Total revenue for the first quarter of fiscal 2026 rose 16.5 % to $49.5 million, driven by a 24.4 % increase in warehousing services revenue to $17.4 million and a 12.6 % rise in transportation services to $32.1 million. The growth reflects stronger demand for cross‑border fulfillment solutions and the addition of a new 500,000‑square‑foot facility in Edwardsville, Illinois, which expanded the company’s Midwest footprint.
Gross margin improved from a gross loss of 8.5 % of revenue in Q1 FY2025 to a gross loss of 5.0 % in Q1 FY2026. The improvement is attributed to operational efficiencies and a more favorable mix of services, but freight‑cost pressures from major carriers such as FedEx and UPS continue to weigh on profitability.
Net loss widened to $6.5 million, or $(0.15) per share, compared with a $4.6 million loss, or $(0.11) per share, in the same quarter last year. The increase in loss is driven by higher operating expenses related to the new facility, labor costs, and the company’s ongoing investment in expanding its warehouse network.
Management highlighted three strategic priorities for the year: leveraging the expanded warehouse network, improving gross margins through operational efficiencies, and pursuing selective growth opportunities aligned with its core logistics platform. CEO Aidy Chou noted that “customers are using our expanded facilities and full range of logistics solutions,” while acknowledging that “ongoing freight‑cost pressures” remain a challenge.
The company disclosed a “going‑concern” uncertainty in its SEC filing, citing a net current liability position of $11.1 million and operating lease liabilities of $123.6 million. The disclosure, combined with the widening net loss, contributed to a muted market reaction, as investors weighed the company’s ability to sustain growth while managing significant financial obligations.
Management reiterated confidence in its long‑term strategy, emphasizing that the expanded network positions Armlogi to capture growing e‑commerce demand. The company remains focused on cost discipline and operational leverage to convert top‑line momentum into profitability over the next 12 months.
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