlogi Holding Corp. Armlogi is a warehousing and logistics provider specializing in supply-chain solutions for cross-border e-commerce merchants in the U.S. market - Armlogi's core business is providing one-stop warehousing and logistics services for cross-border e-commerce merchants[15] - The company's infrastructure includes ten warehouses totaling over 3.5 million square feet, with capabilities for handling large and bulky items[15] Conference Call Information Management will host an earnings conference call and webcast on May 16 to discuss the financial results - An earnings conference call is scheduled for Friday, May 16, at 8:00 am PT / 11:00 am ET to discuss financial results[13] - Access details include a phone number (1-800-274-8461) with conference ID 'ARMLOGI' and a webcast link[14]