Cheetah Net Supply Chain Service Inc. Announces Second Quarter 2025 Results

Rhea-AI Summary

Cheetah Net Supply Chain Service (NASDAQ:CTNT) reported Q2 2025 results, with revenue increasing 278.9% to $354,126 compared to Q2 2024. Despite revenue growth, the company posted a net loss of $512,528, representing a 6.8% improvement from the previous year.

The company's performance was impacted by U.S.-China trade tensions, with a temporary suspension in ocean freight activities in April 2025. Revenue included contributions from two acquisitions: Edward Transit Express Group (14.9%) and TW & EW Services (85.1%). Interest income significantly increased to $272,228, up 863.9% year-over-year, primarily from proceeds of 2024 public offerings.

As of June 30, 2025, Cheetah maintained $9.9 million in current assets, including $8.7 million in loan receivables, with total stockholders' equity of $11.4 million.

Positive

• None.

Negative

• Operating loss of $780,849 in Q2 2025
• Net loss of $512,528 for the quarter
• Edward segment revenue decreased by 43.7% due to U.S.-China trade tensions
• Total stockholders' equity declined to $11.4M from $12.6M in December 2024
• Cash and cash equivalents decreased to $185,186 from $1.65M in December 2024

Insights

Financial Analyst

CTNT shows mixed Q2 results with 278.9% revenue growth but continued losses amid tariff challenges and restructuring efforts.

Cheetah Net's Q2 2025 results present a mixed financial picture. While the company achieved impressive revenue growth of 278.9% year-over-year to $354,126 in its logistics and warehousing segment, it continues to operate at a loss with an operating deficit of $780,849 and net loss of $512,528.

The revenue increase stems primarily from two strategic acquisitions: TWEW (contributing 85.1% of revenue) and Edward Transit Express (14.9%). However, Edward's revenue declined 43.7% due to temporary U.S.-China trade disruptions following tariff threats in March 2025.

The narrowing of losses by 6.8% year-over-year represents modest progress, largely driven by a significant boost in interest income (up 863.9% to $272,228) from investments made with public offering proceeds. This financial cushion is helping stabilize operations during business integration.

On the cost management front, G&A expenses decreased 6.9% to $805,305, reflecting successful implementation of cost-cutting measures including reduced legal fees, optimized staffing, and insurance savings. This demonstrates management's focus on operational efficiency amid challenging market conditions.

Liquidity remains adequate with $9.9 million in current assets against $0.9 million in current liabilities, though cash and equivalents have decreased significantly to $185,186 from $1,650,962 at year-end 2024. The company has shifted substantial resources ($8.7 million) into loan receivables, which appears to be a strategic move to generate interest income during this transitional period.

While management expresses confidence in long-term strategy, investors should note the company remains in a precarious position with continued losses and high dependence on interest income rather than core business profitability. The focus on integrating recent acquisitions to build a "more resilient growth foundation" suggests Cheetah is still in the early stages of establishing a sustainable business model in response to ongoing trade policy uncertainties.

IRVINE, Calif., Aug. 04, 2025 (GLOBE NEWSWIRE) -- IRVINE, August 4, 2025 (GLOBE NEWSWIRE) – Cheetah Net Supply Chain Service Inc. (“Cheetah” or the “Company”) (Nasdaq CM: CTNT), a provider of warehousing and logistics services, today reported results for the quarter ended June 30, 2025.

For the quarter ended June 30, 2025, the Company reported revenue of $354,126 from its logistics and warehousing business, representing a 278.9% increase compared to the same period in 2024. The operating loss was $780,849. After accounting for interest income of $272,228, the Company reported a net loss of $512,528, representing a 6.8% decrease compared to the same period in 2024.

