This article first appeared on GuruFocus .
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Revenue:Increased 18% to $41.8 million from $35.4 million in the same quarter last year.
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Gross Profit:Increased 31% to $7 million from $5.4 million in the same quarter last year.
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Gross Profit Margin:Improved to 16.9% from 15.2% in the same period last year.
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Operating Expenses:Totaled $5.1 million, up from $4.7 million in the same quarter last year.
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Operating Income:Nearly tripled to $1.9 million from $708,000 in the same quarter last year.
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Net Income:Rose to $1.2 million or $0.09 per diluted share from $6,000 or $0.00 per diluted share in the same quarter last year.
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Comprehensive Income:Advanced to $1.2 million from a comprehensive loss of $147,000 in the same quarter last year.
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Cash and Restricted Cash:Totaled $13.2 million as of December 31, 2025.
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Net Working Capital:$36.4 million as of December 31, 2025.
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Inventory:$26 million as of December 31, 2025.
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Accounts Receivable:$7.8 million as of December 31, 2025.
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Net Cash Used in Operating Activities:Approximately $3.5 million for the nine months ended December 31, 2025.
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Dividend:Regular quarterly dividend of $0.05 per share approved, payable on February 20, 2026.
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Future Revenue Guidance:Expected to increase by 23% to 26% for the fiscal 2026 fourth quarter over the same quarter last year.
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Future Gross Margin Target:14% to 16% for the fiscal 2026 fourth quarter.
Release Date: February 09, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Jerash Holdings (US) Inc ( NASDAQ:JRSH ) reported an 18% increase in revenue for the fiscal 2026 third quarter, reaching $41.8 million.
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Gross profit increased by 31% to $7 million, with a gross profit margin improvement to 16.9% from 15.2% in the previous year.
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The company announced the acquisition of a 184,000 sq ft manufacturing building in Amman, Jordan, which is expected to increase manufacturing capacity by at least 40%.
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Jerash Holdings is diversifying its customer base and product mix, which supports more stable year-round production and reduces seasonality impacts.
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The company is collaborating with the Jordan Ministry of Labor to develop additional facilities in rural towns, expected to add 5% to 10% to total production capacity.
Negative Points
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Operating expenses increased to $5.1 million, primarily due to higher sales volumes and increased recruitment costs.
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Net cash used in operating activities was approximately $3.5 million for the nine months ended December 31, 2025, compared to $581,000 in the same period in fiscal 2025.
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The company is taking on long-term debt to finance the $5 million renovation and equipment costs for the new facility, with an 8% interest rate.
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There is ongoing pricing pressure from major customers due to global tariff situations, affecting profit margins.
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The company faces potential geopolitical risks in the region, which could impact operations and logistics.
Q & A Highlights
Q: How will Jerash Holdings finance the $5 million needed for renovations and the $2.8 million from the Housing Bank? A: Gilbert Lee, CFO, explained that the $5 million for renovations and equipment will be financed by the Housing Bank with a subsidized interest rate, showing up as long-term debt on the balance sheet. The $2.8 million for the building and land will also be a mortgage from the Housing Bank, with an 8% interest rate and an 8-year term.
Q: Can you provide more details on the two additional facilities and their financing? A: Gilbert Lee, CFO, stated that the new facilities are smaller satellite factories in rural areas, developed in cooperation with the Jordan Ministry of Labor. These facilities aim to create local employment and will be financed similarly to past projects, with support from the government for importing skilled foreign workers.
Q: How quickly will the new 40% capacity be operational, and how will it impact revenue? A: Gilbert Lee, CFO, anticipates renovations to be completed by the end of 2026, with operations ramping up by early 2027. The new facility will gradually increase capacity by 40% and employ 2,500 workers, with full integration expected to take one to two years.
Q: What factors contributed to the healthy gross margins this quarter, and what is the outlook? A: Gilbert Lee, CFO, attributed the improved margins to high-volume orders from Hansoll, which enhanced efficiency and economies of scale. Future margins may decrease as production shifts to more complex styles, but ongoing efficiency improvements and automation are expected to help control costs.
Q: How is Jerash Holdings preparing for potential geopolitical disruptions in the region? A: Eric Tang, Head of Operations in Jordan, stated that the company closely monitors the political situation and maintains communication with the Ministry of Foreign Affairs. Current operations at Haifa and Aqaba ports are stable, and contingency plans are in place to mitigate potential disruptions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
