Cheetah Net Supply Chain Service Inc. (Nasdaq CM: CTNT) turned profitable in the second quarter of 2026, reporting a net income of $71,045 compared to a net loss of $512,528 in the same period of 2025. The logistics and trading provider saw total revenue surge 145.4% year-over-year to $868,909, driven largely by its new international trading operations.

The results beat market expectations on both earnings and top-line metrics. The company reported an EPS of $(0.037), which was significantly better than the $(0.66) estimate. Additionally, total revenue of $868,909 exceeded the $100,000 estimate, reflecting the rapid scale-up of its new trading business.

The financial turnaround was not operational but rather fueled by significant non-recurring items. While the company posted an operating loss of $881,797—up 12.9% from the prior year’s $780,849 due to higher selling, general, and administrative expenses—it recognized $954,052 in other income. This figure was dominated by a foreign exchange gain of $979,277, which more than offset the operating deficit and a $297,610 loss on the disposal of Edward Transit Express Group Inc.

Segment Performance

The company’s strategic pivot away from its legacy logistics business toward international trading defined the quarter’s results.

• International Trading: This segment generated all of the company’s revenue for the quarter at $868,909. Of this, $660,000 (76.0%) came from Super International Trading Limited, acquired on May 27, 2026. The segment reported a gross profit of $19,500 against costs of revenue of $849,409.
• Logistics and Warehousing: Revenue fell to nil from $354,126 in Q2 2025. Management cited the disposal of Edward Transit Express Group and headwinds for the remaining TWEW unit, including tighter U.S. immigration policies, higher labor costs, and constrained labor availability.

What the Numbers Show

The headline profitability masks a fragile underlying operational structure. The company’s net income of $71,045 is entirely dependent on non-operating factors; without the $954,052 in other income (primarily forex gains), the company would have reported a net loss of approximately $810,752. Furthermore, the international trading segment, while driving top-line growth, operates on razor-thin margins, generating only $19,500 in gross profit on $868,909 in revenue—a gross margin of roughly 2.2%. This suggests that volume growth in trading has not yet translated into meaningful operational leverage.

Balance Sheet and Liquidity

Despite the quarterly profit, management highlighted ongoing liquidity concerns. For the six months ended June 30, 2026, the company reported a net operating loss of approximately $1.6 million and used $0.9 million in cash from operating activities. These factors have raised doubts about the company’s ability to continue as a going concern.

As of June 30, 2026, Cheetah Net held $2.1 million in cash and cash equivalents, a significant increase from $233,217 at the end of December 2025. The balance sheet also reflects substantial illiquid assets, including a $41.1 million receivable from withdrawal of investment deposit and $30.0 million in loan receivables from third parties. Total current assets stood at $75.7 million against current liabilities of $1.6 million, resulting in a working capital balance of $74.1 million.

Tony Liu, Chairman and CEO, stated that the company will focus on integrating its international trading operations while maintaining financial discipline. He noted that the disposal of Edward Transit Express Group was completed to optimize the business structure and reduce ongoing operating costs.

Cheetah Net Supply Chain Service Inc. shares jumped 17.74% in after-hours trading to $1.87 after a Securities and Exchange Commission filing disclosed CEO, Interim CFO and Chairman Huan Liu purchased 200,000 shares of Class B common stock through a private placement. Liu acquired the shares at $2.00 per share on Monday, totaling $400,000, a move generally interpreted as a strong vote of confidence in the company's prospects.

Insider Ownership and Recent Performance

According to a separate SEC filing, the transaction lifted Liu's aggregate beneficial ownership to 203,456 shares, representing a 6.4% stake based on 2.95 million Class A shares outstanding. Liu acquired the shares for investment purposes and has no plans for mergers, asset sales or board changes. Cheetah Net closed the regular session down 1.55% at $1.58.

In its most recently reported quarter in May, Cheetah posted a loss per share of $4.53, beating the estimate of negative $10.00 by 54.7%, though revenue of $92,700 missed the $200,000 estimate by 53.6%. The buy follows Cheetah Net's acquisition of Super International Trading Limited, a Hong Kong-based large-scale industrial equipment trading firm, in June.

Trading Metrics and Technical Analysis

The stock underwent a 1-for-200 reverse stock split on Apr. 20. The small-cap stock of the California-based logistics and warehousing services company has dropped 99.37% over the past 12 months and is currently trading close to its yearly low. Benzinga's Edge Stock Rankings indicate that CTNT has a negative price trend across all time frames.