Executive Summary
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.
Key Performance Indicators
QoQ: -36.02% | YoY:-83.46%
QoQ: -5.11% | YoY:-80.99%
QoQ: 39.41% | YoY:-156.75%
QoQ: 7.21% | YoY:-159.44%
QoQ: 14.29% | YoY:-154.55%
Key Insights
Revenue: USD 64,541k; YoY change: -83.46%; QoQ change: -36.02%
Gross Profit: USD 62,098k; YoY: -80.99%; QoQ: -5.11%
Operating Income: USD -64,640k; YoY: -156.75%; QoQ: +39.41%
Net Income: USD -64,638k; YoY: -159.44%; QoQ: +7.21%
EPS: -0.0006 USD; YoY: -154.55%; QoQ: +14.29%
Gross Margin: 96.22%
Operating Margin: -100.15% (approx. -1.0015 in ratio terms)
Net Margin: -100.15%
EBITDA: USD -64,640k; EBITDA Margin: -100.15%
Cash from Operating Activities: USD 26,736k
Free Cash Flow: USD 26,...
Financial Highlights
Revenue: USD 64,541k; YoY change: -83.46%; QoQ change: -36.02%
Gross Profit: USD 62,098k; YoY: -80.99%; QoQ: -5.11%
Operating Income: USD -64,640k; YoY: -156.75%; QoQ: +39.41%
Net Income: USD -64,638k; YoY: -159.44%; QoQ: +7.21%
EPS: -0.0006 USD; YoY: -154.55%; QoQ: +14.29%
Gross Margin: 96.22%
Operating Margin: -100.15% (approx. -1.0015 in ratio terms)
Net Margin: -100.15%
EBITDA: USD -64,640k; EBITDA Margin: -100.15%
Cash from Operating Activities: USD 26,736k
Free Cash Flow: USD 26,736k
Cash at End of Period: USD 2,364k
Total Assets: USD 2,322,703k
Total Liabilities: USD 1,832,932k
Shareholders’ Equity: USD 489,771k
Current Ratio: 0.30x; Quick Ratio: 0.26x; Cash Ratio: 0.0013x
Net Debt: USD 29,759k; Long-Term Debt: USD 32,123k
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
64.54K |
-83.46% |
-36.02% |
| Gross Profit |
62.10K |
-80.99% |
-5.11% |
| Operating Income |
-64.64K |
-156.75% |
39.41% |
| Net Income |
-64.64K |
-159.44% |
7.21% |
| EPS |
0.00 |
-154.55% |
14.29% |
Key Financial Ratios
operatingProfitMargin
-100.2%
operatingCashFlowPerShare
$0
Management Commentary
No earnings call transcript was provided in the data. As a result, there are no management quotes or theme-based highlights to anchor the narrative. Investors should await the company’s next earnings call or supplemental disclosures to capture management's strategic commentary on revenue recovery, cost discipline, and potential strategic initiatives.
Forward Guidance
No formal forward guidance is presented in the QQ3 2025 data provided. Given the headline revenue decline alongside negative profitability, investors should discount near-term top-line growth assumptions until the company outlines a path to sustainable gross-to-operating margin conversion. Key factors to monitor include: (1) revenue trajectory in the next quarter(s) and any market share gains in the China auto-parts and Teenage Hero Car segments, (2) achievement of cost containment measures or restructuring benefits, particularly in SG&A, (3) balance sheet liquidity management and any refinancing or debt reduction actions, (4) any changes in working capital posture that could affect cash generation. Management commentary in future calls will be critical to assess achievability of any stated milestones and timing for potential recovery.