Armlogi Holding Corp. Announces Its Fiscal 2025 Full-Year Financial Results

Rhea-AI Summary

Armlogi Holding Corp. (NASDAQ: BTOC), a U.S. warehousing and logistics provider, reported mixed financial results for fiscal year 2025. While revenue increased 14% to $190.4 million from $167.0 million in FY2024, the company swung to a net loss of $15.3 million ($0.37 per share) compared to a net income of $7.4 million ($0.19 per share) in the previous year.

The company faced significant operational challenges, with gross margin declining to -1.6% from 10.8% due to increased freight costs from carriers like FedEx and UPS, higher warehouse lease expenses, and labor costs. Despite these headwinds, cash and equivalents improved to $13.6 million from $10.0 million year-over-year, and the company reported a substantial increase in its active customer base.

Positive

• Revenue growth of 14% year-over-year to $190.4 million
• Cash and equivalents increased 36% to $13.6 million
• More than four-fold increase in active customer base
• Successful expansion of warehouse network for long-term growth

Negative

• Swung to net loss of $15.3 million from $7.4 million profit last year
• Gross margin declined to -1.6% from 10.8% due to higher costs
• Cost of service increased significantly by 29.9%
• G&A expenses rose 47.2% to $14.7 million

Insights

Financial Analyst

Armlogi reports 14% revenue growth but swings to a loss due to surging costs and operational challenges.

Armlogi's fiscal 2025 results paint a concerning picture of a company struggling with profitability despite top-line growth. While revenue increased by $23.4 million (14.0%) to $190.4 million, the company swung from a $7.4 million profit last year to a $15.3 million loss. The dramatic deterioration in financial performance stems from multiple cost pressures that overwhelmed revenue gains.

The most alarming metric is the $3.0 million gross loss, representing a -1.6% gross margin compared to last year's 10.8%. This 12.4% margin collapse signals fundamental issues with Armlogi's core business model. Cost of service surged by $44.5 million (29.9%), far outpacing revenue growth, while G&A expenses jumped 47.2% to $14.7 million.

The negative gross margin is particularly troubling as it indicates the company is losing money on its basic operations before even accounting for overhead costs. This suggests Armlogi's pricing power is inadequate to offset rising third-party carrier costs (specifically FedEx and UPS) and expenses related to warehouse expansion.

While management highlights a quadrupled active customer base, this rapid expansion appears to have come at the expense of profitability. The $3.6 million increase in cash reserves is the only positive financial indicator, but this liquidity cushion represents less than three months of current loss rates.

Without immediate corrective action to address pricing strategy and cost structure, Armlogi's trajectory appears unsustainable despite revenue growth. The company faces a classic case of growing itself into financial distress by expanding operations without maintaining adequate margins.

WALNUT, Calif., Sept. 25, 2025 (GLOBE NEWSWIRE) -- Armlogi Holding Corp. (“Armlogi” or the “Company”) (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today announced financial results for its fiscal year ended June 30, 2025.

Financial Results for the Fiscal Year Ended June 30, 2025:

• Total revenue increased by approximately $23.4 million, or 14.0%, to $190.4 million for the fiscal year ended June 30, 2025, compared to $167.0 million for the fiscal year ended June 30, 2024. This growth was largely driven by continued demand for Armlogi’s transportation and warehousing services.

• Cost of service rose by $44.5 million, or 29.9%, mainly due to higher freight, rental, labor, and warehouse expenses associated with the expansion of the Company's operational footprint.

• Gross profit declined to a loss of $3.0 million for the fiscal year ended June 30, 2025, compared with a gross profit of $18.1 million in the fiscal year ended June 30, 2024, with the gross margin falling to -1.6% from 10.8% the previous fiscal year. The decrease primarily reflects increases in third-party carrier costs, particularly with major suppliers, FedEx and UPS, as well as expenses associated with new warehouse leases and labor for expanded facilities.

• General and administrative expenses totaled $14.7 million, representing a 47.2% increase in the fiscal year ended June 30, 2025 from $10.0 million in the prior fiscal year, primarily due to investments in business growth and additional professional and office costs.

• Net loss for the fiscal year ended June 30, 2025 was $15.3 million, or $0.37 per basic and diluted share, compared to net income of $7.4 million, or $0.19 per share, for the fiscal year ended June 30, 2024.

• Cash and cash equivalents and restricted cash at year-end were $13.6 million in the fiscal year ended June 30,2025, compared to $10.0 million as of the fiscal year ended June 30, 2024.
  

Management Commentary

Aidy Chou, Chairman and Chief Executive Officer of Armlogi, commented, “Fiscal year 2025 demonstrated continued strong demand for our logistics solutions, with 14% revenue growth and a more than four-fold increase in our active customer base. However, our results also reflect the significant operational challenges we faced as we expanded our warehouse network and navigated a difficult freight cost environment. The expansion of our operations with new warehouse facilities, while necessary for long-term growth, required substantial investments in labor and infrastructure that pressured our margins in the near term. Additionally, freight cost increases from our carriers have significantly impacted the profitability of our transportation services. We responded by diversifying our carrier relationships, but the industry-wide cost pressures continue to present headwinds.”

