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Armlogi Holding Corp. Announces Fiscal 2025 Third Quarter and Nine-Month Results

1. BTOC's revenue grew 19.3%, totaling $45.8 million in Q3 2025. 2. Operating expenses rose significantly, leading to a $4.19 million loss. 3. Gross margin decreased from 8.6% to 0.6% due to rising costs. 4. Encouraging signs in U.S.-China trade talks may benefit logistics. 5. Management is focused on enhancing operational efficiency to mitigate losses.

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Why Bearish?

Despite revenue growth, substantial operational losses and margin declines suggest financial instability. Historical context indicates that consistent losses can lead to falling stock prices, as seen in similar cases like XPO Logistics in 2019.

How important is it?

The detailed financial results directly influence investor sentiment and stock valuation, leading to potential volatility in BTOC’s price.

Why Short Term?

The current financial struggles and losses are more likely to impact BTOC's stock price in the immediate future, especially as investors react to reported losses.

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WALNUT, Calif., May 14, 2025 (GLOBE NEWSWIRE) -- Armlogi Holding Corp. (“Armlogi” or the “Company”) (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today announced financial results for its fiscal 2025 third quarter and nine months ended March 31, 2025. Financial Results for the Three Months Ended March 31, 2025: Total revenue increased by approximately $7.4 million, or 19.3%, to $45.8 million during the three months ended March 31, 2025, compared to $38.4 million for the same period in 2024. This growth reflects continued demand for our services. Costs of sales increased by approximately $10.5 million, or 29.8%, to $45.6 million during the three months ended March 31, 2025, compared with $35.1 million during the same period in 2024. This increase is primarily attributed to higher operational costs associated with service delivery and the expansion of our operational footprint. Our overall gross profit was $0.28 million for the three months ended March 31, 2025, a decrease from $3.32 million for the same period in 2024. Consequently, the gross profit margin was approximately 0.6% for the current quarter, compared to approximately 8.6% in the prior year’s quarter. This reduction in gross margin reflects the aforementioned increased costs of sales. General and administrative expenses were $4.47 million for the three months ended March 31, 2025, an increase from $3.27 million in the same period of 2024, reflecting investments to support our growing operations and strategic initiatives. As a result of these factors, the Company reported a loss from operations of $4.19 million for the three months ended March 31, 2025, compared to income from operations of $0.05 million for the same period in 2024. Our net loss for the three months ended March 31, 2025, was $3.76 million, or ($0.09) per basic and diluted share. This compares with net income of $0.68 million, or $0.02 per basic and diluted share, for the three months ended March 31, 2024. Financial Results for the Nine Months Ended March 31, 2025: Total revenue increased by approximately $17.8 million, or 14.6%, to $139.5 million during the nine months ended March 31, 2025, compared to $121.7 million for the same period in 2024. This growth underscores the sustained demand for our comprehensive logistics solutions. Costs of sales increased by approximately $36.85 million, or 35.0%, to $142.3 million during the nine months ended March 31, 2025, compared with $105.5 million during the same period in 2024. This increase reflects the costs associated with our expanded operational footprint, investments in service capabilities, and certain market pressures that increased costs of resources necessary for our operations. Our overall gross loss was $2.85 million for the nine months ended March 31, 2025, a shift from a gross profit of $16.23 million for the same period in 2024. This has resulted in a negative gross profit margin of approximately (2.0)% for the current nine-month period, compared to a positive margin of 13.3% in the prior year’s period. We are focused on initiatives to address these margin challenges, as well as the challenges that may be presented by the U.S.-China trade developments, anticipated cost pressures of which we are endeavoring to mitigate, should they not be favorably resolved, going forward. General and administrative expenses were $10.80 million for the nine months ended March 31, 2025, an increase from $8.10 million in the same period of 2024, reflecting ongoing investments to scale our business and support our growth trajectory. Consequently, the Company reported a loss from operations of $13.65 million for the nine months ended March 31, 2025, compared to income from operations of $8.13 million for the same period in 2024. Our net loss for the nine months ended March 31, 2025, was $10.06 million, or ($0.24) per basic and diluted share. This compares with net income of $7.18 million, or $0.18 per basic and diluted share, for the nine months ended March 31, 2024. Management Commentary Aidy Chou, Chairman and Chief Executive Officer of Armlogi, commented, “Our third quarter and nine-month results reflect continued revenue growth, which underscores the ongoing demand for our logistics solutions. At the same time, we continue to face significant operational investments and market-related cost pressures that have impacted our profitability. We are diligently working to optimize our expanded warehouse footprint and enhance operational efficiencies across all our service lines.” “We are encouraged by the recent development in U.S.