Yijia Group Corp (YJGJ) reported QQ1 2026 results with a sharp revenue decline and a meaningful net loss, despite a solid gross margin. Revenue was $103,899 thousand, down 80.92% year over year and 66.30% quarter over quarter, while gross profit stood at $68,781 thousand for a gross margin of about 66.2%. Operating income was a modest $2,488 thousand (2.39% of revenue), but the company posted a net loss of $46,301 thousand and an EPS of -0.0019, driven by substantial 'other income/expenses' totaling roughly -$34.9 million in the quarter and an income tax impact that reflects a tax benefit/expense dynamic. EBITDA was positive at $2,488 thousand, yielding an EBITDARatio of about 0.024, yet the bottom line remained negative due to the higher non-operating charge and tax interactions.
From a balance sheet perspective, YJGJ remains cash-rich with cash and equivalents of $1.046 million and no long-term debt, producing a net cash position of approximately $1.046 million. Total assets were $2.242 million against total liabilities of $0.380 million and stockholders’ equity of $1.862 million, signaling a solid liquidity buffer to weather near-term volatility. Deferred revenue is modest at $10,775, and taxes payable run at $300,543, underscoring near-term cash tax considerations that could evolve as the revenue base stabilizes.
Management commentary is not embedded in the provided transcript data, limiting the ability to quote specific management lines. The lack of forward-looking guidance in the filing suggests a prudent stance near-term, with attention likely on pipeline development, cost discipline, and utilization metrics to drive a path back to profitability. In the near term, the primary investment risk is the material revenue drop against a relatively fixed cost base, while the opportunity lies in leveraging strong liquidity to scale client work and improve utilization over the rest of 2026.