Jerash Holdings Reports Significantly Improved Financial Results For Fiscal 2026 Third Quarter
Rhea-AI Summary
Jerash Holdings (NASDAQ:JRSH) reported significantly improved fiscal 2026 third quarter results for the period ended December 31, 2025, with Q3 revenue up 18.0% to $41.8 million and gross margin rising 170 basis points to 16.9%.
Operating income nearly tripled to $1.9 million and net income rose to $1.2 million. Jerash expects Q4 revenue growth of 23–26% year-over-year and plans to expand capacity via a newly acquired manufacturing building, targeting a ≥40% production increase after renovations.
Positive
- Revenue +18.0% in Q3 to $41.8M
- Gross margin improved +170 bps to 16.9%
- Operating income nearly tripled to $1.9M
- Q4 revenue guidance +23–26% year-over-year
- Planned production capacity increase of ≥40% after renovations
- Declared quarterly dividend of $0.05 per share
Negative
- Total other expenses rose to $418K in Q3 (financing and FX losses)
- Operating expenses increased to $5.1M in Q3
- Income tax expense increased year-to-date to $851K
- Renovation completion by year-end is subject to execution risk
News Market Reaction
On the day this news was published, JRSH gained 13.36%, reflecting a significant positive market reaction. Argus tracked a peak move of +7.4% during that session. Our momentum scanner triggered 11 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $5M to the company's valuation, bringing the market cap to $44M at that time. Trading volume was above average at 1.6x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
JRSH showed a small pre-news gain of 0.33% while peers were mixed: VNCE +1.18%, JL +1.37%, JXG +2.56%, LITB -2.57%, PMNT -3.33%. This points to stock-specific drivers rather than a broad apparel move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 12 | Q2 2026 earnings | Positive | +0.3% | Q2 revenue growth, mid-teens margins, return to profitability, dividend continuation. |
| Aug 12 | Q1 2026 earnings | Positive | +3.7% | Turnaround to net income with higher gross profit and added capacity. |
| Jun 23 | FY2025 results | Positive | -3.9% | Record FY2025 revenue and better Q4 margins despite a remaining net loss. |
| Feb 11 | Q3 2025 earnings | Positive | +0.6% | Strong revenue growth with capacity expansion plans and dividend declaration. |
| Nov 12 | Q2 2025 earnings | Positive | +11.3% | Double-digit revenue growth, higher gross profit, and increased net income with dividend. |
Earnings releases have generally been positive operationally, with share price reactions modestly positive on 4 of 5 events and one noticeable downside move.
Over the past five earnings cycles, Jerash has transitioned from losses to consistent profitability while expanding production capacity and maintaining a recurring $0.05 dividend. Revenue growth and margin improvement have been recurring themes, with prior guidance often pointing to mid-teens gross margins. Today’s fiscal 2026 Q3 report, featuring higher revenue, improved gross margin, and stronger net income, fits into this ongoing profitability and capacity-expansion narrative.
Historical Comparison
In the past five earnings releases, JRSH moved an average of 2.39% post-report, with mostly positive reactions but one notable downside move on strong full-year results.
Earnings updates show progression from losses to sustained profitability, supported by repeated capacity expansions, mid-teens gross margins, and a continued $0.05 quarterly dividend.
Market Pulse Summary
The stock surged +13.4% in the session following this news. A strong positive reaction aligns with the solid Q3 metrics, including 18.0% revenue growth and gross margin rising to 16.9%. Historically, JRSH earnings moves averaged about 2.39%, so any outsized move could reflect sentiment overshooting fundamentals. Capacity expansions and improved profitability support the story, but investors have previously seen occasional pullbacks even after strong full-year results.
Key Terms
gross margin financial
basis points financial
operating income financial
comprehensive income financial
AI-generated analysis. Not financial advice.
FAIRFIELD, NEW JERSEY / ACCESS Newswire / February 9, 2026 / Jerash Holdings (US), Inc. (NASDAQ:JRSH) (the "Company" or "Jerash"), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced significantly improved financial results for its fiscal 2026 third quarter ended December 31, 2025.
Fiscal 2026 Third Quarter Highlights
Revenue increased 18.0 percent to
$41.8 million , from$35.4 million in the prior year quarter.Gross margin improved 170 basis points to 16.9 percent, from 15.2 percent in the prior year quarter.
Operating income nearly tripled to
$1.9 million , from$708,000 in the prior year quarter.Net income improved to
$1.2 million , from$6,000 in the prior year quarter.
