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Chanson International Holding Announces First Half of Fiscal Year 2026 Financial Results

  • Chanson International Holding reported unaudited financial results for the six months ended June 30, 2026, showing a return to profitability with net income of $0.8 million.
  • Total revenue decreased 4.5% to $8.3 million, driven by a 46.7% drop in U.S. store sales which was partially offset by a 0.4% increase in China store sales.
  • Gross margin improved to 47.7% from 44.5% in the prior period, while gross profit rose slightly to $4.0 million.
  • Earnings per share turned positive at $0.64, compared to a loss of $286.93 per share in the same period last year.
  • U.S. store revenue fell due to operational suspensions at Chanson 23rd Street \& a management agreement for Chanson Broadway, causing an 82.7% decline in bakery sales in that region.
  • China store bakery revenue increased 2.5% to $7.3 million, though seasonal \& beverage product revenues declined due to economic pressure \& increased local competition.
  • Operating expenses decreased 7.9% to $4.7 million, primarily due to a non-recurring $0.5 million bad debt write-off in the prior year \& reduced professional fees.
  • Selling expenses rose 15.6% to $3.3 million, driven by increased salaries for expanded sales headcount \& higher online platform service fees.
  • Investment income from long-term debt investments surged 402.6% to $1.8 million following two new debt investments entered into during 2025.
  • Net cash used in operating activities was $3.2 million, while net cash provided by financing activities increased significantly to $13.9 million.
  • Cash and cash equivalents grew to $20.0 million as of June 30, 2026, up from $8.6 million at the end of 2025.
  • The Company currently operates 53 stores in China \& three stores in New York City, selling products via direct operations \& digital platforms.