Executive Summary

CTNT delivered Q2 2025 revenue of $0.354M and GAAP EPS of $(0.16), demonstrating sequential stabilization despite April trade dislocation; revenue grew 279% YoY and declined 26% QoQ as TWEW offset tariff-driven softness at Edward .
Versus S&P Global consensus, CTNT posted a revenue beat (actual $0.354M vs $0.300M*) and an EPS beat (actual $(0.16) vs $(0.21)), aided by higher interest income and lower G&A YoY; estimate coverage remains thin (1 estimate each).
Management highlighted tariff volatility and a temporary April pause in U.S.-China ocean freight, but cited stabilization into May/June and proactive mix shift to labor/logistics services; integration of Edward and TWEW remains the strategic focus .
No formal quantitative guidance was provided; near-term stock narrative hinges on tariff trajectory, pace of segment integration, and sustainability of interest income as a profit offset .

Note: Asterisks (*) denote values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well
- Sequential stabilization and YoY growth: Logistics/warehousing revenue rose 278.9% YoY to $0.354M; management cited improvement post-April shock and resumption of trade flows into May/June .
- Cost discipline and operating efficiency: G&A declined 6.9% YoY to $0.805M; share-based comp was modest at $10k; management emphasized cost optimization and staff right-sizing .
- Interest income as offset: Interest income surged to $0.272M (+864% YoY), funded by proceeds placed in short-term loans and CDs, cushioning operating losses .
What Went Wrong
- Tariff-driven disruption: Edward’s revenue fell 43.7% YoY; U.S.-China tariff threats caused a temporary suspension of ocean freight in April, pressuring gross profit ($34.9k) and EBITDA .
- Continued operating losses: Operating loss was $(0.781)M; net loss was $(0.513)M (continuing), reflecting subscale operations and integration costs .
- Liquidity mix shift toward receivables: Cash declined to $0.185M with $8.75M in loan receivables; H1’25 operating cash flow was positive largely due to discontinued ops inflows, not core operations .

Management quote: “We are reporting an improving result this quarter sequentially toward stabilization after our logistic and warehousing business got a hit by the tariff turmoil… We will continue to focus on integrating the businesses of our two recently acquired companies to build a more resilient growth foundation…” — Tony (Huan) Liu, CEO .

Financial Results

Headline comparisons (oldest → newest)

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD)	$93,563	$479,799	$354,126
Gross Profit ($USD)	$47,965	$56,256	$34,900
Gross Margin (%)	51.3%*	11.7%*	9.9%*
EBIT / Operating Income ($USD)	$(817,389)	$(960,448)	$(780,849)
Interest Income ($USD)	$28,241	$208,090	$272,228
Net Income - (IS) ($USD)	$(612,880) (total)	$(753,909) (continuing)	$(512,528) (continuing)
EPS (GAAP, basic & diluted)	$(0.38)	$(0.23)	$(0.16)
EBITDA ($USD)	N/A	$(922,495)*	$(742,894)*
EBITDA Margin (%)	N/A	(192.3%)*	(209.8%)*

Notes:

Q2 2024 EPS includes discontinued ops; Q1 and Q2 2025 focus on continuing ops with discontinued ops largely wound down .
Asterisks (*) denote values retrieved from S&P Global.

Vs. S&P Global consensus (Q2 2025)

Metric	Consensus	Actual
Revenue ($USD)	$300,000.0* (1 est.)	$354,126
Primary EPS ($)	$(0.21)* (1 est.)	$(0.16)

Segment and contribution (Q2 2025)

Segment	Revenue ($USD)	Mix	YoY Change
TWEW (Labor & logistics services)	$301,442	85.1%	N/A (acquired Dec 2024)
Edward (Ocean/air freight)	$52,684	14.9%	(43.7%)
Total	$354,126	100%	+278.9% YoY

Additional KPIs and balance sheet highlights

KPI	Q1 2025	Q2 2025
G&A Expense ($USD)	$1,000,519	$805,305
Share-based Comp ($USD)	$16,185	$10,444
Cash & Equivalents ($USD)	$324,142	$185,186
Loan Receivables ($USD)	$9,114,695	$8,749,445
Current Assets ($USD)	$10,245,946	$9,916,789
Current Liabilities ($USD)	$915,622	$976,800
Stockholders’ Equity ($USD)	$11,879,948	$11,377,864

Cash flow context (H1 2025): Net cash provided by operating activities $1.334M, but continuing ops used $(1.207)M; discontinued ops provided $2.541M .

