Greystone Logistics Swings to $6.0M Loss as Revenue Plunges 45% in Nine Months

Greystone Logistics, Inc. (OTC: GLGI), a manufacturer of recycled plastic pallets, swung to a net loss of $5.97 million for the nine months ending February 28, 2026, compared to net income of $1.10 million in the same period a year earlier. The company posted a loss of $0.22 per diluted share, reversing earnings of $0.02 per share in the prior-year period. Read more earnings reports.

Revenue tumbled 45% to $21.97 million from $39.91 million. The decline was most pronounced in the third quarter ending February 28, 2026, when revenue dropped to $3.47 million from $14.32 million in the same quarter of fiscal 2025.

The company reported an operating loss of $5.58 million, a sharp reversal from operating income of $2.21 million in the prior-year period. Gross profit turned negative, registering a loss of $1.39 million compared to a profit of $6.02 million a year earlier, as cost of goods sold reached $23.36 million against the lower revenue base.

Balance Sheet Deteriorates

Total assets declined to $38.87 million as of February 28, 2026, down from $45.97 million at the end of fiscal 2025 on May 31, 2025. Current assets fell to $6.83 million from $10.84 million over the same period.

Stockholders' equity contracted to $13.79 million from $19.88 million, driven by the accumulated losses. Retained earnings deficit widened to $33.60 million from $27.63 million.

Current liabilities more than doubled to $14.98 million from $6.61 million, while long-term debt shifted from the balance sheet. The company reported zero long-term debt as of February 28, 2026, compared to $8.83 million at the end of fiscal 2025, though total long-term debt including current portions stood at $11.70 million.

Cash Position Deteriorates

Cash from operations collapsed to just $2,660 for the nine-month period, down from $7.90 million in the prior year. The company invested $1.80 million in capital expenditures and raised $465,094 through financing activities.

Accounts receivable fell to $2.09 million from $4.32 million, while inventory declined to $2.76 million from $3.48 million. Property, plant and equipment decreased to $27.20 million from $30.04 million.

Third Quarter Performance

The third quarter alone saw a net loss of $2.80 million, compared to net income of $965,665 in the prior-year quarter. Operating loss for the quarter reached $2.66 million versus operating income of $1.36 million a year earlier. Selling, general and administrative expenses for the nine-month period totaled $4.19 million, down from $4.56 million.

The company recorded a tax benefit of $313,172 for the nine months, compared to tax expense of $407,770 in the prior year. Common shares outstanding totaled 27.27 million as of February 28, 2026.