NORTH WALES, PA — Toppoint Holdings Inc. (NYSE American: TOPP) narrowed its second-quarter net loss by 80% as revenue rose 17% and a shift toward higher-value import and metal freight restored positive gross margins, while a June private placement increased cash available for expansion.
Revenue reached $4.6 million for the quarter ended June 30, up from $4 million a year earlier. Gross profit improved to $377,517 from a gross loss of $27,931, lifting gross margin to 8% from negative 0.7%.
The truckload services company reported a net loss of $306,711, or 1 cent per share, compared with a loss of $1.53 million, or 9 cents per share, in the second quarter of 2025.
Operating loss narrowed 79% to $340,626 from $1.59 million. General and administrative expenses fell 54% to $718,143, largely because of lower professional fees and the absence of $985,550 in stock-based compensation recorded a year earlier.
Toppoint’s mix shift was a central driver of the quarter. Import revenue rose 32.8% to $1.64 million, while metal revenue increased 29.7% to $606,267.
Waste Paper revenue returned to growth, rising 6.9% to $2.23 million. Log revenue increased 6.5% to $139,125, while plastics revenue fell 41.6% to $33,105 and remained a non-core part of the business.
Chief Executive Officer Hok C. Chan pointed to the combination of higher-value freight and pricing discipline as the reason revenue outpaced cost growth.
“We grew revenue 17% while total costs actually declined, and we returned to positive gross margin,” Chan stated.
Cost of revenue rose 7% to $4.26 million, well below the 17% increase in sales. Total costs and expenses declined 10% to $4.98 million from $5.56 million.
Other income, net, totaled $33,915 compared with a net expense of $51,228 a year earlier, supported by $88,472 in interest income and lower interest expense.
For the first six months of 2026, revenue increased 12% to $8.75 million. Import revenue climbed 44.8% to $3.05 million and metal revenue rose 72.1% to $1.17 million, offsetting an 8.1% decline in Waste Paper revenue to $4.29 million.
First-half gross profit increased 156% to $210,404, while net loss narrowed 54% to $960,443, or 5 cents per share, from $2.06 million, or 12 cents per share.
The company completed 10,667 loads in the first half, down 1.6% from 10,836 a year earlier, even as revenue increased 12%. That reflected a greater concentration of higher-revenue import and metal loads.
Import loads rose 25.3% to 3,478 and represented 32.6% of total load count, up from 25.6%. Metal loads increased 58% to 1,278 and accounted for 12% of total loads, up from 7.5%.
Waste Paper loads declined 17.6% to 5,695 as additional domestic containerboard capacity absorbed more recovered fiber.
Toppoint cautioned that some of the import growth reflected customers advancing inbound shipments ahead of expected tariff changes and does not expect that activity to recur at the same level.
The company ended June with $4.7 million in cash, up from $1.2 million at the end of 2025.
On June 8, Toppoint sold 5 million shares at 83 cents each in a private placement, generating $4.15 million in gross proceeds and $4.13 million in net proceeds. The company plans to use the funds for working capital and general corporate purposes.
Total assets stood at $13.9 million and shareholders’ equity at $11.8 million at June 30, while liabilities declined to $2.11 million.
Net cash used in operating activities improved to $918,415 for the first half from $1.14 million a year earlier. Toppoint also held $5 million in loan receivables, with about $2 million expected to be collected in 2026 and used in operations.
Toppoint is continuing geographic expansion after entering Houston in 2025 and previously expanding into Tampa, Jacksonville and Miami, Florida; Baltimore, Maryland; and Ensenada, Mexico. Management is also evaluating opportunities in Latin America, including Chancay, Peru.
The company expects further benefit from equipment that can be used across both import and export container movements, reducing idle time and increasing asset utilization. Its logistics software is also being used for dispatch and load tracking across the export drayage business.
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