Mon, Mar 17, 8:44 PM (39 days ago)
**Summary of Maison Solutions Inc. (MSS) Q3 2025 Financial Performance:** **Revenue and Profit Margins:** - **Revenue:** $94.8 million for Q3 2025, up 130.6% YoY, driven by the inclusion of revenues from the newly acquired subsidiary, Lee Lee. - **Gross Profit:** $23.9 million, with a gross margin of 25.3%, up 2.4% YoY. - **Net Income:** $1.46 million, a significant improvement from a $562.4K loss in Q3 2024. **Operating Expenses:** - **Total Operating Expenses:** $20.5 million, up 127.9% YoY, primarily due to increased selling expenses and general and administrative expenses. - **Selling Expenses:** $15.1 million, up 116.4% YoY. - **General and Administrative Expenses:** $5.4 million, up 100.6% YoY. **Cash Flow:** - **Operating Cash Flow:** $6.4 million, a significant improvement from a $887.4K outflow in Q3 2024. - **Investing Cash Flow:** -$216.4K, mainly due to store renovation and equipment purchases. - **Financing Cash Flow:** -$5.7 million, primarily due to repayments on notes payable. **Liquidity and Debt:** - **Cash on Hand:** $445.4K as of Q3 2025. - **Outstanding Debt:** $8.3 million in secured senior note payable due to the acquisition of Lee Lee, with a maturity date of May 11, 2026. **Uncertainties and Future Operations Impact:** - **Inflation:** Increased purchase costs, occupancy costs, and payroll costs due to inflation. - **Competition:** Intensifying competition from national, regional, and local supermarkets. - **Legal Proceedings:** Several legal proceedings and lawsuits that could potentially impact financial statements. - **Expansion Plans:** Plans to acquire and open additional supermarkets, which will require significant capital investment and may involve risks. **Key Metrics:** - **Revenue Growth:** 130.6% YoY. - **Gross Margin:** 25.3%. - **Net Income Margin:** 1.53%. - **Operating Cash Flow Margin:** 6.77%. **Conclusion:** Maison Solutions Inc. showed strong revenue growth and improved profitability in Q3 2025, driven by the acquisition of Lee Lee. However, the company faces challenges such as increased competition, legal proceedings, and significant capital requirements for future expansion. The company's liquidity and cash flow position are crucial for funding operations and future growth initiatives.