Executive Summary
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 β 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 quarterβs 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.
Key Performance Indicators
QoQ: 354.67% | YoY:22.15%
QoQ: 178.69% | YoY:38.50%
QoQ: -53.42% | YoY:212.94%
QoQ: -151.47% | YoY:56.46%
QoQ: -151.65% | YoY:55.66%
Key Insights
Revenue: $77.88M, YoY +22.15%, QoQ +354.67%
Gross Profit: $16.99M, Gross Margin 21.82%
Operating Income: $1.82M, Operating Margin 2.33%
EBITDA: $2.99M, EBITDA Margin ~3.84%
Net Income: -$1.30M, Net Margin -1.67%
EPS: -$0.47 per share, Diluted -$0.47
Cash Flow: Operating cash flow $16.33M; Free cash flow $15.98M; Capex $0.35M; FCF/OCF ~98%
Balance Sheet: Total assets $187.6M; Total liabilities $173.6M; Total equity $5.11M; Net debt $123.54M
Liquidity: Current ratio 1.90; Quick ratio 1.09; Cash ra...
Financial Highlights
Revenue: $77.88M, YoY +22.15%, QoQ +354.67%
Gross Profit: $16.99M, Gross Margin 21.82%
Operating Income: $1.82M, Operating Margin 2.33%
EBITDA: $2.99M, EBITDA Margin ~3.84%
Net Income: -$1.30M, Net Margin -1.67%
EPS: -$0.47 per share, Diluted -$0.47
Cash Flow: Operating cash flow $16.33M; Free cash flow $15.98M; Capex $0.35M; FCF/OCF ~98%
Balance Sheet: Total assets $187.6M; Total liabilities $173.6M; Total equity $5.11M; Net debt $123.54M
Liquidity: Current ratio 1.90; Quick ratio 1.09; Cash ratio 0.39
Leverage: Debt to capitalization ~96.5%; Debt to equity ~27.77x; Long-term debt $121.27M; Short-term debt $23.03M
Cash Position: Cash at end of period $18.77M; Cash on hand $18.46M (cash & equivalents)
Income Statement
Metric |
Value |
YoY Change |
QoQ Change |
Revenue |
77.88M |
22.15% |
354.67% |
Gross Profit |
16.99M |
38.50% |
178.69% |
Operating Income |
1.82M |
212.94% |
-53.42% |
Net Income |
-1.30M |
56.46% |
-151.47% |
EPS |
-0.47 |
55.66% |
-151.65% |
Key Financial Ratios
operatingProfitMargin
2.33%
operatingCashFlowPerShare
$5.93
freeCashFlowPerShare
$5.8
Management Commentary
Transcript data not provided in the supplied materials. As a result, no management quotes or theme-based highlights from an earnings call are available. If a transcript is supplied, key themes typically would cover strategy (growth avenues, asset-light vs asset-heavy mix, fleet utilization), operations (cost controls, working capital management, utilization of ground equipment and aviation assets), and market conditions (airfreight demand, regulatory impacts, pricing environment).
Forward Guidance
No explicit forward guidance was included in the provided data set for QQ3 2025. Given Air Tβs leverage position and the quarterβs working-capital-driven cash flow, investors should monitor: (1) debt repayment trajectory and refinancing risk (long-term debt of ~$121.3M and short-term debt of ~$23.0M), (2) working capital dynamics and fleet/asset utilization efficiency, (3) ongoing profitability trajectory (net income remains negative despite improving gross and operating margins), and (4) any management commentary on strategic initiatives (e.g., fleet optimization, asset monetization, or diversification of revenue streams). Absent formal guidance, the achievability of a durable earnings recovery will hinge on sustainable margin expansion, stabilization of working capital, and disciplined capital deployment.