Ridgetech, Inc. Reports Fiscal Year 2026 Financial Results
Rhea-AI Summary
Ridgetech (Nasdaq: RDGT) reported fiscal year 2026 revenue of $132.2 million for the year ended March 31, 2026, up 10.2% from $120.0 million, driven mainly by a full-year contribution from Allright’s online platform. Gross profit rose 23.8% to $4.75 million, lifting gross margin to 3.6% from 3.2%.
Offline wholesale revenue declined 0.8% to $117.9 million, while online platform revenue increased 1,190.8% to $14.3 million. Selling expenses nearly doubled and general and administrative costs increased, contributing to a loss from operations of $1.87 million. Net loss was $1.25 million (loss of $17.21 per share) versus prior-year net income of $10.2 million, which included an 11.65 million net gain from discontinued operations. Cash and cash equivalents increased to $17.9 million, total liabilities fell to $28.3 million, and shareholders’ equity rose to $40.8 million.
Positive
- Revenue +10.2% YoY to $132.16 million in fiscal 2026
- Online platform revenue up 1,190.8% to $14.29 million
- Gross profit increased 23.8% to $4.75 million; margin improved to 3.6%
- Cash and cash equivalents increased to $17.91 million from $12.78 million
- Total liabilities decreased to $28.25 million from $34.85 million
- Shareholders’ equity rose to $40.78 million from $29.64 million
Negative
- Net result swung to $1.25 million loss from $10.20 million income
- Operating loss widened to $1.87 million from $1.04 million
- Operating cash flow moved to $1.39 million use from $1.25 million provision
- Selling expenses rose 98.2% to $3.04 million
- Offline wholesale revenue declined 0.8% to $117.87 million
- Online platform gross margin fell to 5.6% from 7.4%
News Explained
The release adds an April 7, 2026 reverse split and reports $1.39 million of fiscal 2026 operating cash use.
Ridgetech has reported fiscal-year 2026 results for the year ended
The company states that all share and per-share amounts were retroactively adjusted for the split, so the reported
For fiscal 2026, Ridgetech used
Key Figures
Key Terms
gross margin financial
operating margin financial
accounts receivable financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Mr. Frank Zhao, Interim Chief Executive Officer and Chief Financial Officer of Ridgetech, commented, "Fiscal year 2026 marked a transformative year for Ridgetech as we completed our strategic transition to a wholesale-focused business model. Through the acquisition of Allright (
"Our revenue increased
"Today, our business combines a strong offline wholesale network serving local customers with expanding nationwide online distribution through both our proprietary platform and leading third-party e-commerce platforms. We believe this integrated online and offline model enhances our market reach, broadens our customer base, and positions us to capture long-term opportunities in
"Looking ahead, we remain focused on executing our dual-engine growth strategy by expanding our digital distribution capabilities, strengthening our pharmaceutical ecosystem, and pursuing strategic initiatives that enhance operational efficiency and create long-term value for our shareholders."
Fiscal Year 2026 Financial Summary
- Revenue was
$132.16 million for the fiscal year ended March 31, 2026, an increase of10.2% from$119.97 million for the same period of last year. - Gross profit was
$4.75 million for the fiscal year ended March 31, 2026, an increase of23.8% from$3.84 million for the same period of last year. - Gross margin was
3.6% for the fiscal year ended March 31, 2026, an increase from3.2% for the same period of last year. - Net loss was
$1.25 million , or$17.21 per basic and diluted loss per share, for the fiscal year ended March 31, 2026, compared to net income of$10.20 million $275.87 per basic and diluted earnings per share, for the same period of last year.
Fiscal Year 2026 Financial Results
Revenue
Revenue increased by
Revenue from offline wholesale decreased by
Revenue from online platform increased by
Gross profit and gross margin
Total cost of goods sold increased to
Gross margins for offline wholesale and online platform were
Loss from operations
Sales and marketing expenses increased by
General and administrative expenses increased by
Loss from operations was
Net loss from continuing operations
Net loss from continuing operations was
Net income (loss)
Net loss was
Financial Condition
As of March 31, 2026, the Company had cash and cash equivalents of
Net cash used in investing activities was
Net cash used in financing activities was
About Ridgetech, Inc.
