Maison Solutions Inc. Reports Revenue Decline and Increased Net Loss for Third Quarter

Maison Solutions Inc. reported a significant decline in financial performance for the three and nine months ended January 31, 2026, compared to the same periods in the previous fiscal year. The company generated revenues of $29.5 million for the third quarter, down 8.6% from $32.3 million in the prior year. For the nine-month period, revenues decreased by 6.1% to $84.3 million from $89.8 million. The decline in revenue was attributed to decreased sales across several supermarket locations, particularly in California, where competition from nearby Asian supermarkets intensified. The company also closed its Maison El Monte store in June 2025, which contributed to the revenue drop.

Despite a reduction in cost of goods sold by 12.9% to $22.0 million for the third quarter, the company's gross profit increased by 7.0% to $7.5 million, resulting in a gross margin improvement from 21.8% to 25.5%. However, total operating expenses surged by 76.8% to $10.4 million, primarily due to a significant rise in general and administrative expenses, which included stock compensation and bad debt expenses. Consequently, the company reported an operating loss of $2.8 million for the quarter, a stark contrast to the $1.2 million profit recorded in the same period last year.

The company's net loss attributable to shareholders reached $5.2 million for the third quarter, compared to a profit of $1.0 million in the prior year. For the nine-month period, the net loss was $11.7 million, a substantial increase from a profit of $1.5 million in the previous year. The losses were exacerbated by increased interest expenses and significant unrealized losses on digital assets, which amounted to $1.9 million. The company also recorded a change in the fair value of derivative liabilities, contributing to the overall financial strain.

Operationally, Maison Solutions Inc. has been focusing on strategic growth through acquisitions and partnerships. The company recently acquired Lee Lee Oriental Supermart, expanding its footprint in Arizona, and has plans to enhance its operational efficiency through a collaboration with JD.com. However, the company faces challenges, including a working capital deficit of approximately $6.2 million and an accumulated deficit of $13.4 million as of January 31, 2026. Management is exploring options to raise additional funds and strengthen its sales force to improve revenue generation.

Looking ahead, Maison Solutions Inc. aims to stabilize its financial position by enhancing its marketing efforts, recruiting experienced personnel, and potentially opening or acquiring additional supermarkets in less competitive areas. However, the company acknowledges the uncertainty surrounding its ability to generate sufficient revenues and secure necessary funding, which may impact its ongoing operations and growth strategies.