Addentax (ATXG) Q3 2025 earnings summary

Executive summary

• Revenue for the three months ended December 31, 2024, was $1.06 million, down 27.9% year-over-year, mainly due to a decline in logistics services revenue.

• Net loss for the quarter was $1.09 million, an improvement from a $2.61 million loss in the prior year period.

• For the nine months ended December 31, 2024, revenue was $3.25 million, down 15.7% year-over-year, with a net loss of $3.03 million, compared to a $3.97 million loss in the prior year.

• The company operates in three segments: garment manufacturing, logistics services, and property management/subleasing, with logistics services contributing the majority of revenue.

Financial highlights

• Gross profit for the quarter was $82,819 (7.8% margin), down from $162,327 (11.1% margin) year-over-year.

• Operating expenses decreased 24.2% to $463,873 for the quarter.

• For the nine months, gross profit was $614,055 (18.9% margin), down from $802,123 (20.8% margin) year-over-year.

• Cash and cash equivalents at December 31, 2024, were $480,082, with total current assets of $27.8 million and current liabilities of $3.2 million.

• Net cash provided by operating activities for the nine months was $0.8 million, compared to net cash used of $1.5 million in the prior year.

Outlook and guidance

• Management expects garment manufacturing capacity to recover by fiscal year-end 2025 following facility renewals.

• The logistics segment aims to expand routes and improve profitability, while property management/subleasing is in early development.