Greystone Logistics Reports 28% Sales Decline and $3.2 Million Net Loss

Greystone Logistics, Inc. reported significant financial challenges in its latest 10-Q filing for the six months ending November 30, 2025. The company recorded total sales of $18.5 million, a decrease of 28% from $25.6 million in the same period last year. This decline was primarily attributed to the loss of a major customer, which historically accounted for approximately $30 million, or 55% of total revenue. The company also faced additional sales reductions from another major customer due to delays in production equipment. As a result, Greystone experienced a net loss of $3.2 million, compared to a net income of $130,740 in the prior year, marking a substantial shift in profitability.

The company's cost of sales increased to 100% of sales, up from 87% in the previous year, reflecting reduced production levels and the inflexible nature of its manufacturing costs. Gross profit plummeted to $71,461, or 0.4% of sales, down from $3.3 million, or 13% of sales, in the prior year. Selling, general, and administrative expenses were $2.99 million, a slight decrease from $3.18 million, as the company implemented tighter controls on expenditures in response to the loss of its major customer.

Operationally, Greystone has made significant changes, including a reduction in workforce by approximately 50% and the discontinuation of temporary labor. The company had 82 full-time employees as of November 30, 2025, down from 161 a year earlier. This reduction is part of a broader strategy to manage costs and improve efficiency in light of declining sales. The company also reported a decrease in inventory levels, which fell to $2.81 million from $3.48 million, indicating a response to lower production needs.

Looking ahead, Greystone is focused on expanding its customer base and increasing sales to existing customers. Management has indicated plans to adjust sales prices to align with current contribution margins and is actively seeking new customer opportunities. Additionally, the company has successfully negotiated with its largest lender to convert amortizing notes to interest-only payments for a year, extending maturity dates to improve cash flow. However, the company acknowledges that its ability to continue as a going concern is uncertain, heavily reliant on the successful execution of its business plan and the stabilization of its financial condition.