Air T Inc posted QQ3 2025 revenue of $77.88 million, up 22.15% year over year and up 354.67% quarter over quarter to reflect a markedly stronger top line versus the prior quarter. The gross profit of $16.99 million yielded a gross margin of 21.8%, with operating income of $1.82 million (2.33% operating margin) and EBITDA of $2.99 million (EBITDA margin ≈ 3.84%). Net income was negative $1.30 million, or a loss per share of $0.47, driven by non-operating items and leverage dynamics rather than a collapse in core operations.
A notable cash-flow dynamic supported by the quarter is a robust working capital release: change in working capital of $15.95 million, including increases in accounts receivable of $6.05 million and inventory build of $12.46 million, partially offset by accounts payable movements of $(5.30) million and other working capital items. Despite a net loss on reported accounting basis, operating cash flow remained strong at $16.33 million and free cash flow was $15.98 million, underpinning liquidity in a leverage-heavy capital structure.
Balance-sheet and leverage remain the principal risk factors: total debt stood at $142.0 million with long-term debt at $121.3 million and short-term debt at $23.0 million. Cash and cash equivalents totaled $18.46 million. The company reported a current ratio of 1.90 and a quick ratio of 1.09, implying adequate near-term liquidity but a strained overall balance sheet given a total liabilities of $173.62 million versus $5.11 million in equity. The quarter’s profitability metrics show improving margins versus prior year, but the company remains challenged by net income and interest coverage, underscoring the need for ongoing deleveraging and potential efficiency initiatives.