Elite Express 2025 Q3 Earnings Deepens Losses Despite Record Revenue Growth

Elite Express Holding Inc. (ETS) reported better-than-expected revenue growth but posted a significantly wider net loss in Q3 2025, driven by rising compliance and administrative costs. The company provided no formal earnings guidance for future periods.

Revenue
Elite Express reported total revenue of $633,865 in Q3 2025, a 7.4% increase compared to $590,375 in the same period of 2024. Activity-based revenue remained the company’s largest contributor, reaching $477,705 or 75.4% of total revenue, driven by increased volume under the FedEx ISP structure. Fixed revenue, including weekly service charges and branding-related income, declined to $155,644, down 11.5% from $175,797 in the prior year. Additional revenue streams included $102,705 from stops, $19,543 from large packages, and $69,697 in fuel surcharge. Other segments, such as weekly service charges ($146,221), E-Commerce ($269,965), and Branding-related ($9,423), also contributed to the overall growth, reflecting a broad but activity-centric revenue model.

Earnings/Net Income
Despite the revenue gain, the company’s net loss widened to $185,881 in Q3 2025, a 142.9% increase from $76,526 in the same period last year. Earnings per share remained stable at -$0.01, though the sharp rise in losses indicates significant cost pressures. The EPS remains negative and reflects the company’s ongoing challenges in achieving profitability.

Price Action
Following the earnings report, ETS shares declined 0.03% in the latest trading day, fell 7.24% for the week, and dropped 22.22% month-to-date. The stock’s poor performance underscores investor concerns over the widening losses and lack of profitability.

Post Earnings Price Action Review
The market reacted negatively to the earnings report, with ETS stock falling across all measured timeframes. While revenue growth was a positive, the significant expansion in net losses and lack of forward guidance raised concerns about the company’s path to profitability. The deepening losses, particularly in general and administrative expenses, signal that ETS is investing heavily in governance and compliance as a newly public company. Analysts and investors may be cautious about the long-term sustainability of these costs.

CEO Commentary
CEO Yidan Chen highlighted the 7.4% year-over-year revenue growth and the achievement of the company’s first quarterly gross profit, signaling operational progress. He emphasized that increased compliance and governance expenses are necessary for the company’s long-term foundation as a public entity. Looking ahead, the CEO outlined strategic priorities, including expanding the fleet, leveraging technology, and diversifying beyond FedEx to capture growth in the e-commerce sector.

Guidance
Elite Express did not provide specific financial guidance for future periods, but management expressed confidence in its positioning to deliver long-term value. The CEO remains optimistic about e-commerce expansion and scaling operations, though no concrete metrics or projections were given.

Additional News
Elite Express announced its third-quarter financial results as a newly public company, having completed its IPO in August 2025. The company also reported the acquisition of JAR, with related legal and accounting fees contributing to the surge in general and administrative expenses. While no major M&A or executive changes were disclosed, the company emphasized its commitment to scaling operations and improving long-term efficiency through technology and fleet expansion.