Maison Solutions Reports Third Quarter and Nine-Month 2025 Financial Results

Rhea-AI Summary

Maison Solutions (NASDAQ:MSS) reported strong Q3 2025 financial results, with total net revenues increasing 151.1% to $34.1 million compared to $13.6 million in the same period last year. The growth was primarily driven by the acquisition of Lee Lee International Supermarkets in April 2024 and increased sales at Maison El Monte.

Q3 highlights include:

• Gross profit of $7.5 million with 22.1% margin
• EBITDA increased 824.5% to $1.5 million
• Net income of $1.0 million, compared to previous year's loss of $549,000

The company signed a consultancy agreement with four East Coast-based Good Fortune Supermarkets, generating $1.3 million in annual compensation. For fiscal year 2025, Maison Solutions maintains guidance of revenues between $120-125 million with positive net income.

Positive

• Revenue surge of 151.1% to $34.1 million in Q3 2025
• EBITDA increased 824.5% to $1.5 million
• New consultancy agreement generating $1.3 million annual revenue
• Turned net loss into $1.0 million profit in Q3
• Strong guidance of $120-125 million revenue for FY2025

Negative

• Gross margin declined to 22.1% from 23.4% year-over-year
• Increased competition affecting Monterey Park location performance

Insights

Financial Analyst

Maison Solutions delivered impressive growth in its Q3 2025 results, with revenue surging 151.1% to $34.1 million and a notable shift to profitability with $1.0 million in net income versus a loss in the prior year. This growth appears primarily acquisition-driven through the Lee Lee International Supermarkets purchase completed in April 2024.

The company's strategic evolution is noteworthy with its $1.3 million annual consultancy agreement with East Coast-based Good Fortune Supermarkets, signaling an intelligent pivot from traditional grocery retailing to a more diversified business model that may offer higher margins and recurring revenue. This aligns with their stated M&A-focused growth strategy.

While gross margin compressed slightly to 22.1% from 23.4% due to increased competition at their Monterey Park location, the dramatic EBITDA improvement of 824.5% indicates strong operational leverage. Their reiterated guidance of $120-125 million in annual revenue suggests management confidence in sustaining momentum.

The strategic focus on acquisitions, coupled with store renovations showing early positive results, positions Maison Solutions for potential continued growth. However, investors should monitor margin trends and integration progress of acquisitions, as these will be critical factors determining whether the company can maintain profitability as it scales.

Retail Industry Expert

Maison Solutions' transformation from a traditional Asian grocery retailer to a solutions provider represents a strategic differentiation in a highly competitive specialty grocery segment. The consultancy agreement with Good Fortune Supermarkets creates a dual revenue stream that leverages the company's operational expertise without the capital-intensive requirements of new store development.

The company has smartly focused on both inorganic and organic growth paths. The Lee Lee acquisition has clearly been the primary growth driver, contributing significantly to the 151.1% revenue increase. Meanwhile, the renovation of their El Monte location demonstrates commitment to maximizing existing store performance.

What's particularly encouraging is the positive operational leverage - while revenue grew 130.6% over nine months, EBITDA increased by 1,126.8%, suggesting effective cost management and integration of the Lee Lee stores. The company appears to be creating economies of scale that weren't previously possible.

The competitive pressure at the Monterey Park location highlights a key risk for specialty grocers - location saturation and intensifying competition from similar format stores. How management addresses this competitive challenge across their portfolio will be important as they continue their M&A-driven expansion. Their strategy of maintaining consistent product offerings and customer experience across acquisitions should help create operational efficiencies if executed effectively.

MONTEREY PARK, CA / ACCESS Newswire / March 17, 2025 / Maison Solutions Inc. (NASDAQ:MSS) ("Maison Solutions" or the "Company"), a U.S.-based specialty grocery retailer offering traditional Asian and international food and merchandise, today announced financial results for the third quarter and nine-months ended January 31, 2025.

Management Commentary

"The third quarter marked the first step in our mission to evolve beyond a traditional grocery chain into a solutions provider," said John Xu, President, Chairman, and Chief Executive Officer of Maison Solutions. "In late January, we signed a consultancy agreement with four East Coast-based Good Fortune Supermarkets, a strategic move that is the genesis of our expansion into solutions-based operations. This agreement, which will generate $1.3 million in annual compensation, will support our ongoing M&A initiative - our primary growth strategy. We continue to explore and identify acquisition targets that align with our existing stores' product offerings, customer base, and vision to ensure seamless integration across all our stores as a unified entity. The recent appointment of Jacob as our new COO strengthens our ability to execute this strategy, which we anticipate will enhance operational efficiency, improve margins, and drive profitability. Our Lee Lee stores have performed in line with our expectations, allowing us to deliver consistent sequential and year-over-year growth, as evidenced by another quarter of growth in both top- and bottom-line performance. Additionally, following the renovation of our El Monte store, we saw a slight increase in revenue for the quarter. This is an encouraging sign as we aim to continue this renovation initiative across all our California stores in the coming years. As we approach the end of our fiscal year, we remain confident in achieving our previously stated guidance and executing our growth strategies."

Third Quarter 2025 Financial Results

Total net revenues for the third quarter increased 151.1% to $34.1 million compared to $13.6 million in the same period last fiscal year. The increase was primarily driven by the inclusion of revenues from the newly acquired subsidiary, Lee Lee International Supermarkets ("Lee Lee") (acquired in April 2024) and increased sales of Maison El Monte.