Guidance Changes

The company did not provide quantitative guidance (revenue, margins, EPS, OpEx, tax, or segment outlook) in the Q2 2025 press release; no other Q2-period press releases or earnings call transcript were available to supplement guidance .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY / Q3	None disclosed	None disclosed	Maintained (no formal guidance)
Margins	FY / Q3	None disclosed	None disclosed	Maintained (no formal guidance)
EPS	FY / Q3	None disclosed	None disclosed	Maintained (no formal guidance)
Segment specifics	FY / Q3	None disclosed	None disclosed	Maintained (no formal guidance)

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript was available; thematic tracking below relies on Q1 and Q2 press releases.

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Tariffs/macro	Q1: Trade tensions reduced Edward revenue; strategic shift underway . FY 2024: PRC demand collapse in parallel-import vehicles; business discontinued .	April pause in U.S.-China ocean freight due to tariff threats; stabilization into May/June .	Improving post-April shock; still a headwind.
Supply chain mix shift	Launch/integration of Edward and TWEW; TWEW larger revenue contribution in Q1 .	TWEW 85.1% of revenue; emphasis on labor/logistics services .	Mix shifting toward TWEW services.
Cost discipline	Rising G&A in Q1 due to scale-up and leases .	G&A down 6.9% YoY; continued focus on efficiencies .	Positive inflection YoY.
Liquidity/interest income	Rising interest income from offerings proceeds .	Interest income +864% YoY to $0.272M; offsets losses .	Supportive while proceeds deployed.
Strategy/integration	Focus on integrating acquisitions; building resilient growth base .	Continued integration focus; confidence in long-term growth .	Ongoing execution priority.

Management Commentary

Strategic posture: Management continues to prioritize integration of Edward and TWEW and a shift toward labor/logistics services to build resilience against trade policy volatility .
CEO remarks (Q2): “We are reporting an improving result this quarter sequentially toward stabilization… [after] tariff turmoil… [We are] increasing labor and logistics service business and generating interest income… [and] integrating the businesses of our two recently acquired companies…” — Tony (Huan) Liu .
CEO remarks (Q1 context): “Our financial performance… reflected… strategic shift to logistics and warehousing… TWEW had higher revenues than Edward… We estimate it will take longer than expected to generate ideal profits but have confidence… positioning the Company for substantial future growth.” — Tony (Huan) Liu .

Q&A Highlights

No earnings call transcript was available for Q2 2025; therefore, no Q&A themes, guidance clarifications, or tonal shifts can be reported for the quarter.

Estimates Context

Coverage remains limited with one estimate each for revenue and EPS. CTNT beat revenue ($0.354M vs $0.300M*) and EPS ($(0.16) vs $(0.21)) in Q2 2025. Estimate revisions may be sensitive to tariff headlines and the pace of TWEW-driven revenue scaling.
Note: Asterisks () denote values retrieved from S&P Global.

Key Takeaways for Investors

Tariff volatility is the principal exogenous driver; April’s disruption underscores sensitivity, but May/June stabilization and mix shift to TWEW mitigated impact .
The TWEW segment is now the economic engine (85% of Q2 revenue), while Edward’s ocean/air freight remains exposed to policy risk; execution focus stays on TWEW growth and integration .
Interest income meaningfully cushions losses near term; sustainability depends on balance sheet deployment and return on loan receivables as core operations scale .
Cost discipline is visible (G&A down YoY), but subscale revenues keep EBITDA and EBIT negative; operating leverage will hinge on accelerating service volumes .
Lack of formal guidance places emphasis on monthly/quarterly operational updates and tariff developments; thin estimate coverage can amplify stock volatility on incremental news .
Liquidity is adequate via receivables and potential financing options, but low cash balance heightens execution and working capital management importance .
Near-term trading setup: watch for tariff headlines and updates on TWEW growth trajectory; medium-term thesis depends on integration progress and gradual margin improvement as scale builds .

References

Q2 2025 8-K press release and financial statements .
Q1 2025 8-K press release and financial statements .
FY 2024 8-K for strategic context .
Consensus estimates from S&P Global marked with asterisks (*). Values retrieved from S&P Global.

CHEETAH NET SUPPLY CHAIN SERVICE INC. (CTNT)·Q2 2025 Earnings Summary