Armlogi Holding Corp. Announces Second Quarter and First Half of Fiscal Year 2026 Results
MWN-AI** Summary
Armlogi Holding Corp. (Nasdaq: BTOC), a logistics and warehousing service provider based in Walnut, California, disclosed its financial results for the second quarter and first half of the fiscal year 2026, ending December 31, 2025. The Company reported a modest revenue growth of 0.8%, generating $51.5 million in total revenue for the quarter, compared to $51.1 million the previous year. However, this growth was overshadowed by an increase in service costs, totaling $52.3 million, leading to a gross loss of $0.8 million, contrasted with a gross profit of $0.5 million recorded during the same period last year.
The Company experienced a net loss of $3.9 million, or $0.08 per share, a decline from the net loss of $1.7 million, or $0.04 per share, in the previous year’s quarter. Over the six-month period, total revenue rose by 7.9% to $101.0 million, yet a gross loss of $3.3 million was noted, with a slight improvement in gross margin from (3.3)% to (3.2)% year-over-year. The net loss for this period was approximately $10.4 million, or $0.24 per share.
Armlogi had a cash and restricted cash balance of $9.4 million as of December 31, 2025, and raised $3.8 million through the issuance of shares via its Standby Equity Purchase Agreement (SEPA). CEO Aidy Chou expressed a commitment to stabilizing revenue performance while addressing the challenges posed by rising operational costs through various cost optimization and operational efficiency strategies.
Overall, Armlogi’s results illustrate both growth opportunities and ongoing challenges within its financial structure, emphasizing the need for effective cost management in a competitive logistics market.
MWN-AI** Analysis
Armlogi Holding Corp. (NASDAQ: BTOC) has revealed its second-quarter results for fiscal 2026, showing mixed performance that could be indicative of both short-term challenges and longer-term potential. While total revenue increased by 0.8% year-over-year to $51.5 million, the company reported a concerning gross loss of $0.8 million, contrasting with a gross profit of $0.5 million in the previous year. This gross margin decline to -1.5% signals rising operational costs, which have overshadowed revenue growth.
The net loss increased significantly to $3.9 million, or $0.08 per share, up from a loss of $1.7 million, which raises flags for prospective investors regarding the company’s profitability. The company’s liquidity appears strained, with cash and restricted cash down to $9.4 million by the end of December 2025. Management's reliance on Standby Equity Purchase Agreements for capital may reflect limited financing options and could dilute shareholder value.
Aidy Chou, CEO, emphasized their commitment to implementing cost optimization and enhancing operational efficiencies, which are critical steps towards improving their gross margins. Integrating higher-margin logistics solutions is promising but requires time and effective execution to yield results.
For investors considering Armlogi, caution is advised. The recent operational struggles and increased losses suggest that while revenue growth is present, it is not yet translating into profitability. Potential investors should monitor the effectiveness of management’s cost-reduction strategies and await signs of improved margins before committing to the stock. A focus on the company's ability to manage operational costs and leverage its warehouse capabilities in the competitive logistics sector will be essential for long-term growth. Given current dynamics, Armlogi may be a speculative investment best approached with careful consideration of risks.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
WALNUT, Calif., Feb. 13, 2026 (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 2026 second quarter and six-month period ended December 31, 2025.
Financial Results for the Three Months Ending December 31, 2025:
- Total revenue increased 0.8% to $51.5 million for the three months ended December 31, 2025, compared to $51.1 million in the prior-year period.
- Costs of services increased to $52.3 million for the three months ended December 31, 2025, resulting in a gross loss of $0.8 million, compared to a gross profit of $0.5 million in the prior year period. Gross margin declined to (1.5)% for the three months ended December 31, 2025 from 0.9% in the prior year period, primarily due to higher operational costs.
- Net loss was $3.9 million, or ($0.08) per share for the three months ended December 31, 2025, compared to a net loss of $1.7 million, or ($0.04) per share, for the prior year period.
Financial Results for the Six Months Ending December 31, 2025:
- Total revenue for the first six months ended December 31, 2025 grew 7.9% to $101.0 million, up from $93.6 million in the prior year period.
- Gross loss for the six months ended December 31, 2025 was $3.3 million, showing a marginal improvement in gross margin to (3.2)% from (3.3)% in the prior year period.
