Cheetah Net Supply Chain Service (CTNT) Financials

CTNT’s Q2 2026 results show a sharp rebound in revenue and operating cash flow, but the underlying business remains unprofitable. Revenue increased to $868,909 from $92,700 in Q1 2026 and $354,126 in Q2 2025. However, gross profit was only $19,500, representing a gross margin of approximately 2.2%, while selling, general and administrative expenses totaled $887,115.

The company reported net income of $71,045, or $0.04 per diluted share, compared with a $616,265 loss in Q1. This improvement was driven primarily by $954,052 of net other income, including $264,695 of interest and investment income and $696,156 of other income. CTNT still posted an operating loss of $881,797, indicating that the quarterly profit was not generated by its core operations.

Cash flow improved substantially in Q2. Operating activities generated $1.59 million, reversing the $2.46 million outflow in Q1. The improvement was largely related to a $1.18 million benefit from changes in operating assets and liabilities. Nevertheless, investing activities used $31.47 million, and the company relied on $31.35 million of financing inflows—primarily common-equity issuance—to produce a $1.43 million increase in cash.

CTNT’s balance sheet expanded significantly, with total assets rising to $82.52 million from $50.995 million at the end of Q1 2026. Much of this increase consisted of note and lease receivables and other current assets rather than cash. Cash and equivalents totaled $2.14 million, while current liabilities were $1.59 million. Total liabilities remained modest at $2.19 million, but the company continued to carry accumulated retained losses of $8.88 million.

• Revenue rebounded sharply: Q2 2026 revenue of $868,909 was more than nine times Q1 2026 revenue and approximately 146% above Q2 2025 revenue.
• Operating cash flow turned positive: CTNT generated $1.59 million from operating activities in Q2, compared with a $2.46 million outflow in Q1 2026.
• Net income returned to positive territory: The company reported $71,045 of net income in Q2 2026 after losses in each of the prior reported quarters.
• Liquidity improved on the balance sheet: Current assets of $75.72 million substantially exceeded current liabilities of $1.59 million, producing a reported current ratio of roughly 47.6 times.
• Debt levels remained relatively low: Short-term and long-term debt totaled approximately $590,000 at June 30, 2026, limiting near-term interest and refinancing pressure.
• Asset growth was concentrated in receivables and other current assets: Note and lease receivables totaled $41.11 million and other current assets totaled $29.95 million, so the quality and collectability of these balances are important for investors to monitor.
• Investment and other income have become material: CTNT has repeatedly reported interest and investment income, but this source of earnings may be less predictable than revenue from its supply-chain operations.
• Core operations remained deeply unprofitable: Operating losses persisted through the available quarterly history, including losses of $764,319 in Q1 2026 and $1.27 million in Q4 2025.
• Gross margins deteriorated: Q2 2026 gross margin was approximately 2.2%, down from 21.4% in Q1 2026 and 9.9% in Q2 2025, leaving little room to cover overhead.
• CTNT continued to depend on external financing: Q2 investing outflows of $31.47 million were largely offset by $31.35 million of financing inflows, including common-equity issuance, creating potential dilution risk for shareholders.

Overall, the statements suggest that CTNT has strengthened its reported liquidity and achieved a temporary earnings and cash-flow improvement, but investors should be cautious. The company’s positive Q2 bottom line depended heavily on non-operating income, while gross margins remained weak, operating expenses remained elevated, and financing activity played a central role in funding the business. The historical figures also include restated periods and substantial fluctuations in reported share counts, which makes trend analysis and per-share comparisons more difficult.