FLUENT Reports Second Quarter 2025 Results

Core Insights - FLUENT Corp. reported its largest harvest in history from the Rosa cultivation facility, marking a significant operational milestone [1][3] - The company has initiated operations at the Buffalo cultivation facility through an exclusive partnership with Connected Cannabis, aiming to enhance product quality and meet growing demand [1][3] - A new Interim CEO has been appointed to lead the company's strategic and operational turnaround efforts [1][2] Financial Highlights - Q2 2025 revenue was $26.7 million, a slight decrease from $27.3 million in Q2 2024 [7] - Florida revenue specifically dropped to $19.3 million from $23.1 million year-over-year [7] - Gross profit before fair value adjustments was $10.4 million, representing 39% of revenue, down from $13.8 million or 50.5% of revenue in the previous year [7] - Adjusted EBITDA decreased to $3.9 million from $7.7 million, primarily due to lower revenue and increased production costs [7] - As of June 30, 2025, the company had approximately $22.9 million in cash and cash equivalents and $78.1 million in total debt, compared to $8.5 million and $67.5 million respectively a year earlier [7] Operational Highlights - FLUENT operates 42 retail locations and 8 production facilities across Florida, New York, Pennsylvania, and Texas [5] - The Rosa facility's inaugural harvest in August was the largest in the company's history, indicating a strong cultivation platform [3][8] - The Buffalo facility's partnership with Connected Cannabis is expected to enhance indoor cultivation capacity and product quality, with products anticipated to be available by late Q4 2025 [3][8] Strategic Initiatives - The company is focusing on operational excellence, customer-centered approaches, and disciplined cost management as part of its strategic turnaround [2] - A review of the Florida retail network is underway to drive profitable growth [8] - The growth of the ENTOURAGE wholesale division remains a priority to enhance wholesale revenue across the state [15]