Earnings release
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Jerash Holdings Reports Fiscal 2026 Second Quarter Financial Results FAIRFIELD, NEW JERSEY / ACCESS Newswire / November 12, 2025 / Jerash Holdings (US), Inc. (NASDAQ:JRSH) (the "Company" or "Jerash"), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced financial results for its fiscal 2026 second quarter ended September 30, 2025. Fiscal 2026 Second Quarter Highlights Revenue increased 4.3 percent to $42.0 million, from $40.2 million in the prior year quarter. Gross margin was 15.0 percent, compared with 17.5 percent in the prior year quarter. Operating income was $1.09 million, compared with $1.13 million in the prior year quarter. Net income was $479,000, compared with $665,000 in the prior year quarter. Outlook Revenue for the fiscal 2026 third quarter is expected to increase by 19 to 21 percent over the same quarter last year. Gross margin goal for the fiscal 2026 third quarter is approximately 13 to 15 percent. "Amid ongoing trade uncertainties, we continue to experience growing demand from our customers, as Jordan is increasingly becoming a preferred destination for global brands seeking to diversify their manufacturing partnerships beyond Asia," said Sam Choi, Jerash's chairman and chief executive officer. "In late June, we completed an expansion of our existing manufacturing facilities, adding approximately 15 percent to our much-needed production capacity. With increasing capacity requests from our global customers and strategic partners, we have initiated a long-term expansion plan to support anticipated growth. This includes exploring potential acquisitions and facility development on our own land to ensure that Jerash remains well-positioned to sustain our competitive edge and meet evolving market demands. "Gross margin for the quarter was lower than that for the same period last year, which benefited from catch-up production of higher-margin outerwear originally scheduled for the first quarter of fiscal 2025. Additionally, as we successfully continue to diversify our customer base and product mix, we expect a slightly lower average gross margin in the near term. As order volumes for our expanded product offerings continue to scale, our goal is to improve gross profit margins through increased production automation and the benefits of economies of scale. "During this important period of progress for the Company, we remain attentive to potential impacts of geopolitical uncertainties in the region and evolving tariff developments as we continue advancing our growth strategy," Choi added. Fiscal 2026 Second Quarter Results Revenue for the fiscal 2026 second quarter grew 4.3 percent to $42.0 million, from $40.2 million in the same quarter last year. The increase was primarily driven an increase in shipments to the U.S., resulting from a more diverse customer base in fiscal 2026. Gross profit was $6.3 million for the fiscal 2026 second quarter, compared with $7.1 million in the same quarter last year. Gross profit margin for the quarter declined to 15.0 percent, from 17.5 percent in the same period last year, which benefited from catch-up production of some outerwear that carried higher margins originally scheduled for the first quarter of fiscal 2025. The decrease was primarily driven by the diversification of customer base and product mix, which resulted in a lower average gross margin. Operating expenses totaled $5.2 million in the fiscal 2026 second quarter, compared with $5.9 million in the same quarter last year. The decrease was primarily due to better control of export costs and lower stock-based compensation expenses. Operating income was $1.09 million in the fiscal 2026 second quarter, slightly lower than $1.13 million in the same quarter last year. Total other expenses were $456,000 in the fiscal 2026 second quarter, compared with $364,000 in the same quarter last year. The increase was primarily due to the increase in financing needs to support business growth. Income tax expenses were $154,000 in the fiscal 2026 second quarter, compared with $106,000 in the prior year quarter. Net income was $479,000, or $0.04 per diluted share, in the fiscal 2026 second quarter, compared with $665,000, or $0.05 per diluted share, in the same quarter last year. Comprehensive income attributable to the Company's common stockholders totaled $444,000 in the fiscal 2026 second quarter, compared with $663,000 in the same quarter last year. Six-Month Fiscal Year 2026 Results Revenue for the first six months of fiscal year 2026 rose to $81.6 million, from $81.2 million in the same period last year. The increase was mainly due to the increase in overall demands for most of Jerash's major customers following the Company's efforts to diversify customer base. Gross profit increased 5.8 percent to $12.4 million for the first half of fiscal year 2026, compared with $11.7 million for the same period last year. Gross margin for the first six months of fiscal year 2026 increased to 15.2 percent, compared with 14.4 percent in the same period last year. Operating expenses for the first six months of fiscal year 2026 were $10.3 million, compared with $11.4 million for the same period last year. Operating income increased to $2.0 million for the first six months of fiscal year 2026, compared with $306,000 for the same period last year. The improvement was mainly attributable to reduced