Tony Liu, Cheetah’s Chairman and CEO commented, “We are reporting an improving result this quarter sequentially toward stabilization after our logistic and warehousing business got a hit by the tariff turmoil since March this year. In response, management has taken proactive measures to navigate the business by increasing labor and logistics service business and generating interest income from the proceeds of our public offerings closed in May and July last year, while aiming to lower cost for operational efficiency. “We will continue to focus on integrating the businesses of our two recently acquired companies to build a more resilient growth foundation in navigating trade policy pressure and uncertainties. We remain confident in our long-term growth strategy and will do our utmost to improve our performance and deliver shareholders’ values.”

Second Quarter 2025 Financial Results

Continued operations- logistics and warehousing business

For the three months ended June 30, 2025, the Company reported revenue of $354,126 from its logistics and warehousing service segment, including $52,684, or 14.9%, of its total revenue following the acquisition of Edward Transit Express Group Inc. (“Edward”) in February 2024, and $301,442, or 85.1 % of its total revenue, following the acquisition of TW & EW Services Inc. (“TWEW”) in December 2024.

Revenue from Edward decreased by 43.7%, primarily due to i) a temporary suspension in U.S.-China ocean freight activities in April 2025 after the U.S. government’s threat in late March 2025 to impose higher tariffs on goods imported from China, partially offset by ii) stabilized trade flow in May and June 2025 following the resumption of trade negotiations between the two countries since May 2025.

The Company has taken proactive measures to navigate the business by increasing labor and logistics service business during the second quarter of 2025.

The Company also reported cost of revenue of $319,226, mainly the labor and logistics costs for TWEW and ocean freight service cost for Edward, and a gross profit of $34,900 for the three months ended June 30, 2025.

General and administrative expenses for the Company’s continuing operations decreased by $60,050, or 6.9%, to $805,305 for the three months ended June 30, 2025 from $865,354 for the three months ended June 30, 2024. The decrease was mainly due to (i) a decrease of $111,188 in legal and accounting fees as we incurred additional professional fees for preparing a registration statement on Form S-1 during the quarter ended June 30, 2024, (ii) a decrease of $33,786 in payroll and benefits expense due to staff optimization and cost-saving measures following the initial hiring to support the newly launched logistics and warehousing segment, (iii) a decrease of $17,662 in insurance expenses resulting from a change in the Company’s insurance provider, (iv) a decrease of $76,145 in recruiting expenses during the three months ended June 30, 2025, as the prior-year period included significant hiring efforts associated with the launch of the Company’s logistics and warehousing segment, partially offset by (iv) an increase of 126,782 in rental and leases following the acquisition of Edward and the relocation of the Company’s headquarters to California in July 2024, (v) an increase of $12,055 in travel and entertainment expenses as part of business development efforts and client engagement, (vi) an increase of $20,476 in other miscellaneous general and administration expenses during the three months ended June 30, 2025, and (vii) an increase of $19,418 in depreciation and amortization expenses, primarily due to the acquisition of new fixed assets and recorded intangible assets from Edward and TWEW acquisitions.

Share-based compensation expenses were $10,444 and nil for the three months ended June 30, 2025 and 2024, respectively.

Interest income from continuing operations was $272,228 for the three months ended June 30, 2025, compared to $28,241 for the three months ended June 30, 2024, representing an increase of $243,987, or 863.9%. The significant increase was primarily driven by interest earned on short-term loan receivables and certificates of deposit, funded by the net proceeds from the Company’s public offerings closed in May and July 2024.

The Company had a net loss of $512,528 from its continuing operations for the three months ended June 30, 2025, compared to net loss of $550,022 for the same period of 2024.

Discontinued Operations- parallel-import vehicle business

During the three months ended June 30, 2024, the Company generated revenue of $200,297 from the parallel-vehicle business. Only one vehicle was sold during this quarter following the significant downturn of parallel-import vehicle business in the PRC.

The Company also reported cost of revenue of $215,843, mainly the fulfillment expenses and a gross loss of $15,537 of the discontinued business for the three months ended June 30, 2024.

Selling expenses and interest expenses for the discontinued parallel-import vehicle business were $19,422 and $27,899, respectively, for the three months ended June 30, 2024.

