GPO Plus Widens Q3 Loss to $748,137 as Operating Expenses Surge 39%

GPO Plus, Inc., a Nevada-based group purchasing organization, reported a net loss of $748,137 for the three months ending January 31, 2026, 83% worse than the $409,331 loss posted in the same quarter a year earlier. Revenue for the quarter slipped 2.3% to $1.20 million from $1.23 million. Read more earnings reports.

The deteriorating bottom line came as operating expenses jumped 39% to $893,948 from $644,544 in the prior-year quarter. The company also faced rising interest costs, which climbed to $175,617 from $123,209 over the same comparison period.

For the nine months ending January 31, 2026, GPO Plus reported a net loss of $2.02 million compared with a $1.58 million loss in the first nine months of fiscal 2025. Revenue for the nine-month period rose 12% to $4.07 million from $3.63 million, driven by higher sales volumes in its core business lines.

Cash Position Deteriorates

The company's cash position weakened sharply during the nine-month period. Cash and cash equivalents dropped to $17,897 as of January 31, 2026, down 95% from $336,249 at the start of the fiscal year on May 1, 2025. The company burned $1.04 million in operating cash flow during the nine months, compared with $770,281 in the prior-year period.

GPO Plus raised $717,404 from financing activities during the nine months, partially offsetting the operating cash drain. The company reported no cash from investing activities in the period.

Balance Sheet Under Pressure

Total assets declined to $645,810 as of January 31, 2026, from $786,478 at the end of fiscal 2025. Current assets fell to $181,762 from $478,225 over the same period. Inventory dropped to $43,775 from $83,299, while accounts receivable rose to $78,640 from $55,012.

Total liabilities increased to $6.97 million from $6.16 million, pushing stockholders' deficit to $8.24 million from $7.29 million. Current liabilities, which include short-term obligations, stood at $6.69 million as of January 31, 2026.

Operating Performance

Gross profit for the three months ending January 31, 2026 fell to $321,428 from $345,911 in the prior-year quarter, as cost of revenue rose to $881,465 from $885,855. The company reported an operating loss of $572,520 in the quarter, compared with a $298,633 operating loss a year earlier.

For the nine-month period, gross profit rose to $1.07 million from $833,134, but operating losses widened to $1.49 million from $1.28 million. Operating expenses for the nine months totaled $2.56 million, up from $2.12 million in the prior-year period.

The company reported diluted loss per share of $0.01 for the third quarter on 86.6 million weighted average shares outstanding, compared with a loss of $0.01 per share on 57.7 million shares in the prior-year quarter. For the nine-month period, diluted loss per share was $0.02 on 84.4 million shares, compared with $0.03 per share on 57.7 million shares.