-China trade talks, which has resulted in a substantial reduction in tariffs. We believe this may be a positive signal for Armlogi and the broader logistics sector. While we continue to take a cautious approach in our overall planning, prioritizing sustainable growth and improved profitability, the reduction in trade tensions may allow us to look forward with cautious optimism. Our commitment to leveraging technology and delivering comprehensive supply-chain solutions for our clients remains strong as we navigate the evolving economic environment and work to position Armlogi for potential future growth.” Conference Call & Audio Webcast Armlogi’s management team will hold an earnings conference call at 8:00 am Pacific Time (11:00 am Eastern Time) on Friday, May 16, to discuss the Company’s financial results and provide an overview of the Company’s operations. Armlogi’s management team will lead the conference call and answer investor questions. To access the call by phone, please dial 1-800-274-8461 (international callers, please dial 1-203-518-9814) approximately 10 minutes before the start of the call. Refer to conference ID: ARMLOGI. **NOTE: THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY A live audio conference call webcast will be available online at https://viavid.webcasts.com/starthere.jsp?ei=1720635&tp_key=1793680a37. About Armlogi Holding Corp. Armlogi Holding Corp., based in Walnut, CA, is a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions relating to warehouse management and order fulfillment. The Company caters to cross-border e-commerce merchants looking to establish overseas warehouses in the U.S. market. With ten warehouses covering over three and a half million square feet, the Company offers comprehensive one-stop warehousing and logistics services. The Company’s warehouses are equipped with facilities and technology for handling and storing large and bulky items. For more information, please visit www.armlogi.com. Armlogi is on X (formerly Twitter). Sign up to follow @ArmLogiUS at https://x.com/ArmLogiUS.Armlogi is on LinkedIn; follow us at https://www.linkedin.com/company/armlogi-holding-corp. Forward-Looking Statements This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “intends,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. Company Contact:info@armlogi.com Investor Relations Contact:Matthew Abenante, IRCPresidentStrategic Investor Relations, LLC Tel: 347-947-2093Email: matthew@strategic-ir.com   (tables follow)   ARMLOGI HOLDING CORP.CONDENSED CONSOLIDATED BALANCE SHEETSAS OF MARCH 31, 2025 AND JUNE 30, 2024(US$, except share data, or otherwise noted)     March 31, 2025  June 30, 2024   US$  US$   Unaudited    Assets      Current assets      Cash  5,631,247   7,888,711 Accounts receivable and other receivable, net  26,843,491   25,465,044 Other current assets  2,222,012   1,624,611 Prepaid expenses  1,204,992   1,129,435 Loan receivables  3,845,402   1,877,131 Total current assets  39,747,144   37,984,932 Non-current assets        Restricted cash  3,779,572   2,061,673 Long-term loan receivables  —   2,908,636 Property and equipment, net  11,660,557   11,010,407 Intangible assets, net  66,002   92,708 Right-of-use assets – operating leases  122,126,701   111,955,448 Right-of-use assets – finance leases  201,012   309,496 Other non-current assets  459,555   711,556 Total assets  178,040,543   167,034,856          LIABILITIES AND STOCKHOLDERS’ EQUITY        Liabilities:        Current liabilities        Accounts payable and accrued liabilities  6,870,867   7,502,339 Contract liabilities  468,128   276,463 Income taxes payable  —   57,589 Due to related parties  —   350,209 Accrued payroll liabilities  687,530   405,250 Convertible notes  6,337,398   — Operating lease liabilities – current  28,297,648   24,216,446 Finance lease liabilities – current  139,331   155,625 Total current liabilities  42,800,902   32,963,921 Non-current liabilities        Operating lease liabilities – non-current  104,986,058   93,126,092 Finance lease liabilities – non-current  77,042   169,683 Deferred income tax liabilities  -   1,536,455 Total liabilities  147,864,002   127,796,151          Commitments and contingencies        Stockholders’ equity        Common stock, US$0.00001 par value, 100,000,000 shares authorized, 42,112,026 and 41,634,000 issued and outstanding as of March 31, 2025 and June 30, 2024, respectively  421   416 Additional paid-in capital  16,468,859   15,468,864 Retained earnings  13,707,261   23,769,425 Total stockholders’ equity  30,176,541   39,238,705 Total liabilities and stockholders’ equity  178,040,543   167,034,856    ARMLOGI HOLDING CORP.CONDENSED CONSOLIDATED