Ridgetech, Inc. ("Ridgetech" or the "Company") is a growing online and offline wholesale distributor of pharmaceutical and other healthcare products in
Forward-Looking Statements
Certain statements in this press release are forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. These forward-looking statements include, but are not limited to, statements concerning the Company's strategic transformation, integration of acquired businesses, development of its online and offline pharmaceutical distribution capabilities and ecosystem, and its ability to generate long-term growth and shareholder value. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Factors that could cause actual results or events to differ materially from those reflected in the Company's forward-looking statements including risks related to the Company's ability to satisfy applicable procurement conditions, changes in market demand, the Company's ability to successfully implement and promote its digital platform, and those other risks described in the Company's most recent registration statement, most recent annual report on Form 20-F and in its other filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
Company Contact:
Frank Zhao
Interim Chief Executive Officer and Chief Financial Officer
+86-571-88077108
frank.zhao@ridgetch.com
Investor Relations Contact:
Tina Xiao
Ascent Investor Relations LLC
+1-646-932-7242
investors@ascent-ir.com
RIDGETECH, INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
March 31, | March 31, | |||||||
2026 | 2025 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 17,905,262 | $ | 12,779,781 | ||||
Restricted cash | 8,519 | 5,761,294 | ||||||
Trade accounts receivables | 32,466,688 | 27,811,813 | ||||||
Inventories | 8,259,002 | 9,758,071 | ||||||
Other receivables, net | 5,196,109 | 2,419,671 | ||||||
Advances to suppliers | 98,359 | 433,140 | ||||||
Due from related parties | 329,258 | - | ||||||
Other current assets | 292,995 | 745,477 | ||||||
Total current assets | 64,556,192 | 59,709,247 | ||||||
NON-CURRENT ASSETS | ||||||||
Property and equipment, net | 5,723 | 8,931 | ||||||
Intangible assets, net | 3,002,053 | 3,302,961 | ||||||
Goodwill | 1,463,733 | 1,463,733 | ||||||
Total non-current assets | 4,471,509 | 4,775,625 | ||||||
Total assets | $ | 69,027,701 | $ | 64,484,872 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 22,757,939 | $ | 19,666,664 | ||||
Notes payable | 22,669 | 10,386,612 | ||||||
Other payables | 2,752,548 | 2,319,139 | ||||||
Due to related parties | - | 2,130 | ||||||
Customer deposits | 364,150 | 264,068 | ||||||
Taxes payable | 1,790,902 | 1,521,546 | ||||||
Accrued liabilities | 206,502 | 196,210 | ||||||
Total current liabilities | 27,894,710 | 34,356,369 | ||||||
NON-CURRENT LIABILITIES | ||||||||
Deferred tax liabilities | 356,353 | 492,121 | ||||||
Total non-current liabilities | 356,353 | 492,121 | ||||||
Total liabilities | 28,251,063 | 34,848,490 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary shares; | 133,091 | 5,855 | ||||||
Preferred shares; | - | - | ||||||
Additional paid-in capital | 103,898,531 | 93,142,510 | ||||||
Statutory reserves | - | - | ||||||
Accumulated deficit | (64,563,201) | (63,312,779) | ||||||
Accumulated other comprehensive income | 1,308,217 | (199,204) | ||||||
Total shareholders' equity | 40,776,638 | 29,636,382 | ||||||
Total liabilities and shareholders' equity | $ | 69,027,701 | $ | 64,484,872 | ||||
