Core Viewpoint - Armlogi Holding Corp. reported stable revenue performance in the second quarter of fiscal 2026, but faced margin pressures due to elevated service costs, prompting the implementation of cost optimization strategies to enhance operational efficiency and maintain long-term value creation for shareholders [5][7]. Financial Results for the Three Months Ending December 31, 2025 - Total revenue increased by 0.8% to $51.5 million compared to $51.1 million in the prior-year period [7]. - Costs of services rose to $52.3 million, resulting in a gross loss of $0.8 million, down from a gross profit of $0.5 million in the prior year [7]. - Gross margin declined to (1.5)% from 0.9% year-over-year, primarily due to higher operational costs [7]. - Net loss was $3.9 million, or ($0.08) per share, compared to a net loss of $1.7 million, or ($0.04) per share, in the prior year [7]. Financial Results for the Six Months Ending December 31, 2025 - Total revenue for the first six months grew by 7.9% to $101.0 million, up from $93.6 million in the prior year [7]. - Gross loss for the six months was $3.3 million, with a marginal improvement in gross margin to (3.2)% from (3.3)% in the prior year [7]. - Net loss was $10.4 million, or ($0.24) per share, compared to a net loss of $6.3 million, or ($0.15) per share, in the prior year [7]. Liquidity - As of December 31, 2025, the company had a cash and restricted cash balance of $9.4 million [4]. - The company raised $3.8 million through the issuance of 3,192,145 shares of common stock under its Standby Equity Purchase Agreement (SEPA) to support operations and growth initiatives [4]. Management Commentary - The CEO highlighted the stable revenue performance and first-half growth, while acknowledging the pressure on margins due to elevated service costs [5]. - The company is focusing on cost optimization strategies and operational efficiencies, including enhancing warehouse utilization and integrating higher-margin logistics solutions [5]. Company Overview - Armlogi Holding Corp. is a U.S.-based warehousing and logistics service provider, offering a comprehensive suite of supply-chain solutions, including warehouse management and order fulfillment [6]. - The company operates 10 warehouses totaling over 3.5 million square feet, catering to cross-border e-commerce merchants [6].
Armlogi Holding Corp. Announces Second Quarter and First Half of Fiscal Year 2026 Results