WF International Revenue Collapses 73%, Losses Balloon to $2.5M as China Real Estate Woes Deepen
WXM sits 54% above its 52-week low of $2.6.
Summary
WF International reported a 73% revenue drop to $2.3M and a $2.5M net loss for the six months ended March 31, 2026, as China's real estate crisis decimated its core HVAC installation business. Cash stands at $5.1M against a backdrop of rising credit losses and a shrinking project pipeline.
Key Events · Earnings and Guidance · WXM
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Revenue Plunges 73%
Total revenue fell to $2.3M from $8.7M a year ago, driven by an 84% drop in project revenue as large-scale real estate contracts wound down and new construction stalled.
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Net Loss Widens to $2.5M
Net loss surged to $2.5M from $0.4M, with general and administrative expenses ballooning 237% to $2.7M due to higher professional fees, increased headcount, and a $0.5M bad-debt provision.
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Credit Losses Mount
Allowance for credit losses on accounts receivable and contract assets rose to $1.7M, reflecting payment defaults and financial distress among real estate developer clients.
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Liquidity Remains Tight
Cash and restricted cash totaled $5.1M as of March 31, 2026, with working capital of $2.3M. The company raised $2.9M in a November 2025 registered direct offering but continues to burn cash from operations.
Analysis · WXM · Real Estate & Construction
The semi-annual results from WF International expose the full force of China's real estate downturn. Revenue cratered 73% year-over-year to just $2.3 million as major projects wound down and new construction stalled. The net loss exploded to $2.5 million from $0.4 million, fueled by a $1.9 million surge in overhead—professional fees, headcount, and a $0.5 million bad-debt provision as developer clients struggle to pay. With only $5.1 million in cash and a $9 million backlog that depends on a distressed sector, the company is burning through liquidity while chasing growth outside real estate. The numbers confirm the survival narrative: the core business is shrinking fast, and the pivot to consumer HVAC and new industries is still too small to offset the damage.
At the time of this filing, WXM was trading at $4.00 on NASDAQ in the Real Estate & Construction sector, with a market capitalization of approximately $4.5M. The 52-week trading range was $2.60 to $42.22. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.