EPS of $0.00 decreased by 109.5% from previous year
Gross margin of 66.2%
Net income of -46.30K
"No transcript data available." - N/A
Yijia Group Corp (YJGJ) QQ1 2026 Results: Revenue Decline, Margin Resilience, and a Cash-Rocused Balance Sheet in Industrials Consulting
Executive Summary
Yijia Group Corp (YJGJ) reported QQ1 2026 results with a sharp revenue decline and a meaningful net loss, despite a solid gross margin. Revenue was $103,899 thousand, down 80.92% year over year and 66.30% quarter over quarter, while gross profit stood at $68,781 thousand for a gross margin of about 66.2%. Operating income was a modest $2,488 thousand (2.39% of revenue), but the company posted a net loss of $46,301 thousand and an EPS of -0.0019, driven by substantial 'other income/expenses' totaling roughly -$34.9 million in the quarter and an income tax impact that reflects a tax benefit/expense dynamic. EBITDA was positive at $2,488 thousand, yielding an EBITDARatio of about 0.024, yet the bottom line remained negative due to the higher non-operating charge and tax interactions.
From a balance sheet perspective, YJGJ remains cash-rich with cash and equivalents of $1.046 million and no long-term debt, producing a net cash position of approximately $1.046 million. Total assets were $2.242 million against total liabilities of $0.380 million and stockholders’ equity of $1.862 million, signaling a solid liquidity buffer to weather near-term volatility. Deferred revenue is modest at $10,775, and taxes payable run at $300,543, underscoring near-term cash tax considerations that could evolve as the revenue base stabilizes.
Management commentary is not embedded in the provided transcript data, limiting the ability to quote specific management lines. The lack of forward-looking guidance in the filing suggests a prudent stance near-term, with attention likely on pipeline development, cost discipline, and utilization metrics to drive a path back to profitability. In the near term, the primary investment risk is the material revenue drop against a relatively fixed cost base, while the opportunity lies in leveraging strong liquidity to scale client work and improve utilization over the rest of 2026.
Balance sheet and liquidity
- Cash and cash equivalents: $1,046,620
- Total current assets: $2,242,358; Total assets: $2,242,358
- Total current liabilities: $379,975; Total liabilities: $379,975
- Stockholders’ equity: $1,862,383; Net debt: -$1,046,620 (net cash)
- Deferred revenue: $10,775 (current); Tax payable: $300,543
- Current ratio: approximately 5.90x (healthy short-term liquidity)
Notes on the mix and drivers
- The quarter shows a severe revenue decline with a still-healthy gross margin, implying fixed or semi-fixed cost pressure and under-absorption of SG&A at low scale.
- The negative bottom line is driven by non-operating items and tax treatment rather than a collapse in gross profitability, given EBITDA is positive but offset by other expenses and tax dynamics.
- The balance sheet depicts a cash-rich, low-leverage position that could support strategic investments to restore topline momentum.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
103.90K
-80.92%
-66.30%
Gross Profit
68.78K
-80.44%
-63.67%
Operating Income
2.49K
-98.93%
-97.71%
Net Income
-46.30K
-127.57%
-163.45%
EPS
0.00
-109.45%
-165.52%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Earnings call transcript highlights are not provided in the data set. The following themes are typically relevant for a QQ1 2026 discussion, but no verbatim quotes are available here:
- Strategy and growth trajectory: Management would likely discuss pipeline building, client diversification, and go-to-market improvements.
- Operations and utilization: Commentary would focus on consultant utilization rates, project mix, and cost containment.
- Market conditions: Management would comment on demand for consulting services in the Industrials sector and any regional dynamics.
No transcript data available.
— N/A
No transcript data available.
— N/A
Forward Guidance
Guidance and outlook data are not present in the provided materials. In the absence of formal guidance, the prudent view is to monitor the following variables through the balance of 2026:
- Revenue trajectory and pipeline growth: sequential stabilization or acceleration would be key catalysts for improving profitability.
