Greystone Logistics Reports 45% Sales Decline and $5.97 Million Net Loss

Greystone Logistics, Inc. reported significant financial challenges in its latest 10-Q filing for the nine months ending February 28, 2026. The company recorded total sales of $21.97 million, a decrease of 45% from $39.91 million in the same period the previous year. This decline was primarily attributed to the loss of a major customer, which is expected to result in a total sales loss of approximately $30 million for the fiscal year. The cost of sales also increased to $23.36 million, representing 106% of sales, compared to 85% in the prior year, leading to a gross loss of $1.39 million.

The company's net loss for the nine months was $5.97 million, or $(0.22) per share, a stark contrast to the net income of $1.10 million, or $0.02 per share, reported in the previous year. The loss was exacerbated by a lack of significant new customer acquisitions and continued operational challenges. Selling, general, and administrative expenses decreased slightly to $4.19 million, reflecting efforts to control costs amid declining revenues.

Operationally, Greystone's workforce has been reduced to approximately 82 full-time equivalents, down from 181 a year earlier, as the company ceased using temporary labor in response to reduced production schedules. The company’s inventory also decreased to $2.76 million from $3.48 million, indicating a contraction in production capacity. The loss of a major customer has significantly impacted Greystone's customer concentration, with two major customers accounting for 60% of total sales in the current period, compared to 71% in the previous year.

In terms of financial health, Greystone's total assets fell to $38.87 million from $45.97 million, while total liabilities increased to $25.09 million, resulting in a total equity of $13.79 million, down from $19.88 million. The company is currently in negotiations to amend its loan agreements due to non-compliance with certain financial covenants, which has led to all long-term debt being classified as current. Management is implementing strategies to broaden its customer base and improve sales, while also negotiating interest-only payments on certain debts to manage liquidity.

Looking ahead, Greystone's management remains cautious but optimistic about the future. They plan to continue efforts to expand market reach and improve sales to existing customers while maintaining tight control over expenditures. However, the company acknowledges the uncertainty surrounding its ability to recover from the current financial difficulties and the potential need for additional financing to meet operational obligations.