Blum Holdings Inc. Reports Third Quarter 2025 Financial Results

Core Insights - Blum Holdings, Inc. reported its third quarter financial results for 2025, showcasing a third consecutive quarter of revenue growth and operational progress post-restructuring [2][3][4]. Financial Performance - Revenue increased by 39% from $3.5 million in Q2 2025 to $4.8 million in Q3 2025, driven by the acquisition of the Redding store [6]. - Year-to-date revenue growth from Q1 to Q3 2025 was 117%, while SG&A expenses rose by 51%, indicating effective operational leverage as revenue growth outpaced overhead [6]. - Gross margin for Q3 2025 was 48%, slightly down from 49% in Q2 2025, reflecting the impact of the Santa Clara County acquisition [6]. - Operating expenses totaled $3.8 million in Q3 2025, a 53% increase from $2.5 million in Q2 2025, attributed to the acquisition of new retail locations [6]. - The net loss from operations was $1.5 million in Q3 2025, compared to $0.8 million in Q2 2025, primarily due to acquisition and transition costs [6]. Strategic Developments - In October 2025, the company raised an additional $0.7 million, bringing total capital raised in 2025 to $3.2 million [4]. - The company is focusing on converting growth into profitability and strengthening its balance sheet as integration nears completion [4]. Asset and Liability Overview - Total assets increased by $20.3 million compared to year-end 2024, mainly due to the acquisition of two new retail stores [6]. - Total liabilities rose by $22.8 million from year-end 2024, reflecting the consolidation of acquired tax obligations [6]. - The company is evaluating strategies to address tax liabilities, including potential settlement opportunities under IRC Section 280E reform [6].