Armlogi Holding Corp. Reports Fiscal Year 2026 Financial Results; Warehousing Services Revenue Grows 21.9% to $77.1 Million
Warehousing Services Rose to 41.5% of Total Revenue as Customer Fulfillment Shifted Toward Platform-Bundled Programs; Gross Profit Improved by $3.4 Million; Convertible Notes Fully Settled and Total Liabilities Reduced by $22.4 Million
WALNUT, Calif., Sept. 28, 2026 (GLOBE NEWSWIRE) -- Armlogi Holding Corp. (“Armlogi” or the “Company”) (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today reported financial results for its fiscal year ended June 30, 2026 (“fiscal 2026”).
Total revenue for fiscal 2026 was $185.8 million, compared with $190.4 million in the fiscal year ended June 30,2025 (“fiscal 2025”), as a 21.9% increase in warehousing services revenue to $77.1 million was offset by a 14.5% decrease in transportation services revenue to $108.6 million. Gross profit was $0.4 million, compared with a gross loss of $3.0 million in the prior year. Net loss was $20.9 million, or $(0.47) per basic and diluted share, compared with a net loss of $15.3 million, or $(0.37) per share, in fiscal 2025. Cash, cash equivalents, and restricted cash totaled $6.5 million at June 30, 2026.
Fiscal 2026 Financial Highlights (Year Ended June 30, 2026, Compared with Year Ended June 30, 2025)
- Total revenue of $185.8 million, a decrease of $4.6 million, or 2.4%, from $190.4 million.
- Warehousing services revenue increased by $13.9 million, or 21.9%, to $77.1 million from $63.3 million, representing 41.5% of total revenue, up from 33.2%.
- Transportation services revenue decreased by $18.4 million, or 14.5%, to $108.6 million from $127.0 million.
- Cost of service decreased by $8.0 million, or 4.1%, to $185.4 million from $193.4 million, led by an $18.2 million, or 16.1%, reduction in freight expenses.
- Gross profit of $0.4 million, or 0.2% of revenue, compared with a gross loss of $3.0 million, or negative 1.6% of revenue.
- General and administrative expenses of $22.0 million, compared with $14.7 million, primarily reflecting $6.2 million of additional rental expense for leased warehouse facilities that remained partly underutilized during ramp-up, and a $1.1 million increase in credit loss expense.
- Loss from operations of $21.5 million, compared with $17.7 million.
- Net loss of $20.9 million, or $(0.47) per basic and diluted share, compared with a net loss of $15.3 million, or $(0.37) per share. Fiscal 2025 results included a $1.6 million income tax recovery; no tax recovery was recorded in fiscal 2026.
- Active customer base of 525 at June 30, 2026, compared with 505 at June 30, 2025. Customers based in the People’s Republic of China accounted for approximately 78% of revenue, down from approximately 84%.
- Convertible notes outstanding reduced to nil from $5.3 million at June 30, 2025; total liabilities decreased by $22.4 million to $122.7 million.
- Cash, cash equivalents, and restricted cash of $6.5 million at June 30, 2026, compared with $13.6 million at June 30, 2025.
Management Commentary
“Fiscal 2026 moved Armlogi’s revenue mix toward the services we deliver inside our own four walls,” said Aidy Chou, Chairman and Chief Executive Officer of Armlogi. “Warehousing services grew 21.9% and now generate more than 40% of our revenue. The Ontario, California facility we opened in fiscal 2025 became the primary California distribution point for several of our larger customers in December 2025 and finished the year as our third-highest revenue-generating warehouse in the state. Transportation revenue declined because more of our customers ship through fulfillment programs bundled by the selling platforms, which reduces the freight we resell but keeps the warehousing relationship with us. Importantly, we closed fiscal 2026 with no convertible notes outstanding and $22.4 million less in total liabilities than a year earlier, and our remaining obligations are predominantly the lease obligations on a warehousing network that we continue to develop. Our work in fiscal 2027 is to fill the capacity we have already leased, execute the cost-optimization plan we have set out, and put in place the capital structure the business needs to complete this transition.”
Fiscal 2026 Operating Review
Revenue: Warehousing services revenue grew to $77.1 million from $63.3 million. Warehouse operations expanded significantly in Texas and Illinois, markets the Company entered shortly before or during fiscal 2025, and the Ontario, California warehouse expanded during fiscal 2025. The Company also grew its Temu and TikTok customer segments, which typically incur higher-than-average warehousing service charges per order than traditional customers.
Transportation services revenue declined to $108.6 million from $127.0 million, as a smaller proportion of order volume came from traditional customers shipping individual items directly to consumers. More of these customers now transfer inventory in bulk to Amazon warehouses for sale through the Fulfillment by Amazon program, and more customers are arranging their own outbound delivery rather than purchasing a transportation service option from the Company. Other services revenue, consisting primarily of customs brokerage, was $0.1 million in fiscal 2025 and fiscal 2026.
