Jerash Holdings 2025 Q4 Earnings Strong Performance as Net Loss Narrows 95.4%

Jerash Holdings (JRSH) reported its fiscal 2025 Q4 earnings on Jun 26th, 2025. The company saw a significant improvement in its fourth quarter results, with revenue increasing by 35.6% to $29.25 million compared to the previous year. Despite challenges, Jerash's operational improvements led to a net loss reduction of 95.4%. The company provided guidance for the first quarter of fiscal 2026, expecting revenue between $38-$40 million, reflecting a positive outlook. Analysts anticipate an upside potential with a consensus recommendation of "Outperform."

Revenue
Jerash Holdings reported a 35.6% increase in total revenue for the fiscal 2025 fourth quarter, reaching $29.25 million compared to $21.57 million in the same period of the previous year. This growth was primarily driven by increased shipments to major customers in the U.S., despite facing logistics challenges at the Haifa port.

Earnings/Net Income
Jerash Holdings narrowed its losses to $0.01 per share in 2025 Q4 from a loss of $0.25 per share in 2024 Q4, marking a 95.2% improvement. The net loss was reduced to $144,095, a significant decrease from the $3.14 million net loss reported in 2024 Q4. The improvement in EPS reflects positive operational changes.

Post-Earnings Price Action Review
The strategy of buying JRSH shares when revenues miss expectations and holding them for 30 days has resulted in poor performance. This approach generated a return of -36.85%, which significantly underperformed the benchmark return of 93.10%, leading to an excess return of -129.96%. Additionally, the compound annual growth rate (CAGR) was -8.83%, indicating substantial losses over the backtested period. The strategy also experienced a high maximum drawdown of -69.06%, coupled with a Sharpe ratio of -0.21, reflecting considerable risk and negative returns. These metrics highlight the challenges faced by investors using this strategy, emphasizing the need for a revised approach to mitigate risks.

CEO Commentary
"Revenue continues to be impacted by logistics challenges at Israel's Haifa port... Nevertheless, our business remains solid and on a growth trajectory. As we enter fiscal 2026, we are focused on improving operations and maintaining the positive momentum. We are experiencing growing demand from our existing customers and a notable increase in new inquiries from brands and large apparel manufacturers seeking strategic collaboration. Our factories are fully booked through the end of December 2025, and we have completed the expansion of our existing manufacturing facilities, which will increase production capacity by 15%." – Sam Choi, CEO of Jerash Holdings.

Guidance
Revenue for the first quarter of fiscal 2026 is expected to be approximately $38-$40 million, with a gross margin goal of 15-16%. The company anticipates that the expansion in production capacity will begin contributing positively to performance in the second fiscal quarter of 2026, pending outbound shipping port conditions.

Additional News
Jerash Holdings' board approved a regular quarterly dividend of $0.05 per share paid in June 2025. This decision reflects confidence in the company's financial stability and commitment to rewarding shareholders. Despite logistical challenges due to geopolitical tensions, Jerash is exploring alternative shipping routes through Jordan's Aqaba port. The company's strategic collaboration with Hansoll Textile has resulted in securing a major order from a U.S.-based retail corporation, further strengthening its market position. These developments indicate Jerash's resilience and proactive approach to overcoming obstacles and fostering growth.