Outlook
Revenue for the fiscal 2026 fourth quarter is expected to increase by 23 to 26 percent over
$29.3 million in the prior-year quarter, positioning fiscal 2026 for record annual revenue.Gross margin for the fiscal 2026 fourth quarter is anticipated to be approximately 14 to 16 percent.
"Jerash's fiscal 2026 third quarter results reflect increasing demand from our long-standing core global brand customers, complemented by the initial contributions from our new strategic partner in Korea, which together drove meaningful improvements across both the top and bottom lines," said Sam Choi, Jerash's chairman and chief executive officer. "With our new customers, we expect strong revenue growth that exceeds our current manufacturing capacity, which reinforces our decision to expand operations to meet demand.
"We are thrilled with the recently announced acquisition of a bank-owned manufacturing building and associated land, which represents a significant milestone in advancing Jerash's business growth strategy for the next five years. Upon completion of renovations by the end of this calendar year, the new manufacturing building is expected to increase production capacity by at least 40 percent, substantially enhancing our ability to support increasing demand, as we continue to expand and diversify customer base and product mix.
"This expansion improves our operational flexibility and supports efficient scaling, while maintaining the quality and cost discipline our customers expect. As order volumes continue to grow for new and expanded product offerings, we remain focused on driving further gross margin improvement," Choi added.
Fiscal 2026 Third Quarter Results
Revenue for the fiscal 2026 third quarter rose 18.0 percent to
Gross profit increased 31.0 percent to
Operating expenses totaled
Operating income nearly tripled to
Total other expenses were
Income tax expenses were
Net income rose to
Comprehensive income attributable to the Company's common stockholders advanced to
Nine-Month Fiscal Year 2026 Results
Revenue for the first nine months of fiscal year 2026 rose 5.8 percent to
Gross profit increased 13.7 percent to
Operating expenses for the first nine months of fiscal year 2026 were
Operating income nearly quadrupled to
Total other expenses for the first nine months of fiscal 2026 were
Income tax expenses were
Net income for the first nine months of fiscal year 2026 improved by
Comprehensive income attributable to Jerash's common stockholders improved to
Balance Sheet, Cash Flow, and Dividends
Cash and restricted cash totaled
On February 3, 2026, Jerash's board of directors approved a regular quarterly dividend of
Conference Call
Jerash Holdings will host an investor conference call to discuss its fiscal 2026 third quarter results today, February 9, 2026, at 9:00 a.m. Eastern Time.
Phone: 888-506-0062 (domestic); 973-528-0011 (international)
Conference ID: 422515
A live and archived webcast will be available online in the investor relations section of Jerash's website at www.jerashholdings.com. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the website.
About Jerash Holdings (US), Inc.
Jerash Holdings (US), Inc. manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands and retailers, including VF Corporation (which owns brands such as The North Face, Timberland, and Vans), New Balance, G-III (which licenses brands such as DKNY and Nautica), Acushnet Holdings Corp (which owns the brand FootJoy), American Eagle, and Skechers. Jerash's existing production facilities in Jordan comprise six factory units and four warehouses, and Jerash currently employs approximately 6,000 people. Additional information is available at www.jerashholdings.com.
Forward-Looking Statements
This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "seek", "potential," "outlook" and similar expressions are intended to identify forward-looking statements. Such statements, including, but not limited to, completing renovations on the new building by the end of this calendar year, Jerash's current views with respect to other future events and its financial forecasts, are subject to such risks and uncertainties. Many factors could cause actual results to differ materially from the statements made, including those risks described from time to time in filings made by Jerash with the U.S. Securities and Exchange Commission. These and other risks and uncertainties are detailed in the Company's filings with the U.S. Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Statements contained in this news release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Jerash does not intend and does not assume any obligation to update these forward-looking statements, other than as required by law.
Contact:
PondelWilkinson Inc.
