Executive Summary

Q3 2025 revenue was $1.45M with a net loss of $2.73M and loss per share of $0.61; results reflected seasonal softness in emergency preparedness and higher public company expenses, while gross profit improved year over year on slightly higher revenue .
Management advanced multiple growth vectors: expansion into food sampling, a preliminary oral drug delivery equipment installation at its Texas cGMP facility, launch of an India subsidiary for pharma storage/distribution, and a technology upgrade to Sentry 4.0; the City of Chicago contract was extended through June 2026 with total value now $9.1M .
Operating loss widened sequentially and year over year (driven by SG&A scaling and derivative/other expenses tied to the ELOC facility), partially offset by better gross profit year over year .
No quantitative guidance was issued; management focused on execution milestones and business development updates (India expansion, technology upgrade, and onshoring initiatives) .
Near-term catalysts include execution on the drug delivery equipment ramp, India warehouse build-out, and incremental government/emergency preparedness wins; limited Street coverage means estimate-based surprises are less likely to drive trading in the immediate term .

What Went Well and What Went Wrong

What Went Well
- Strategic expansion: “expanded reclamation operations into the food sampling sector” and entered a preliminary agreement to install innovative oral drug delivery manufacturing equipment in the Company’s Texas cGMP facility .
- Government contract durability: City of Chicago extended the emergency preparedness contract through June 2026 with an additional $1.5M funding, bringing total value to $9.1M, reinforcing an eight-year partnership .
- Platform upgrade: Upgraded Sentry Monitoring System to version 4.0 (HTML5, device-agnostic), enhancing temperature monitoring for healthcare and emergency agencies; management emphasized “delivering innovative solutions that meet evolving customer needs” .
What Went Wrong
- Seasonal revenue softness and demand normalization in emergency preparedness weighed on Q3 results; management cited a “seasonal decline in the demand for emergency preparedness services by certain states and local governments” .
- SG&A escalated as a public company (consulting, professional fees, marketing), pressuring operating income; SG&A rose to $2.37M in Q3 vs $1.90M in Q1 and $2.05M in Q2 .
- Non-operating headwinds: changes in fair value of derivative liability ($0.62M) and other ELOC-related expenses ($0.23M) further widened total loss in Q3 .

Financial Results

Quarterly P&L metrics (oldest → newest)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($)	$1,449,377	$1,666,309	$1,446,917
Gross Profit ($)	$615,940	$643,870	$493,307
SG&A ($)	$1,854,316	$2,046,537	$2,372,465
Operating Income (Loss) ($)	$(1,238,376)	$(1,402,667)	$(1,879,158)
Net Income (Loss) ($)	$(1,240,590)	$(1,397,523)	$(2,731,341)
Net Loss/Share (basic & diluted) ($)	$(0.32)	$(0.31)	$(0.61)

Year-over-year (Q3)

Metric	Q3 2024	Q3 2025	YoY
Revenue ($)	$1,435,376	$1,446,917	+0.8%
Gross Profit ($)	$464,445	$493,307	+6.2%
SG&A ($)	$1,245,428	$2,372,465	+90.5%
Operating Income (Loss) ($)	$(780,983)	$(1,879,158)	More negative
Net Loss/Share ($)	$(0.27)	$(0.61)	More negative

YTD revenue trend

Period	9M 2024	9M 2025	YoY
Revenues ($)	$5,211,665	$4,562,604	−12.5%

KPIs and balance sheet items

KPI	Q1 2025	Q2 2025	Q3 2025
Cash & Cash Equivalents ($)	$5,219,929	$4,224,151	$2,789,744
Accounts Receivable, net ($)	$834,956	$614,211	$945,844
Weighted Avg Shares (basic & diluted)	3,862,507	4,456,962	4,490,093
Operating Cash Flow YTD ($)	$(1,561,698) Q1-only	$(2,124,970) 6M	$(3,887,737) 9M
City of Chicago Contract (Total Value)	—	$9.1M	$9.1M

Notes:

Q3 non-operating items included a $624,041 derivative liability fair value change and $229,041 other expenses tied to the ELOC facility, contributing to a wider net loss .
Management attributes revenue pressure to seasonal emergency preparedness demand patterns; gross profit improved year over year due to slightly higher quarterly revenue and lower cost of revenue .