Net loss for the discontinued operations was approximately $62,858 for the three months ended June 30, 2024.

As a result of the above factors, the Company reported an overall net loss of $512,528 for the three months ended June 30, 2025, as compared to a net loss of $612,880 in the same period of 2024.

Six Months 2025 Financial Results

Continued operations- logistics and warehousing business

For the six months ended June 30, 2025, the Company reported revenue of $833,925 from its logistics and warehousing service segment, including $115,199, or 13.8%, of its total revenue from Edward, and $718,726, or 86.2%, of its total revenue from TWEW.

Revenue from Edward decreased by 32.4%, primarily due to i) a temporary suspension in U.S.-China ocean freight activities in April 2025 after the U.S. government’s threat in late March 2025 to impose higher tariffs on goods imported from China, partially offset by ii) stabilized trade flow in May and June 2025, following the resumption of trade negotiations between the two countries since May 2025.

The Company has taken proactive measures to navigate the business by increasing labor and logistics service business during the six months ended June 30, 2025.

For the six months ended June 30, 2025, total cost of revenues increased to $742,769 from $88,098 for the same period in 2024, representing an increase of $654,671, or 743.1%, primarily due to the contribution from TWEW.

General and administrative expenses for the Company’s continuing operations increased by $172,827, or 10.6%, to $1.8 million for the six months ended June 30, 2025 from $1.6 million for the six months ended June 30, 2024, primarily due to (i) an increase of $248,706 in rental and leases following the acquisition of Edward and the relocation of the Company’s headquarters to California in July 2024, (ii) an increase of $83,984 in personnel-related expenses, which was attributed to the hiring of additional staff to support the newly launched logistics and warehousing segment, (iii) an increase of $46,485 in depreciation and amortization expenses, primarily due to the acquisition of fixed assets and recorded intangible assets from Edward and TWEW acquisitions, (iv) an increase of $34,602 in travel and entertainment expenses as part of business development efforts and client engagement, (v) an increase of $37,658 in other miscellaneous general and administration expenses during the six months ended June 30, 2025, partially offset by (vi) a decrease of $163,099 in legal and accounting fees, primarily because the prior-year period included additional professional fees related to the preparation of a registration statement on Form S-1 during the first and second quarters of 2024, which did not recur in the current period, (vii) a decrease of $78,610 in the recruiting expenses during the three months ended June 30, 2025, as the prior-year period included significant hiring efforts associated with the launch of the Company’s logistics and warehousing segment, and (viii) a decrease of $36,899 in insurance expenses resulting from a change in the Company’s insurance provider.

Share-based compensation expenses were $26,629 and nil for the six months ended June 30, 2025 and 2024, respectively.

Interest income from continuing operations was $480,318 for the six months ended June 30, 2025, compared to $57,171 for the six months ended June 30, 2024, representing an increase of $423,147, or 740.1 %. The significant increase was primarily driven by interest earned on short-term loan receivables and certificates of deposit, funded by the net proceeds from the Company’s public offerings closed in May and July 2024.

The Company had a net loss of $1,266,437 from its continuing operations for the six months ended June 30, 2025, compared to net loss of $1,016,370 for the same period of 2024.

Discontinued Operations- parallel-import vehicle business

During the six months ended June 30, 2024, the Company generated revenue of $1.6 million from the parallel-vehicle business. Only 14 units of vehicles were sold following the significant downturn of parallel-import vehicle business.

Total selling expenses for the discontinued parallel-import vehicle business were $98,262 for the six months ended June 30, 2024.

Total interest expenses on letter of credit financing and line of credit charges were $82,358 for the six months ended June 30, 2024.

Net loss for the discontinued operations was approximately $205,440 for the six months ended June 30, 2024.

As a result of the above factors, the Company reported an overall net loss of $1,266,437 for the six months ended June 30, 2025, as compared to a net loss of $1,221,810 for the same period of 2024.

