For the first nine months of fiscal year 2026, total revenue increased 2.3% year-over-year to
Third Quarter Fiscal Year 2026 Financial Highlights (Three Months Ended
- Total revenue of
$41.7 million , compared to$45.8 million in the prior-year quarter, representing a decrease of 9.1%. - Warehousing services revenue of
$18.6 million , representing an increase of 7.3% year-over-year. - Transportation services revenue of
$23.1 million , representing a decrease of 19.1% year-over-year, reflecting customer mix shift toward cross-border e-commerce platforms with bundled delivery services. - Gross loss of
$1.9 million (gross margin of -4.5%), compared to gross profit of$0.3 million (gross margin of 0.6%) in the prior-year quarter, primarily reflecting temporary labor costs associated with significant inventory reorganization across the Company’sCalifornia warehouses during the quarter. - General and administrative expenses of
$3.3 million , representing a decrease of 25.7% year-over-year. - Net loss of
$5.1 million , or$(0.11) per basic and diluted share, compared to a net loss of$3.8 million , or$(0.09) per share, in the prior-year quarter. - Cash and restricted cash of
$7.1 million as ofMarch 31, 2026 , compared to$13.6 million as ofJune 30, 2025 .
First Nine Months Fiscal Year 2026 Financial Highlights (Nine Months Ended
- Total revenue of
$142.7 million , representing an increase of 2.3% year-over-year. - Warehousing services revenue of
$55.5 million , representing an increase of 19.9% year-over-year, driven by expanded operations at the Company’sGeorgia ,Illinois , andOntario, California facilities. - Transportation services revenue of
$87.1 million , representing a decrease of 6.4% year-over-year. - Gross loss of
$5.1 million (gross margin of -3.6%), compared to gross loss of$2.8 million (gross margin of -2.0%) in the prior-year period. - General and administrative expenses of
$10.9 million , essentially flat compared to$10.8 million in the prior-year period. - Net loss of
$15.4 million , or$(0.35) per basic and diluted share, compared to a net loss of$10.1 million , or$(0.24) per share, in the prior-year period. - Customer geographic diversification: PRC-based customers accounted for approximately 76% of total revenue for the nine months ended
March 31, 2026 , compared to approximately 87% in the prior-year period, reflecting continued broadening of the Company’s customer base.
Operational Discussion
During the first nine months of fiscal year 2026, Armlogi continued to advance its operational footprint and service mix. Warehousing services revenue grew 19.9% year-over-year, driven primarily by the ramp-up of warehouse operations at the Company’s facilities in
The decline in transportation services revenue reflects a structural shift in the cross-border e-commerce market. A growing proportion of the Company’s traditional customer base has been transferring outbound order fulfillment to selling platform-operated fulfillment programs, while emerging customer segments served through certain cross-border e-commerce platforms typically utilize delivery services bundled by those platforms. As a result, the Company’s transportation service volumes from these segments have declined, even as warehousing service utilization from these same segments has increased — and at higher per-order warehousing service rates than the Company’s traditional customer profile.
Gross margin pressure during the third quarter primarily reflected a significant inventory reorganization undertaken across the Company’s
These dynamics are taking place alongside the Company’s previously disclosed strategic initiatives, including the continued buildout of its internal middle-mile transportation network in
Liquidity
As of
Management Commentary
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, our representatives may from time to time make forward-looking statements, orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our revenue and earnings growth; our business prospects and opportunities; and the expected benefits of our operational initiatives, including the expansion of our internal transportation network. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to successfully implement and scale our internal transportation network; the extent to which anticipated cost efficiencies and operational improvements are realized; our ability to keep pace with new technology and changing market needs; the competitive environment of our business; changes in demand for our services; and our dependence on third-party service providers. These and other factors, including those described in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. Forward-looking statements speak only as of the date of this press release, and except as required by law, we undertake no obligation to publicly update or revise any forward-looking statement. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions described above and in our
