Air T Inc generated $66.41 million of revenue in QQ1 2025, with gross profit of $14.04 million and a gross margin of 21.13%. The quarter shows a modest EBITDA of $2.81 million but an operating loss of $0.58 million and a net loss of $0.335 million, driven by ongoing fixed-cost absorption and heavy leverage. Year-over-year revenue declined 7.03% while gross profit rose 4.65% on a YoY basis, but sequential performance deteriorated notably in gross profit and operating income (QoQ gross profit down 15.84%, operating income down 139.71% to negative territory). The company posted a small operating cash flow of $0.11 million and effectively flat free cash flow at negative $0.226 million, highlighting tight near-term cash execution while maintaining liquidity with cash on hand of about $8.71 million. Leverage remains a core constraint: total debt stood at $130.59 million with a net debt of $122.77 million and a debt ratio of 0.74, underscoring elevated interest costs and refinancing risk in a volatile macro environment. Absence of a published earnings transcript in the provided data constrains the incorporation of direct management quotes, but the quantitative results imply a cautious near-term outlook with a need for margin expansion and working-capital discipline to drive a sustainable earnings trajectory.