Armlogi Holding Corp. Reports Net Loss of $10.1 Million Despite 14.6% Revenue Growth

Armlogi Holding Corp. reported a significant decline in financial performance for the nine months ending March 31, 2025, with a net loss of $10.1 million compared to a net income of $7.2 million for the same period in 2024. Revenue increased by 14.6% to $139.5 million, driven primarily by growth in transportation and warehousing services. Transportation revenue rose by $8.4 million, or 10%, while warehousing services saw an increase of $9.7 million, or 26.5%. However, costs of sales surged by 35% to $142.3 million, largely due to rising freight expenses and increased operational costs associated with expanding warehouse capabilities.

In the third quarter alone, Armlogi's revenue reached $45.8 million, a 19.3% increase from $38.4 million in the prior year. This growth was attributed to new warehouse locations that enhanced shipment volumes. However, the gross profit margin fell sharply from 8.6% to 0.6%, reflecting the impact of higher operational costs, including a notable rise in lease expenses and temporary labor costs. The company's general and administrative expenses also increased by 36.8% to $4.5 million, primarily due to a significant rise in professional fees.

Operationally, Armlogi expanded its customer base to 395 active clients as of March 31, 2025, up from 105 a year earlier. The company operates ten warehouses across the U.S., with a total gross floor area of approximately 3.9 million square feet. Despite this growth, the company faced challenges in managing costs, particularly in freight and lease expenses, which contributed to the overall net loss.

The company’s balance sheet as of March 31, 2025, showed total assets of $178 million, up from $167 million in June 2024. Current liabilities increased significantly to $42.8 million, primarily due to the introduction of convertible notes totaling $6.3 million. Cash and restricted cash decreased to $9.4 million from $10 million, reflecting the cash flow challenges stemming from operational losses.

Looking ahead, Armlogi Holding Corp. anticipates that its current cash reserves and financing activities will be sufficient to meet working capital requirements for at least the next 12 months. The company is focused on leveraging its expanded warehouse capabilities and customer base to improve profitability, although it acknowledges the need for careful management of operational costs in a competitive logistics market.