Londax Corp. Swings to $7,296 Q3 Profit After Two Quarters of Losses

Londax Corp., a Wyoming-based small business, reported a net profit of $7,296 for the quarter ended February 28, 2026, a sharp reversal from net losses of $28,442 and $11,943 in the prior two quarters. The company had burned through operating cash and equity for most of the nine-month period before the Q3 turnaround. Read more earnings reports.

Revenue for the December-to-February quarter totaled $8,405, down 36% from $13,165 in the year-earlier quarter. For the nine months ended February 28, 2026, revenue collapsed 70% to $19,918 from $66,410 in the same period a year earlier.

The company reported no cost of revenue for the current quarter or nine-month period, compared to $3,000 and $12,000 respectively in the prior year. Operating expenses for the latest quarter rose 48% to $13,109 from $8,863, contributing to an operating loss of $4,704 versus operating income of $1,302 a year earlier.

Despite the operating loss, the company posted a positive net income of $7,296 for the quarter. The discrepancy suggests non-operating gains, though specific details were not disclosed in the quarterly figures. For the full nine months, Londax recorded a net loss of $33,089, a dramatic swing from net income of $24,052 in the year-earlier period.

Cash and Equity Erosion

Cash and restricted cash stood at $13,951 as of February 28, 2026, up modestly from $13,166 a year earlier but down from $10,606 at the end of May 2025. The company burned $41,859 in operating cash flow during the nine months, a reversal from $76,521 in positive operating cash flow the prior year.

Stockholders' equity tumbled to $4,566 as of February 28, 2026, down 88% from $37,655 nine months earlier. The equity balance had briefly turned negative in November 2025 at minus $2,730 before the Q3 profit provided a modest recovery. Retained deficit widened to minus $36,368 from minus $3,279 at the start of the fiscal year.

The company raised $45,204 in financing cash during the nine-month period and reduced its outstanding share count to 2,231,135 shares from 5,231,135 at the end of May 2025. Common stock value dropped to $2,231 from $5,231 over the same span.

Balance Sheet Deterioration

Total assets declined 27% to $68,561 as of February 28, 2026, from $93,308 at the end of May 2025. Current assets fell to $24,631 from $30,606, and property, plant, and equipment shrank to $47 from $187.

Current liabilities rose 15% to $63,995 from $55,653, though accounts payable plummeted to $807 from $51,372, suggesting the company settled significant vendor obligations during the period.

Depreciation and amortization for the latest quarter totaled $6,257, up 76% from $3,563 a year earlier. For the nine months, depreciation and amortization reached $18,772, nearly triple the $6,642 recorded in the prior year.

Financial Summary

Londax Corp. is classified as a non-accelerated filer and qualifies as a small business under regulatory definitions. The company is incorporated in Wyoming and had 2,231,135 shares outstanding as of February 28, 2026.