Company Contact:
info@armlogi.com
Investor Relations Contact:
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com
**Tables Follow**
CONDENSED CONSOLIDATED BALANCE SHEETS AS OF (US$, except share data, or otherwise noted) | ||||||||
2026 | 2025 | |||||||
| US$ | US$ | |||||||
| Unaudited | Audited | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | 2,668,304 | 9,190,277 | ||||||
| Accounts receivable and other receivable, net of credit loss allowance of | 18,392,275 | 22,207,500 | ||||||
| Other current assets | 783,826 | 998,925 | ||||||
| Prepaid expenses | 1,307,390 | 1,375,646 | ||||||
| Loan receivables, net of credit loss allowance of $nil and $nil | 1,681,245 | 3,893,563 | ||||||
| Total current assets | 24,833,040 | 37,665,911 | ||||||
| Non-current assets | ||||||||
| Restricted cash | 4,398,412 | 4,387,550 | ||||||
| Property and equipment, net | 10,074,357 | 11,259,820 | ||||||
| Intangible assets, net | 22,259 | 54,627 | ||||||
| Right-of-use assets – operating leases | 102,118,310 | 115,361,185 | ||||||
| Right-of-use assets – finance leases | 1,408,755 | 745,547 | ||||||
| Other non-current assets | 883,125 | 739,555 | ||||||
| Total assets | 143,738,258 | 170,214,195 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Liabilities: | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | 8,381,753 | 9,604,783 | ||||||
| Contract liabilities | 602,808 | 939,097 | ||||||
| Accrued payroll liabilities | 663,443 | 283,150 | ||||||
| Convertible notes | - | 5,292,749 | ||||||
| Operating lease liabilities – current | 35,351,135 | 29,280,907 | ||||||
| Finance lease liabilities – current | 759,787 | 386,327 | ||||||
| Total current liabilities | 45,758,926 | 45,787,013 | ||||||
| Non-current liabilities | ||||||||
| Operating lease liabilities – non-current | 83,822,574 | 98,939,552 | ||||||
| Finance lease liabilities – non-current | 702,532 | 397,692 | ||||||
| Total liabilities | 130,284,032 | 145,124,257 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity | ||||||||
| Common stock, | 454 | 422 | ||||||
| Additional paid-in capital | 20,468,826 | 16,668,858 | ||||||
| Retained earnings (Accumulated deficits) | (7,015,054 | ) | 8,420,658 | |||||
| Total stockholders’ equity | 13,454,226 | 25,089,938 | ||||||
| Total liabilities and stockholders’ equity | 143,738,258 | 170,214,195 | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE THREE AND NINE MONTHS ENDED (US$, except share data, or otherwise noted) | ||||||||||||||||
| Three Months Ended 2026 | Three Months Ended 2025 | Nine months Ended 2026 | Nine months Ended 2025 | |||||||||||||
| US$ | US$ | US$ | US$ | |||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
| Revenue | 41,678,009 | 45,844,322 | 142,694,036 | 139,469,900 | ||||||||||||
| Costs of services | 43,543,277 | 45,566,202 | 147,813,653 | 142,315,578 | ||||||||||||
| Gross profit | (1,865,268 | ) | 278,120 | (5,119,617 | ) | (2,845,678 | ) | |||||||||
| Operating costs and expenses: | ||||||||||||||||
| General and administrative | 3,325,439 | 4,472,813 | 10,871,295 | 10,800,794 | ||||||||||||
| Total operating costs and expenses | 3,325,439 | 4,472,813 | 10,871,295 | 10,800,794 | ||||||||||||
| Loss from operations | (5,190,707 | ) | (4,194,693 | ) | (15,990,912 | ) | (13,646,472 | ) | ||||||||
| Other (income) expenses: | ||||||||||||||||
| Other income, net | (159,603 | ) | (718,025 | ) | (1,200,475 | ) | (2,488,346 | ) | ||||||||
| Loss on Disposal of Assets | — | — | — | 43,625 | ||||||||||||
| Finance costs | 36,373 | 278,385 | 628,839 | 367,382 | ||||||||||||
| Total other (income) | (123,230 | ) | (439,640 | ) | (571,636 | ) | (2,077,339 | ) | ||||||||
| Loss before provision for income taxes | (5,067,477 | ) | (3,755,053 | ) | (15,419,276 | ) | (11,569,133 | ) | ||||||||
| Current income tax expense | — | — | 16,436 | — | ||||||||||||
| Deferred income tax (recovery) expense | — | — | — | (1,506,969 | ) | |||||||||||
