Blum Holdings, Inc. announced its financial results for the second quarter ended June 30, 2025, on August 14, 2025. For the six months ended June 30, 2025, total revenue increased by 2.7% to $5.72 million, up from $5.57 million in the prior year.
Gross profit from continuing operations rose by 20.5% to $2.88 million, with the overall gross margin expanding to 50.4% from 42.9%. Operating expenses saw a significant reduction, with selling, general, and administrative (SG&A) expenses decreasing by 52.7% to $4.99 million, narrowing the operating loss from continuing operations by 78.9% to $2.11 million.
However, the company reported a working capital deficit of $20.82 million and a cash balance of $0.37 million as of June 30, 2025, compared to a working capital deficit of $6.79 million and $1.04 million in cash at December 31, 2024. The accumulated deficit stood at $423.53 million, leading management to state that there is "substantial doubt as to its ability to continue as a going concern for twelve months from the issuance of these financial statements."
Q2 revenue increased by 55.3% to $3.48 million compared to Q1 2025, but the gross margin slightly declined to 48.6% from 53.2% due to the EWCR acquisition operating with lower gross margins. The company received $1.63 million from unsecured promissory notes in the first half of 2025 to support working capital and acquisitions.
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