American Marconi Wireless News - Maison Solutions Inc. Reports Fiscal 2026 Third Quarter Results

For the quarter, the Company incurred a net loss of $5.2 million. This result was primarily driven by $3.9 million in non-cash or non-recurring items, including fair value adjustments on derivative liabilities and unrealized losses on digital assets, which the Company believes do not reflect the strengthening of its core retail operations.

Third Quarter 2026 Highlights

• Significant Margin Expansion: Gross margin increased to 25.5%, compared to 21.8% in the prior-year quarter, driven by a more efficient store portfolio and improved merchandise margin performance.

• Gross Profit Growth: Gross profit increased to $7.5 million, compared to $7.0 million in the prior-year quarter, despite a targeted reduction in store count.

• Selling expenses were $4.4 million, compared to $4.4 million in the prior-year quarter, demonstrating continued discipline in selling and marketing spend.

• Strengthened Balance Sheet: Cash and cash equivalents increased to $1.5 million as of January 31, 2026, compared to $0.8 million as of April 30, 2025.

• Successful Debt Elimination: The Company fully repaid the Lee Lee acquisition note on September 8, 2025, further strengthening its financial position and simplifying its capital structure.

• Core Operational Resilience: Excluding non-cash and non-recurring financial items, core supermarket operations demonstrated a stabilized and improving profit profile following the strategic closure of underperforming units.

Management Commentary

"Our third quarter results demonstrate the successful execution of our 'Quality over Quantity' strategy," said John Xu, Chief Executive Officer of Maison Solutions. "By proactively closing underperforming locations like El Monte, we have successfully optimized our store portfolio. This discipline is reflected in our 370-basis-point gross margin improvement, proving that a leaner, more efficient footprint is the path to long-term profitability."

John Xu continued, "At the same time, we are actively advancing our broader operational transformation initiatives. We believe artificial intelligence and data-driven systems can play an important role in improving supply chain coordination, merchandising, inventory visibility, and overall operating efficiency across our platform. While we remain in the early stages of this effort, we see meaningful long-term opportunity to modernize our operations and support more scalable growth."

Fiscal Third Quarter 2026 Results Analysis

• Liquidity: The Company maintained a healthy cash position of $1.5 million. The successful repayment of the $5.6 million Lee Lee note further solidifies Maison's financial standing.

Strategic Outlook

Maison Solutions remains committed to a modern, technology-first approach to specialty retail. Our focus for 2026 includes:

1. Efficiency Through Technology: Leveraging AI-powered systems for shelf display and supply chain management to reduce shrinkage and optimize inventory.

2. Market Leadership: Strengthening our footprint in the Arizona market while maintaining a premium, high-margin presence in Southern California.

3. Nasdaq Compliance: The Company is eligible for an additional 180-day period (until July 6, 2026) to regain compliance with the minimum bid price requirement and is actively monitoring options to resolve this.

About Maison Solutions Inc.

Maison Solutions Inc. is a U.S.-based specialty grocery retailer offering traditional Asian food and merchandise, particularly to members of Asian-American communities. The Company is committed to providing Asian fresh produce, meat, seafood, and other daily necessities in a manner that caters to traditional Asian-American family values and cultural norms, while also accounting for the new and faster-paced lifestyle of younger generations and the diverse makeup of the communities in which the Company operates. Since its formation in 2019, the Company has acquired equity interests in four traditional Asian supermarkets in the Los Angeles, California area, operating under the brand name HK Good Fortune, and three supermarkets in the Phoenix and Tucson, Arizona metro areas, operating under the brand name Lee Lee International Supermarket. To learn more about Maison Solutions, please visit the Company's website at www.maisonsolutionsinc.com. Follow us on LinkedIn and X.

Cautionary Note Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC, copies of which are available on the SEC's website at www.sec.gov. Maison Solutions undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after the date of this release, except as required by law.

Investor Relations Contact:
[email protected]

SOURCE: Maison Solutions, Inc

View the original press release on ACCESS Newswire

D.Kaufman--AMWN