Cost of service and gross profit: Cost of service decreased to $185.4 million from $193.4 million. Freight expenses decreased by $18.2 million, or 16.1%, to $95.0 million due to lower freight volume. Temporary labor expenses increased $13.1 million, or 75.1%, to $30.6 million, while salary and benefits decreased by $1.1 million, or 11.1%, to $9.1 million, as the Georgia, Illinois, and Ontario, California warehouses, which are staffed primarily with temporary labor, ramped up toward capacity and the Company carried out a significant inventory reorganization across its California warehouses. Rental expense within cost of service decreased $1.7 million, or 4.3%, to $36.6 million; occupancy costs for warehouse capacity in pre-operational setup and ramp-up were recorded in general and administrative expenses rather than cost of service, as that capacity did not yet support revenue-generating activity. Gross profit was $0.4 million, or 0.2% of revenue, compared with a gross loss of $3.0 million, or negative 1.6% of revenue, in fiscal 2025.
General and administrative expenses: General and administrative expenses increased $7.3 million, or 49.7%, to $22.0 million from $14.7 million. Rental expense recorded in general and administrative expenses increased $6.2 million to $8.8 million, reflecting the occupancy costs of additional leased warehouse facilities, a portion of which remained underutilized during the year. Credit loss expense increased $1.1 million to $1.4 million, reflecting a higher allowance for credit losses on accounts receivable, other receivables, and loan receivables. Professional fees, office expenses, salaries, and benefits were essentially unchanged year over year.
Other income and income taxes: Total other income, net, was $0.7 million, compared with $0.8 million, reflecting lower rental income from sublease arrangements, partly offset by the absence of the $1.2 million loss on debt extinguishment recorded in fiscal 2025. Fiscal 2025 results included a $1.6 million income tax recovery; the Company recorded no income tax provision or recovery in fiscal 2026.
Net loss: Net loss was $20.9 million, or $(0.47) per basic and diluted share on 44,691,736 weighted average shares outstanding, compared with a net loss of $15.3 million, or $(0.37) per share on 41,808,909 weighted average shares outstanding, in fiscal 2025.
Balance Sheet and Liquidity
At June 30, 2026, cash and cash equivalents were $2.2 million, and restricted cash, held as collateral for standby letters of credit supporting certain of the Company’s leases, was $4.3 million, for total cash, cash equivalents, and restricted cash of $6.5 million, compared with $13.6 million at June 30, 2025. Net cash used in operating activities was $5.1 million, compared with net cash provided by operating activities of $1.5 million in fiscal 2025. Investing activities provided $0.7 million, as $4.8 million in loan repayments received exceeded $1.8 million in property and equipment purchases and $2.4 million in loans extended to third parties. Financing activities used $2.6 million, consisting of $2.0 million of cash repayments of convertible notes and $0.6 million of finance lease payments.
During fiscal 2026, the Company settled the entire balance of the convertible notes issued under its Standby Equity Purchase Agreement through $2.0 million of cash repayments and the conversion of $3.8 million into 3,192,145 shares of common stock in September 2025. Convertible notes outstanding were nil as of June 30, 2026, compared with $5.3 million as of June 30, 2025. Total liabilities decreased to $122.7 million from $145.1 million, primarily reflecting a $17.6 million reduction in operating lease liabilities and the settlement of the convertible notes. Total stockholders’ equity was $8.0 million at June 30, 2026.
Fiscal 2027 Priorities
The Company’s operating priorities for fiscal 2027 are to raise utilization across its eleven-warehouse network, particularly the Georgia, Illinois, Texas, and Ontario, California facilities added or expanded over the past two fiscal years; to continue diversifying its customer base across e-commerce platforms and geographies, including Southeast Asia and Mexico, while growing higher-value warehousing relationships; to execute the cost-optimization plan described above; and to continue evaluating targeted investments in supply-chain technology and warehouse automation, including conveyor systems, as part of its effort to lower unit costs.
About Armlogi Holding Corp.
