Armlogi Q3 2025 Earnings Report

Armlogi EPS Results

• Actual EPS: -$0.09
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Armlogi Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Armlogi Announcement Details

• Quarter: Q3 2025
• Date: 5/14/2025
• Time: After Market Closes
• Conference Call Date: Friday, May 16, 2025
• Conference Call Time: 11:00AM ET

Armlogi (NASDAQ:BTOC) is a warehousing and logistics service provider which offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment. Armlogi Holding Corp. is based in WALNUT, CA.

Armlogi Q3 2025 Earnings Call Transcript

Key Takeaways

• ArmaLagi reported strong top-line momentum with Q3 revenue up 19.3% year-over-year and a 14.6% increase for the first nine months, reflecting sustained demand for its logistics services.
• Despite revenue growth, the company recorded a net loss of $3.8 million in Q3 and $10.1 million for the nine-month period, driven by cost pressures and investments.
• The recent success in U.S.-China trade talks and resulting tariff reductions are expected to alleviate external cost pressures and support margin improvement.
• Higher cost of sales and warehouse‐expansion investments drove Q3 gross profit down to $280,000, highlighting ongoing operational efficiency challenges.
• Management is focused on optimizing operations, leveraging technology, and maintaining a cautious approach to balance sheet management to drive long-term value.

Presentation

[Operator]

Thank you for standing by, and welcome to the ArmLagi Holding Corp. Third Quarter and First Nine Months of Fiscal Year twenty twenty five Earnings Call. Please note that today's call is being recorded. I will now turn the meeting over to Matthew Abenotti, Investor Relations for Armenologis Holdings Corp.

[Matthew Abenante, Founder & President at Strategic Investor Relations LLC]

Thank you, and thanks to everyone joining us today for ArmaLagi's earnings conference call to discuss the third quarter and first nine months of fiscal year twenty twenty five results. Please note that our earnings press release was issued on Wednesday along with our quarterly report on Form 10 Q, which was also filed with the Securities and Exchange Commission. Both are available in the Investor Relations section of our website at ir.armlogi.com. Joining us on the call today is Scott Xu, Chief Financial Officer of the company. The format of our call will consist of brief comments followed by a question and answer session addressing the questions that were submitted by investors.

[Matthew Abenante, Founder & President at Strategic Investor Relations LLC]

We thank everyone for submitting these questions. Before we get started, I'm going to review the Safe Harbor statement. Please note that today's discussion will contain 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.

[Matthew Abenante, Founder & President at Strategic Investor Relations LLC]

Such forward looking statements relate to the 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 the 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 statements. Forward looking statements are only predictions.

[Matthew Abenante, Founder & President at Strategic Investor Relations LLC]

We are not obligated to publicly update or revise any forward looking statements whether as a result of uncertainties or assumptions. The forward looking statements discussed on this call 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. And with that, I would like to hand the call to Scott Xu, Chief Financial Officer of ArmaLagi. Good morning,

[Sheng-Kai Hsu, Chief Financial Officer at Armlogi Holding]

Good morning, Mitch, and thank you everyone for joining us today. Our Chairman and CEO, Ivy Joe, is unfortunately awaiting company's discussion today and the same disregards. This quarter, we continue to see revenue growth reflecting the sustained demand for our comprehensive logistics solutions. A particularly significant and encouraging development is the recent success in U. S.-China trade talks.

[Sheng-Kai Hsu, Chief Financial Officer at Armlogi Holding]

As many of you know, this has resulted in a substantial reduction in tariff fees, and we believe this will have a positive impact on our sectors and for on margins specifically. We will touch on this more throughout the call. Our third quarter and the nine month results reflect a period of continued revenue growth, which underscores the ongoing demand for our logistics solutions. However, we also faced significant operational investments and market related cost pressure that impacted our profitability. We are diligently working to optimize our expanded warehouse footprint and enhance operational efficiency across all our service lines.

[Sheng-Kai Hsu, Chief Financial Officer at Armlogi Holding]

A significant and encouraging development is the recent success in U. S.-China trade talks, which has resulted in a substantial reduction in tariff fees. This is a major point of outcome for Onmarch and the broader logistics sector. We anticipate that these cost table trade developments will help alleviate some of the cost pressures we have been experiencing and create more variable operating environment, while we maintain a cautious approach in our overall planning, prioritizing sustainable growth and improved profitability. The resolutions allow us to look forward with greater confidence.