* All share numbers and share amounts presented have been retroactively adjusted to reflect the 1-for-150 | ||||||||
RIDGETECH, INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||
For the years ended | ||||||||||||
2026 | 2025 | 2024 | ||||||||||
REVENUES, NET | $ | 132,163,734 | $ | 119,971,638 | $ | 123,994,053 | ||||||
COST OF GOODS SOLD | 127,409,588 | 116,132,823 | 119,115,636 | |||||||||
GROSS PROFIT | 4,754,146 | 3,838,815 | 4,878,417 | |||||||||
SELLING EXPENSES | 3,040,136 | 1,534,200 | 934,223 | |||||||||
GENERAL AND ADMINISTRATIVE EXPENSES | 3,580,025 | 3,339,954 | 3,348,112 | |||||||||
TOTAL OPERATING EXPENSES | 6,620,161 | 4,874,154 | 4,282,335 | |||||||||
INCOME (LOSS) FROM OPERATIONS | (1,866,015) | (1,035,339) | 596,082 | |||||||||
OTHER INCOME (EXPENSES): | ||||||||||||
INTEREST INCOME | 455,061 | 92,834 | 197,763 | |||||||||
INTEREST EXPENSES | (67,069) | - | - | |||||||||
INVESTMENT INCOME (EXPENSES) | 229,657 | - | (1,607,537) | |||||||||
OTHER INCOME (EXPENSES) | (101,154) | (8,155) | (13,377) | |||||||||
TOTAL OF OTHER INCOME (EXPENSES) | 516,495 | 84,679 | (1,423,151) | |||||||||
LOSS BEFORE INCOME TAXES | (1,349,520) | (950,660) | (827,069) | |||||||||
(BENEFIT) PROVISION FOR INCOME TAXES | (99,098) | 503,524 | (41,363) | |||||||||
NET LOSS FROM CONTINUING OPERATIONS | (1,250,422) | (1,454,184) | (785,706) | |||||||||
NET LOSS FROM DISCONTINUED OPERATIONS, NET | - | (4,103,718) | (3,448,536) | |||||||||
GAIN OF DIVESTITURE JIUXIN INVESTMENT | - | 15,757,753 | - | |||||||||
NET GAIN(LOSS) FROM DISCONTINUED | - | 11,654,035 | (3,448,536) | |||||||||
NET (LOSS) INCOME | (1,250,422) | 10,199,851 | (4,234,242) | |||||||||
LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST | - | 5,384 | (14) | |||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO | (1,250,422) | 10,194,467 | (4,234,228) | |||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO | (1,250,422) | (1,454,184) | (785,706) | |||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO | - | 11,648,651 | (3,448,522) | |||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS | 1,507,421 | (1,204,966) | (729,373) | |||||||||
COMPREHENSIVE INCOME (LOSS) | 256,999 | 8,994,885 | (4,963,615) | |||||||||
WEIGHTED AVERAGE NUMBER OF SHARES*: | ||||||||||||
Basic | 72,668 | 36,954 | 9,628 | |||||||||
Diluted | 72,668 | 36,954 | 9,628 | |||||||||
(LOSS) INCOME PER SHARE*: | ||||||||||||
Basic | $ | (17.21) | $ | 275.87 | $ | (439.78) | ||||||
Diluted | $ | (17.21) | $ | 275.87 | $ | (439.78) | ||||||
*All share and per-share amounts presented have been retroactively adjusted to reflect the 1-for-150 reverse | ||||||||||||
RIDGETECH, INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
For the years ended | ||||||||||||
2026 | 2025 | 2024 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net (loss) income | $ | (1,250,422) | $ | 10,199,851 | $ | (4,234,242) | ||||||
Adjustments to reconcile net (loss) income to net cash used in | ||||||||||||
Depreciation and amortization | 363,686 | 1,137,240 | 790,449 | |||||||||
Provision for (reversal of) doubtful accounts | (428,420) | 85,642 | (249,257) | |||||||||
Amortization of right-of-use assets | - | 4,879,012 | 4,594,172 | |||||||||
Loss from disposal of property and equipment | - | - | 107,251 | |||||||||
Gain of divestiture Jiuxin Investment | - | (15,757,753) | - | |||||||||
Deferred tax expenses(benefits) | (79,692) | (29,822) | - | |||||||||
Investment loss | - | - | 1,607,537 | |||||||||
