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01/11 16:19
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals operational challenges, cost pressures, and a net loss, which negatively impact financial performance. Despite revenue growth, increased freight costs and expenses led to a gross profit loss. The Q&A session highlights management's avoidance of specific timelines for profitability, adding uncertainty. While there are positive aspects like customer base growth and strategic infrastructure, the lack of clear guidance and significant cost issues contribute to a negative sentiment. Given these factors, the stock price is likely to react negatively in the short term.
Total Revenue $190.4 million, an increase of 14% compared to the $167 million in fiscal year 2024. This growth was largely driven by the continued demand for our transportation and warehousing services as well as a more than fourfold increase in our active customer base to 505.
Cost of Sales $193.4 million, representing a 29.9% increase. These higher costs were primarily due to increased freight costs from our carriers as well as higher rental, labor and warehouse expense associated with the expansion of our operation footprint.
Gross Profit a loss of $3 million for the fiscal year. This was impacted by higher costs associated with freight, rental, labor, and warehouse expenses.
General and Administrative Expenses $14.7 million, representing a 47.2% increase from the previous year, primarily due to the investments in support of our growing operations.
Net Loss $15.3 million for the fiscal year or $0.37 per basic and diluted share. This was influenced by increased costs and investments in operations.
Cash, Cash Equivalents, and Restricted Cash $13.6 million at the end of the fiscal year.
Warehousing and logistics services: Expanded warehousing footprint to 10 warehouses, covering approximately 3,905,020 square feet across the U.S., equipped with advanced systems for handling bulky items and maintaining high standards like ISO 9001 compliance.
Customer base expansion: Active customer base grew more than fourfold to 505, driven by demand for transportation and warehousing services.
Operational efficiency measures: Actively implementing measures to improve efficiency and profitability amidst increased freight, rental, labor, and warehouse costs.
Growth strategy: Focused on optimizing operations, leveraging technology for efficiency, and expanding infrastructure to capitalize on cross-border e-commerce opportunities.
Operational Challenges and Cost Pressures: The company faced significant operational challenges and cost pressures during fiscal 2025, which impacted profitability despite revenue growth.
Increased Freight Costs: Higher freight costs from carriers contributed to a 29.9% increase in the cost of sales, negatively affecting gross profit.
Higher Rental, Labor, and Warehouse Expenses: Expansion of operational footprint led to increased rental, labor, and warehouse expenses, further pressuring financial performance.
Net Loss: The company reported a net loss of $15.3 million for fiscal 2025, driven by increased costs and investments in operations.
General and Administrative Expenses: General and administrative expenses rose by 47.2% due to investments in support of growing operations, adding to financial strain.
Future operational optimization: The company plans to focus on optimizing operations and leveraging technology to drive efficiency and broaden cost management.
Infrastructure and market positioning: The expanded infrastructure, including 10 warehouses across the U.S., is expected to position the company well to capitalize on future opportunities in the cross-border e-commerce market.
Commitment to growth strategy: The company remains committed to its growth strategy and aims to create long-term value for shareholders.
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