- Net loss was $10.4 million, or ($0.24) per share for the six months ended December 31, 2025, compared to a net loss of $6.3 million, or ($0.15) per share, for the prior year period.
Liquidity:
As of December 31, 2025, the Company had a cash and restricted cash balance of $9.4 million. During the six months ended December 31, 2025, the Company utilized its Standby Equity Purchase Agreement (SEPA) to issue 3,192,145 shares of common stock, raising an aggregate of $3.8 million to support its operations and growth initiatives.
Management Commentary
Aidy Chou, Chairman and Chief Executive Officer of Armlogi, commented, “The second quarter reflected stable revenue performance and continued first-half growth, though margins were pressured by elevated service costs. We are actively implementing cost optimization strategies and operational efficiencies to address the compression in our gross margins, including enhancing warehouse utilization and integrating higher-margin logistics solutions. We remain confident in our long-term strategy and our ability to create value for our stockholders as we navigate the current market dynamics.”
About Armlogi Holding Corp.
Armlogi Holding Corp., based in Walnut, CA, is a U.S.-based warehousing and logistics service provider offering a comprehensive suite of supply-chain solutions, including warehouse management and order fulfillment. The Company caters to cross-border e-commerce merchants seeking to establish U.S. market warehouses. With 10 warehouses totaling over 3.5 million square feet, the Company offers comprehensive one-stop warehousing and logistics services. The Company’s warehouses are equipped with facilities and technology to handle and store large, bulky items. Armlogi is a member of the Russell Microcap® Index. For more information, please visit www.armlogi.com.
Forward-Looking Statements
This press release contains forward-looking statements. In addition, our representatives may from time to time 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 revenue and earnings growth; 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,” “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, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com
*** tables follow ***
| ARMLOGI HOLDING CORP. CONDENSED CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2025 AND JUNE 30, 2025 (US$, except share data, or otherwise noted) | |||||||||
| December 31, 2025 | June 30, 2025 | ||||||||
| US$ | US$ | ||||||||
| Unaudited | Audited | ||||||||
| Assets | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | 5,041,971 | 9,190,277 | |||||||
| Accounts receivable and other receivable, net of credit loss allowance of $594,869 and $594,869 | 19,477,733 | 22,207,500 | |||||||
| Other current assets | 1,264,311 | 998,925 | |||||||
| Prepaid expenses | 1,275,823 | 1,375,646 | |||||||
| Loan receivables, net of credit loss allowance of and | 2,139,787 | 3,893,563 | |||||||
| Total current assets | 29,199,625 | 37,665,911 | |||||||
| Non-current assets | |||||||||
| Restricted cash – non-current | 4,394,812 | 4,387,550 | |||||||
| Property and equipment, net | 10,587,255 | 11,259,820 | |||||||
| Intangible assets, net | 31,370 | 54,627 | |||||||
| Right-of-use assets – operating leases | 106,496,289 | 115,361,185 | |||||||
| Right-of-use assets – finance leases | 1,516,794 | 745,547 | |||||||
| Other non-current assets | 835,691 | 739,555 | |||||||
| Total assets | 153,061,836 | 170,214,195 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
| Liabilities: | |||||||||
| Current liabilities | |||||||||
| Accounts payable and accrued liabilities | 9,385,551 | 9,604,783 | |||||||
| Contract liabilities | 628,790 | 939,097 | |||||||
| Accrued payroll liabilities | 491,377 | 283,150 | |||||||
| Convertible notes | - | 5,292,749 | |||||||
| Operating lease liabilities – current | 33,713,304 | 29,280,907 | |||||||
| Finance lease liabilities – current | 763,696 | 386,327 | |||||||
