Cheetah Net 2025 Q3 Earnings Revenue Surges 491.3% Despite Narrowed Losses

Cheetah Net Supply Chain Service (CTNT) reported mixed Q3 2025 results, with revenue soaring 491.3% year-over-year to $361,935 but net losses narrowing by 27.6% to $1.31 million. The company’s strategic shift to logistics and warehousing services drove the revenue surge, though ongoing operational challenges and a goodwill impairment of $731,307 tempered profitability. Management highlighted liquidity sufficiency for at least 12 months, aligning with revised operational strategies.

Revenue

The logistics and warehousing segment accounted for 100% of total revenue, with $41,935 generated from Edward Transit Express Group (11.6% of total revenue) and $320,000 from TW & EW Services (88.4%). The sharp revenue increase stemmed from acquisitions and expanded logistics operations, though cross-border trade tensions continued to suppress demand.

Earnings/Net Income

Cheetah Net’s net loss narrowed to $1.31 million in Q3 2025, a 27.6% improvement from $1.82 million in Q3 2024. EPS improved to -$0.82 from -$1.56, reflecting disciplined cost controls and interest income gains. However, the company remains unprofitable, with sustained losses over four years.

Post-Earnings Price Action Review

The stock’s post-earnings performance was volatile, with a 6.20% intraday gain but an 11.04% weekly decline and 25.54% month-to-date drop. A 30-day buy-and-hold strategy on earnings dates yielded a 6.8% average return, underperforming the S&P 500’s 18.5% benchmark. Market volatility and inconsistent financials muted returns, despite leveraging CTNT’s growth potential.

CEO Commentary

CEO Tony Liu attributed the revenue surge to expanded logistics operations and cost optimization but acknowledged persistent trade tensions. He emphasized proactive measures, including interest income generation from public offering proceeds and operational flexibility, to navigate uncertain market conditions.

Guidance

Management expects logistics revenue to remain under pressure due to trade uncertainties but anticipates liquidity to support operations for at least 12 months. No explicit revenue or profit targets were provided.

Additional News

1. M&A Activity: Cheetah Net acquired TW & EW Services in December 2024 for $1 million, bolstering its logistics capabilities.

2. C-Level Changes: CFO Robert Cook resigned in August 2024, with CEO Tony Liu assuming interim duties.

3. Capital Raising: A $1.49 million follow-on public offering in July 2024 funded short-term liquidity and operational expansion.

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