export logistics costs, lower stock-based compensation expenses, and reduced spending on repairs and maintenance. Total other expenses for the first six months of fiscal 2026 decreased to $763,000, compared with $790,000 for the same period last year, primarily due to lower interest expense. Income tax expenses were $483,000 for the first six months of fiscal year 2026, compared with $218,000 for the same period in prior year. Net income for the first six months of fiscal year 2026 was $803,000, or $0.06 per diluted share, compared with a net loss of $702,000, or $0.06 per share, in the same period last year. The increase was primarily driven by greater overall demand, improved control over import and export costs, and business growth that enabled lower average costs through economies of scale. Comprehensive income attributable to Jerash's common stockholders was $773,000 in the first six months of fiscal year 2026, compared with comprehensive loss of $673,000 for the same period last year. Balance Sheet, Cash Flow, and Dividends 11/12/25, 2:06 PM News Release https://feeds.issuerdirect.com/news-release.html?newsid=8655298089881168&symbol=JRSH 1/7
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Cash and restricted cash totaled $13.7 million, and net working capital was $35.2 million as of September 30, 2025. On November 7, 2025, Jerash's board of directors approved a regular quarterly dividend of $0.05 per share on its common stock, payable on November 26, 2025 to stockholders of record as of November 19, 2025. Conference Call Jerash Holdings will host an investor conference call to discuss its fiscal 2026 second quarter results today, November 12, 2025, at 9:00 a.m. Eastern Time. Phone: 888-506-0062 (domestic); 973-528-0011 (international) Conference ID: 589743 A live and archived webcast will be available online in the investor relations section of Jerash's website at www.jerashholdings.com. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the website. About Jerash Holdings (US), Inc. Jerash Holdings (US), Inc. manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands and retailers, including VF Corporation (which owns brands such as The North Face, Timberland, and Vans), New Balance, G-III (which licenses brands such as DKNY and Nautica), Acushnet Holdings Corp (which owns the brand FootJoy), American Eagle, and Skechers. Jerash's existing production facilities comprise six factory units and four warehouses, and Jerash currently employs approximately 6,000 people. Additional information is available at www.jerashholdings.com. Forward-Looking Statements This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "seek", "potential," "outlook" and similar expressions are intended to identify forward-looking statements. Such statements, including, but not limited to, Jerash's current views with respect to future events and its financial forecasts, and expansion of the customer base among high-profile global brands, are subject to such risks and uncertainties. Many factors could cause actual results to differ materially from the statements made, including those risks described from time to time in filings made by Jerash with the U.S. Securities and Exchange Commission. These and other risks and uncertainties are detailed in the Company's filings with the U.S. Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Statements contained in this news release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Jerash does not intend and does not assume any obligation to update these forward-looking statements, other than as required by law. Contact: PondelWilkinson Inc. Judy Lin or Roger Pondel 310-279-5980; jlin@pondel.com # # # (tables below) 11/12/25, 2:06 PM News Release https://feeds.issuerdirect.com/news-release.html?newsid=8655298089881168&symbol=JRSH 2/7
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JERASH HOLDINGS (US), INC., AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) For the Three Months Ended September 30, For the Six Months Ended September 30, 2025 2024 2025 2024 Revenue, net $41,968,534$40,240,127$81,597,842 $81,175,843 Cost of goods sold 35,678,854 33,182,244 69,219,282 69,478,089 Gross Profit 6,289,680 7,057,883 12,378,560 11,697,754 Selling, general, and administrative expenses 4,971,466 5,449,386 9,878,681 10,449,130 Stock-based compensation expenses 228,826 474,088 451,495 943,023 Total Operating Expenses 5,200,292 5,923,474 10,330,176 11,392,153 Income from Operations 1,089,388 1,134,409 2,048,384 305,601 Other Income (Expenses): Interest expenses (493,482) (503,149) (849,330) (983,352) Other income, net 37,153 139,166 86,467 193,201 Total other expenses, net (456,329) (363,983) (762,863) (790,151) Net income (loss) before provision for income taxes633,059 770,426 1,285,521 (484,550) Income tax expenses 153,756 105,877 482,588 217,598 Net income (loss) 479,303 664,549 802,933 (702,148) Net (gain) loss attributable to noncontrolling interest (17,698) (9,261) (22,652) 12,220 Net income (loss) attributable to Jerash Holdings (US), Inc.'s Common Stockholders $ 461,605$ 655,288$ 780,281$ (689,928) Net income (loss) $ 479,303$ 664,549 $ 802,933$ (702,148) Other Comprehensive Income (Loss): Foreign currency translation (loss) gain (17,215) 7,583 (7,651) 16,496 Total Comprehensive Income (Loss) 462,088 672,132 795,282 (685,652) Comprehensive (income) loss attributable to noncontrolling interest (17,698) (9,261) (22,652) 12,220 Comprehensive Income (Loss) Attributable to Jerash Holdings (US), Inc.'s Common Stockholders$ 444,390 $ 662,871$ 772,630$ (673,432) Earnings (Loss) Per Share Attributable to Common Stockholders: Basic and diluted $ 0.04 $ 0.05 $ 0.06 $ (0.06) Weighted Average Number of Shares Basic 12,699,940 12,294,840 12,699,940 12,294,840 Diluted 13,174,524 12,460,241 13,125,459 12,294,840 Dividend per share $ 0.05 $ 0.05 $ 0.10 $ 0.10 11/12/25, 2:06 PM News Release https://feeds.issuerdirect.com/news-release.html?newsid=8655298089881168&symbol=JRSH 3/7