Mr. Chou continued: “Despite these challenges, we remain committed to our growth strategy and believe our expanded infrastructure positions us well for future opportunities. Looking ahead, our focus remains on operational optimization, technology-driven efficiency, and prudent cost management, as we position Armlogi for long-term, sustainable growth.”

Conference Call & Audio Webcast

Armlogi’s management team will hold an earnings conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the Company’s financial results and provide an overview of its operations. Armlogi’s management team will lead the conference call and answer investor questions.

To access the call by phone, please dial 1-800-445-7795 (for international callers, dial 1-785-424-1699) approximately 10 minutes prior to the scheduled start time. Please use the conference ID: ARMLOGI. **NOTE: THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY

A live audio webcast of the conference call will be available online at https://viavid.webcasts.com/starthere.jsp?ei=1736177&tp_key=05c18b1042.

About Armlogi Holding Corp.
Armlogi Holding Corp., based in Walnut, CA, is a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions, including warehouse management and order fulfillment. The Company caters to cross-border e-commerce merchants looking to establish overseas warehouses in the U.S. market. With ten warehouses covering over three and a half million square feet, the Company offers comprehensive one-stop warehousing and logistics services. The Company’s warehouses are equipped with facilities and technology for handling and storing large and bulky items. Armlogi is a member of the Russell Microcap® Index. For more information, please visit www.armlogi.com.

Forward-Looking Statements
This press release contains 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. Such forward-looking statements relate to 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 terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “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 statement. Forward-looking statements are only predictions. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions. The forward-looking events discussed in this press release 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.

Company Contact:
info@armlogi.com

Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com

*** tables follow ***

ARMLOGI HOLDING CORP.
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2025 AND 2024
(US$, except share data, or otherwise noted)
		June 30, 2025			June 30, 2024
		US$			US$
Assets
Current assets
Cash and cash equivalents			9,190,277			7,888,711
Accounts receivable and other receivables, net of (amortized cost of $22,802,369 and $25,872,226 and allowance for credit losses of $594,869 and $407,182 at June 30, 2025 and 2024, respectively)			22,207,500			25,465,044
Other current assets			998,925			1,624,611
Prepaid expenses			1,375,646			1,129,435
Loan receivables			3,893,563			1,877,131
Total current assets			37,665,911			37,984,932
Non-current assets
Restricted cash – non-current			4,387,550			2,061,673
Long-term loan receivables			—			2,908,636
Property and equipment, net			11,259,820			11,010,407
Intangible assets, net			54,627			92,708
Right-of-use assets – operating leases			115,361,185			111,955,448
Right-of-use assets – finance leases			745,547			309,496
Other non-current assets			739,555			711,556
Total assets			170,214,195			167,034,856
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Current liabilities
Accounts payable and accrued liabilities			9,604,783			7,502,339
Contract liabilities			939,097			276,463
Income taxes payable			—			57,589
Due to related parties			—			350,209
Accrued payroll liabilities			283,150			405,250
Convertible notes			5,292,749			—
Operating lease liabilities – current			29,280,907			24,216,446
Finance lease liabilities – current			386,327			155,625
Total current liabilities			45,787,013			32,963,921
Non-current liabilities
Operating lease liabilities – non-current			98,939,552			93,126,092
Finance lease liabilities – non-current			397,692			169,683
Deferred income tax liabilities			—			1,536,455
Total liabilities			145,124,257			127,796,151
Commitments and contingencies
Stockholders’ equity
Common stock, US$0.00001 par value, 100,000,000 shares authorized, 42,250,934 and 41,634,000 issued and outstanding as of June 30, 2025 and June 30, 2024, respectively			422			416
Additional paid-in capital			16,668,858			15,468,864
Retained earnings			8,420,658			23,769,425
Total stockholders’ equity			25,089,938			39,238,705
Total liabilities and stockholders’ equity			170,214,195			167,034,856

ARMLOGI HOLDING CORP.
CONSOLIDATED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE YEARS ENDED JUNE 30, 2025 AND 2024
(US$, except share data, or otherwise noted)
		Year Ended June 30, 2025				Year Ended June 30, 2024
		US$				US$
Revenue			190,408,258				166,977,034
Costs of service			193,408,827				148,894,227
Gross (loss) profit			(3,000,569	)			18,082,807
Operating costs and expenses:
General and administrative			14,675,543				9,967,792
Total operating costs and expenses			14,675,543				9,967,792
(Loss) Income from operations			(17,676,112	)			8,115,015
Other (income) expenses:
Other income, net			(2,714,344	)			(2,320,257	)
Loss on debt extinguishment			1,192,431				—
Loss on disposal of assets			43,625				—
Finance costs			714,352				47,649
Total other (income) expenses			(763,936	)			(2,272,608	)
(Loss) Income before provision for income taxes			(16,912,176	)			10,387,623
Current income tax (recovery) expense			(26,954	)			2,145,072
Deferred income tax (recovery) expense			(1,536,455	)			801,333
Total income tax (recovery) expense			(1,563,409	)			2,946,405
Net (loss) income			(15,348,767	)			7,441,218
Total comprehensive (loss) income			(15,348,767	)			7,441,218
Basic & diluted net (loss) earnings per share			(0.37	)			0.19
Weighted average number of shares of common stock-basic			41,808,909				40,205,836
Weighted average number of shares of common stock-diluted			41,808,909				40,216,109