Liquidity and Cash Flow

As of June 30, 2025, the Company had current assets of $9.9 million, consisting of cash and cash equivalents of $0.2 million, $8.7 million in loan receivables, $0.8 million of other receivables, and $0.1 million in prepaid expenses other current assets from continuing operations. The Company’s current liabilities, all of which related to continuing operations, totaled approximately $0.9 million, consisting of $0.6 million of operating lease liabilities, $0.3 million of other payables, and 36,412 of the current portions of long-term borrowings. The Company also had $590,352 long-term borrowings payable, and $950,372 of operating lease liabilities, long term portion.

During the six months ended June 30, 2025, the Company reported net cash flow of $1.3 million provided by operating activities, $2.7 million used in investing activities, and $138,294 used in financing activities.

As of June 30, 2025, the Company had total stockholders’ equity of $11.4 million, compared to $12.6 million as of December 31, 2024.

The Company is working to further improve its liquidity and capital sources primarily by generating cash from operations, debt financing, and, if needed, financial support from its principal stockholder. If necessary to fully implement its business plan and sustain continued growth, the Company may seek additional equity financing from outside investors. Based on the current operating plan, management believes that the aforementioned measures collectively will provide sufficient liquidity to meet the Company’s future liquidity and capital requirements for at least 12 months from the issuance date of its consolidated financial statements.

Forward-Looking Statements

This press release contains certain forward-looking statements, including statements that are predictive in nature. Forward-looking statements are based on the Company’s current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These statements may be identified by the use of forward-looking expressions, including, but not limited to, “anticipate,” “believe,” “continue,” “estimate,” “expect,” “future,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K, under the caption “Risk Factors.”

For more information, please contact:

Cheetah Net Supply Chain Service Inc. 

Investor Relations
(949)4187804
ir@cheetah-net.com

CHEETAH NET SUPPLY CHAIN SERVICE INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
		June 30,				December 31,
		2025				2024
			(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	185,186			$	1,650,962
Accounts receivable, net			19,650				47,976
Loan receivable			8,749,445				6,088,295
Other receivables			843,579				370,696
Prepaid expenses and other current assets			118,929				338,642
Current assets of discontinued operations			—				2,540,501
TOTAL CURRENT ASSETS			9,916,789				11,037,072
NONCURRENT ASSETS:
Property, plant, and equipment, net			378,631				398,395
Operating lease right-of-use assets			1,548,646				1,836,521
Intangibles, net			1,006,928				1,063,072
Goodwill			1,044,394				1,044,394
TOTAL ASSETS		$	13,895,388			$	15,379,454
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	1,283			$	18,992
Current portion of long-term debt			36,412				34,577
Loan payable from premium finance			—				120,461
Tax payable			5,200				—
Operating lease liabilities, current			612,719				438,351
Accrued liabilities and other current liabilities			321,186				217,980
Current liabilities of discontinued operations			—				52,900
TOTAL CURRENT LIABILITIES			976,800				883,261
NONCURRENT LIABILITIES:
Long-term debt, net of current portion			590,352				610,020
Operating lease liabilities, net of current portion			950,372				1,268,501
TOTAL LIABILITIES		$	2,517,524			$	2,761,782
COMMITMENTS AND CONTINGENCIES			—				—
STOCKHOLDERS’ EQUITY
Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 3,218,886 shares issued and outstanding, including*:
Class A common stock, $0.0001 par value, 891,750,000 shares authorized, 2,672,011 shares issued and outstanding			267				267
Class B common stock, $0.0001 par value, 108,250,000 shares authorized, 546,875 shares issued and outstanding			55				55
Additional paid-in capital			17,324,590				17,297,961
Accumulated deficit			(5,947,048	)			(4,680,611	)
TOTAL STOCKHOLDERS’ EQUITY			11,377,864				12,617,672
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	13,895,388			$	15,379,454

