US IPO Preview | Wodo (WODO.US) Races Toward Nasdaq: Integrated Logistics Accounts for Nearly 96%, Yet Revenue Falls 17.9%

Cross-border e-commerce continues to expand overseas, and logistics service providers are also looking for new growth space. Recently, cross-border logistics service provider Wodo (WODO.US) submitted its latest F-1/A filing to the SEC, planning to list on the Nasdaq Capital Market. It plans to issue 6 million shares, with an estimated price range of $5 to $6 per share. Based on the midpoint of the adjusted range, the amount raised will be 340% higher than previously expected, and the market value will reach $190 million. As a service provider centered on China's cross-border logistics, Wodo mainly provides cross-border logistics solutions to customers by integrating resources such as air, ocean, customs clearance, warehousing, and overseas last-mile delivery. Compared with traditional single-service freight forwarding, the company is transitioning toward a "one-stop" logistics service model covering the entire transportation process. This transformation is already reflected in the revenue structure. In fiscal year 2026, revenue from integrated logistics solutions reached RMB 365 million, accounting for 95.9% of total revenue, while revenue from modular freight forwarding was only RMB 15.75 million, falling to 4.1%. At the same time, however, the company's overall revenue fell from RMB 464 million in fiscal year 2025 to RMB 381 million, a year-on-year decrease of 17.9%, and net profit attributable to shareholders of Wodo also declined from RMB 8.93 million to RMB 8.60 million. More noteworthy is that alongside the revenue decline, the company's cash flow from operating activities turned from a net inflow of RMB 6.14 million in fiscal year 2025 to a net outflow of approximately RMB 38.2 million in fiscal year 2026, while the proportion of revenue contributed by its top three customers reached 95.6%. For a cross-border logistics company preparing to enter the capital markets, what Wodo needs to answer now is not just whether there is still growth space in the cross-border logistics market, but how to truly convert IPO financing into new growth momentum amid revenue pressure, highly concentrated customers, and cash flow volatility. From "selling capacity" to "selling solutions," can the transformation growth? It is understood that cross-border goods sold from China to overseas markets usually involve multiple stages, including domestic pickup, warehousing, customs declaration, international transportation, destination customs clearance, transshipment, and last-mile delivery. Among these, traditional freight forwarders tend to focus on one or several stages, while Wodo hopes to integrate these stages and provide customers with comprehensive logistics services from origin to destination. At present, the company mainly provides two types of services: modular freight forwarding and integrated logistics solutions, with the latter being the fastest-growing business. Modular freight forwarding means customers can choose individual services such as ocean freight, air freight, customs clearance, warehousing, and delivery, or a combination of services according to their own needs; integrated logistics solutions place greater emphasis on full-process services under preset routes, integrating multiple logistics stages, with the company responsible for coordinating among different suppliers. From the perspective of changes in revenue share, in fiscal year 2025, the company's integrated logistics solutions generated revenue of RMB 432 million, accounting for 93% of total revenue; by fiscal year 2026, revenue from this business fell to RMB 365 million, but its share of total revenue instead rose further to 95.9%. Among this, integrated small parcel logistics revenue was approximately RMB 216 million, accounting for 56.7% of total revenue; global customs clearance and delivery revenue was approximately RMB 149 million, accounting for 39.2%. At the same time, modular freight forwarding revenue fell from RMB 32.43 million to RMB 15.75 million, a year-on-year decrease of 51.4%. However, "one-stop" does not mean high profit. In fiscal year 2026, the gross margin of Wodo's integrated logistics solutions business rose from 5.6% in 2025 to 6.2%, among which the gross margin of integrated small parcel logistics increased from 4.9% to 6.0%, mainly driven by higher unit prices and cost control; however, the gross margin of global customs clearance and delivery fell from 6.6% to 6.4%. As a result, the company's overall gross margin was only 6.2%, with gross profit of RMB 23.69 million, a year-on-year decrease of 20%. In other words, Wodo is still in a typical low-margin logistics services track. The company can improve costs by optimizing routes, paying some suppliers in advance to secure more favorable procurement prices, and optimizing partners, but ultimately its profit space is still affected by transportation costs, customer bargaining power, and industry competition. According to industry information cited in the prospectus, by the end of 2023, the number of cross-border logistics companies in China had exceeded 150,000, and the industry as a whole was relatively fragmented. For end-to-end cross-border logistics service providers, customer relationships, global networks, industry experience, service quality, and relevant qualifications constitute certain entry barriers, but at the same time, large logistics companies such as DHL, FedEx, UPS, as well as SF Express, JD.com, Inc. Sponsored ADR Class A, Cainiao, and ZTO also possess strong comprehensive service capabilities. Therefore, what Wodo truly needs to prove in the future is whether it can establish sufficiently stable customer resources and supply chain advantages in this highly fragmented and fiercely competitive market, rather than merely "packing" more logistics stages into the same service solution. Both revenue and profit decline, operating cash flow turns negativecan