Eastside Distilling(EAST) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights This section provides an overview of Beeline Holdings' significant operational and financial achievements in Q2 2025, including growth, debt reduction, and strategic initiatives Q2 2025 & Extended Highlights Beeline Holdings achieved significant operational and financial improvements in Q2 2025, marked by increased loan volume and revenue, substantial debt reduction, and improved net loss and adjusted EBITDA, while divesting non-core assets and launching new equity products Key Financial and Operational Metrics for Q2 2025 | Metric | Q2 2025 Data | Sequential Change (Q1 2025) | | :----------------------- | :---------------- | :------------------- | | Loan Originations | $52 million | +31% | | Revenue (excluding Bridgetown Spirits) | $1.7 million | +27% | | Debt Repaid | $2.7 million | N/A | | Cash at Quarter-End | $6.3 million | N/A | | Equity at Quarter-End | $55 million | N/A | | GAAP Net Loss | $4.1 million | Improved (Q1: $6.9 million) | | Adjusted EBITDA Loss (excluding Bridgetown Spirits) | $2.8 million | Improved (Q1: $3.5 million) | - The company divested Bridgetown Spirits Corp. in July 2025 to fully focus on the digital mortgage sector[5] - Debt-free status (excluding warehouse financing for loans) is anticipated by November 1, 2025[5] - Successfully facilitated the first fractional sale of residential real estate equity through the new BeelineEQUITY product, with more transactions planned before the full launch in early October 2025[5] - Monthly recurring expenses decreased by $0.3 million, with full realization expected in September[5] - Monthly operational profitability is projected by January 2026[5] CEO Commentary CEO Nick Liuzza highlighted Q2 as foundational for Beeline's strong growth through product differentiation, diversification, and disruptive innovation, noting a 15% revenue increase and 20% marketing expense reduction in July, alongside significant financial improvement and plans to replicate this success - Beeline is poised for strong growth through unparalleled product differentiation, diversification, and disruptive innovation[6] - July revenue increased by 15% compared to the best month in the past three years, while marketing expenses decreased by 20%[6] - The company's financial position significantly improved, non-core service lines were eliminated, and plans are in place to replicate this success model in the future[6] Financial Performance This section details Beeline's Q2 2025 financial results, including revenue, operating expenses, net loss, and balance sheet position, alongside management's strategic commentary Overview of Q2 2025 Results Beeline reported $1.7 million in total net revenue for Q2 2025, with strong year-over-year growth in mortgage-related metrics, an operating loss of $3.9 million, and a net loss from continuing operations of $4.0 million, but an $0.8 million improvement in adjusted EBITDA quarter-over-quarter Q2 2025 Financial Data | Metric | Amount (Millions USD) | | :-------------------------------- | :-------------- | | Total Net Revenue | 1.7 | | Operating Expenses | 5.6 | | Operating Loss | (3.9) | | Net Loss from Continuing Operations | (4.0) | | Interest Expense | 0.4 | | Adjusted EBITDA Improvement (Sequential Q1 2025) | 0.8 | - Mortgage-related metrics showed strong year-over-year growth: average loan amount increased by 24%, revenue per loan by 28%, and title revenue by 93%[8] - Operating expenses included $2.2 million in salaries and benefits, $1.2 million in professional fees (primarily non-recurring), $0.8 million in marketing expenses, and $0.8 million in non-cash depreciation and amortization[8] Balance Sheet and Cash Position Beeline held $6.3 million in cash at quarter-end and successfully reduced accounts payable by $0.8 million, indicating an improved financial position - Beeline held $6.3 million in cash at quarter-end[9] - Accounts payable decreased by $0.8 million[9] Management Commentary on Financials CFO Chris Moe stated that Q2 marked the beginning of a structural shift towards stronger financial performance and market leadership, driven by the launch of scalable, AI-first FinTech mortgage, title, SaaS, and fractional equity platforms - Q2 marked the beginning of a structural shift towards stronger financial performance and market leadership[9] - The company has launched and is rapidly developing a scalable, AI-first FinTech mortgage, title, SaaS product, and fractional equity platform[9] Use of Non-GAAP Financial Measures This section explains the company's use of non-GAAP financial measures, such as Adjusted EBITDA, and provides a reconciliation to GAAP net loss for transparency Explanation of Non-GAAP Measures This section explains