CHEETAH NET SUPPLY CHAIN SERVICE INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
		For the Three Months Ended June 30,								For the Six Months Ended June 30,
		2025				2024**				2025				2024**
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
REVENUE		$	354,126			$	93,563			$	833,925			$	170,397
COST OF REVENUE			319,226				45,598				742,769				88,098
GROSS PROFIT			34,900				47,965				91,156				82,299
OPERATING EXPENSES
General and administrative expenses			805,305				865,354				1,805,824				1,632,996
Share-based compensation expenses			10,444				—				26,629				—
TOTAL OPERATING EXPENSES			815,749				865,354				1,832,453				1,632,996
LOSS FROM OPERATIONS			(780,849	)			(817,389	)			(1,741,297	)			(1,550,697	)
OTHER INCOME (EXPENSES)
Interest income			272,228				28,241				480,318				57,171
Interest expenses			(8,060	)			(8,302	)			(16,872	)			(16,607	)
Other income			17,140				153				29,756				774
OTHER INCOME, NET			281,308				20,092				493,202				41,338
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES			(499,541	)			(797,297	)			(1,248,095	)			(1,509,359	)
Income tax (benefits)			12,987				(247,275	)			18,342				(492,989	)
LOSS FROM CONTINUING OPERATIONS			(512,528	)			(550,022	)			(1,266,437	)			(1,016,370	)
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX**			—				(62,858	)			—				(205,440	)
NET LOSS		$	(512,528	)		$	(612,880	)		$	(1,266,437	)		$	(1,221,810	)
Loss from continuing operations per ordinary share - basic and diluted*		$	(0.16	)		$	(0.34	)		$	(0.39	)		$	(0.73	)
Loss from discontinued operations per ordinary share - basic and diluted*		$	0.00			$	(0.04	)		$	0.00			$	(0.15	)
Loss per share - basic and diluted*		$	(0.16	)		$	(0.38	)		$	(0.39	)		$	(0.88	)
Weighted average shares - basic and diluted*			3,218,886				1,625,692				3,218,886				1,398,500

* Retrospectively adjusted for the reverse split of the Company’s common stock at a ratio of 1-for-16, which took effect on October 21, 2024
** Reclassification-certain reclassifications have been made to the financial statements for the period ended June 30, 2024, to conform to the presentation for the period ended June 30, 2025, with no effect on previously reported net income (loss).

CHEETAH NET SUPPLY CHAIN SERVICE INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
		Six Months ended June 30,
		2025				2024
		(Unaudited)				(Unaudited)
Net cash provided by operating activities		$	1,333,668			$	827,980
Cash used in from operations-continuing operations			(1,206,833	)			(2,137,280	)
Cash provided by operations-discontinued operations			2,540,501				2,965,260
Net cash used in investing activities			(2,661,150	)			(912,617	)
Cash used in from operations-continuing operations			(2,661,150	)			(912,617	)
Net cash used in financing activities			(138,294	)			5,944,540
Cash (used in) provided by operations-continuing operations			(138,294	)			7,053,275
Cash used in operations-discontinued operations			—				(1,108,735	)
Net (decrease) increase in cash		$	(1,465,776	)		$	5,859,903

FAQ

What was Cheetah Net Supply Chain's (CTNT) revenue in Q2 2025?

Cheetah reported revenue of $354,126 in Q2 2025, representing a 278.9% increase compared to Q2 2024.

How did U.S.-China trade tensions affect CTNT's business in Q2 2025?

Trade tensions led to a temporary suspension in U.S.-China ocean freight activities in April 2025, causing Edward segment revenue to decrease by 43.7%.

What was CTNT's net loss for Q2 2025?

Cheetah reported a net loss of $512,528 in Q2 2025, showing a 6.8% improvement compared to the net loss of $550,022 in Q2 2024.

How much interest income did CTNT generate in Q2 2025?

Interest income was $272,228, an increase of 863.9% from Q2 2024, primarily from short-term loan receivables and certificates of deposit.

What is Cheetah Net Supply Chain's current financial position?

As of June 30, 2025, CTNT had $9.9 million in current assets, including $8.7 million in loan receivables and $0.2 million in cash, with total stockholders' equity of $11.4 million.