| Total current liabilities | 44,982,718 | 45,787,013 | |||||||
| Non-current liabilities | |||||||||
| Operating lease liabilities – non-current | 88,755,383 | 98,939,552 | |||||||
| Finance lease liabilities – non-current | 802,032 | 397,692 | |||||||
| Total liabilities | 134,540,133 | 145,124,257 | |||||||
| Commitments and contingencies | |||||||||
| Stockholders’ equity | |||||||||
| Common stock, US$0.00001 par value, 100,000,000 shares authorized, 45,443,079 and 42,250,934 issued and outstanding as of December 31, 2025 and June 30, 2025, respectively | 454 | 422 | |||||||
| Additional paid-in capital | 20,468,826 | 16,668,858 | |||||||
| Retained earnings | (1,947,577 | ) | 8,420,658 | ||||||
| Total stockholders’ equity | 18,521,703 | 25,089,938 | |||||||
| Total liabilities and stockholders’ equity | 153,061,836 | 170,214,195 | |||||||
ARMLOGI HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024
(US$, except share data, or otherwise noted)
| Three Months Ended December 31, 2025 | Three Months Ended December 31, 2024 | Six Months Ended December 31, 2025 | Six Months Ended December 31, 2024 | |||||||||||||
| US$ | US$ | US$ | US$ | |||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
| Revenue | 51,542,848 | 51,143,682 | 101,016,027 | 93,625,578 | ||||||||||||
| Costs of services | 52,313,114 | 50,660,690 | 104,270,376 | 96,749,376 | ||||||||||||
| Gross profit | (770,266 | ) | 482,992 | (3,254,349 | ) | (3,123,798 | ) | |||||||||
| Operating costs and expenses: | ||||||||||||||||
| General and administrative | 3,328,550 | 2,659,156 | 7,545,856 | 6,327,981 | ||||||||||||
| Total operating costs and expenses | 3,328,550 | 2,659,156 | 7,545,856 | 6,327,981 | ||||||||||||
| Loss from operations | (4,098,816 | ) | (2,176,164 | ) | (10,800,205 | ) | (9,451,779 | ) | ||||||||
| Other (income) expenses: | ||||||||||||||||
| Other income, net | (302,280 | ) | (564,656 | ) | (1,040,872 | ) | (1,770,321 | ) | ||||||||
| Loss on Disposal of Assets | — | 43,625 | — | 43,625 | ||||||||||||
| Finance costs | 44,121 | 79,989 | 592,466 | 88,997 | ||||||||||||
| Total other (income) expenses | (258,159 | ) | (441,042 | ) | (448,406 | ) | (1,637,699 | ) | ||||||||
| Loss before provision for income taxes | (3,840,657 | ) | (1,735,122 | ) | (10,351,799 | ) | (7,814,080 | ) | ||||||||
| Current income tax expense | 19,525 | — | 16,436 | — | ||||||||||||
| Deferred income tax (recovery) expense | — | (75,882 | ) | — | (1,506,969 | ) | ||||||||||
| Total income tax (recovery) expenses | 19,525 | (75,882 | ) | 16,436 | (1,506,969 | ) | ||||||||||
| Net loss | (3,860,182 | ) | (1,659,240 | ) | (10,368,235 | ) | (6,307,111 | ) | ||||||||
| Total comprehensive loss | (3,860,182 | ) | (1,659,240 | ) | (10,368,235 | ) | (6,307,111 | ) | ||||||||
| Basic & diluted net loss per share | (0.08 | ) | (0.04 | ) | (0.24 | ) | (0.15 | ) | ||||||||
| Weighted average number of shares of common stock-basic and diluted | 45,443,079 | 41,642,442 | 43,952,643 | 41,638,221 |
| ARMLOGI HOLDING CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 (UNAUDITED) (US$, except share data, or otherwise noted) | ||||||||||
| For The Six Months Ended December 31, 2025 | For The Six Months Ended December 31, 2024 | |||||||||
| US$ | US$ | |||||||||
| Unaudited | Unaudited | |||||||||
| Cash Flows from Operating Activities: | ||||||||||
| Net loss | (10,368,235 | ) | (6,307,111 | ) | ||||||
| Adjustments for items not affecting cash: | ||||||||||
| Net loss from disposal of fixed assets | — | 43,625 | ||||||||
| Depreciation of property and equipment and right-of-use financial assets | 1,679,930 | 1,290,471 | ||||||||
| Amortization | 23,257 | 17,659 | ||||||||
| Non-cash operating leases expense | 3,113,124 | 4,358,758 | ||||||||
| Current estimated credit loss | — | 228,363 | ||||||||
| Accretion of convertible notes | 527,251 | 72,184 | ||||||||
| Deferred income taxes | — | (1,506,969 | ) | |||||||
