Blum Holdings Inc. Reports Second Quarter 2025 Financial Results

Core Viewpoint - Blüm Holdings, Inc. has completed its turnaround and is entering a disciplined growth phase focused on revenue expansion, margin improvement, cost control, and strategic location additions without overextending capital [2][5]. Financial Performance - Revenue increased from $2.2 million in Q1 2025 to $3.5 million in Q2 2025, driven by contributions from a new Bay Area retail location [8]. - Gross margin improved to 49% in Q2 2025, up from 42% in Q2 2024, but decreased from 53% in Q1 2025 due to initial inventory build and promotional pricing [8]. - Operating expenses were $2.5 million, a 69% reduction from $8.0 million in Q2 2024, reflecting a leaner cost structure and reduced litigation expenses [8]. - Net loss from continuing operations was $1.9 million in Q2 2025, compared to a loss of $0.6 million in Q1 2025, primarily due to lower gross margins [8]. - Adjusted EBITDA loss was $0.6 million for Q2 2025, compared to $0.4 million in Q1 2025, but improved by 85% to $1.0 million for the first half of 2025 compared to $7.0 million in the same period of 2024 [8]. Strategic Updates - The company is focusing on strengthening its cash position and reducing high-cost debt through a mix of short-term loans, convertible notes, and strategic investor participation [7]. - A new retail dispensary acquisition in Northern California is expected to generate approximately $12.0 million in annualized revenue, contributing to a $14.6 million increase in total assets compared to year-end 2024 [8]. - On July 1, the company entered into a binding term sheet to acquire another cannabis retail dispensary in Northern California, expected to add approximately $4.1 million in annualized revenue [8]. - The company raised an additional $0.5 million from an accredited investor on August 11, bringing total capital raised in 2025 to $2.1 million [8]. Market Position - Blüm Holdings operates leading dispensaries throughout California and is known for its high-potency products, including the Korova brand [9]. - The company aims to leverage its growing ecosystem to enhance customer and retail investor acquisition, increase brand awareness, and create value across its portfolio [9].