Judy Lin or Roger Pondel
310-279-5980; jlin@pondel.com
# # #
(tables below)
JERASH HOLDINGS (US), INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited)
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Revenue, net | $ | 41,769,186 | $ | 35,384,737 | $ | 123,367,028 | $ | 116,560,580 | ||||||||
Cost of goods sold | 34,720,025 | 30,001,947 | 103,939,307 | 99,480,036 | ||||||||||||
Gross Profit | 7,049,161 | 5,382,790 | 19,427,721 | 17,080,544 | ||||||||||||
Selling, general and administrative expenses | 4,877,501 | 4,200,975 | 14,756,182 | 14,650,105 | ||||||||||||
Stock-based compensation expenses | 228,825 | 474,088 | 680,320 | 1,417,111 | ||||||||||||
Total Operating Expenses | 5,106,326 | 4,675,063 | 15,436,502 | 16,067,216 | ||||||||||||
Income from Operations | 1,942,835 | 707,727 | 3,991,219 | 1,013,328 | ||||||||||||
Other Income (Expenses): | ||||||||||||||||
Interest expenses | (393,190 | ) | (364,939 | ) | (1,242,520 | ) | (1,348,291 | ) | ||||||||
Other (expenses) income, net | (25,250 | ) | 113,240 | 61,217 | 306,441 | |||||||||||
Total other expenses, net | (418,440 | ) | (251,699 | ) | (1,181,303 | ) | (1,041,850 | ) | ||||||||
Net income (loss) before provision for income taxes | 1,524,395 | 456,028 | 2,809,916 | (28,522 | ) | |||||||||||
Income tax expenses | 367,935 | 449,714 | 850,523 | 667,312 | ||||||||||||
Net income (loss) | 1,156,460 | 6,314 | 1,959,393 | (695,834 | ) | |||||||||||
Net (loss) income attributable to noncontrolling interest | (14,115 | ) | 12,120 | 8,537 | (100 | ) | ||||||||||
Net income (loss) attributable to Jerash Holdings (US), Inc.'s Common Stockholders | $ | 1,170,575 | $ | (5,806 | ) | $ | 1,950,856 | $ | (695,734 | ) | ||||||
Net income (loss) | $ | 1,156,460 | $ | 6,314 | $ | 1,959,393 | $ | (695,834 | ) | |||||||
Other Comprehensive Income (Loss): | ||||||||||||||||
Foreign currency translation income (loss) | 55,028 | (140,969 | ) | 47,377 | (124,473 | ) | ||||||||||
Total Comprehensive Income (Loss) | 1,211,488 | (134,655 | ) | 2,006,770 | (820,307 | ) | ||||||||||
Comprehensive (loss) income attributable to noncontrolling interest | (14,115 | ) | 12,120 | 8,537 | (100 | ) | ||||||||||
Comprehensive Income (Loss) Attributable to Jerash Holdings (US), Inc.'s Common Stockholders | $ | 1,225,603 | $ | (146,775 | ) | $ | 1,998,233 | $ | (820,207 | ) | ||||||
Earnings (Loss) Per Share Attributable to Common Stockholders: | ||||||||||||||||
Basic and diluted | $ | 0.09 | $ | (0.00 | ) | $ | 0.15 | $ | (0.06 | ) | ||||||
Weighted Average Number of Shares | ||||||||||||||||
Basic | 12,699,940 | 12,294,840 | 12,699,940 | 12,294,840 | ||||||||||||
Diluted | 13,221,380 | 12,294,840 | 13,158,039 | 12,294,840 | ||||||||||||
Dividend per share | $ | 0.05 | $ | 0.05 | $ | 0.15 | $ | 0.15 | ||||||||
JERASH HOLDINGS (US), INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, | March 31, | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash | $ | 11,454,016 | $ | 13,346,791 | ||||
Accounts receivable, net | 7,831,553 | 3,076,074 | ||||||
Inventories | 26,030,818 | 27,704,829 | ||||||
Prepaid expenses and other current assets | 3,360,827 | 3,648,321 | ||||||
Advance to suppliers, net | 8,092,421 | 6,644,194 | ||||||
Total Current Assets | 56,769,635 | 54,420,209 | ||||||
Restricted cash - non-current | 1,701,752 | 1,717,248 | ||||||
Long-term deposits | 604,511 | 464,934 | ||||||
Property, plant, and equipment, net | 23,995,370 | 25,023,681 | ||||||
Goodwill | 499,282 | 499,282 | ||||||
Operating lease right of use assets | 644,380 | 850,172 | ||||||
Total Assets | $ | 84,214,930 | $ | 82,975,526 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities: | ||||||||
Credit facilities | $ | 9,339,758 | $ | 4,512,462 | ||||
Accounts payable | 3,587,871 | 6,507,308 | ||||||
Accrued expenses | 3,963,303 | 4,342,436 | ||||||
Income tax payable - current | 1,124,150 | 1,305,386 | ||||||
Uncertain tax provision | - | 175,290 | ||||||
Other payables | 1,888,950 | 2,149,185 | ||||||
Deferred revenue | 294,616 | 487,004 | ||||||
Operating lease liabilities - current | 180,040 | 339,699 | ||||||
