Yijia Group Corp (YJGJ) reported QQ1 2025 results with a sharp sequential revenue reduction and a substantial operating loss, despite a healthy gross margin. Revenue stood at 108.5 million USD for the quarter, down approximately 80% QoQ from the prior quarter, while gross profit remained strong at 73.2 million USD (gross margin ~67.5%). However, SG&A and other operating costs overwhelmed gross profit, producing an operating loss of 45.4 million USD and a net loss of 55.2 million USD (net margin ~-50.9%). The company also exhibited a pronounced cash burn, with net cash used in operating activities of 504.0 million USD and free cash flow of -504.0 million USD for the quarter, contributing to a decline in cash on hand to 141.6 million USD from 593.0 million USD at the start of the period. Balance-sheet metrics show a solid liquidity position (current ratio ~6.02; cash ratio ~0.71) and negligible net debt (net debt about -86.0 million USD), supported by substantial equity (total stockholders’ equity ~1.001 billion USD). The quarter’s profitability deterioration appears driven largely by elevated operating expenses relative to revenue, rather than a weakness in gross margin, suggesting a strategic reassessment of cost structure and go-to-market investments is needed. Absent a material swing in SG&A and working-capital dynamics, near-term profitability remains a concern, even as the balance sheet provides cushion for transition. Management commentary and earnings call transcripts are not provided in the available materials, limiting quotes to qualitative interpretation of the posted figures. Investors should monitor cost-control initiatives, working capital dynamics, and any new contract wins or losses that could alter the revenue trajectory in the coming quarters.