Jerash Holdings (US), Inc. (NASDAQ: JRSH) reported significantly improved financial results for the fiscal 2026 third quarter ended Dec. 31, 2025, driven by higher shipments to key export markets and early contributions from a new strategic partner in Korea, according to the company’s earnings release.
Key Q3 FY26 highlights:
Revenue increased 0% year on year to $41.8 million.
Gross margin expanded by 170 basis points to 16.9%.
Operating income nearly tripled to $1.9 million.
Net income improved to $1.2 million, from near breakeven a year earlier.
Earnings per diluted share rose to $0.09.
Cash and restricted cash totaled $13.2 million at quarter-end.
Q3 FY26 performance
Revenue growth was supported by higher shipments to major export markets, including the U.S., and initial volumes from a new customer in Korea. Gross profit increased 31.0% to $7.0 million, reflecting improved product mix and scale benefits.
Operating expenses rose to $5.1 million due to higher sales volumes and recruitment costs, partly offset by lower stock-based compensation. Operating income reached $1.9 million, compared with $0.7 million in the prior-year quarter.
Net income attributable to common stockholders was $1.17 million, compared with a marginal loss a year earlier. Comprehensive income turned positive at $1.23 million, aided by operating improvements and favorable foreign currency movements.
Nine-month FY26 results
For the first nine months of fiscal 2026, revenue increased 5.8% to $123.4 million. Gross profit rose 13.7% to $19.4 million, lifting the gross margin to 15.7%.
Operating income nearly quadrupled to $4.0 million, reflecting operating leverage and better cost control. Net income attributable to common stockholders improved to $2.0 million, compared with a loss in the prior-year period.
Balance sheet and cash flows
As of Dec. 31, 2025, cash and restricted cash stood at $13.2 million, while net working capital was $36.4 million. Operating cash flow for the nine-month period was negative, reflecting higher receivables and advances to suppliers linked to growth in order volumes.
The company declared a regular quarterly dividend of $0.05 per share, payable on Feb. 20, 2026, to shareholders of record on Feb. 13, 2026.
Capacity expansion and outlook
Jerash announced the acquisition of a bank-owned manufacturing building and associated land to support expansion. Following renovations targeted for completion by the end of the calendar year, the new facility is expected to increase production capacity by at least 40%. Management said demand from new and existing customers is expected to exceed current manufacturing capacity, underpinning the expansion decision.
For the fiscal 2026 fourth quarter, the company expects revenue growth of 23%–26% year on year and gross margins of about 14%–16%, positioning fiscal 2026 for record annual revenue.
Business profile
Jerash manufactures and exports custom sportswear and outerwear for global brands and retailers. Its production base in Jordan comprises six factory units and four warehouses, employing about 6,000 people. The company continues to expand its customer base and product mix while investing in capacity to support higher volumes.
Summary
Jerash Holdings delivered a strong rebound in Q3 FY26, with higher revenue, margin expansion and a sharp improvement in profitability. Early contributions from a new Korean customer and stronger demand from core global brands supported growth. Planned capacity expansion is expected to improve operating flexibility and support further revenue growth in the coming quarters.