Total Current Liabilities | 20,378,688 | 19,818,770 | ||||||
Deferred tax liabilities, net | 120 | 120 | ||||||
Operating lease liabilities - non-current | 184,914 | 287,527 | ||||||
Total Liabilities | 20,563,722 | 20,106,417 | ||||||
Equity | ||||||||
Preferred stock, | $ | - | $ | - | ||||
Common stock, | 12,939 | 12,939 | ||||||
Additional paid-in capital | 26,355,155 | 25,674,835 | ||||||
Treasury stock, 239,478 shares | (1,169,046 | ) | (1,169,046 | ) | ||||
Statutory reserve | 413,821 | 413,821 | ||||||
Retained earnings | 38,442,766 | 38,396,901 | ||||||
Accumulated other comprehensive loss | (465,745 | ) | (513,122 | ) | ||||
Total Jerash Holdings (US), Inc. Stockholders' Equity | 63,589,890 | 62,816,328 | ||||||
Noncontrolling interest | 61,318 | 52,781 | ||||||
Total Equity | 63,651,208 | 62,869,109 | ||||||
Total Liabilities and Equity | $ | 84,214,930 | $ | 82,975,526 | ||||
JERASH HOLDINGS (US), INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months Ended | ||||||||
2025 | 2024 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net income (loss) | $ | 1,959,393 | $ | (695,834 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Depreciation | 2,274,388 | 1,968,992 | ||||||
Stock-based compensation expenses | 680,320 | 1,417,111 | ||||||
Credit loss recovery, net | - | (17,054 | ) | |||||
Amortization of operating lease right-of-use assets | 451,890 | 447,646 | ||||||
Uncertain tax provision | - | (273,582 | ) | |||||
Changes in operating assets: | ||||||||
Accounts receivable | (4,755,479 | ) | (1,803,392 | ) | ||||
Inventories | 1,674,011 | 8,123,439 | ||||||
Prepaid expenses and other current assets | 287,497 | (930,084 | ) | |||||
Advance to suppliers | (1,448,228 | ) | (4,776,571 | ) | ||||
Changes in operating liabilities: | ||||||||
Accounts payable | (2,919,438 | ) | (2,452,154 | ) | ||||
Accrued expenses | (379,132 | ) | (335,251 | ) | ||||
Other payables | (260,235 | ) | (408,900 | ) | ||||
Deferred revenue | (192,388 | ) | 48,442 | |||||
Operating lease liabilities | (508,370 | ) | (505,317 | ) | ||||
Income tax payable | (355,724 | ) | (388,766 | ) | ||||
Net cash used in operating activities | (3,491,495 | ) | (581,275 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchases of property, plant, and equipment | (936,444 | ) | (491,676 | ) | ||||
Payments for construction of properties | - | (585,715 | ) | |||||
Payment for long-term deposits | (435,650 | ) | (594,442 | ) | ||||
Net cash used in investing activities | (1,372,094 | ) | (1,671,833 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Dividend payments | (1,904,991 | ) | (1,844,226 | ) | ||||
Repayment from short-term loan | (16,118,301 | ) | (9,288,656 | ) | ||||
Proceeds from short-term loan | 20,945,597 | 14,256,600 | ||||||
Net cash provided by financing activities | 2,922,305 | 3,123,718 | ||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND RESTRICTED CASH | 33,013 | (124,559 | ) | |||||
NET (DECREASE) INCREASE IN CASH AND RESTRICTED CASH | (1,908,271 | ) | 746,051 | |||||
CASH, AND RESTRICTED CASH, BEGINNING OF THE PERIOD | 15,064,039 | 14,036,867 | ||||||
CASH, AND RESTRICTED CASH, END OF THE PERIOD | $ | 13,155,768 | $ | 14,782,918 | ||||
CASH AND RESTRICTED CASH, END OF THE PERIOD | $ | 13,155,768 | $ | 14,782,918 | ||||
LESS: NON-CURRENT RESTRICTED CASH | 1,701,752 | 1,563,809 | ||||||
CASH, END OF THE PERIOD | $ | 11,454,016 | $ | 13,219,109 | ||||
Supplemental disclosure information: | ||||||||
Cash paid for interest | $ | 1,242,520 | $ | 1,348,291 | ||||
Income tax paid | $ | 1,214,074 | $ | 1,329,150 | ||||
Non-cash investing and financing activities | ||||||||
Equipment obtained by utilizing long-term deposit | $ | 296,099 | $ | 289,451 | ||||
Operating lease right of use assets obtained in exchange for operating lease obligations | $ | 242,493 | $ | 186,726 | ||||
SOURCE: Jerash Holdings (US), Inc.
View the original press release on ACCESS Newswire
FAQ
What were Jerash Holdings (JRSH) fiscal 2026 Q3 revenue and margin results?
How did Jerash (JRSH) profitability change in fiscal 2026 Q3?
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