High Trend Stock Surges on Doubled Annual Revenue

Stock Jumps on Strong Revenue Growth

High Trend International Group (NASDAQ:HTCO) saw its stock climb 6.6% in after-hours trading following the release of its fiscal 2025 financial results. The ocean technology company reported that its annual revenue nearly doubled, reaching $214.4 million, a 98% increase year-over-year.

Fiscal 2025 Performance Overview

The company's significant growth was fueled by a 103% surge in ocean freight revenue, primarily from its expanding coal transportation business on key routes like Australia-Asia. Total voyage days more than doubled to 7,470, reflecting higher fleet deployment and customer demand. Despite the revenue growth, High Trend posted a net loss of $20.1 million, an improvement from the previous year. The loss was attributed mainly to $21.9 million in non-cash share-based compensation expenses.

Strengthened Financial Position

A key highlight was the company's shift to a positive operating cash flow of $4.6 million, a significant turnaround from a negative $3.3 million in fiscal 2024. Cash and cash equivalents also increased to $10.1 million. This signals improved operational efficiency and a stronger financial base despite the reported net loss.

Summary

High Trend International successfully scaled its core shipping business, achieving substantial revenue growth and strengthening its cash position. While a net loss remains, it is driven by non-cash expenses, with underlying operational cash flow now positive, indicating a promising outlook.

FAQ

Q: Why did High Trend's stock price increase?
A: The stock rose 6.6% after the company announced its annual revenue nearly doubled to $214.4 million for the fiscal year ending October 31, 2025.

Q: Was the company profitable in fiscal 2025?
A: No, High Trend reported a net loss of $20.1 million. However, this was primarily due to non-cash expenses, and its operating cash flow turned positive at $4.6 million.

Source: Investing.com