Cheetah Net’s Revenue Soars, But Losses Deepen in Costly Logistics Pivot

IRVINE, Calif. – March 20, 2026 – Cheetah Net Supply Chain Service Inc. (Nasdaq: CTNT) today presented a starkly divided portrait of its business, announcing a dramatic 182.7% surge in revenue for its first full year as a dedicated logistics and warehousing provider. Yet, the impressive top-line growth was overshadowed by deepening losses, a significant asset write-down, and the harsh realities of a corporate overhaul conducted amidst punishing global trade turbulence.

For the year ending December 31, 2025, the company's financial results illustrate a classic turnaround dilemma: growth at a high cost. While the pivot to logistics appears to be generating sales, profitability remains a distant goal.

A Story of Growth and Growing Pains

On the surface, Cheetah Net’s transition into logistics is gaining traction. The company posted revenue of $1.29 million, a substantial increase from just $455,805 in 2024 when the new segment was just getting started. This growth, however, came with a significant deterioration in its bottom line. The net loss from continuing operations widened by 12.9% to $3.65 million, up from a $3.23 million loss in the prior year.

The operating loss was even more pronounced, swelling by 22.4% to $4.58 million. A primary driver behind this was a non-cash impairment charge of $731,307 related to intangible assets and goodwill from its 2024 acquisition of Edward Transit Express Group Inc. Such a write-down is a clear accounting signal that the company no longer believes the asset will generate the future income originally projected, a direct acknowledgment that the acquisition has not performed as expected.

“Since we restructured our business into logistics and warehousing at the end of 2024, our operations have been shaped by a challenging environment of ongoing tariff tensions and uncertainty in global trade,” stated Tony Liu, Cheetah’s Chairman and CEO, in the press release. He noted these factors “continued to affect cross-border logistics demand and customer activity throughout the year.”

Battered by Trade Winds

Liu’s comments point to a brutal external environment that has directly impacted Cheetah Net's new strategy. The company's struggles are a microcosm of the broader challenges faced by logistics firms specializing in U.S.-China trade routes during a volatile 2025. The year was marked by escalating tariffs, policy uncertainty, and a sharp contraction in trade volumes between the two economic superpowers. Industry data from the period showed U.S. imports from China falling by as much as 28% year-over-year, sending shockwaves through the supply chain.

This geopolitical friction directly hit Cheetah Net’s subsidiary, Edward Transit Express, a licensed Non-Vessel Operating Common Carrier (NVOCC) specializing in freight between North America and China. The subsidiary, acquired in February 2024 to be a cornerstone of the new business, saw its revenue plummet by 32.2% in 2025. This steep decline was the principal reason for the significant impairment charge that soured Cheetah Net's overall financial performance, serving as a potent case study of how quickly geopolitical events can erase value on a company's balance sheet.

A Radical Reinvention

This difficult year follows a definitive and necessary break from Cheetah Net’s past. The company was originally founded to trade parallel-import luxury vehicles, a niche business that collapsed spectacularly as market conditions shifted. After vehicle sales revenue plunged by a staggering 95.7% in 2024, the board officially discontinued the segment in March 2025.

In its place, Cheetah Net attempted to build a new logistics-focused identity from the ground up, executing a rapid strategic pivot. It acquired Edward Transit Express and, in late 2024, TW & EW Services Inc. (TWEW). The company also relocated its headquarters from its previous location to Irvine, California, a strategic move to be closer to the critical Los Angeles/Long Beach port complex, the nation's busiest container port and a key gateway for trans-Pacific trade.

While the Edward acquisition has proven troublesome, the move to acquire TWEW, a provider of labor and logistics services, appears to be a saving grace. TWEW was the primary engine of growth in 2025, contributing $1.07 million, or a commanding 83.3% of the year's total logistics revenue. This performance highlights the potential of the new strategy if all its constituent parts can be made to align and fire in unison.

The High Cost of Staying Afloat

The company's financial footing remains delicate. It ended 2025 with just $233,217 in cash and equivalents, a figure that would raise alarms for any operating business. In its report, management acknowledged the material weaknesses that raise “going concern” considerations but expressed confidence in its ability to meet its obligations for at least the next 12 months.

This confidence rests on a few key pillars that lie beyond its core operations. While cash is low, the company reported a working capital balance of $7.7 million and, crucially, $7.4 million in loan receivables from third parties. Furthermore, Cheetah Net is heavily reliant on a non-operational income stream: interest. Interest income soared 188.4% to $924,224 for the year. This money was not earned by moving boxes or managing warehouses but by investing the proceeds from public offerings conducted in 2024. In essence, Cheetah Net is using capital raised from investors to generate interest that helps offset its deep operational losses.

Recognizing this precarious position, the company has continued to seek external funding. In a significant subsequent event, Cheetah Net closed a $40.14 million private placement with non-U.S. investors in February 2026. This massive capital injection provides a much-needed lifeline and dry powder for growth, but it also comes at the cost of significant dilution for existing shareholders. It underscores the reality that the company remains dependent on outside capital to fund its turnaround. As Liu noted, the company will continue to “evaluate strategic opportunities that may complement our existing logistics and warehousing capabilities.” With fresh capital in hand, the pressure is now on to make that vision a profitable reality.