| Total income tax (recovery) expenses | — | — | 16,436 | (1,506,969 | ) | |||||||||||
| Net loss | (5,067,477 | ) | (3,755,053 | ) | (15,435,712 | ) | (10,062,164 | ) | ||||||||
| Total comprehensive loss | (5,067,477 | ) | (3,755,053 | ) | (15,435,712 | ) | (10,062,164 | ) | ||||||||
| Basic & diluted net loss per share | (0.11 | ) | (0.09 | ) | (0.35 | ) | (0.24 | ) | ||||||||
| Weighted average number of shares of common stock-basic and diluted | 45,443,079 | 41,714,608 | 44,442,202 | 41,651,007 | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED (US$, except share data, or otherwise noted) | ||||||||
| For The Nine months Ended 2026 | For The Nine months Ended 2025 | |||||||
| US$ | US$ | |||||||
| Unaudited | Unaudited | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net loss | (15,435,712 | ) | (10,062,164 | ) | ||||
| Adjustments for items not affecting cash: | ||||||||
| Net loss from disposal of fixed assets | — | 43,625 | ||||||
| Depreciation of property and equipment and right-of-use assets-finance leases | 2,568,088 | 1,983,166 | ||||||
| Amortization | 32,368 | 26,706 | ||||||
| Non-cash operating leases expense | 4,196,125 | 5,833,789 | ||||||
| Current estimated credit loss | — | 228,363 | ||||||
| Accretion of convertible notes | 527,251 | 344,925 | ||||||
| Deferred income taxes | — | (1,536,455 | ) | |||||
| Interest income | (55,992 | ) | (96,340 | ) | ||||
| Gain from settlement of commitment payable | — | (100,000 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable and other receivables | 3,815,225 | (1,606,810 | ) | |||||
| Other current assets | 215,099 | (597,401 | ) | |||||
| Other non-current assets | (143,570 | ) | 252,001 | |||||
| Prepaid expenses | 68,256 | (75,557 | ) | |||||
| Accounts payable & accrued liabilities | (1,343,843 | ) | (631,472 | ) | ||||
| Contract liabilities | (336,289 | ) | 191,665 | |||||
| Income tax payable | — | (57,589 | ) | |||||
| Accrued payroll liabilities | 380,293 | 282,280 | ||||||
| Net changes in derecognized ROU and operating lease liabilities | — | (63,874 | ) | |||||
| Net cash used in operating activities | (5,512,701 | ) | (5,641,142 | ) | ||||
| Cash Flows from Investing Activities: | ||||||||
| Purchase of property and equipment | (787,828 | ) | (2,593,457 | ) | ||||
| Loan disbursements | (2,370,000 | ) | (1,000,000 | ) | ||||
| Proceeds from loan repayments | 4,638,310 | 2,036,705 | ||||||
| Proceeds from sale of property and equipment | — | 25,000 | ||||||
| Net cash provided by (used in) investing activities | 1,480,482 | (1,531,752 | ) | |||||
| Cash Flows from Financing Activities: | ||||||||
| Repayment to related parties | — | (350,209 | ) | |||||
| Repayment of commitment payable | — | (150,000 | ) | |||||
| Repayments of finance lease liabilities | (458,892 | ) | (108,935 | ) | ||||
| Proceeds from convertible notes | — | 8,092,473 | ||||||
| Repayments of convertible notes | (2,020,000 | ) | (850,000 | ) | ||||
| Net cash (used in) provided by financing activities | (2,478,892 | ) | 6,633,329 | |||||
| Net decrease in cash and cash equivalents and restricted cash | (6,511,111 | ) | (539,565 | ) | ||||
| Cash and cash equivalents and restricted cash, beginning of the period | 13,577,827 | 9,950,384 | ||||||
| Cash and cash equivalents and restricted cash, end of the period | 7,066,716 | 9,410,819 | ||||||
| The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows: | ||||||||
| Cash and cash equivalents | 2,668,304 | 5,631,247 | ||||||
| Restricted cash – non-current | 4,398,412 | 3,779,572 | ||||||
| Total cash and cash equivalents and restricted cash shown in the Condensed Consolidated Balance Sheets | 7,066,716 | 9,410,819 | ||||||
| Supplemental Disclosure of Cash Flows Information: | ||||||||
| Cash paid for income tax | (24,900 | ) | (87,074 | ) | ||||
| Cash paid for interest | — | (22,457 | ) | |||||
| Non-cash Transactions: | ||||||||
| Right-of-use assets acquired in exchange for finance lease liabilities | 1,137,192 | — | ||||||
| Right-of-use assets acquired in exchange for operating lease liabilities | 4,605,476 | 28,685,914 | ||||||
| Increase (Decrease) in right-of-use assets due to remeasurement of lease terms | 63,896 | (884,394 | ) | |||||
| Shares issued for Investor Notices pursuant to SEPA by reducing the convertible notes | 3,800,000 | 750,000 | ||||||
| Shares issued to settle commitment fee | — | 250,000 | ||||||
