Addentax (ATXG) Q1 2027 earnings summary

Executive summary

• Reported net income of $2.4 million for Q2 2026, compared to a net loss of $0.4 million in Q2 2025, driven by a non-cash fair value gain on derivative liabilities and expansion into consulting and financing services.

• Revenue increased to $3.4 million, up 316% year-over-year, primarily due to growth in consulting services and the acquisition of a financing business.

• Loss from operations widened to $0.68 million from $0.35 million, reflecting higher corporate and segment expenses.

• No revenue was generated from garment manufacturing, reflecting a strategic contraction in that segment.

Financial highlights

• Revenue: $3.44 million (Q2 2026) vs. $0.83 million (Q2 2025), up 316%.

• Gross profit: $0.41 million (Q2 2026) vs. $0.19 million (Q2 2025), up 118%.

• Net income: $2.39 million (Q2 2026) vs. net loss of $0.39 million (Q2 2025).

• Basic and diluted EPS: $2.93 (Q2 2026) vs. $(0.91) (Q2 2025).

• Cash and cash equivalents: $0.76 million as of June 30, 2026.

Outlook and guidance

• Plans to expand consulting and financing services, with a focus on digital tools and private-domain customer management.

• Logistics segment aims to develop 20 additional routes and improve profitability in 2027.

• Management continues to monitor the contribution of recent acquisitions and may reassess segment reporting.