Lakeside Holding (LSH) investor relations material

Executive summary

• Revenue for the year ended June 30, 2025 was $17.8 million, down 2.9% year-over-year, with a net loss of $5.2 million compared to a $0.2 million loss in the prior year.

• Gross profit declined 22.5% to $2.9 million, with gross margin falling from 20.3% to 16.2%.

• A new pharmaceutical distribution segment launched in December 2024 contributed $2.8 million in revenue and a 56.1% gross margin.

• Cross-border freight solutions revenue dropped 17.9% due to regulatory changes, tariffs, and lower shipment volumes.

Financial highlights

• Cross-border ocean freight revenue fell 26.6% to $5.8 million; airfreight revenue decreased 11.4% to $9.2 million.

• Cost of revenue for freight solutions decreased 6.2%, but gross margin for this segment dropped to 8.8%.

• General and administrative expenses rose 79.1% to $7.4 million, mainly due to higher salaries, benefits, and professional fees.

• Interest expense increased 271.5% to $0.4 million, primarily from late credit card payments and convertible note interest.

• Cash balance at year-end was $5.0 million, with a current ratio of 1.06 and total equity of $2.8 million.

Outlook and guidance

• Management expects continued uncertainty in cross-border freight due to evolving U.S.-China trade policies, tariffs, and regulatory changes.

• The company plans to focus on cost control, subleasing excess warehouse space, and expanding the pharmaceutical segment.

• No cash dividends are anticipated; future capital expenditures will be funded by cash, loans, and equity offerings.