Starco Brands, Inc. reported third‑quarter 2025 results that showed a net revenue of $11.6 million and a gross profit of $4.6 million, giving a gross margin of 39.7 percent. The company posted a net loss of $1.4 million, a dramatic improvement from the $6.3 million loss in the same quarter a year earlier. Adjusted EBITDA turned positive at $0.4 million, compared with a $0.7 million loss in Q3 2024. For the first nine months of 2025, revenue totaled $33.5 million, gross profit $13.8 million, and a net loss of $1.4 million, versus a $22.4 million loss for the first nine months of 2024. Adjusted EBITDA for the nine‑month period rose to $0.2 million from a $1.5 million loss in 2024.
The improvement in the loss profile is largely attributable to a fair‑value gain on share‑based compensation adjustments that offset operating costs, and to a disciplined cost‑control program that reduced headcount, contractor fees, and royalty expenses. The company’s strategic exit from low‑margin Soylent retail channels has also freed resources to focus on higher‑margin direct‑to‑consumer and e‑commerce brands such as Skylar, Winona, and Whipshots, which continue to grow organically. While overall revenue declined year‑over‑year, the mix shift toward these core brands helped stabilize margins at roughly 40 percent.
Starco Brands is in the final stages of due diligence for the acquisition of The Starco Group, a contract manufacturer that would provide vertical integration and supply‑chain control. Management expects the deal to add about 40 percent to the company’s revenue and to deliver significant margin and operational efficiencies. The transaction is projected to close before year‑end or in the first quarter of 2026, extending a previously targeted Q4 2025 close by a few weeks.
CEO Ross Sklar said the quarter “validates our focus on operational discipline and profitable growth.” He added that the acquisition “will fundamentally transform our business, creating a vertically integrated platform that delivers revenue growth, enhanced margins, manufacturing and supply‑chain controls, and the scale required to fulfill our ambitious growth plan.”
Looking ahead, Starco Brands will concentrate on sustaining the momentum built in 2025, expanding its core brands, and successfully integrating The Starco Group. The company’s guidance for the remainder of the year remains unchanged, reflecting confidence in its cost‑control trajectory and the expected revenue lift from the acquisition.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.