CXJ Group Co Limited delivered QQ3 2025 results with a sharp year-over-year revenue contraction and a negative bottom-line, despite an outsized gross margin. Revenue stood at USD 64,541 thousand (hereafter USD 64.5k in thousands are shown as reported), down about 83% from the prior-year period and down roughly 36% quarter-over-quarter, reflecting a dramatic scale-down in activity and potential underutilization of fixed cost structure. Gross profit remained robust at USD 62,098 thousand with a gross margin of 96.2%, but operating profitability collapsed to an EBITDA and net income of USD -64,640 thousand and USD -64,638 thousand respectively, indicating that operating expenses and other accounting items more than offset the strong gross margin.
Cash flow shows resilience in operating activity, with USD 26,736 thousand generated from operations and a free cash flow of USD 26,736 thousand despite the net loss, suggesting non-cash adjustments or one-off items affecting reported income. The balance sheet depicts a leveraged-looking profile for a micro-cap, with substantial goodwill (USD 1,742,577 thousand) and total assets around USD 2,322,703 thousand, but anemic liquidity metrics (current ratio ~0.30, cash ratio ~0.0013) and a modest cash position (USD 2,364 thousand) against a USD 32,123 thousand long-term debt. The company’s investment thesis hinges on a turnaround in top-line growth or a rebalancing of operating costs to translate the cash flow strength into sustainable profitability. Given the absence of a formal earnings call transcript in the data, management commentary cannot be quoted directly in this summary; investors should monitor next-steps on cost discipline and revenue resumption.