Blum Holdings Inc. reported third‑quarter 2025 revenue of $4.8 million, a 39% increase from the $3.5 million earned in Q2 2025 and a 117% jump from the $2.1 million recorded in Q1 2025. The growth was driven largely by the integration of recently acquired stores, including the Cookies Redding location and a Santa Clara County outlet, which together contributed an additional $1.2 million in sales and helped offset the modest decline in revenue from the company’s core retail chain.
Despite the revenue surge, the company posted a net loss of $2.559 million and an adjusted EBITDA loss of $1.3 million for the quarter. The loss widened from the $0.6 million adjusted EBITDA loss reported in Q2 2025, reflecting higher SG&A expenses associated with the acquisition integration and ongoing restructuring initiatives. The net loss contrasts sharply with the $7.3 million net income reported in Q2 2024, underscoring the company’s current focus on scaling operations rather than achieving profitability.
On the balance‑sheet side, Blum Holdings reported total liabilities of $52.349 million against assets of $45.081 million, resulting in a stockholders’ deficit of $11.879 million. The deficit highlights the company’s liquidity constraints and the significant debt burden that management must address as it seeks to convert operational gains into cash flow. The company’s disclosure of substantial doubt about its ability to continue as a going concern further emphasizes the urgency of improving its financial footing.
Management emphasized that the recent acquisitions are nearing completion and that the company’s SG&A structure is being scaled to support the expanded footprint. CEO Sabas Carrillo stated that “2026 will be about converting this foundation into cash flow and balance‑sheet strength.” The focus on SG&A scaling reflects a strategic shift toward operational efficiency, while the near‑completion of integration is expected to unlock cost synergies and improve margin stability in the coming year.
Carrillo also highlighted the ongoing impact of Section 280E tax provisions, which continue to erode profitability for cannabis‑related businesses. The company is monitoring potential reforms and exploring strategies to mitigate the tax burden. While revenue growth is accelerating, the widening losses and liquidity concerns signal that Blum Holdings must navigate significant headwinds before achieving sustainable profitability. The company’s outlook for 2026 signals confidence in its operational foundation but also underscores the need for disciplined cost management and effective tax planning.
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