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JERASH HOLDINGS (US), INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2025 March 31, 2025 (Unaudited) ASSETS Current Assets: Cash $ 12,002,314$ 13,346,791 Accounts receivable, net 5,798,578 3,076,074 Inventories 26,256,890 27,704,829 Prepaid expenses and other current assets 3,500,397 3,648,321 Advance to suppliers, net 7,995,085 6,644,194 Total Current Assets 55,553,264 54,420,209 Restricted cash - non-current 1,700,539 1,717,248 Long-term deposits 379,283 464,934 Property, plant, and equipment, net 24,667,532 25,023,681 Goodwill 499,282 499,282 Operating lease right of use assets 535,512 850,172 Total Assets $83,335,412$82,975,526 LIABILITIES AND EQUITY Current Liabilities: Credit facilities $ 5,176,438$ 4,512,462 Accounts payable 7,755,534 6,507,308 Accrued expenses 4,075,252 4,342,436 Income tax payable - current 865,161 1,305,386 Uncertain tax provision - 175,290 Other payables 1,502,010 2,149,185 Deferred revenue 691,264 487,004 Operating lease liabilities - current 314,685 339,699 Total Current Liabilities 20,380,344 19,818,770 Deferred tax liabilities, net 120 120 Operating lease liabilities - non-current 109,056 287,527 Total Liabilities 20,489,52020,106,417 Equity Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding$ - $ - Common stock, $0.001 par value; 30,000,000 shares authorized; 12,939,418 shares issued, and 12,699,940 shares outstanding as of September 30, 2025 and March 31, 2025, respectively 12,939 12,939 Additional paid-in capital 26,126,330 25,674,835 Treasury stock, 239,478 shares (1,169,046) (1,169,046) Statutory reserve 413,821 413,821 11/12/25, 2:06 PM News Release https://feeds.issuerdirect.com/news-release.html?newsid=8655298089881168&symbol=JRSH 4/7
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Retained earnings 37,907,188 38,396,901 Accumulated other comprehensive loss (520,773) (513,122) Total Jerash Holdings (US), Inc. Stockholders' Equity 62,770,459 62,816,328 Noncontrolling interest 75,433 52,781 Total Equity 62,845,892 62,869,109 Total Liabilities and Equity $83,335,412$82,975,526 11/12/25, 2:06 PM News Release https://feeds.issuerdirect.com/news-release.html?newsid=8655298089881168&symbol=JRSH 5/7
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JERASH HOLDINGS (US), INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Six Months Ended September 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 802,933$ (702,148) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation 1,506,793 1,209,053 Stock-based compensation expenses 451,495 943,023 Credit loss - 16,768 Amortization of operating lease right-of-use assets 316,722 300,559 Changes in operating assets: Accounts receivable (2,722,504) (392,484) Inventories 1,447,940 7,034,774 Prepaid expenses and other current assets 147,924 (470,777) Advance to suppliers (1,350,891) (2,942,296) Changes in operating liabilities: Accounts payable 1,248,225 (1,945,505) Accrued expenses (267,184) (520,948) Other payables (647,175) 133,937 Deferred revenue 204,260 1,112,963 Operating lease liabilities (205,547) (238,237) Income tax payable (614,713) (1,112,062) Net cash provided by operating activities 318,278 2,426,620 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property, plant, and equipment (844,401) (348,238) Payments for construction of properties - (270,599) Payment for long-term deposits (209,543) (317,386) Net cash used in investing activities (1,053,944) (936,223) CASH FLOWS FROM FINANCING ACTIVITIES Dividend payment (1,269,994) (1,229,484) Repayment from short-term loan (10,003,284) (5,566,040) Proceeds from short-term loan 10,667,260 9,136,277 Net cash (used in) provided by financing activities (606,018) 2,340,753 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND RESTRICTED CASH(19,502) 16,018 NET (DECREASE) INCREASE IN CASH AND RESTRICTED CASH (1,361,186) 3,847,168 CASH, AND RESTRICTED CASH, BEGINNING OF THE PERIOD 15,064,039 14,036,867 CASH, AND RESTRICTED CASH, END OF THE PERIOD $ 13,702,853$ 17,884,035 CASH, AND RESTRICTED CASH, END OF THE PERIOD $ 13,702,853$ 17,884,035 11/12/25, 2:06 PM News Release https://feeds.issuerdirect.com/news-release.html?newsid=8655298089881168&symbol=JRSH 6/7
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LESS: NON-CURRENT RESTRICTED CASH 1,700,539 1,545,457 CASH, END OF THE PERIOD $ 12,002,314$16,338,578 Supplemental disclosure information: Cash paid for interest $ 849,330$ 983,352 Income tax paid $ 1,105,128$ 1,329,150 Non-cash investing and financing activities Equipment obtained by utilizing long-term deposit $ 295,195$ 262,017 Operating lease right of use assets obtained in exchange for operating lease obligations $ - $ 67,512 SOURCE: Jerash Holdings (US), Inc. 11/12/25, 2:06 PM News Release https://feeds.issuerdirect.com/news-release.html?newsid=8655298089881168&symbol=JRSH 7/7