[Sheng-Kai Hsu, Chief Financial Officer at Armlogi Holding]

Our commitment to leveraging technology and providing comprehensive supply chain solutions for our clients remain steadfast as we navigate the evolving economic landscape and the position on large to capitalize on these new opportunities for future success. Now, let's turn to our financial performance for the third quarter and the first nine months of fiscal year twenty twenty five. As a reminder, for a detailed breakdown of our financial results, I encourage you to refer to our earnings press release and our Form 10 Q, both of which are available on our Investor Relations website. My comments here will provide a high level overview. The third quarter ended 03/31/2025.

[Sheng-Kai Hsu, Chief Financial Officer at Armlogi Holding]

We saw continued top line momentum with total revenue reaching $45,800,000 an increase of 19.3% compared to the same period last year. This growth reflects the continued demand for our services. Cost of sales for the quarter were $45,600,000 As we have discussed, these costs were higher due to operational investments and the expansion of our footprint. This impacted our gross profit, which was 280,000 for the quarter. We are actively implementing measures to improve efficiency and profitability, and we anticipate that the recent positive developments in U.

[Sheng-Kai Hsu, Chief Financial Officer at Armlogi Holding]

S.-China trade relations may contribute to alleviating some of these cost pressures in the future. General and administrative expenses were 4,470,000 reflecting investments to support our growing operations. This resulted in a loss from operations of $12,190,000 for the third quarter. Our net loss for this quarter was $3,760,000 or $0.09 per basic and diluted share. Looking at the nine month period ended 03/31/2025, total revenue grew 14.6% to $139,500,000 again underscoring the sustained demand for our comprehensive logistics solutions.

[Sheng-Kai Hsu, Chief Financial Officer at Armlogi Holding]

Cost of sales of the nine months were $122,300,000 This resulted in a gross loss of $2,850,000 for the period. We are focused on strategic initiatives to address these margin challenges and as mentioned, the recent positive developments in U. S.-China trade discussion are expected to contribute variably to mitigating some of these cost pressures going forward. General and administrative expenses for the diagnosis were $10,800,000 The loss from operation for the nine months period was $13,650,000 and our net loss was 10,060,000.00 or $0.24 of basic and diluted share. We are managing our balance sheet prudently, and our focus on initiatives to improve our profitability as we move forward, especially in light of the more favorable trade environment we anticipate.

[Sheng-Kai Hsu, Chief Financial Officer at Armlogi Holding]

Looking ahead, we are navigating a dynamic market environment while evolving the global trade policies and the inflationary pressures have certainly presented ongoing challenges. The recent successful conclusion of U. S.-China trade talks marks a significant positive development. This breakthrough resulting in reduced tariff fees is expected to create a more variable operating landscape for the logistics sector and importantly for on lodging. We are proactively working to optimize our operations, managing costs, and enhance our service delivery.

[Sheng-Kai Hsu, Chief Financial Officer at Armlogi Holding]

We anticipate this improved trend relations will contribute to eliminating some of the cost pressures we have experienced. All the full impact of these macroeconomic shifts will unfold over time. We are cautiously optimistic. Our focus remains squarely on leveraging our expanding infrastructure and our technological capabilities to drive long term value for you, our shareholders. We are committed to improving our profitability and we will continue to make strategic investments to support sustainable growth and to strengthen our market position, now with a more positive backdrop for international trade.

[Sheng-Kai Hsu, Chief Financial Officer at Armlogi Holding]

In summary, while we have navigated some headwinds, we have continued to grow our revenue, demonstrating the underlying demand for our services. We are proactively managing costs and are particularly encouraged by the significant positive development in U. S.-China trade relations, which we believe will benefit our operations and industry at large. We remain confident in OnLarch's strategy, our dedicated team and our ability to create value in the evolving global logistics landscape. I want to sincerely thank our shareholders for their continued support and trust in enlarging.