the use of non-GAAP financial measures, such as Adjusted EBITDA, as supplementary to GAAP for management to assess core operating results by excluding items affecting comparability, advising investors to consider them as additional information and note definitional differences across companies - Non-GAAP financial measures are supplementary to GAAP and should not be considered substitutes for net income (loss), operating income (loss), or cash flow[10] - Management uses Adjusted EBITDA to assess core operating results by excluding items that impact comparability[11] - Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, and amortization, plus stock-based compensation expense and other one-time items[13] Reconciliation of Net Loss to Adjusted EBITDA The company provides a reconciliation of net loss to Adjusted EBITDA, showing a Q2 2025 Adjusted EBITDA loss of $2.778 million, an improvement from $3.543 million in Q1 Reconciliation of Net Loss to Adjusted EBITDA (Thousands USD) | | Three Months Ended June 30, 2025 | Three Months Ended March 31, 2025 | | :----------------------------- | :-------------------------- | :-------------------------- | | Net Loss | (4,140) | (6,927) | | Interest Expense | 388 | 1,889 | | Depreciation and Amortization | 836 | 820 | | Net Loss from Discontinued Operations | 138 | 224 | | Stock-Based Compensation Expense | - | 130 | | M&A Related Expenses | - | 321 | | Adjusted EBITDA | (2,778) | (3,543) | About Beeline Holdings, Inc. This section provides a concise overview of Beeline Holdings, Inc., highlighting its mission as a technology-driven mortgage and title platform Company Overview Beeline Holdings is a technology-driven mortgage and title platform aiming to provide a faster, more convenient, and transparent home financing experience for new-generation homebuyers and real estate investors by combining AI, automation, and modern user experience - Beeline Holdings is a technology-driven mortgage and title platform designed to simplify home financing[15] - It offers a faster, more convenient, and transparent home loan experience by combining AI, automation, and modern user experience[15] - The platform serves both real estate investors and primary homebuyers[15] Conference Call This section provides details for the upcoming conference call to discuss Beeline Holdings' Q2 2025 financial results and operational highlights Conference Call Details Beeline Holdings will host a conference call on Thursday, August 14, 2025, at 5:00 PM ET, led by CEO Nick Liuzza and CFO Chris Moe, to discuss Q2 2025 results - Conference call date and time: Thursday, August 14, 2025, at 5:00 PM ET[16] - Presenters: CEO Nick Liuzza and CFO Chris Moe[16] - Participation options include a toll-free dial-in (1-833-752-5070), international dial-in (1-647-849-3415), or a webcast link (https://www.gowebcasting.com/14078)[16](index=16&type=chunk) Forward-Looking Statements This section outlines the forward-looking statements disclaimer, emphasizing inherent risks and uncertainties that may cause actual results to differ materially from projections Forward-Looking Statements Disclaimer This press release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, regarding future financial condition, operating results, company outlook, industry trends, and new products, which are based on current expectations and assumptions but are subject to inherent uncertainties, risks, and changing circumstances, where actual results may differ materially from expectations - Forward-looking statements pertain to future financial condition, operating results, company outlook, industry trends, new products, and strategic collaborations[17] - These statements are based on current expectations and assumptions but are subject to inherent uncertainties, risks, and changing circumstances, where actual results may differ materially from forward-looking statements[17] - Risk factors include, but are not limited to: incorrect estimates, forecasts, and assumptions; U.S. economic conditions; inflation and interest rates; need for additional capital; ability to attract homeowners; demand and success of fractional equity transactions; regulatory compliance; performance of software and technology infrastructure; and risk factors contained in the company's Form 10-K[17] - The company undertakes no obligation to publicly update any forward-looking statements, except as required by law[17] Contact Information This section provides essential contact information for investor relations and media inquiries regarding Beeline Holdings Investor and Media Contacts This section provides contact email addresses for investors and media - Investor contact email: investors@makeabeeline.com[18] - Media contact email: press@makeabeeline.com[18]