the IPO open a new phase? If the business structure adjustment reflects Wodo's strategic direction, then the financial data for fiscal year 2026 exposes the real pressure in the company's current operations. According to the prospectus, Wodo's revenue in fiscal year 2026 was RMB 381 million, down 17.9% year on year; gross profit was RMB 23.69 million, down 20% year on year; net profit was RMB 7.47 million, down 6.7% year on year; and net profit attributable to shareholders of the company was RMB 8.60 million, down 3.7% year on year. Although the company remained profitable, both revenue and gross profit declined significantly. Among this, integrated small parcel logistics revenue fell 14%, mainly due to a 19.6% decline in parcel volume, partially offset by a 9.4% increase in average price per parcel. Global customs clearance and delivery revenue fell 17.2%, mainly affected by a 17.7% decline in average unit price. Behind this, the small parcel business looks more like "volume down, price up." In response, the company explained that due to factors such as the normalization of cross-border e-commerce order demand and changes in tariff policies, parcel volume declined, while prices were raised to cover higher operating costs. The global customs clearance and delivery business, by contrast, is closer to "price down, volume stable." The prospectus mentioned that due to intensifying market competition and pricing pressure brought by bidding cycles, the company had to optimize routes and prices to maintain market share with major customers. More noteworthy is that the company directly warned in the prospectus that revenue may continue to decline over the next 12 months. On the one hand, U.S. tariff policy remains uncertain; on the other hand, the United States has since May 2, 2025, eliminated the "de minimis duty-free" treatment for low-value parcels from China and Hong Kong, which may increase customs clearance complexity and affect the volume of related cross-border e-commerce parcels. The company expects that customs clearance business volume from some large e-commerce platform customers may further decrease as a result. For Wodo, which relies on cross-border e-commerce logistics, this change is not simply a cost issue, but may directly affect cargo volume. At the same time, the company's cash flow performance deserves more attention than its income statement. It is understood that in fiscal year 2026, Wodo's operating cash flow was a net outflow of approximately RMB 38.2 million, compared with a net inflow of RMB 6.14 million in fiscal year 2025. The company explained that the main reasons included increased prepayments to some suppliers to lock in capacity and obtain more favorable prices, as well as a decrease of approximately RMB 24 million in accounts payable. In addition, in fiscal year 2026, the company's prepayments to suppliers increased by approximately RMB 22.4 million, which was also one of the reasons for the negative operating cash flow. At the same time, the company obtained RMB 60 million in funds through short-term bank borrowings, repaid RMB 20 million in bank borrowings, and had a certain scale of short-term financing. Therefore, for Wodo, this IPO is not merely a capital market operation to expand brand influence, but also has practical significance in replenishing working capital and supporting business expansion. Based on the midpoint of the offering price range, the company plans to raise approximately $33 million. The prospectus shows that the proceeds will mainly be used for general corporate purposes and working capital, building IT services and data processing capabilities, establishing overseas entities and offices, and expanding new businesses complementary to the existing logistics business. The company plans to further expand into markets such as Asia to the United States, Europe, and South America, and continue to strengthen its overseas logistics network and IT system construction. However, beyond the use of funds, customer concentration may be an issue Wodo needs to address even more after listing. In fiscal year 2026, the company's top three customers contributed 95.6% of revenue, of which the largest customer accounted for 48.1%, the second-largest customer accounted for 39.2%, and the third-largest customer accounted for 8.3%. In other words, the top two customers alone contributed nearly 90% of revenue. This customer structure can help the company rapidly achieve scale, but it also means strong customer dependence. Once a core customer adjusts suppliers, reduces cross-border business, or demands further reductions in logistics prices, the company's revenue and profit could both be significantly affected. For a company with a gross margin of only 6.2%, the impact of price changes from major customers on ultimate profit is particularly worth watching. Overall, Wodo's IPO story has a clear industry background and a clear direction for business transformation. As Chinese companies and cross-border e-commerce continue to expand into overseas markets, there is still demand for one-stop logistics services covering transportation, customs clearance, and last-mile delivery, and the company's transformation toward integrated logistics solutions is also in line with industry development trends. The core focus after the company's listing may not be whether revenue can quickly return to rapid growth, but whether the company can use IPO funds to expand its customer base and overseas network, while reducing dependence on a small number of customers and further increasing the gross margin of its integrated logistics business. If these changes can be gradually realized, then the company's previous business transformation will be further validated by financial data; conversely, if issues such as declining cargo volume, price competition, and customer concentration persist, then relying solely on growth in the cross-border logistics industry to support valuation may still face considerable challenges.