Actual vs S&P Global consensus (Q3 2025)

Metric	Actual	Consensus
Revenue ($)	$1,446,917	N/A (no published consensus)
EPS (basic & diluted) ($)	$(0.61)	N/A (no published consensus)

Consensus data via S&P Global was not available for CJMB at the time of analysis. Values retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4 2025	None disclosed	None disclosed	—
Margins/OpEx/Tax/Segment	FY/Q4 2025	None disclosed	None disclosed	—
Other	FY/Q4 2025	None disclosed	None disclosed	—

The Q3 2025 press release and 8-K furnished no quantitative guidance; management commentary focused on business updates and strategic initiatives rather than numeric outlook .

Earnings Call Themes & Trends

Note: No Q3 earnings call transcript located; themes below synthesize quarterly press releases and 8-Ks.

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Government/Emergency Preparedness	Renewed Texas DSHS arrangement; new five-year Oregon contract; statewide immunization support	Chicago contract extended to June 2026; outbreak response (MMR II); hiring SVP for EP&R	Chicago extension reiterated; total value $9.1M	Stable to expanding
India Expansion	—	Launched India subsidiary; planned temperature-controlled warehouse; Walker’s Pharmaceuticals agreement	India subsidiary active; continued plans for warehouse	Advancing
Onshoring/Manufacturing Enablement	—	Partnership with Revival to support importation/onshore manufacturing of health/wellness products	Preliminary agreement to install oral drug delivery equipment in Texas cGMP facility	Accelerating
Technology Platform	—	—	Upgraded Sentry Monitoring System to v4.0 (HTML5) for web-enabled, device-agnostic temperature monitoring	Positive upgrade
New Verticals	—	GLP-1, compounding pharmacy logistics, premium food packaging highlighted as opportunities	Expanded into food sampling sector (adjacent growth market)	Expanding scope
Financing	IPO completed in Feb; CFO change disclosed in May	Equity line of credit (right to sell up to $25M)	Derivative liability and ELOC-related expenses impacted P&L	Active financing impacts

Management Commentary

“Callan JMB continues to execute with excellence across our core business lines, while also leveraging our key competencies to expand into target growth areas... launched into the food sampling sector... entered a preliminary agreement... to install its manufacturing equipment in our cGMP facility in Texas... formed Callan JMB Services (India) Private Limited...” — Wayne Williams, CEO .
“Our emergency preparedness business continues to perform well, with the City of Chicago extending our contract through June 2026 with an additional $1.5 million in funding, bringing the total contract value to $9.1 million...” .
“Upgraded our proprietary Sentry Monitoring System to version 4.0, transitioning from Java to HTML5... providing... device-agnostic access to critical temperature monitoring capabilities.” .

Q&A Highlights

No earnings call transcript for Q3 2025 was found in SEC/earnings materials reviewed; therefore, no Q&A themes or guidance clarifications were available as of this analysis [ListDocuments returned no earnings-call-transcript for CJMB during the period; see 2025 filings list].

Estimates Context

S&P Global consensus for Q3 2025 (revenue, EPS, EBITDA, target price, recommendation) was not available for CJMB at the time of analysis. Values retrieved from S&P Global.
In the absence of consensus, investors should anchor on sequential/YoY trends, cash runway, and execution milestones (Chicago contract, India build-out, manufacturing equipment installation) .

Key Takeaways for Investors

Execution milestones are stacking: Chicago contract extension, India subsidiary/warehouse plan, and Texas cGMP equipment installation create tangible optionality into 2026; successful ramp could diversify away from seasonally variable emergency preparedness revenue .
Cost structure is scaling ahead of revenue (public company and growth investments), driving wider operating losses; near-term focus should be on operating expense discipline and gross profit stabilization .
Financing line-of-credit mechanics are flowing through P&L (derivative and other expenses); monitor dilution and derivative liability impacts on reported losses .
Cash declined to $2.79M at Q3-end; operating cash burn of $(3.89)M YTD underscores the importance of capital access and near-term revenue traction from new initiatives .
With limited Street coverage, near-term trading is likely more event-driven (contract wins, manufacturing/India milestones, tech deployments) than estimate-driven beats/misses .
Medium term, successful entry into adjacent verticals (food sampling, GLP-1, compounding, specialty packaging) and onshoring services can expand TAM and reduce seasonality—but requires disciplined capex and customer acquisition .

Citations:

Q3 2025 press release and financial statements (8-K/Ex.99.1):
Q2 2025 press release and financial statements (8-K/Ex.99.1):
Q1 2025 press release and financial statements; CFO change:

CALLAN JMB INC. (CJMB)·Q3 2025 Earnings Summary