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].

Core Insights - Armlogi Holding Corp. reported a 14% increase in revenue for the fiscal year ended June 30, 2025, reaching approximately $190.4 million, up from $167.0 million in the previous year [6] - The company faced significant operational challenges, including a more than four-fold increase in its active customer base, rising costs due to freight, rental, labor, and warehouse expenses, leading to a gross loss of $3.0 million [3][6] - Despite these challenges, the company remains committed to its growth strategy, focusing on operational optimization and technology-driven efficiency for long-term sustainable growth [3] Financial Performance - Total revenue increased by approximately $23.4 million, or 14.0%, to $190.4 million for the fiscal year ended June 30, 2025, compared to $167.0 million for the fiscal year ended June 30, 2024 [6] - Cost of service rose by $44.5 million, or 29.9%, primarily due to higher freight, rental, labor, and warehouse expenses associated with the expansion of operations [6] - Gross profit declined to a loss of $3.0 million for the fiscal year ended June 30, 2025, compared to a gross profit of $18.1 million in the previous fiscal year, with the gross margin falling to -1.6% from 10.8% [6] Operational Challenges - The company experienced significant operational challenges while expanding its warehouse network and dealing with a difficult freight cost environment [3] - Increases in third-party carrier costs, particularly from major suppliers like FedEx and UPS, significantly impacted the profitability of transportation services [6] - General and administrative expenses totaled $14.7 million, representing a 47.2% increase from $10.0 million in the prior fiscal year, primarily due to investments in business growth [6] Future Outlook - The management believes that the expanded infrastructure positions the company well for future opportunities despite current challenges [3] - The focus remains on operational optimization, technology-driven efficiency, and prudent cost management to ensure long-term sustainable growth [3] Company Overview - Armlogi Holding Corp. is a U.S.-based warehousing and logistics service provider, offering a comprehensive package of supply-chain solutions, including warehouse management and order fulfillment [7] - The company caters to cross-border e-commerce merchants looking to establish overseas warehouses in the U.S. market, operating ten warehouses covering over three and a half million square feet [7]

Core Viewpoint - Armlogi Holding Corp. is set to release its financial results for the fiscal year ending June 30, 2025, on September 25, 2025, before market opening [1] Company Overview - Armlogi Holding Corp. is a U.S.-based warehousing and logistics service provider located in Walnut, CA, offering a comprehensive package of supply-chain solutions, including warehouse management and order fulfillment [4] - The company caters to cross-border e-commerce merchants aiming to establish overseas warehouses in the U.S. market [4] - Armlogi operates ten warehouses covering over 3.5 million square feet, providing one-stop warehousing and logistics services [4] - The warehouses are equipped to handle and store large and bulky items, enhancing operational capabilities [4] - Armlogi is a member of the Russell Microcap® Index, indicating its position in the market [4] Earnings Conference Call - The management team will hold an earnings conference call on September 25, 2025, at 1:30 P.M. Pacific Time to discuss financial results and company operations [2] - Investors can submit written questions by September 22, 2025, via email [2] Access Information - To access the conference call, participants should dial the provided phone numbers approximately 10 minutes before the call starts, using the conference ID: ARMLOGI [3]