| Interest income | (39,534 | ) | (63,233 | ) | ||||||
| Changes in operating assets and liabilities: | ||||||||||
| Accounts receivable and other receivables | 2,729,767 | (5,967,431 | ) | |||||||
| Other current assets | (265,386 | ) | (280,846 | ) | ||||||
| Other non-current assets | (96,136 | ) | (203,643 | ) | ||||||
| Prepaid expenses | 99,823 | 249,667 | ||||||||
| Accounts payable & accrued liabilities | (299,550 | ) | (1,969,214 | ) | ||||||
| Contract liabilities | (310,307 | ) | 972,381 | |||||||
| Income tax payable | — | (87,075 | ) | |||||||
| Accrued payroll liabilities | 208,227 | (16,180 | ) | |||||||
| Net changes in derecognized ROU and operating lease liabilities | — | (63,874 | ) | |||||||
| Net cash used in operating activities | (2,997,769 | ) | (9,232,468 | ) | ||||||
| Cash Flows from Investing Activities: | ||||||||||
| Purchase of property and equipment | (636,868 | ) | (2,070,770 | ) | ||||||
| Loan disbursements | (2,770,000 | ) | (1,000,000 | ) | ||||||
| Proceeds from loan repayments | 4,563,310 | 2,036,705 | ||||||||
| Proceeds from sale of property and equipment | — | 25,000 | ||||||||
| Net cash provided by (used in) investing activities | 1,156,442 | (1,009,065 | ) | |||||||
| Cash Flows from Financing Activities: | ||||||||||
| Repayment to related parties | — | (350,209 | ) | |||||||
| Repayments of finance lease liabilities | (279,717 | ) | (72,368 | ) | ||||||
| (Repayments) Net proceeds from convertible notes | (2,020,000 | ) | 8,092,473 | |||||||
| Net cash (used in) provided by financing activities | (2,299,717 | ) | 7,669,896 | |||||||
| Net decrease in cash and cash equivalents and restricted cash | (4,141,044 | ) | (2,571,637 | ) | ||||||
| Cash and cash equivalents and restricted cash, beginning of the period | 13,577,827 | 9,950,384 | ||||||||
| Cash and cash equivalents and restricted cash, end of the period | 9,436,783 | 7,378,747 | ||||||||
| The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows: | ||||||||||
| Cash and cash equivalents | 5,041,971 | 5,118,815 | ||||||||
| Restricted cash – non-current | 4,394,812 | 2,259,932 | ||||||||
| Total cash and cash equivalents and restricted cash shown in the Condensed Consolidated Balance Sheets | 9,436,783 | 7,378,747 | ||||||||
| Supplemental Disclosure of Cash Flows Information: | ||||||||||
| Cash paid for income tax | (23,300 | ) | (87,074 | ) | ||||||
| Cash paid for interest | — | (16,813 | ) | |||||||
| Non-cash Transactions: | ||||||||||
| Right-of-use assets acquired in exchange for finance lease liabilities | 1,061,426 | — | ||||||||
| Right-of-use assets acquired in exchange for operating lease liabilities | 2,861,346 | 6,184,333 | ||||||||
| Increase (Decrease) in right-of-use assets due to remeasurement of lease terms | 63,896 | (884,394 | ) | |||||||
| Shares issued for Investor Notices pursuant to SEPA by reducing the convertible notes | 3,800,000 | — | ||||||||
| Shares issued to settle commitment fee | — | 250,000 |
FAQ**
Given the net loss increase from $1.7 million to $3.9 million in Q2 2026, what specific challenges is Armlogi Holding Corp. BTOC facing that might be impacting its profitability and gross margins?
How does Armlogi Holding Corp. BTOC plan to utilize the $3.8 million raised through the Standby Equity Purchase Agreement to enhance operational efficiency and address the pressures on its gross margins?
With total revenue growth of 7.9% for the first six months of 2026, what strategies is Armlogi Holding Corp. BTOC implementing to ensure sustained revenue growth in a competitive warehousing and logistics market?
Considering the decline in cash and cash equivalents from $9.19 million to $5.04 million, what measures is Armlogi Holding Corp. BTOC taking to improve its liquidity position and support ongoing operations and future growth initiatives?
**MWN-AI FAQ is based on asking OpenAI questions about Armlogi Holding Corp. (NASDAQ: BTOC).
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