8-K: Cheetah Net Reports Q3 2026 Results: Revenue Surges, Net Loss Widens

Cheetah Net Supply Chain Service Inc. announced a significant revenue increase in Q3 2026 driven by its international trading segment, but also reported a substantially wider net loss.

Summary

• Cheetah Net Supply Chain Service Inc. reported third quarter 2026 revenue of $3,557,805, an 883.0% increase from $361,935 in the same period of 2025.
• The company experienced an operating loss of $821,890 for Q3 2026, a decrease of 47.5% from $1,564,479 in Q3 2025.
• However, net loss from continuing operations increased by 93.8% to $2,547,995 in Q3 2026, compared to $1,314,650 in Q3 2025.
• This widened net loss was primarily due to a $2,783,884 loss from the change in fair value of acquisition-related contingent consideration.
• The logistics and warehousing segment reported $nil revenue for Q3 2026, down from $361,935 in Q3 2025, due to business dispositions and contract expirations.
• The international trading segment, boosted by the acquisition of Super International Trading Limited, generated $3,557,805 in revenue for the quarter.
• For the nine months ended September 30, 2026, the company reported a net loss of $3,093,215, compared to $2,581,087 in the same period of 2025.
• The company had $14.5 million in cash and cash equivalents and $87.1 million in working capital as of September 30, 2026.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative score due to a significant increase in net loss despite a substantial revenue jump, driven by acquisition costs and operational challenges in the core logistics business.

Positives

• Total revenue for the third quarter of 2026 surged to $3,557,805, an 883.0% increase compared to $361,935 in the prior year's third quarter.
• The international trading business, acquired in May 2026, contributed $3.56 million in revenue during the quarter, showing encouraging momentum.
• Operating loss decreased by 47.5% to $821,890 for the third quarter of 2026, down from $1,564,479 in the same period of 2025.
• Gross profit for the third quarter of 2026 was $281,407, a significant increase from $44,178 in the prior year's third quarter.
• Interest income from continuing operations increased by 62.7% to $398,232 for the third quarter of 2026.
• Net other income from continuing operations saw a substantial increase of 5,065.9% to $666,508 for the third quarter of 2026.
• As of September 30, 2026, the company held $14.5 million in cash and cash equivalents and $87.1 million in working capital.
• The company has a receivable from withdrawal of investment deposit of $41.8 million and loans receivable from third parties of approximately $29.5 million.

Negatives

• Net loss from continuing operations increased significantly by 93.8% to $2,547,995 for the third quarter of 2026, compared to $1,314,650 in the same period of 2025.
• A substantial loss of $2,783,884 from the change in fair value of acquisition-related contingent consideration heavily impacted the net loss.
• Revenue from the logistics and warehousing services segment was $nil for the third quarter of 2026, a 100% decrease from $361,935 in the prior year's third quarter.
• The company reported a net loss of $3,093,215 for the nine months ended September 30, 2026, an increase from $2,581,087 for the same period in 2025.
• Net cash used in operating activities was $2,543,247 for the nine months ended September 30, 2026.
• General and administrative expenses for continuing operations-corporate unallocated operating adjustments increased by 51.1% to $1,048,697 for Q3 2026.
• The company recognized an unrealized foreign exchange gain of $652,422 on a receivable, which masked a larger underlying loss from continuing operations before income taxes.
• The company's core logistics and warehousing business continues to face challenges.

Risks

• The logistics and warehousing business continues to face challenges arising from evolving global trade conditions and cross-border customer demand.
• The company may continue to incur operating losses and generate negative cash flow as it integrates its international trading business and develops its logistics services.
• The company's ability to continue as a going concern is dependent on its ability to generate cash from operations, pursue debt financing, and potentially seek financial support from its principal stockholder or additional equity financing.
• The company is exposed to foreign exchange rate fluctuations, as evidenced by the significant unrealized foreign exchange gain recognized on an investment deposit receivable.

Future Outlook

Management remains committed to disciplined capital allocation, prudent financial management, and pursuing strategic opportunities that complement existing capabilities. The company believes its diversification efforts and strengthened operating platform will position it for sustainable long-term growth. However, the company may continue to incur operating losses and generate negative cash flow while integrating its new business and developing its services.

Management Comments

• "The third quarter of 2026 marked an important step forward in the execution of our business diversification strategy."
• "Following the acquisition of Super International Trading Limited in May, our international trading business demonstrated encouraging momentum, generating approximately $3.56 million in revenue during the quarter."
• "While our logistics and warehousing business continues to face challenges arising from evolving global trade conditions and cross-border customer demand, we remain focused on optimizing our operating structure and allocating resources toward opportunities that we believe offer greater long-term growth potential."
• "We are encouraged by the progress of our international trading business and will continue to focus on strengthening its operations, expanding business opportunities, and improving operational efficiency."
• "Looking ahead, we remain committed to disciplined capital allocation, prudent financial management, and the pursuit of strategic opportunities that complement our existing capabilities."
• "We believe that our continued efforts to diversify our revenue streams and strengthen our operating platform will position the Company for sustainable long-term growth."

Industry Context

StockSavvy.ai notes that the significant revenue growth in the international trading segment, driven by acquisition, is a common strategy in the logistics and supply chain sector to diversify and expand market reach. However, the decline in the traditional logistics and warehousing segment highlights the ongoing pressures and evolving dynamics within that part of the industry, including global trade shifts and customer demand changes.

Related Party Transactions

• Due to a related party of $10,745 as of September 30, 2026.

Stakeholder Impact

• Shareholders may be concerned by the significant increase in net loss despite revenue growth, potentially impacting stock valuation.
• Employees in the logistics and warehousing segment may face uncertainty due to the cessation of revenue in that division and ongoing business challenges.
• Creditors and suppliers may be concerned about the company's ability to meet obligations given the net loss and cash used in operations, although current liquidity appears sufficient for the short term.

Next Steps

• Continue to focus on strengthening operations, expanding business opportunities, and improving operational efficiency in the international trading business.
• Optimize the operating structure and allocate resources toward opportunities with greater long-term growth potential in the logistics and warehousing business.
• Renegotiate logistics and labor services arrangements with customers that had business relationships with TWEW prior to its acquisition.
• Generate cash from operations, pursue debt financing, and potentially seek financial support from its principal stockholder to improve liquidity.
• If necessary, seek additional equity financing from outside investors.

Key Dates

Recommendation

The substantial increase in net loss, driven by acquisition-related costs and the complete collapse of revenue in the core logistics business, outweighs the impressive revenue growth from the acquired international trading segment. The company's reliance on potential future financing and ongoing operational challenges in its legacy business present significant risks. While the international trading segment shows promise, the overall financial deterioration and uncertainty regarding the core business warrant a cautious approach.

Keywords

Supply Chain Services, Logistics, Warehousing, International Trading, Financial Results, Revenue Growth, Net Loss, Acquisition