Armlogi Holding Corp.(BTOC) - 2025 Q4 - Annual Results

Executive Summary Armlogi Holding Corp. reported a 14% revenue increase to $190.4 million for FY2025, but operational challenges led to a $3.0 million gross loss and $15.3 million net loss, with future focus on optimization - Armlogi Holding Corp. announced financial results for the fiscal year ended June 30, 2025[2] - Total revenue increased by 14.0% to $190.4 million, driven by continued demand for transportation and warehousing services[5] - The company reported a gross loss of $3.0 million and a net loss of $15.3 million, primarily due to increased costs from operational expansion and freight[5] - Future strategy focuses on operational optimization, technology-driven efficiency, and prudent cost management for long-term sustainable growth[6] Company Information This section provides an overview of Armlogi Holding Corp.'s business, its forward-looking statements, and contact information for both the company and investor relations About Armlogi Holding Corp. Armlogi Holding Corp. is a U.S.-based warehousing and logistics service provider offering comprehensive supply-chain solutions, primarily for cross-border e-commerce merchants, operating ten warehouses covering over 3.5 million square feet - Armlogi is a U.S.-based warehousing and logistics service provider offering comprehensive supply-chain solutions, including warehouse management and order fulfillment[8] - The Company caters to cross-border e-commerce merchants looking to establish overseas warehouses in the U.S. market[8] - Armlogi operates ten warehouses covering over 3.5 million square feet and is a member of the Russell Microcap® Index[8] Forward-Looking Statements This section contains standard forward-looking statements based on expectations and projections about future events, advising caution due to inherent risks and uncertainties, with no obligation to update them - The press release contains forward-looking statements about future events, financial performance, and business prospects[9] - These statements are based on current expectations and projections but are subject to risks and uncertainties that may cause actual results to differ materially[9] - The company is not obligated to publicly update or revise any forward-looking statements[9] Contact Information Provides contact details for Armlogi Holding Corp. (info@armlogi.com) and Investor Relations (Matthew Abenante, Strategic Investor Relations, LLC) - Company contact email: info@armlogi.com[10] - Investor Relations contact: Matthew Abenante, President, Strategic Investor Relations, LLC, Tel: 347-947-2093, Email: matthew@strategic-ir.com[10] Fiscal Year 2025 Financial Performance This section details Armlogi's financial performance for fiscal year 2025, including management's perspective on key drivers and challenges, and a summary of the main financial figures Management Commentary CEO Aidy Chou highlighted 14% revenue growth and a four-fold increase in active customers, but acknowledged significant operational challenges from warehouse expansion and rising freight costs, which pressured margins. Future focus includes operational optimization, technology-driven efficiency, and prudent cost management - Fiscal year 2025 demonstrated strong demand with 14% revenue growth and a more than four-fold increase in active customers[4] - Operational challenges included substantial investments in labor and infrastructure for warehouse network expansion, pressuring near-term margins[4] - Increased freight costs from major carriers (FedEx, UPS) significantly impacted profitability, leading to carrier diversification[5] - The company's future strategy focuses on operational optimization, technology-driven efficiency, and prudent cost management for sustainable growth[6] Key Financial Summary FY2025 revenue grew 14.0% to $190.4 million, but a 29.9% rise in cost of service led to a $3.0 million gross loss and a $15.3 million net loss, or $0.37 per share Fiscal Year 2025 Key Financial Highlights | Metric | FY2025 (US$) | FY2024 (US$) | Change (US$) | Change (%) | | :-------------------------------- | :----------- | :----------- | :----------- | :--------- | | Total Revenue | 190,408,258 | 166,977,034 | 23,431,224 | 14.0% | | Cost of Service | 193,408,827 | 148,894,227 | 44,514,600 | 29.9% | | Gross (Loss) Profit | (3,000,569) | 18,082,807 | (21,083,376) | -116.6% | | Gross Margin | -1.6% | 10.8% | -12.4 pp | - | | General and Administrative Expenses | 14,675,543 | 9,967,792 | 4,707,751 | 47.2% | | Net (Loss) Income | (15,348,767) | 7,441,218 | (22,789,985) | -306.3% | | Basic & Diluted Net (Loss) Earnings Per Share | (0.37) | 0.19 | (0.56) | -294.7% | | Cash and Cash Equivalents and Restricted Cash (Year-End) | 13,577,827 | 9,950,384 | 3,627,443 | 36.4% | Conference Call & Audio Webcast Armlogi's management team will host an earnings conference call and live audio webcast on September 25, 2025, at 1:30 p.m. Pacific Time to discuss financial results and operations, with specific dial-in and webcast access details provided - An earnings conference call will be held on September 25, 2025, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time)[6] - Access details include a phone number (1-800-445-7795, international 1-785-424-1699) with conference ID ARMLOGI, and a live audio webcast link[7] Consolidated Financial Statements This section presents the detailed consolidated financial statements for Armlogi Holding Corp. for the fiscal years ended June 30, 2025, and 2024, including the Balance Sheets, Statements of Operations and Comprehensive Income, and Statements of Cash Flows Consolidated Balance Sheets As of June 30, 2025, total assets increased slightly to $170.2 million, while total liabilities significantly rose to $145.1 million, driven by operating lease liabilities and convertible notes, leading to a decrease in stockholders' equity to $25.1 million Consolidated Balance Sheet Highlights (US$) | Metric | June 30, 2025 | June 30, 2024 | Change | | :-------------------------------- | :------------ | :------------ | :----- | | Total Assets | 170,214,195 | 167,034,856 | 3,179,339 | | Current Assets | 37,665,911 | 37,984,932 | (319,021) | | Non-Current Assets | 132,548,284 | 129,049,924 | 3,498,360 | | Total Liabilities | 145,124,257 | 127,796,151 | 17,328,106 | | Current Liabilities | 45,787,013 | 32,963,921 | 12,823,092 | | Non-Current Liabilities | 99,337,244 | 94,832,230 | 4,505,014 | | Total Stockholders' Equity | 25,089,938 | 39,238,705 | (14,148,767) | - Convertible notes of $5.29 million were recorded as current liabilities in FY2025[12] - Operating lease liabilities (current and non-current) increased significantly, reflecting expanded operational footprint[12] Consolidated Statements of Operations and Comprehensive Income For FY2025, revenue increased by 14.0% to $190.4 million, but a 29.9% surge in cost of service resulted in a $3.0 million gross loss and a $15.3 million net loss, or $0.37 per share, a significant decline from the prior year Consolidated Statements of Operations Highlights (US$) | Metric | FY2025 | FY2024 | Change | Change (%) | | :-------------------------------- | :----------- | :----------- | :----------- | :--------- | | Revenue | 190,408,258 | 166,977,034 | 23,431,224 | 14.0% | | Costs of Service | 193,408,827 | 148,894,227 | 44,514,600 | 29.9% | | Gross (Loss) Profit | (3,000,569) | 18,082,807 | (21,083,376) | -116.6% | | General and Administrative | 14,675,543 | 9,967,792 | 4,707,751 | 47.2% | | (Loss) Income from Operations | (17,676,112) | 8,115,015 | (25,791,127) | -317.8% | | Net (Loss) Income | (15,348,767) | 7,441,218 | (22,789,985) | -306.3% | | Basic & Diluted Net (Loss) Earnings Per Share | (0.37) | 0.19 | (0.56) | -294.7% | - The company recognized a loss on debt extinguishment of $1.19 million in FY2025[15] - Total income tax shifted from an expense of $2.95 million in FY2024 to a recovery of $1.56 million in FY2025[15] Consolidated Statements of Cash Flows Net cash from operating activities decreased to $1.46 million in FY2025 due to net loss. Net cash used in investing activities decreased to $1.81 million, while net cash from financing activities also decreased to $3.97 million, resulting in an overall increase in cash and cash equivalents to $13.58 million Consolidated Statements of Cash Flows Highlights (US$) | Metric | FY2025 | FY2024 | Change | | :-------------------------------- | :----------- | :----------- | :----------- | | Net Cash Provided from Operating Activities | 1,460,845 | 2,992,889 | (1,532,044) | | Net Cash Used in Investing Activities | (1,805,223) | (7,437,605) | 5,632,382 | | Net Cash Provided by Financing Activities | 3,971,821 | 7,837,001 | (3,865,180) | | Net Increase in Cash and Cash Equivalents and Restricted Cash | 3,627,443 | 3,392,285 | 235,158 | | Cash and Cash Equivalents and Restricted Cash, End of Year | 13,577,827 | 9,950,384 | 3,627,443 | - Non-cash transactions included $27.86 million in right-of-use assets acquired for operating lease liabilities and $0.82 million for finance lease liabilities in FY2025[18] - Repayments of SEPA (Share Exchange Purchase Agreement) totaled $3.26 million in FY2025[17]