Jerash (US) (JRSH) Q1 2026 earnings summary

Executive summary

• Fiscal Q1 2026 saw improved customer demand as brands diversified supply chains away from China and Southeast Asia, despite new U.S. tariffs and regional disruptions.

• Revenue for the quarter ended June 30, 2025, was $39.6 million, down from $40.9 million in Q1 2025, mainly due to shipment delays from port disruptions and switching ports.

• Net income reached $324,000 ($0.03/share), reversing a $1.4 million loss in the prior year, driven by improved logistics, lower costs, and reduced stock-based compensation.

• Major initial order completed for a leading U.S. retailer via collaboration with Hansoll Textile, with shipments scheduled through February 2026.

• Expansion of manufacturing facilities in Amman completed, increasing capacity by 15%, with further expansion in Al-Hasa underway.

Financial highlights

• Revenue for Q1 2026 was $39.6M, down 3% year-over-year, mainly due to shipment delays from port disruptions.

• Gross profit rose 31.2% to $6.1M, with gross margin improving to 15.4% from 11.3% year-over-year.

• Operating expenses decreased to $5.1M from $5.5M, driven by lower stock-based compensation and maintenance costs.

• Operating income reached $959K, reversing a $829K loss in the prior year.

• Cash and restricted cash at quarter-end was $7.5M; net working capital $34.6M.

Outlook and guidance

• Q2 2026 revenue expected at $40M–$42M; gross margin projected at 15%–16%.

• Facilities are fully booked through February 2026, with new capacity gradually ramping up.

• Management expects cash on hand and operating cash flow to be sufficient for working capital needs over the next 12 months.

• Capital expenditures projected at $1.3M for fiscal 2026 and $7.8M for fiscal 2027 to enhance production capacity.

• Contingency plans are in place for potential further disruptions in regional ports.