- Cost structure and SG&A leverage: whether the fixed cost base can be better aligned with revenue, enabling margin expansion.
- Utilization and productivity: improvement in consultant utilization to drive higher operating leverage.
- Cash burn and liquidity management: despite a net cash position, sustained losses warrant close monitoring of cash flow and potential funding needs if growth initiatives require capex or working capital support.
- Management commentary on strategic initiatives (if communicated): any hints on new markets, verticals, or partnerships that could reaccelerate growth.
Overall assessment: the absence of explicit guidance creates a higher degree of uncertainty; investors should require near-term milestones on revenue pipeline, client diversification, and cost discipline to validate a clearer path to profitability.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
YJGJ Focus
66.20%
N/A
N/A
N/A
TRU
59.30%
23.20%
3.38%
27.33%
EFX
54.50%
16.40%
2.67%
56.77%
EXPO
94.50%
30.50%
6.04%
37.07%
BAH
53.40%
8.67%
15.20%
29.56%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Bottom-line profitability remains the primary challenge despite a robust gross margin and a healthy cash position. The QQ1 2026 results show a clear revenue decline, a small positive operating contribution, but a substantial net loss driven by non-operating items and tax dynamics. The investment case rests on the company’s ability to translate liquidity and EBITDA into meaningful net income through revenue stabilization, improved utilization, and disciplined cost control. If the company can achieve a credible multi-quarter revenue rebound and scale its consulting operations without proportionally increasing fixed costs, the stock could re-rate as profitability improves. In the near term, investors should monitor pipeline momentum, client diversification, utilization trends, and any management updates on strategic initiatives that could unlock higher-margin growth.
Key Investment Factors
Growth Potential
Upside potential hinges on a recovery in consulting demand, improved project mix, and higher utilization. A re-acceleration in revenue growth could be driven by expanding client relationships, cross-border engagements, and digital/airflow-enabled consulting capabilities. If the company can convert its cash cushion into scaled operations without disproportionate fixed-cost escalation, EBITDA margins could expand and convert into stronger net income over time.
Profitability Risk
Key risks include continued revenue volatility given the small scale of operations, potential client concentration, and fixed SG&A costs that can erode margins at low volumes. The negative net income in QQ1 2026 highlights earnings fragility; tax timing and other income/expenses can further distort quarterly results. The lack of management guidance increases execution risk, and external factors (macro slowdown, project delays, or currency effects in cross-border engagements) could delay margin expansion.
Financial Position
A robust liquidity position with $1.05 million in cash and no long-term debt supports near-term operating needs and strategic investments. The company has a strong current ratio and net cash position, but profitability remains the primary near-term hurdle. If leveraged carefully, the cash position could fund pipeline development, selective hires, or targeted acquisitions to accelerate growth while preserving balance-sheet strength.
SWOT Analysis
Strengths
Strong gross margin (~66.2%) indicating pricing power or favorable cost structure within the service mix
Positive EBITDA in QQ1 2026 ($2.488 million) suggesting near-term operating leverage exists as revenue scales
Net cash position with $1.046 million of cash and no long-term debt, providing liquidity for growth initiatives
Healthy liquidity metrics (current ratio ~5.9x) and modest leverage
Weaknesses
Material net loss in QQ1 2026 (-$46.3 million) and negative net income margin (-44.6%)
Revenue contraction (YoY and QoQ) raises concerns about demand stability and client pipeline
Limited visibility on cash flow from operations due to missing CFO data; reliance on non-operating items for earnings in some periods
Tax payable value is sizable relative to earnings, indicating potential near-term cash tax obligations
Opportunities
Utilize strong liquidity to scale consulting capabilities and expand client base
Expand geographic reach and cross-sell advisory services to existing clients
Increase utilization through targeted hiring, training, and project optimization to convert EBITDA into net income
Threats
Revenue volatility and potential client concentration in a small base of engagements
Industry competition and macro headwinds in the Industrials consulting space
Execution risk in translating EBITDA strength into sustained net income growth; optional tax timing could affect reported results