Armlogi Holding Corp., based in Walnut, CA, is a U.S.-based warehousing and logistics service provider offering a comprehensive suite of supply-chain solutions, including warehouse management and order fulfillment. The Company caters to cross-border e-commerce merchants seeking to establish U.S. market warehouses. With 11 warehouses totaling approximately 3.8 million square feet, the Company offers one-stop warehousing and logistics services. The Company’s warehouses are equipped with facilities and technology to handle and store large, bulky items. For more information, please visit www.armlogi.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, our representatives may from time to time make forward-looking statements, orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our ability to achieve or maintain profitability; our business prospects and opportunities; and the expected benefits of our operational initiatives, including raising warehouse utilization, executing our cost-optimization plan, diversifying our customer base, and evaluating investments in supply-chain technology and warehouse automation. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to raise utilization across our warehouse network and achieve the anticipated cost efficiencies; the concentration of our revenue from customers based in the People’s Republic of China and the impact of changes in U.S.-China trade relations, tariffs, and geopolitical conditions; our ability to keep pace with new technology and changing market needs; the competitive environment of our business; changes in demand for our services; our dependence on third-party logistics service providers; and the going concern considerations described in our financial statements. These and other factors, including those described in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. Forward-looking statements speak only as of the date of this press release, and except as required by law, we undertake no obligation to update or revise any forward-looking statement publicly. The forward-looking events discussed in this press release and other statements made from time to time by our representatives or us may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions described above and in our SEC filings.
Company Contact:
info@armlogi.com
Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com
**Tables Follow**
| ARMLOGI HOLDING CORP. CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2026 AND 2025 (US$, except share data, or otherwise noted) | |||
| June 30, 2026 | June 30, 2025 | ||
| US$ | US$ | ||
| Assets | |||
| Current assets | |||
| Cash and cash equivalents | 2,217,199 | 9,190,277 | |
| Accounts receivable and other receivables, net of credit loss allowance of $1,273,113 and $594,869 at June 30, 2026 and 2025, respectively | 15,770,917 | 22,207,500 | |
| Other current assets, net of credit loss allowance of $266,953 and $nil | 30,182 | 998,925 | |
| Prepaid expenses | 926,375 | 1,375,646 | |
| Loan receivables, net of credit loss allowance of $453,449 and $nil | 1,059,612 | 3,893,563 | |
| Total current assets | 20,004,285 | 37,665,911 | |
| Non-current assets | |||
| Restricted cash | 4,325,148 | 4,387,550 | |
| Property and equipment, net | 10,775,190 | 11,259,820 | |
| Intangible assets, net | 13,148 | 54,627 | |
| Right-of-use assets – operating leases | 93,905,576 | 115,361,185 | |
| Right-of-use assets – finance leases | 1,092,157 | 745,547 | |
| Other non-current assets | 631,934 | 739,555 | |
| Total assets | 130,747,438 | 170,214,195 | |
| Liabilities and Stockholders’ Equity | |||
| Current liabilities | |||
| Accounts payable and accrued liabilities | 9,994,669 | 9,604,783 | |
| Contract liabilities | 515,997 | 939,097 | |
| Accrued payroll liabilities | 441,503 | 283,150 | |
| Convertible notes | — | 5,292,749 | |
| Operating lease liabilities – current | 34,028,979 | 29,280,907 | |
| Finance lease liabilities – current | 641,734 | 386,327 | |
| Total current liabilities | 45,622,882 | 45,787,013 | |
| Non-current liabilities | |||
| Operating lease liabilities – non-current | 76,606,696 | 98,939,552 | |
| Finance lease liabilities – non-current | 502,442 | 397,692 | |
| Total liabilities | 122,732,020 | 145,124,257 | |
| Stockholders’ equity | |||
| Common stock, US$0.00001 par value, 100,000,000 shares authorized, 45,443,079 and 42,250,934 shares issued and outstanding as of June 30, 2026 and 2025, respectively | 454 | 422 | |
| Additional paid-in capital | 20,468,826 | 16,668,858 | |
| Retained earnings (accumulated deficit) | (12,453,862 | ) | 8,420,658 |
| Total stockholders’ equity | 8,015,418 | 25,089,938 | |
| Total liabilities and stockholders’ equity | 130,747,438 | 170,214,195 | |
| ARMLOGI HOLDING CORP. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE YEARS ENDED JUNE 30, 2026 AND 2025 (US$, except share data, or otherwise noted) | ||||
| Year Ended June 30, 2026 | Year Ended June 30, 2025 | |||