STATEMENTSOF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2025 AND 2024(US$, except share data, or otherwise noted)     Three MonthsEndedMarch 31,2025  Three MonthsEndedMarch 31,2024  Nine MonthsEndedMarch 31,2025  Nine MonthsEndedMarch 31,2024   US$  US$  US$  US$   Unaudited  Unaudited  Unaudited  Unaudited Revenue  45,844,322   38,439,935   139,469,900   121,689,863 Costs of sales  45,566,202   35,115,736   142,315,578   105,461,383 Gross profit (loss)  278,120   3,324,199   (2,845,678)  16,228,480                  Operating costs and expenses:                General and administrative  4,472,813   3,269,493   10,800,794   8,097,196 Total operating costs and expenses  4,472,813   3,269,493   10,800,794   8,097,196                  Income (loss) from operations  (4,194,693)  54,706   (13,646,472)  8,131,284                  Other (income) expenses:                Other income, net  (718,025)  (914,419)  (2,488,346)  (1,902,813)Loss on disposal of assets  —   —   43,625   — Finance costs  278,385   11,041   367,382   37,779 Total other (income) expenses  (439,640)  (903,378)  (2,077,339)  (1,865,034)                 Income (loss) before provision for income taxes  (3,755,053)  958,084   (11,569,133)  9,996,318                  Current income tax expense  —   200,612   —   2,079,038 Deferred income tax (recovery) expense  —   75,252   (1,506,969)  735,459 Total income tax (recovery) expenses  —   275,864   (1,506,969)  2,814,497 Net income (loss)  (3,755,053)  682,220   (10,062,164)  7,181,821 Total comprehensive income (loss)  (3,755,053)  682,220   (10,062,164)  7,181,821                  Basic & diluted net (loss) earnings per share  (0.09)  0.02   (0.24)  0.18 Weighted average number of shares of common stock-basic and diluted  41,714,608   40,000,000   41,651,007   40,000,000    ARMLOGI HOLDING CORP.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE NINE MONTHS ENDED MARCH 31, 2025 AND 2024 (UNAUDITED)(US$, except share data, or otherwise noted)     For The Nine Months EndedMarch 31, 2025  For The Nine MonthsEnded March 31, 2024   US$  US$   Unaudited  Unaudited Cash Flows from Operating Activities:      Net (loss) income  (10,062,164)  7,181,821 Net loss from disposal of fixed assets  43,625   6,895 Depreciation of property and equipment and right-of-use financial assets  1,983,166   1,444,441 Amortization  26,706   26,488 Non-cash operating leases expense  5,833,789   3,450,304 Gain from settlement of commitment payable  (100,000)  — Accretion of convertible note  344,925   — Current estimated credit loss  228,363   (22,827)Deferred income taxes  (1,536,455)  735,459 Interest income  (96,340)  (87,923)Changes in working capital:        Accounts receivable and other receivables  (1,606,810)  (7,685,423)Other current assets  (597,401)  (376,820)Other non-current assets  252,001   — Prepaid expenses  (75,557)  (425,146)Accounts payable & accrued liabilities  (631,472)  (2,212,137)Contract liabilities  191,665   (187,925)Income tax payable  (57,589)  1,907,403 Accrued payroll liabilities  282,280   199,806 Net changes in derecognized ROU and operating lease liabilities  (63,874)  — Net cash (used in) provided from operating activities  (5,641,142)  3,954,416          Cash Flows from Investing Activities:        Purchase of property and equipment  (2,593,457)  (3,080,643)Loan disbursement  (1,000,000)  (1,600,000)Proceeds from repayment of loan receivables  2,036,705   — Proceeds from sale of property and equipment  25,000   — Net cash used in investing activities  (1,531,752)  (4,680,643)         Cash Flows from Financing Activities:        Proceeds received from related parties  —   1,000 Deferred issuance costs for initial public offering  —   (638,231)Repayment to related parties  (350,209)  511,353 Net proceeds from SEPA  8,092,473   — Repayment of commitment payable  (150,000)  — Repayment of finance lease liabilities  (108,935)  (125,474)Repayment of SEPA  (850,000)  — Capital contributions from stockholders  —   466,156 Net cash provided by financing activities  6,633,329   214,804          Net decrease in cash and restricted cash  (539,565)  (511,423)Cash and restricted cash, beginning of year  9,950,384   6,558,099 Cash and restricted cash, end of nine months periods  9,410,819   6,046,676          The following table provides a reconciliation of cash and restricted cash reported within the Consolidated Balance Sheets that equal the totals of the same amounts shown in the Consolidated Statements of Cash Flows:        Cash  5,631,247   3,985,003 Restricted cash – non-current  3,779,572   2,061,673 Total cash and restricted cash shown in the Consolidated Balance Sheet  9,410,819   6,046,676          Supplemental Disclosure of Cash Flows Information:        Cash paid for income tax  (87,074)  (171,635)Cash paid for interest  22,457   — Non-cash Transactions:        Right-of-use assets acquired in exchange for operating lease liabilities  28,685,914   81,927,507 Decrease in right-of-use assets due to remeasurement of lease terms  884,394   — Shares issued to settle commitment fee  250,000   — IPO expenses paid by stockholders  —   300,000 Shares issued pursuant to SEPA  750,000   — 

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