Yunhong Green CTI (YHGJ) Q2 2025 earnings summary

Executive summary

• Net sales increased 25% year-over-year to $5.46M for Q2 2025, with a net loss of $185K, an improvement from a $414K loss in Q2 2024.

• Six-month net sales rose 11% to $10.26M, with a net loss of $601K, compared to a $989K loss in the prior year period.

• The company remains dependent on a small number of customers, with the top three accounting for 86% of Q2 sales.

• Substantial doubt exists about the company's ability to continue as a going concern due to ongoing losses and limited liquidity.

Financial highlights

• Gross margin improved to 18% in Q2 2025 from 16% in Q2 2024; six-month gross margin was 18%.

• Operating income was $19K in Q2 2025, up from a $171K loss in Q2 2024.

• Cash flow from operations was $1.71M for the six months ended June 30, 2025, up from $108K in the prior year.

• Cash and cash equivalents stood at $18K at June 30, 2025.

• Basic and diluted loss per share was $(0.01) for Q2 2025 and $(0.02) for the six months.

Outlook and guidance

• Management plans to focus on profitable business elements and seek alternative funding sources.

• Ongoing supply chain constraints, inflation, and tariffs are expected to continue impacting operations and capital access.

• The company is actively monitoring its Nasdaq listing status and may consider a reverse stock split to regain compliance.