10-K · June 29, 2026
Addentax Group Corp. reported a net loss of $4.47 million for the fiscal year 2026, a slight improvement from a net loss of $5.09 million in 2025. Revenue increased to $5.37 million, up 28.5% from $4.18 million, driven…
Earnings analysis · 10-Q
ATXG earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
The quarter showed a sharp improvement in revenue, EPS and free cash flow, with revenue of approximately $3.0 million, diluted EPS of $1.23 and free cash flow of $447,136. However, gross margin fell to 1.7% and…
Read full summary
The quarter showed a sharp improvement in revenue, EPS and free cash flow, with revenue of approximately $3.0 million, diluted EPS of $1.23 and free cash flow of $447,136. However, gross margin fell to 1.7% and operating margin worsened sequentially to negative 23.9%, keeping the earnings trend mixed despite year-over-year improvement. The filing provides no quantitative guidance and highlights ongoing integration of Time Is Loan Limited's financial reporting controls after the May 15, 2026 acquisition.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Reported figures
- Earnings per share
- $1.23
What stood out
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Revenue accelerated
Revenue increased to approximately $3.0 million from $975,823 in the prior quarter and approximately $2.0 million in the prior-year quarter, representing sequential and year-over-year growth.
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EPS turned positive
Diluted EPS improved to $1.23 from a $(6.75) loss in the prior quarter and a $(4.80) loss in the prior-year quarter.
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Free cash flow turned positive
Free cash flow improved to $447,136 from $(147,669) in the prior quarter and $(38,450) in the prior-year quarter.
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Gross margin remained thin
Gross margin declined to 1.7% from 30.2% sequentially, although it improved from negative 17.9% in the prior-year quarter.
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Operating losses improved year over year
Operating margin was negative 23.9%, down from negative 7.0% sequentially but substantially better than negative 81.4% in the prior-year quarter.
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Controls integration underway
Management concluded that disclosure controls were effective as of June 30, 2026, while beginning integration of Time Is Loan Limited's controls following the May 15, 2026 acquisition.
What to watch
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Acquired-business integration risk
The acquisition of Time Is Loan Limited on May 15, 2026 requires integration of controls covering loan receivables, interest income recognition, collections, credit-loss assessment and period-end reporting; integration remains ongoing.
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Limited risk-factor disclosure
The filing provides no Item 1A risk-factor update because the company qualifies as a smaller reporting company, limiting detail on newly emerging risks.
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Thin margins and operating losses
Profitability remains pressured: operating margin was negative 23.9% and gross margin was only 1.7% despite diluted EPS of $1.23.
Management's outlook
No quantitative revenue or EPS outlook was provided in the filing. The company states it is a smaller reporting company and is not required to provide Item 1A risk-factor disclosures.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.