Yunhong Green CTI Reports 29% Decline in Q2 2026 Net Sales

Yunhong Green CTI Ltd. reported a decline in financial performance for the second quarter of 2026, with net sales of $3.9 million, down 29% from $5.5 million in the same period of 2025. For the first half of 2026, net sales totaled $10.1 million, a slight decrease of 2% compared to $10.3 million in the prior year. The decrease in sales was attributed to the timing of product shipments, particularly for spring products, and reduced volumes from a major retail customer that altered its replenishment practices. The company's gross profit for the second quarter was $538,000, down from $978,000 a year earlier, while the net loss for the quarter widened to $586,000 from $228,000 in the previous year.

In terms of operational metrics, the company experienced a significant reduction in accounts receivable, which decreased by $2.7 million to $3.3 million as of June 30, 2026. Inventory also declined, falling to $7.8 million from $8.7 million at the end of 2025. The company’s total assets decreased to $18.6 million from $22.5 million at the end of the previous fiscal year, primarily due to reductions in current assets. Total liabilities also decreased to $10.9 million from $13.9 million, reflecting a reduction in trade payables and the line of credit.

Yunhong Green CTI has made strategic moves to enhance its market position, including a focus on biodegradable and compostable materials through a new subsidiary. The company continues to operate primarily in the U.S. market, where it designs and manufactures metalized balloon products and flexible packaging solutions. The company’s credit facilities were extended in September 2025, allowing for a revolving credit facility of up to $7 million, which is crucial for maintaining liquidity amid ongoing supply chain challenges and inflationary pressures.

Looking ahead, the company faces substantial challenges, including a cumulative net loss of approximately $29 million since inception and ongoing concerns about its ability to continue as a going concern. Management plans to raise additional capital and explore alternative funding sources to support operations over the next twelve months. However, the company has acknowledged that there is no assurance of success in these efforts, and the potential impact of tariffs and market conditions may further complicate its financial outlook.