Jerash (US) (JRSH) Q3 2025 earnings summary

Executive summary

• Fiscal Q3 2025 revenue rose 28.6%-29% year-over-year to $35.4 million, driven by increased shipments to major U.S. customers and demand for tariff-free manufacturing in Jordan.

• Net income for Q3 was $6,000, down from $232,000 a year ago, mainly due to higher logistics costs, stock-based compensation, and a tax provision adjustment.

• Nine-month revenue increased 22% year-over-year to $116.6 million, but the company reported a net loss of $0.7 million versus net income of $1.1 million last year.

• Results were impacted by shipment delays from Haifa Port congestion, with $3.8-$6 million in finished goods delayed and additional storage fees incurred.

• Factories are fully booked through August 2025, with capacity expansions underway to support growth.

Financial highlights

• Q3 2025 revenue increased 28.6%-29% to $35.4 million; nine-month revenue was $116.6 million, up 22% year-over-year.

• Gross profit for Q3 rose 20.6% to $5.4 million, but gross margin declined to 15%-15.2% from 16%-16.2% due to higher logistics costs.

• Operating income for Q3 jumped 88.3% to $708,000; net income was $6,000, down from $232,000 a year ago.

• Cash and restricted cash stood at $14.8 million, with net working capital of $34.8 million as of December 31, 2024.

• Net cash used by operating activities was $0.6-$0.581 million for the nine months ended December 31, 2024.

Outlook and guidance

• Q4 2025 revenue is expected to increase 50%-53% year-over-year, including delayed Q3 shipments.

• Q1 2026 revenue is projected to be in line with Q1 2025's record $40.9 million.

• Gross margin for Q4 2025 is targeted at 15%-16%, subject to logistics and product mix.

• Management expects sufficient liquidity for the next 12 months, supported by cash on hand and operating cash flows.

• Capital expenditures projected at $2.2 million for fiscal 2025 and $8.8 million for fiscal 2026 to enhance production capacity.