Net revenues from perishable goods for the third quarter increased 140.7% to $17.4 million compared to $7.2 million in the same period last fiscal year. Net revenues from non-perishable goods for the third quarter increased 163.0% to $16.7 million compared to $6.4 million in the same period last fiscal year.

Total cost of revenues for the third quarter was $26.6 million compared to $10.4 million in the same period last fiscal year. The increase was primarily due to the inclusion of the newly acquired subsidiary, Lee Lee.

Gross profit for the third quarter was $7.5 million, while gross margin was 22.1%. Gross profit for the same period last fiscal year was $3.2 million, while gross margin was 23.4%. The increase in gross profit was primarily due to higher gross profit from the newly acquired subsidiary, Lee Lee. The decrease in gross margin was primarily due to decreased gross profit from Maison Monterey Park resulting from increased competition from newly opened Asian supermarkets in nearby area.

EBITDA for the third quarter increased 824.5% to $1.5 million compared to $(210,000) in the same period last fiscal year.

Net income attributable to Maison Solutions for the third quarter was approximately $1.0 million, compared to a net loss of approximately $(549,000) for the same period last fiscal year. The increase was primarily due to the aforementioned reason above around the increases in gross profit.

Nine Month 2025 Financial Results

Total net revenues for the first nine months of fiscal 2025 increased 130.6% to $94.8 million compared to $41.1 million in the same period last fiscal year. The increase was primarily driven by the inclusion of revenues from the newly acquired subsidiary, Lee Lee.

Net revenues from perishable goods for the first nine months of fiscal 2025 increased 116.8% to $48.6 million compared to $22.4 million in the same period last fiscal year. Net revenues from non-perishable goods for the first nine months of fiscal 2025 increased 147.2% to $46.2 million compared to $18.7 million in the same period last fiscal year.

Total cost of revenues for the first nine months of fiscal 2025 was $70.9 million compared to $31.7 million in the same period last fiscal year. The increase was primarily from the newly acquired subsidiary, Lee Lee.

Gross profit for the first nine months of fiscal 2025 was $24.0 million, while gross margin was 25.3%. Gross profit for the same period last fiscal year was $9.4 million, while gross margin was 22.9%. The increase was primarily due to higher gross profit from the newly acquired subsidiary, Lee Lee.

EBITDA for the first nine months of fiscal 2025 increased 1,126.8% to $4.0 million compared to $323,000 in the same period last fiscal year.

Net income attributable to Maison Solutions for the first nine months of fiscal 2025 was approximately $1.5 million, compared to a net loss of approximately $(562,000) for the same period last fiscal year. The increase was primarily due to the aforementioned reason above around the increases in revenue and gross profit.

Fiscal Year 2025 Guidance
The Company is reiterating the following guidance for fiscal year 2025:

• Revenues between $120 million and $125 million

• Net income positive

For more information regarding Maison Solution's financial results, including financial tables, please see our Form 10-Q for the third quarter ended January 31, 2025, to be filed with the U.S. Securities and Exchange Commission (the "SEC") on March 17, 2025. The Company's SEC filings can be found on the SEC's website at https://www.sec.gov/ or the Company's investor relations site at https://investors.maisonsolutionsinc.com/.

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.

Non-GAAP Financial Measures

As required by the rules of the Securities and Exchange Commission ("SEC"), we provide reconciliations of EBITDA, a non-GAAP financial measure, contained in this press release to the most directly comparable measure under GAAP, which reconciliations are set forth in the table below.

Maison Solutions Inc. uses a variety of operational and financial metrics, including non-GAAP financial measures such as EBITDA to enable it to analyze its performance and financial condition. EBITDA excludes items that may not be reflective of, or are unrelated to, the Company's core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying business. Because EBITDA is a non-GAAP financial measure, other companies may calculate EBITDA differently, and therefore our measures may not be comparable to similarly titled measures used by other companies. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA should only be used as a supplemental measure of our operating and financial performance.

		Nine Months ended January 31,								Three Months ended January 31,
		2025				2024				2025				2024
Net income		$	1,296,896			$	(470,802	)		$	995,165			$	(535,556	)
Interest expense			694,826				95,956				269,059				19,425
Interest income			(10,875	)			(898	)			-				-
Income tax expense			1,207,740				424,722				8,416				158,656
Depreciation and amortization expense			779,593				274,476				252,050				147,025
EBITDA		$	3,968,180			$	323,454			$	1,524,690			$	(210,450	)

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:

Gateway Group, Inc.
+1-949-574-3860
MSS@gateway-grp.com

SOURCE: Maison Solutions, Inc

View the original press release on ACCESS Newswire

FAQ

What was Maison Solutions (MSS) revenue growth in Q3 2025?

MSS reported a 151.1% increase in revenue to $34.1 million, up from $13.6 million in Q3 2024.

How much will MSS earn from the Good Fortune Supermarkets consultancy agreement?

The consultancy agreement with four East Coast-based Good Fortune Supermarkets will generate $1.3 million in annual compensation.

What is Maison Solutions' (MSS) revenue guidance for fiscal year 2025?

MSS maintains guidance for fiscal year 2025 with expected revenues between $120-125 million and positive net income.

How did the Lee Lee acquisition impact MSS Q3 2025 results?

The Lee Lee acquisition (April 2024) was the primary driver of revenue growth, contributing to increased sales in both perishable and non-perishable goods.

What caused the decrease in Maison Solutions' gross margin in Q3 2025?

The gross margin declined to 22.1% from 23.4% primarily due to decreased gross profit at Maison Monterey Park, resulting from increased competition from newly opened Asian supermarkets.