[Sheng-Kai Hsu, Chief Financial Officer at Armlogi Holding]

With that comprehensive financial overview, I will turn it back to Matt for questions.

[Matthew Abenante, Founder & President at Strategic Investor Relations LLC]

Thank you, Scott. We will now move to the question and answer portion of the call. Thank you to everyone who has submitted questions. Our first question, despite cost pressures the company has continued to show revenue growth. Could you elaborate on the key drivers behind this sustained demand for ArmaLagi services and how the company is working to improve profitability moving forward?

[Sheng-Kai Hsu, Chief Financial Officer at Armlogi Holding]

That's an excellent question. The continued revenue growth, up 19.3% for the quarter and 14.6% for the nine months, truly underscores the essential nature of our comprehensive logistics solutions and the strong relationship we have with our clients. The demand is driven by the ongoing needs of cross border e commerce and the value we provide in managing complex supply chains. Regarding profitability, we are very focused on optimizing our expanded operational footprint, enhancing efficiencies through technology, and diligently managing our costs. Furthermore, as we discussed, the recent positive development in US China trade relations with reduced tariff fees are expected to alleviate some of their external cost pressures, which should contribute favorably to our margin improvement effort over time.

[Sheng-Kai Hsu, Chief Financial Officer at Armlogi Holding]

We are confident in our strategic initiatives to navigate the current environment and enhance shareholder value. Thank you.

[Matthew Abenante, Founder & President at Strategic Investor Relations LLC]

The recent success in U. S.-China trade talks seems to be a significant positive. Can you provide a bit more color on how specifically PharmLogic is positioned to benefit from this improved trade environment?

[Sheng-Kai Hsu, Chief Financial Officer at Armlogi Holding]

Certainly, the success for US China trade talks and the resulting tariff reductions are indeed very encouraging news for the entire logistics sector, and particularly for a company like OnLogic that facilitates Trans Pacific trade. Specifically, we anticipate several benefits. Firstly, reduced tariff fees can lower the lending cost of goods for our customers, potentially stimulating higher trade volumes. Secondly, it reduces a significant element of uncertainty that has been impacting planning and investment for many businesses, which can lead to more stable and predictable demand for our services. Thirdly, it may ease some of the direct and indirect cost pressures we have seen in the supply chain.

[Sheng-Kai Hsu, Chief Financial Officer at Armlogi Holding]

We are well positioned with our extensive warehouse network and the comprehensive services offering to support all clients as they capitalize on this more favorable trade environment. We have already begun factoring this into our strategic planning to maximize these emerging opportunities.

[Matthew Abenante, Founder & President at Strategic Investor Relations LLC]

Considering the dynamic market and the recent positive trade news, how does Armajji view its long term strategic positioning and its ability to capture future growth opportunities?

[Sheng-Kai Hsu, Chief Financial Officer at Armlogi Holding]

Yes, we are very confident in our long term strategic positioning. OnLogic has built a robust infrastructure with a significant warehouse footprint in key U. S. Locations, offering a comprehensive suite of logistic services. This allows us to be a one stop solution for many of our clients, particularly in the cross border e commerce space.

[Sheng-Kai Hsu, Chief Financial Officer at Armlogi Holding]

The recent positive developments in US China trade talks further strengthened our outlook, creating a more stable and potentially expensive market. Our strategy remains focused on leveraging our cost strength, our infrastructure, our technology, our experience team, and our customer centric approach. We will continue to make prudent investments to support sustainable growth, enhance our service capabilities, and expand our market reach. We believe we are well equipped to navigate the evolving landscape and capitalize on the growth opportunity ahead.

[Matthew Abenante, Founder & President at Strategic Investor Relations LLC]

Thank you. And with that, that's our last question. And so I want to thank everyone for participating on today's call. We look forward to providing additional updates in the near future. In the meantime, we can be reached at infoharmlogi dot com or you can contact me at matthewstrategic ir dot com. Thank you.

[Operator]

Ladies and gentlemen, that does conclude our conference today. Thank you for your participation. You may now disconnect.

Participants

Executives

• Sheng-Kai Hsu, Chief Financial Officer

Analysts

• Matthew Abenante, Founder & President at Strategic Investor Relations LLC