| US$ | US$ | |||
| Revenue | 185,835,053 | 190,408,258 | ||
| Costs of service | 185,410,217 | 193,408,827 | ||
| Gross profit (loss) | 424,836 | (3,000,569 | ) | |
| Operating costs and expenses: | ||||
| General and administrative | 21,969,387 | 14,675,543 | ||
| Total operating costs and expenses | 21,969,387 | 14,675,543 | ||
| Loss from operations | (21,544,551 | ) | (17,676,112 | ) |
| Other (income) expenses: | ||||
| Other income, net | (1,215,885 | ) | (2,714,344 | ) |
| Loss on debt extinguishment | — | 1,192,431 | ||
| Gain (loss) on disposal of assets | (104,061 | ) | 43,625 | |
| Finance costs | 649,915 | 714,352 | ||
| Total other income | (670,031 | ) | (763,936 | ) |
| Loss before provision for income taxes | (20,874,520 | ) | (16,912,176 | ) |
| Current income tax recovery | — | (26,954 | ) | |
| Deferred income tax recovery | — | (1,536,455 | ) | |
| Total income tax recovery | — | (1,563,409 | ) | |
| Net loss | (20,874,520 | ) | (15,348,767 | ) |
| Total comprehensive loss | (20,874,520 | ) | (15,348,767 | ) |
| Basic and diluted net loss per share | (0.47 | ) | (0.37 | ) |
| Weighted average number of shares of common stock – basic and diluted | 44,691,736 | 41,808,909 | ||
| ARMLOGI HOLDING CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2026 AND 2025 (US$, except share data, or otherwise noted) | ||||
| Year Ended June 30, 2026 | Year Ended June 30, 2025 | |||
| US$ | US$ | |||
| Cash flows from operating activities: | ||||
| Net loss | (20,874,520 | ) | (15,348,767 | ) |
| Adjustments for items not affecting cash: | ||||
| Net (gain) loss from disposal of fixed assets | (104,061 | ) | 43,625 | |
| Depreciation of property and equipment and right-of-use finance lease assets | 3,503,493 | 2,931,993 | ||
| Amortization | 41,479 | 38,081 | ||
| Non-cash operating lease expense | 3,891,672 | 7,536,058 | ||
| Current estimated credit loss | 1,398,646 | 275,610 | ||
| Loss on debt extinguishment | — | 1,192,431 | ||
| Accretion of convertible note | 527,251 | 617,845 | ||
| Deferred income taxes recovery | — | (1,536,455 | ) | |
| Interest income | 20,503 | (144,501 | ) | |
| Changes in operating assets and liabilities: | ||||
| Accounts receivable and other receivables | 5,758,337 | 2,981,935 | ||
| Other current assets | 701,791 | 625,686 | ||
| Prepaid expenses | 449,271 | (246,211 | ) | |
| Other non-current assets | 107,621 | (28,000 | ) | |
| Accounts payable and accrued liabilities | (269,504 | ) | 2,102,444 | |
| Income tax payable | — | (57,589 | ) | |
| Contract liabilities | (423,100 | ) | 662,634 | |
| Accrued payroll liabilities | 158,353 | (122,100 | ) | |
| Net changes in derecognized ROU and operating lease liability | (20,847 | ) | (63,874 | ) |
| Net cash (used in) provided by operating activities | (5,133,615 | ) | 1,460,845 | |
| Cash flows from investing activities: | ||||
| Purchase of property and equipment | (1,842,391 | ) | (2,889,928 | ) |
| Proceeds from disposal of property and equipment | 191,161 | 48,000 | ||
| Loans extended to third parties | (2,400,000 | ) | (1,000,000 | ) |
| Proceeds from loan repayments | 4,760,000 | 2,036,705 | ||
| Net cash provided by (used in) investing activities | 708,770 | (1,805,223 | ) | |
| Cash flows from financing activities: | ||||
| Lending to related parties | — | (350,209 | ) | |
| Repayments of finance lease liabilities | (590,635 | ) | (360,443 | ) |
| Repayment of commitment payable | — | (150,000 | ) | |
| Repayment of convertible notes pursuant to SEPA | (2,020,000 | ) | (3,260,000 | ) |
| Proceeds from convertible notes | — | 8,092,473 | ||
| Net cash (used in) provided by financing activities | (2,610,635 | ) | 3,971,821 | |
| Net (decrease) increase in cash and cash equivalents and restricted cash | (7,035,480 | ) | 3,627,443 | |
| Cash and cash equivalents and restricted cash, beginning of year | 13,577,827 | 9,950,384 | ||
| Cash and cash equivalents and restricted cash, end of year | 6,542,347 | 13,577,827 | ||
| Reconciliation of cash and cash equivalents and restricted cash: | ||||
| Cash and cash equivalents | 2,217,199 | 9,190,277 | ||
| Restricted cash – non-current | 4,325,148 | 4,387,550 | ||
| Total cash and cash equivalents and restricted cash shown in the consolidated balance sheets | 6,542,347 | 13,577,827 | ||
| Supplemental disclosure of cash flows information: | ||||
| Cash paid for income tax | — | (122,248 | ) | |
| Cash paid for interest | — | (96,507 | ) | |
| Non-cash transactions: | ||||
| Increase (decrease) in right-of-use assets due to remeasurement of lease terms | 63,896 | (1,148,456 | ) | |
| Right-of-use assets acquired in exchange for operating lease liabilities | 4,605,476 | 27,857,474 | ||
| Right-of-use assets acquired in exchange for finance lease liabilities | 950,792 | 819,155 | ||
| Shares issued to settle commitment fee | — | 250,000 | ||
| Shares issued upon conversion of convertible notes issued pursuant to SEPA | 3,800,000 | 950,000 | ||
