URUMQI, China, April 20, 2026 /PRNewswire/ -- Chanson International Holding (Nasdaq: CHSN) (the "Company" or "Chanson"), a provider of bakery, seasonal, and beverage products through its chain stores in China and the United States, today announced its financial results for the fiscal year ended December 31, 2025.

Mr. Gang Li, Chairman of the Board of Directors and Chief Executive Officer of the Company, commented, "In fiscal year 2025, we delivered revenue of approximately $18.3 million and improved profitability, with gross profit increasing by 14.2% year over year and gross margin expanding to 45.0%. This performance reflects the impact of our product marketing and cost control measures, as well as improved inventory management through enhanced customer traffic forecasting.

"Looking ahead, we remain focused on driving growth and improving profitability. We plan to continue optimizing marketing initiatives, strengthening our product innovation capabilities with a focus on healthy and nutritious products, and enhancing customer engagement through both in-store experiences and online channels. We also expect to further improve margins by maintaining strict cost discipline and leveraging data-driven inventory and demand forecasting. We believe our strategic initiatives position us well to capture growth opportunities and create long-term value for our shareholders."

Fiscal Year 2025 Financial Highlights

   -- Total revenue was $18.3 million, an increase of 0.2% from $18.2 
      million in fiscal year 2024. 
 
   -- Gross profit was $8.2 million, an increase of 14.2% from $7.2 million in 
      fiscal year 2024. 
 
   -- Gross margin was 45.0%, compared to 39.5% in fiscal year 2024. 
 
   -- Net income was $0.2 million, compared to $0.8 million in fiscal year 
      2024. 
 
   -- Basic and diluted earnings per share were $0.03, compared to $3.68 in 
      fiscal year 2024. 

Fiscal Year 2025 Financial Results

Revenue

Total revenue increased by 0.2% to $18.3 million in fiscal year 2025, from $18.2 million in fiscal year 2024. The increase in revenue was due to increased revenue from our stores in China (the "China Stores"), which was partially offset by decreased revenue from our stores in the United States (the "United States Stores").

China Stores

   -- Revenue from the China Stores increased by 1.3% to $16.4 million in 
      fiscal year 2025, from $16.1 million in fiscal year 2024. The increase 
      was mainly due to the increased revenue from other products, which was 
      partially offset by the decrease in revenue from bakery products. 
 
   -- Revenue from bakery products decreased by 1.1% to $14.6 million in fiscal 
      year 2025, from $14.8 million in fiscal year 2024. The decrease was 
      mainly due to the challenging economic environment, cautious consumer 
      spending, and shifts in consumer spending patterns, such as the 
      transition from in-store consumption to online consumption during fiscal 
      year 2025. 
 
   -- Revenue from other products increased by 28.5% to $1.7 million in fiscal 
      year 2025, from $1.3 million in fiscal year 2024. The increase was due to 
      increased revenue from seasonal products, which was partially offset by 
      decreased revenue from beverage products. Revenue from seasonal products 
      increased by $0.5 million, or 52.8%, from $1.0 million in fiscal year 
      2024 to $1.5 million in fiscal year 2025. The Company established a 
      Product Planning and Promotion Department staffed with dedicated 
      professionals, which has effectively enhanced the marketing and promotion 
      of seasonal products, and the Company received more seasonal products 
      purchase orders. Revenue from beverage products decreased by $0.1 million, 
      or 35.2%, from $0.4 million in fiscal year 2024 to $0.2 million in fiscal 
      year 2025. The opening of new stores by several well-known coffee chain 
      brands in Xinjiang, offering products at low prices to gain market share, 
      provided customers with more choices and contributed to a decline in 
      beverage product revenue from the China Stores. As of December 31, 2025, 
      two coffee bakery stores were closed, one in fiscal year 2024 and another 
      in the first half of fiscal year 2025. 

United States Stores

   -- Revenue from the United States Stores decreased by 8.4% to $1.9 
      million in fiscal year 2025, from $2.1 million in fiscal year 2024. The 
      decrease was mainly due to decreased revenue from bakery products and 
      eat-in services, which was partially offset by the increased revenue from 
      beverage products. 
 