ARMLOGI HOLDING CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2025 AND 2024
(US$, except share data, or otherwise noted)
		For The Year Ended June 30, 2025				For The Year Ended June 30, 2024
		US$				US$
Cash Flows from Operating Activities:
Net (loss) income			(15,348,767	)			7,441,218
Adjustments for items not affecting cash:
Net loss from disposal of fixed assets			43,625				—
Depreciation of property and equipment and right-of-use financial assets			2,931,993				1,996,720
Amortization			38,081				35,317
Non-cash operating leases expense			7,536,058				5,193,458
Current estimated credit loss			275,610				94,694
Loss on debt extinguishment			1,192,431				—
Accretion of convertible note			617,845				—
Deferred income taxes			(1,536,455	)			801,333
Interest income			(144,501	)			(109,427	)
Changes in operating assets and liabilities
Accounts receivable and other receivables			2,981,935				(8,157,462	)
Other current assets			625,686				11,881
Prepaid expenses			(246,211	)			(332,531	)
Other non-current assets			(28,000	)			(711,556	)
Accounts payable & accrued liabilities			2,102,444				(667,825	)
Income tax payable			(57,589	)			(2,597,106	)
Contract liabilities			662,634				(147,719	)
Accrued payroll liabilities			(122,100	)			141,894
Net changes in derecognized ROU and operating lease liability			(63,874	)			—
Net cash provided from operating activities			1,460,845				2,992,889
Cash Flows from Investing Activities:
Purchase of property and equipment			(2,889,928	)			(5,208,522	)
Proceeds from sale of property and equipment			48,000				—
Net loan disbursement amounts after repayments received			(1,000,000	)			(2,229,083	)
Proceeds from loan repayments			2,036,705				—
Net cash used in investing activities			(1,805,223	)			(7,437,605	)
Cash Flows from Financing Activities:
Net proceeds received from related parties			—				1,000
Proceeds (lend to) from related parties			(350,209	)			511,353
Repayments of finance lease liabilities			(360,443	)			(163,936	)
Repayment of commitment payable			(150,000	)			—
Repayment of SEPA			(3,260,000	)			—
Deferred issuance costs for initial public offering			—				(951,617	)
Proceeds from IPO and share issuance, net			8,092,473				7,471,180
Capital contributions from stockholders			—				969,021
Net cash provided by financing activities			3,971,821				7,837,001
Net increase in cash and cash equivalents and restricted cash			3,627,443				3,392,285
Cash and cash equivalents and restricted cash, beginning of year			9,950,384				6,558,099
Cash and cash equivalents and restricted cash, end of year			13,577,827				9,950,384

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets that total the same amounts shown in the Consolidated Statements of Cash Flows:

Cash and cash equivalents			9,190,277				7,888,711
Restricted cash – non-current			4,387,550				2,061,673
Total cash and cash equivalents and restricted cash shown in the Consolidated Balance Sheet			13,577,827				9,950,384
Supplemental Disclosure of Cash Flows Information:
Cash paid for income tax			(122,248	)			(4,742,178	)
Cash paid for interest			(96,507	)			(47,649	)
Non-Cash Transactions:
Decrease in right-of-use assets due to remeasurement of lease terms			1,148,456				—
Right-of-use assets acquired in exchange for operating lease liabilities			27,857,474				81,927,507
Right-of-use assets acquired in exchange for finance lease liabilities			819,155				—
Shares issued to settle commitment fee			250,000				—
Shares issued pursuant to SEPA			950,000				—
IPO expenses paid by stockholders			—				300,000

FAQ

What were Armlogi's (BTOC) key financial results for fiscal year 2025?

Armlogi reported revenue of $190.4 million (up 14%), but swung to a net loss of $15.3 million ($0.37 per share) compared to $7.4 million profit last year. Gross margin declined to -1.6% from 10.8%.

Why did Armlogi (BTOC) report a loss in fiscal year 2025?

The loss was primarily due to increased freight costs from carriers like FedEx and UPS, higher warehouse lease expenses, increased labor costs from facility expansion, and a 47.2% rise in G&A expenses to $14.7 million.

What is the outlook for Armlogi (BTOC) according to management?

Management remains focused on operational optimization, technology-driven efficiency, and cost management. They view the expanded infrastructure as positioning the company well for future growth despite current challenges.

How much cash does Armlogi (BTOC) have as of fiscal year 2025?

Armlogi reported $13.6 million in cash and cash equivalents at the end of fiscal year 2025, up from $10.0 million in the previous year.

What were the main operational challenges for Armlogi (BTOC) in fiscal 2025?

Key challenges included higher freight costs from carriers, increased expenses from new warehouse leases, higher labor costs for expanded facilities, and significant operational investments for network expansion.