Cheetah Net 2025 Q1 Earnings Revenue Surges 524.5% Despite Widening Net Loss
Daily EarningsTuesday, May 6, 2025 11:05 am ET
3min readCheetah Net(CTNT) reported its fiscal 2025 Q1 earnings on May 05th, 2025. Cheetah Net's Q1 2025 earnings report unveiled a remarkable 524.5% revenue growth compared to Q1 2024, yet the company faced a widening net loss. The strategic shift toward logistics and warehousing amid challenging U.S.-China trade tensions was emphasized by CEO Tony Liu. Despite the revenue growth, Cheetah Net's financial performance fell short of market expectations as losses increased, prompting a cautious outlook on profit realization. Management remains committed to exploring new business opportunities and improving operational efficiencies.
Revenue
The total revenue of Cheetah Net increased by 524.5% to $479,799 in 2025 Q1, up from $76,834 in 2024 Q1.
Earnings/Net Income
Cheetah Net narrowed losses to $0.23 per share in 2025 Q1 from a loss of $0.52 per share in 2024 Q1 (55.8% improvement). Meanwhile, the company's net loss widened to $-753,909 in 2025 Q1, representing a 23.8% increase from the $-608,930 loss recorded in 2024 Q1. The EPS showed improvement but net loss increased, indicating financial challenges.
Price Action
The stock price of Cheetah Net has edged down 2.70% during the latest trading day, has dropped 7.69% during the most recent full trading week, and has climbed 5.11% month-to-date.
Post-Earnings Price Action Review
The strategy of buying Cheetah Net (CTNT) shares after its revenue raise quarter-on-quarter and holding for 30 days proved ineffective, underperforming the market. Over the past year, CTNT stock returned -20.2%, while the broader US market gained 9.3%. This stark contrast highlights the importance of market timing and stock selection, as CTNT's decline was driven by internal factors such as missed earnings expectations, shareholder dilution, and insufficient market capitalization. The backtest results demonstrate that buying CTNT shares post-revenue increase and holding for 30 days is not a viable strategy, underscoring the necessity for investors to scrutinize company fundamentals and growth prospects thoroughly.
CEO Commentary
Tony Liu, Cheetah’s Chairman and CEO, emphasized that the Company’s financial performance in Q1 2025 reflects the impact of strategic shifts toward logistics and warehousing amidst challenging market conditions, particularly U.S.-China trade tensions. He noted that the decision to discontinue the parallel-import vehicle business was influenced by a significant drop in sales volume and margins in that sector. Liu highlighted higher revenues from the newly acquired subsidiary, TW & EW Services Inc., signaling a positive transformation. He expressed confidence in the Company’s future growth potential, acknowledging that while profits may take longer to materialize, operational efficiencies and expanded service offerings are key priorities.
Guidance
The Company anticipates that generating ideal profits will take longer than initially expected, reflecting ongoing market challenges. Management remains committed to exploring new business opportunities and believes that the current strategic positioning will pave the way for substantial future growth. The focus on improving operational efficiencies and expanding service offerings is expected to contribute positively to the business transformation underway.
Additional News
In recent weeks, Cheetah Net has been active in expanding its business footprint. On December 2, 2024, the company signed definitive agreements to acquire TW & EW Services Inc., a logistics provider, to strengthen its service offerings. This acquisition was completed with a combination of cash payment and the issuance of Cheetah Net's A class common stock. Additionally, Cheetah Net relocated its headquarters from Charlotte, North Carolina, to Irvine, California, in July 2024, to better align with its strategic focus on logistics and warehousing services. The move aims to leverage local infrastructure and resources for enhanced operational efficiency.
Revenue
The total revenue of Cheetah Net increased by 524.5% to $479,799 in 2025 Q1, up from $76,834 in 2024 Q1.
Earnings/Net Income
Cheetah Net narrowed losses to $0.23 per share in 2025 Q1 from a loss of $0.52 per share in 2024 Q1 (55.8% improvement). Meanwhile, the company's net loss widened to $-753,909 in 2025 Q1, representing a 23.8% increase from the $-608,930 loss recorded in 2024 Q1. The EPS showed improvement but net loss increased, indicating financial challenges.
Price Action
The stock price of Cheetah Net has edged down 2.70% during the latest trading day, has dropped 7.69% during the most recent full trading week, and has climbed 5.11% month-to-date.
Post-Earnings Price Action Review
The strategy of buying Cheetah Net (CTNT) shares after its revenue raise quarter-on-quarter and holding for 30 days proved ineffective, underperforming the market. Over the past year, CTNT stock returned -20.2%, while the broader US market gained 9.3%. This stark contrast highlights the importance of market timing and stock selection, as CTNT's decline was driven by internal factors such as missed earnings expectations, shareholder dilution, and insufficient market capitalization. The backtest results demonstrate that buying CTNT shares post-revenue increase and holding for 30 days is not a viable strategy, underscoring the necessity for investors to scrutinize company fundamentals and growth prospects thoroughly.
CEO Commentary
Tony Liu, Cheetah’s Chairman and CEO, emphasized that the Company’s financial performance in Q1 2025 reflects the impact of strategic shifts toward logistics and warehousing amidst challenging market conditions, particularly U.S.-China trade tensions. He noted that the decision to discontinue the parallel-import vehicle business was influenced by a significant drop in sales volume and margins in that sector. Liu highlighted higher revenues from the newly acquired subsidiary, TW & EW Services Inc., signaling a positive transformation. He expressed confidence in the Company’s future growth potential, acknowledging that while profits may take longer to materialize, operational efficiencies and expanded service offerings are key priorities.
Guidance
The Company anticipates that generating ideal profits will take longer than initially expected, reflecting ongoing market challenges. Management remains committed to exploring new business opportunities and believes that the current strategic positioning will pave the way for substantial future growth. The focus on improving operational efficiencies and expanding service offerings is expected to contribute positively to the business transformation underway.
Additional News
In recent weeks, Cheetah Net has been active in expanding its business footprint. On December 2, 2024, the company signed definitive agreements to acquire TW & EW Services Inc., a logistics provider, to strengthen its service offerings. This acquisition was completed with a combination of cash payment and the issuance of Cheetah Net's A class common stock. Additionally, Cheetah Net relocated its headquarters from Charlotte, North Carolina, to Irvine, California, in July 2024, to better align with its strategic focus on logistics and warehousing services. The move aims to leverage local infrastructure and resources for enhanced operational efficiency.
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