Tue, May 20, 7:34 PM (29 days ago)
**Starco Brands, Inc. (STCB) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $9.82 million, down 24% from $12.93 million in Q1 2024. - **Gross Profit:** $4.74 million, down 32% from $7.01 million in Q1 2024. - **Net Income:** $1.98 million, a significant improvement from a net loss of $4.27 million in Q1 2024. - **Cash Flow from Operations:** $0.84 million, slightly up from $0.82 million in Q1 2024. - **Cash Flow from Financing:** -$0.29 million, an improvement from -$0.76 million in Q1 2024. - **Cash Flow from Investing:** -$0.13 million, an increase in investment activities from -$0.05 million in Q1 2024. - **Cash Position:** $1.62 million, up from $1.21 million in Q1 2024. **Profit Margins:** - **Gross Margin:** 48.3%, down from 54.2% in Q1 2024. - **Operating Margin:** 25.8%, up from -31.0% in Q1 2024. - **Net Margin:** 20.2%, up from -33.0% in Q1 2024. **Segment Performance:** - **Starco Brands:** Revenue down 24%, gross profit down 32%. - **Skylar:** Revenue down 31%, gross profit down 31%. - **Soylent:** Revenue down 21%, gross profit down 12%. **Trends and Uncertainties:** - **Revenue Decline:** Driven by lower product sales from Soylent and Skylar. - **Cost Reduction:** Significant decrease in operating expenses, primarily due to workforce reductions and cost-saving initiatives. - **Fair Value Share Adjustment:** Significant gain in Q1 2025 compared to a loss in Q1 2024. - **Going Concern:** Substantial doubt exists regarding the ability to meet obligations due to historical net losses and working capital deficiency. - **Debt:** Total debt of $5.93 million, including $2.47 million in notes payable to the CEO, Ross Sklar. **Future Operations Impact:** - **Revenue Growth:** Plans to increase top-line revenue for each segment. - **Cost Management:** Aim to decrease overall expenses as a percentage of revenue. - **Financing:** Seeking alternative financing sources to pay off debt and provide additional working capital. **Management's Outlook:** - **Strategic Initiatives:** Focus on synergies from acquisitions and shared service models to reduce expenses. - **Market Position:** Leverage strong brand recognition and differentiated product portfolio. - **Financial Covenants:** Ongoing discussions with lenders to reset financial covenants and secure waivers of existing defaults.