EHGO EShallGo Inc.

Overview and Growth

Fiscal 2026 results for EShallGo Inc. combined $16.32M of revenue with net loss of $11.32M and an operating cash outflow of $5.68M. Revenue of $16.32M sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 21.1% above fiscal 2025 revenue of $13.47M, marking a year-over-year increase. On a per-share basis, diluted EPS was -$5.39, which connects the reported earnings outcome with the company’s diluted share count. At period end, total assets were $20.75M, framing the scale of the company’s operating and financing commitments. The revenue-to-assets relationship was 0.79x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $2.47M as gross profit before recognizing operating expenses and other items. Gross profit represented 15.1% of revenue, showing how much of the top line remained after direct costs. Operations produced a $11.99M operating loss before non-operating and tax effects. The operating loss equaled 73.5% of revenue, showing the scale of the operating deficit relative to sales. After all below-operating-line items, the company recorded a net loss of $11.32M for the fiscal year. Net margin was -69.4%, reflecting a loss equal to 69.4% of reported revenue. The pretax result was a loss of $12.02M, establishing the deficit before tax effects. Pretax margin was -73.7%, reflecting a pre-tax loss equal to 73.7% of revenue. The company recognized $39.24K of income tax for the period, completing the transition from pretax income to net income. Relative to period-end equity, the net loss represented 78.1%. The loss-to-assets relationship was 54.6%, placing the bottom-line deficit against the company’s resource base.

Liquidity and Capital Structure

At period end, the $20.75M asset base was financed through $6.26M of liabilities and $14.49M of equity. Current assets were $19.56M against $6.06M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 3.23x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. The company held $3.78M in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 62.4% of current liabilities, showing how much near-term coverage came from cash alone. The company carried $21.78K of total debt at period end, which frames its leverage and debt-service burden. The debt-to-equity relationship was 0.0x, showing how much debt the company carried for each unit of book equity. Debt represented 0.1% of total assets, placing borrowing in the context of the company’s full resource base. The liabilities-to-assets relationship was 30.2%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 18.2%, a balance-sheet composition measure rather than a liquidity forecast. Total assets were 16.4% lower than fiscal 2025 assets of $24.81M, measuring the company’s own balance-sheet change. Book equity was 12.5% lower than fiscal 2025 equity of $16.56M, showing how shareholder capital changed year over year. Cash and equivalents were 50.3% lower than fiscal 2025 cash of $7.60M, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

Operating activities used $5.68M of cash, resulting in an operating cash outflow for the year. Capital spending of $137.53K added to the period’s operating cash use, reinforcing the overall cash deficit after investment for the year. Negative free cash flow was $5.81M, leaving a cash deficit after capital spending and reducing financial flexibility. The free-cash-flow deficit equaled 35.6% of revenue, showing the post-investment cash shortfall relative to sales. The free-cash-flow deficit equaled 28.0% of total assets, placing the cash shortfall against the company’s resource base.

Based on the annual report for the fiscal year ending Mar 31, 2026. Analysis generated Oct 21, 2026.