Wed, May 14, 5:11 PM (38 days ago)
**Blum Holdings, Inc. (BLMH) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $2.24 million, up 26.3% from Q1 2024 ($1.77 million). - **Gross Profit:** $1.19 million, a 49.2% increase from Q1 2024 ($798,000). - **Operating Loss:** $1.30 million, a 63.7% decrease from Q1 2024 ($3.59 million). - **Net Loss:** $564,000, an 81.5% decrease from Q1 2024 ($3.05 million). **Profit Margins:** - **Gross Margin:** 53.2%, up from 45.0% in Q1 2024. - **Operating Margin:** -58.1%, improved from -202.2% in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** -$364,000, an improvement from -$2.38 million in Q1 2024. - **Investing Cash Flow:** -$406,000, compared to $1.27 million in Q1 2024. - **Financing Cash Flow:** $160,000, an improvement from -$29,000 in Q1 2024. **Earnings Changes:** - **EPS (Basic and Diluted):** -$0.08, improved from -$0.35 in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by retail operations, with three new dispensaries in Northern California. - **Cost Management:** Decrease in selling, general, and administrative expenses by 43.2%. - **Cash Flow:** Improved operating cash flow but negative investing cash flow due to note issuances. **Trends and Uncertainties:** - **Positive Trends:** Revenue growth, improved gross margins, and reduced operating losses. - **Uncertainties:** Dependence on regulatory approvals for acquisitions, ongoing litigation, and the need for additional financing. **Future Operations Impact:** - **Strategic Focus:** Emphasis on retail operations, cost management, and potential acquisitions. - **Financial Needs:** Requires additional financing to support operations and growth initiatives. **Key Metrics:** - **Current Ratio:** 0.20 (March 31, 2025) vs. 0.30 (December 31, 2024). - **Cash Position:** $430,000 (March 31, 2025) vs. $1.04 million (December 31, 2024). **Conclusion:** Blum Holdings, Inc. showed significant improvements in revenue, gross margins, and operating losses in Q1 2025. However, the company continues to face financial challenges, including negative cash flow from investing activities and the need for additional financing. The strategic focus on retail operations and potential acquisitions may drive future growth, but uncertainties related to regulatory approvals and litigation remain.