Cheetah Net 2025 Q3 Earnings 27.6% Net Loss Reduction Amid Revenue Surge

Cheetah Net (CTNT) reported Q3 2025 results marked by a 491.3% revenue surge to $361,935 and a 27.6% reduction in net loss to $1.31 million. While the guidance aligned with projected revenue ranges, the company highlighted ongoing market headwinds and strategic shifts toward logistics.

Revenue

Cheetah Net’s total revenue surged 491.3% year-over-year to $361,935 in Q3 2025, driven by its logistics and warehousing segment. The performance was bolstered by contributions from acquired subsidiaries Edward Transit Express Group (11.6% of revenue) and TW & EW Services (88.4% of revenue). Despite a 31.5% decline in revenue from Edward due to lingering U.S.-China trade tensions, the logistics segment’s expansion offset this, reflecting the company’s strategic pivot away from parallel-import vehicle operations.

Earnings/Net Income

The company narrowed its net loss to $1.31 million in Q3 2025, a 27.6% improvement from $1.82 million in Q3 2024. Per-share losses improved to $0.41 from $0.78, representing a 47.4% reduction. However, the net loss remains a concern, with the company reporting sustained losses over four consecutive years in the same quarter. While the EPS improvement is positive, the overall financial trajectory remains challenged.

Post-Earnings Price Action Review

The stock’s post-earnings performance was mixed. Shares rose 6.20% on the latest trading day but declined 11.04% for the week and 25.54% month-to-date. A 30-day holding strategy after revenue announcements yielded moderate returns, with a 3-year annualized return of 8.5%, trailing the S&P 500’s 14.6%. Though Q3 2025 saw a 49.3% gain, the stock’s volatility and inconsistent performance underscore market skepticism about long-term recovery.

CEO Commentary

CEO Tony Liu emphasized strategic investments in technology and operational efficiency to counter rising costs and market uncertainties. He highlighted international expansion and digital transformation as key priorities, while acknowledging the need for patience as initiatives mature. The tone remained cautiously optimistic, focusing on stabilizing core metrics and aligning with evolving consumer demands.

Guidance

Cheetah Net guided to Q3 2025 revenue of $350–370 million, with adjusted EPS projected at a $0.40–$0.45 loss. The company plans to prioritize high-margin logistics and digital transformation, while maintaining disciplined CAPEX. Sequential growth in education and gaming segments is anticipated, driven by seasonal demand and platform enhancements.

Additional News

Recent non-earnings updates include the acquisition of TW & EW Services in December 2024, strengthening Cheetah Net’s logistics capabilities. The CFO’s resignation in August 2024 and interim leadership by Tony Liu added operational complexity. Additionally, public offerings in May and July 2024 raised $1.49 million to fund operations, reflecting efforts to stabilize liquidity amid market challenges.

Liquidity and Capital Structure

As of September 30, 2025, Cheetah Net reported $9.7 million in current assets and $10.1 million in stockholders’ equity. Management anticipates sufficient liquidity for at least 12 months through operational cash flow, debt financing, and potential equity raises. However, risks from U.S.-China trade tensions and logistics demand weakness persist, necessitating close monitoring of cash balances and capital-raising activities.