Change in operating assets and liabilities: | ||||||||||||
Accounts receivable | (3,461,596) | 10,040,414 | (1,804,440) | |||||||||
Notes receivable | 29,743 | (29,271) | 19,943 | |||||||||
Inventories and biological assets | 1,948,887 | 405,822 | (1,699,621) | |||||||||
Other receivables | (2,042,206) | (11,758,658) | (672,830) | |||||||||
Advances to suppliers | 449,647 | (341,702) | (839,221) | |||||||||
Long term deposit | - | (1,361,613) | (132,568) | |||||||||
Other current assets | 477,144 | - | 19,076 | |||||||||
Other noncurrent assets | - | (359,114) | 69,539 | |||||||||
Amount due from related parties | - | - | (317,828) | |||||||||
Accounts payable | 2,009,206 | (21,128,762) | 6,002,186 | |||||||||
Other payables and accrued liabilities | 321,435 | 28,752,570 | 868,975 | |||||||||
Customer deposits | 83,870 | (162,940) | (144,761) | |||||||||
Taxes payable | 184,773 | 1,314,644 | (948,277) | |||||||||
Operating lease liabilities | - | (4,637,790) | (6,191,522) | |||||||||
Net cash provided by (used in) operating activities | (1,393,945) | 1,247,770 | (3,155,439) | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Acquisition of equipment and building | (449) | (155,360) | (330,677) | |||||||||
Investment in a joint venture | - | - | (1,116,212) | |||||||||
Purchases of intangible assets | - | - | (66,973) | |||||||||
Additions to leasehold improvements | - | (459,907) | (525,988) | |||||||||
Acquisition of Ridgeline, net of cash acquired | - | 4,833,439 | - | |||||||||
Divestiture Jiuxin Investment, net of cash disposed | - | (22,353,250) | - | |||||||||
Net cash used in investing activities | (449) | (18,135,078) | (2,039,850) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Proceeds from short-term bank loan | - | - | 1,116,212 | |||||||||
Repayment of short-term bank loan | - | (277,266) | (837,159) | |||||||||
Proceeds from notes payable | 14,353,624 | 51,689,531 | 56,875,403 | |||||||||
Repayment of notes payable | (24,944,614) | (56,365,693) | (52,997,171) | |||||||||
Net proceeds from issuance of shares and warrants in private | 10,883,257 | 7,633,000 | 2,589,600 | |||||||||
Proceeds from other payable-related parties | - | 325,784 | 1,257,406 | |||||||||
Repayment of other payable-related parties | (321,981) | (1,499,764) | - | |||||||||
Net cash provided by (used in) financing activities | (29,714) | 1,505,592 | 8,004,291 | |||||||||
EFFECT OF EXCHANGE RATE ON CASH | 796,814 | 1,048,620 | (1,505,475) | |||||||||
(DECREASE) INCREASE I IN CASH AND CASH | (627,294) | (14,333,096) | 1,303,527 | |||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED | 18,541,075 | 32,874,171 | 31,570,644 | |||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED | $ | 17,913,781 | $ | 18,541,075 | $ | 32,874,171 | ||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW | ||||||||||||
Cash paid for income taxes | $ | 55,348 | $ | 137,456 | $ | 149,023 | ||||||
Cash paid for interest | 67,069 | 6,289 | 13,604 | |||||||||
NON-CASH ACTIVITIES： | ||||||||||||
Cashless exercise of warrants | $ | 51,671 | $ | - | $ | - | ||||||
Issuance of shares for acquisition of subsidiaries | - | 3,582,250 | - | |||||||||
Cancellation of shares for disposal of subsidiaries | - | 4,102,848 | - | |||||||||
Subscription receivable from issuance of ordinary shares | 3,791,077 | - | - | |||||||||
(a) The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations | ||||||||||||
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SOURCE Ridgetech, Inc.