Cheetah Net Reports 80.7% Revenue Decline in Q1 2026, Shifts Focus to Logistics

Cheetah Net Supply Chain Service Inc. reported a significant decline in financial performance for the first quarter of 2026, with revenues dropping to $92,700, a decrease of 80.7% compared to $479,799 in the same period of 2025. The company attributed this decline primarily to the cessation of its parallel-import vehicle business, which was officially discontinued in March 2025. The cost of revenue also fell sharply to $72,833 from $423,543, resulting in a gross profit of $19,867, down from $56,256 a year earlier. The net loss for the quarter was $616,265, an improvement from the loss of $753,909 reported in the previous year.

In terms of operational changes, Cheetah Net has shifted its focus from vehicle sales to logistics and warehousing services, following the acquisition of Edward and TWEW in 2024. The company has been working to enhance its market presence in these sectors, although revenue from TWEW saw a dramatic decline of 87.3% to $53,000, while revenue from Edward decreased by 36.5% to $39,700. The company’s total assets surged to $50.99 million as of March 31, 2026, compared to $11.86 million at the end of 2025, largely due to a $40.13 million deposit on a long-term investment.

Cheetah Net's strategic developments included a reverse stock split at a ratio of 1-for-200, effective April 20, 2026, aimed at improving its stock price and market perception. The company also completed the sale of its subsidiary Edward on April 1, 2026, and is in the process of acquiring Super International Trading Limited, which is expected to close in May 2026. These moves are part of a broader strategy to pivot towards logistics and warehousing services, which the company believes will provide a more sustainable revenue stream.

The company reported a working capital balance of $47.3 million as of March 31, 2026, with cash and cash equivalents totaling $713,948. However, it also noted that it incurred a net cash outflow of $2.46 million from operating activities during the quarter, raising concerns about its ability to maintain operations without additional financing. Cheetah Net's management has indicated that while they expect to continue facing challenges during this transition, they believe they can sustain operations through existing cash reserves and loan receivables.

Looking ahead, Cheetah Net's management remains cautious but optimistic about the future. They are focused on improving operational efficiencies and expanding their logistics services, although they acknowledge that the transformation may take longer than anticipated to yield profitable results. The company is also closely monitoring market conditions and customer demand, particularly in light of ongoing geopolitical tensions and economic uncertainties that could impact its business operations.