   -- Revenue from bakery products decreased by 50.4% to $0.3 million in fiscal 
      year 2025, from $0.5 million in fiscal year 2024. The decrease was due to 
      the decreased revenue from Chanson 23rd Street LLC ("Chanson 23rd 
      Street") of approximately $0.2 million and Chanson 1293 3rd Ave LLC 
      ("Chanson 3rd Ave") of approximately $21,000. Facing increased 
      competition from competitors operating in the same area, Chanson 23rd 
      Street suspended its business operation of bakery products in April 2025 
      and Chanson 3rd Ave suspended all business operation in January 2025. 
      However, the decrease in revenue from bakery products was partially 
      offset by the increased revenue from Chanson 2040 Broadway LLC ("Chanson 
      Broadway") of approximately $10,000 as the Company implemented a series 
      of performance-enhancing measures, including extending business hours, 
      optimizing the products mix and offering more sales promotions and price 
      discounts to attract more customers. 
 
   -- Revenue from beverage products increased by 17.6% to $1.5 million in 
      fiscal year 2025, from $1.3 million in fiscal year 2024. The increase in 
      revenue of beverage products was due to an approximately $0.3 million 
      revenue increase from Chanson 23rd Street and Chanson Broadway. During 
      fiscal year 2025, the Company launched several new types of cocktail 
      products with a variety of new flavors and styles, and implemented the 
      performance-enhancing measures as mentioned above, which led to an 
      increase in private event bookings. The increase in revenue of beverage 
      products was partially offset by the decreased revenue from Chanson 3rd 
      Ave resulting from the suspension of business operation as mentioned 
      above. 
 
   -- Revenue from eat-in services decreased by 47.6% to $0.2 million in fiscal 
      year 2025, from $0.3 million in fiscal year 2024. As mentioned above, 
      Chanson 3rd Ave suspended all business operations in January 2025, hence, 
      revenue from eat-in services decreased in fiscal year 2025. 

Gross Profit and Gross Margin

Gross profit increased by 14.2%, to $8.2 million in fiscal year 2025, from $7.2 million in fiscal year 2024. The increase was mainly attributable to the overall increase in revenue. Gross margin increased by 5.5 percentage points to 45.0% in fiscal year 2025 from 39.5% in fiscal year 2024.

Operating Expenses

Operating expenses were $10.1 million in fiscal year 2025, compared to $7.7 million in fiscal year 2024.

   -- Selling expenses increased by 31.6%, to $6.3 million in fiscal year 2025, 
      from $4.8 million in fiscal year 2024. The increase was primarily 
      attributable to (i) an increase in rental expenses, renovation expenses 
      and electricity expenses of $0.8 million, as nine stores have been opened 
      in the fiscal year 2025; (ii) an increase in salaries and welfare benefit 
      expenses of $0.6 million, as the China Stores hired additional sales 
      staff for the new stores; and (iii) an increase in online platform 
      service fees of $0.1 million, resulting from the increased online sales 
      on the third-party platform in fiscal year 2025. 
 
   -- General and administrative expenses increased by 29.6%, to $3.8 
      million in fiscal year 2025 from $3.0 million in fiscal year 2024. The 
      increase was primarily due to an increase in allowance for credit losses 
      of $0.5 million. The increase was also attributable to the increased 
      audit, legal and professional service fees due to issuance of additional 
      equity security in fiscal year 2025. 

Net Income

Net income was $0.2 million in fiscal year 2025, compared to $0.8 million in fiscal year 2024.

Basic and Diluted Earnings per Share

Basic and diluted earnings per share in fiscal year 2025 was $0.03 based on 5,369,346 weighted average shares, compared to $3.68 in fiscal year 2024 based on 205,296 weighted average shares, in each case retrospectively restated for effect of the reverse share split on August 18, 2025.

Balance Sheet

As of December 31, 2025, the Company had cash and cash equivalents of $8.6 million, compared to $12.1 million as of December 31, 2024.

Cash Flow

Net cash provided by operating activities was $2.9 million in fiscal year 2025, compared to $3.5 million in fiscal year 2024.

Net cash used in investing activities was $45.8 million in fiscal year 2025, compared to net cash provided by investing activities of $1.9 million in fiscal year 2024.

Net cash provided by financing activities was $39.1 million in fiscal year 2025, compared to $5.4 million in fiscal year 2024.

About Chanson International Holding

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April 20, 2026 16:30 ET (20:30 GMT)