Cheetah Net (CTNT) Q2 Revenue Jumps 279%

Key Points

• Revenue (GAAP) surged 278.9% year over year in Q2 2025, reaching $354,126 and beating estimates by $54,126.

• Net loss from continuing operations on a GAAP basis narrowed by 6.8% in Q2 2025, but gross profit declined despite higher sales.

• No forward guidance was provided by management for upcoming quarters.

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Cheetah Net Supply Chain Service (NASDAQ:CTNT), a logistics provider shifting rapidly from vehicle imports to warehousing and shipping services, posted its second-quarter 2025 earnings on August 4, 2025. The most notable news was a dramatic rise in revenue to $354,126 (GAAP) in Q2 2025, up 278.9% from a year ago and far ahead of analyst estimates of $300,000. The company also reported a narrowing net loss of $512,528 for Q2 2025, an improvement compared to Q2 2024. Loss per share was $0.16 (GAAP) in Q2 2025, compared to expectations for a loss of $0.21 per share. Still, gross profit (GAAP) fell from the prior year's level, indicating margin pressure. Overall, the quarter showed rapid top-line growth (GAAP revenue increased 278.9% year-over-year), but profitability has yet to stabilize.

Source: Analyst estimates for the quarter provided by FactSet.

Company Overview and Strategic Focus

Cheetah Net Supply Chain Service (NASDAQ:CTNT) is in the midst of a significant transformation, moving away from its original parallel-import vehicle sales model to become a logistics and warehousing business. This pivot followed a steep drop in vehicle sales, with revenue (GAAP) from that segment declining 95.7% between the years ended December 31, 2023, and 2024. The board approved discontinuing the auto import business in March 2025, and now all reported revenue comes from logistics and warehousing.

In its new focus, the company's main business is facilitating international shipments, especially between the U.S. and China, using warehousing, freight forwarding, and customs clearance. Recent acquisitions of Edward Transit Express Group and TWEW have been central to this shift, providing established logistics infrastructure and customer relationships. Success in integrating these two businesses, expanding the customer base, and managing operational costs are now key factors for ongoing growth.

Quarterly Highlights and Financial Performance

The standout headline was the 278.9% year-over-year increase in GAAP revenue to $354,126. All of this income stemmed from the logistics and warehousing segment, reflecting the company's transition out of automotive trading. Of this, TWEW contributed 85.1% of revenue ($301,442), while Edward accounted for $52,684 in revenue, though Edward's revenue dropped 43.7% compared to Q2 2024 due to shifting U.S.-China trade tariffs. This reveals both the benefits and risks of focusing tightly on cross-border trade lanes.

While top-line results were strong, profitability trends were less favorable. Gross profit fell 27.3% from the prior year, despite higher overall sales. The decline in gross margin, down to just 9.9% from 51.3% a year earlier for the logistics and warehousing service segment, underscores sharp increases in the direct costs of delivering logistics and warehousing services. Integration costs, higher rentals, depreciation, and share-based compensation all contributed to pressure on margins. The operating loss improved slightly to $780,849, down from $817,389 in Q2 2024.

General and administrative expenses decreased 6.9% year over year, reflecting some cost-control progress post-acquisition. However, the company remained reliant on non-operating income, with interest income soaring to $272,228, up almost ninefold from a year ago, mostly from short-term financial investments funded by prior public offerings.

As part of its transformation, the company exited its auto import business in full. This removed $200,297 in segment revenue and related losses but leaves Cheetah Net dependent on logistics alone. Elsewhere, Edward segment performance highlighted exposure to U.S.-China policy volatility, confirming sensitivity to external events that could affect future quarters. No new dividend was declared or altered.

Looking Ahead: Guidance and Points to Watch

No explicit numerical guidance was provided for the next quarter or for fiscal 2025. Management statements focused on continued integration of recent acquisitions and stabilization against possible trade policy swings but did not detail revenue or earnings goals. The absence of forward guidance limits visibility for investors, making it important to track margin trends and segment contributions in subsequent quarters.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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