How did Jerash Holdings' revenue and expenses shift in Q3 2025?

**Jerash Holdings experienced notable shifts in both revenue and expenses during Q3 2025.** Here's a detailed analysis: 1. **Revenue Shifts**: - Jerash Holdings anticipated a significant revenue increase for the fiscal 2025 fourth quarter, projecting a growth of 50% to 53% compared to the prior year quarter. - The fiscal 2026 first quarter's revenue was expected to align with the record-setting fiscal 2025 first quarter, which included delayed shipments that contributed to the strong performance. 2. **Expense Shifts**: - Gross profit for Q3 2025 increased by 20.6% to $5.4 million, up from $4.5 million in the same quarter the previous year. - However, there was a decrease in gross margin from 16.2% to 15.2% due to higher logistics costs resulting from geopolitical turmoil in the Middle East region. - Operating expenses rose to $4.7 million compared to $4.1 million in the same quarter the previous year, primarily driven by higher export logistics costs. - SG&A expenses increased to $4.2 million, up from $33.8 million in the same quarter the previous year, indicating a more efficient management of these costs. - Stock-based compensation expenses also rose to $474,000 from $243,000, reflecting increased employee value recognition. - Operating income saw a substantial increase of 88.3% to $708,000, up from $376,000 in the same quarter the previous year. - Total other expenses increased to $252,000 from $105,000, primarily due to higher interest expenses from supply chain financing programs. - Income tax expenses rose to approximately $450,000 from $39,000, significantly impacted by a prior year tax provision adjustment. - The effective tax rate stood at 98.6% for Q3 2025, up from 14.2% in the same quarter the previous year. - Net income for Q3 2025 was $6,000, a notable improvement from the previous year's net income. 3. **Logistics and Geopolitical Factors**: The company faced challenges due to congestion at Israel's Haifa Port, which led to shipment delays and additional costs. However, these issues improved by late January, allowing for smoother logistics operations. 4. **Expansion and Capacity**: Jerash Holdings is actively expanding its capacity to meet the growing demand, with plans to increase production by 10% to 15% through adding more lines at its existing facilities. The company is also working on a land grant with the Jordanian Ministry of Labor to further enhance its manufacturing capacity. In conclusion, Jerash Holdings demonstrated robust growth in revenue, despite facing logistical and geopolitical challenges, which were partially offset by increased expenses. The company's strategic expansions and improvements in logistics are poised to support continued growth and operational efficiency.