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BH

BLUM HOLDINGS, INC. (BLMH)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered revenue of $2.24M (+26% YoY), gross margin of 53% (+8pp YoY), and positive EBITDA of $0.06M, with net loss from continuing operations narrowing to $(0.56)M; adjusted EBITDA loss improved to $(0.42)M from $(3.32)M in Q1 2024 and $(2.10)M in Q4 2024 .
  • No formal guidance was issued; management highlighted an amended LOI for a Bay Area dispensary expected to generate ~$12.0M annual revenue post-close, and capital raised of $1.6M YTD, positioning the platform for inorganic growth .
  • Legacy litigation overhang eased with a global settlement with People’s California; the Bankruptcy Court’s written order was entered May 2, 2025, with effectiveness expected after the appeal period ends May 16, 2025 (absent stay) .
  • Operational turnaround supported by SG&A reductions (OpEx down to $2.49M vs $4.39M in Q1 2024) and pricing/product-mix discipline; management emphasized breakeven EBITDA operations and readiness to scale .
  • Street consensus from S&P Global was not available for Q1 2025 EPS or revenue (no estimates returned), limiting beat/miss assessment; the quarter’s narrative catalysts were margin expansion, EBITDA positivity, litigation resolution, and accretive pipeline .

What Went Well and What Went Wrong

What Went Well

  • EBITDA turned positive ($0.06M) and adjusted EBITDA loss narrowed materially QoQ and YoY, reflecting cost containment and operating efficiency .
  • Gross margin expanded to 53% (from 45% in Q1/Q4 2024) on stronger pricing discipline and product mix optimization, signaling healthier unit economics .
  • Management secured capital ($1.6M YTD) and executed an amended LOI anticipated to add ~$12.0M annual revenue, while resolving legacy litigation—reducing strategic overhang and enabling focus on scaling; CFO: “We’re encouraged by the financial improvements… positive EBITDA…” CEO: “Blüm has achieved breakeven operations on an EBITDA basis… positioned to scale” .

What Went Wrong

  • Despite improvements, the company remained loss-making at the net-income level (continuing ops $(0.56)M), indicating further work needed to reach sustained profitability .
  • Adjusted EBITDA remained negative ($(0.42)M), underscoring continued reliance on execution of cost programs and potential accretive M&A to reach scale benefits .
  • Formal guidance was absent and Street consensus was unavailable, complicating external benchmarking; the growth narrative leans on M&A execution, capital access, and regulatory approvals to unlock the pipeline .

Financial Results

Quarterly Comparison (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$4.36 $3.06 $2.24
Gross Profit ($USD Millions)$2.45 $1.37 $1.19
Gross Margin %56% 45% 53%
Operating Expenses ($USD Millions)$4.65 $(16.22) $2.49
Income (Loss) from Operations ($USD Millions)$(2.20) $17.59 $(1.30)
Net Income (Loss) – Continuing Ops ($USD Millions)$(3.63) $16.92 $(0.56)
EBITDA (Non-GAAP, $USD Millions)N/A$18.15 $0.06
Adjusted EBITDA (Non-GAAP, $USD Millions)N/A$(2.10) $(0.42)
Diluted EPS – Continuing Ops ($USD)$(0.40) $0.63*$(0.08)*

Values marked with * were retrieved from S&P Global.

YoY: Q1 2024 vs Q1 2025

MetricQ1 2024Q1 2025
Revenue ($USD Millions)$1.77 $2.24
Gross Margin %45% 53%
Net Income (Loss) – Continuing Ops ($USD Millions)$(3.51) $(0.56)
EBITDA (Non-GAAP, $USD Millions)$(3.05) $0.06
Adjusted EBITDA (Non-GAAP, $USD Millions)$(3.32) $(0.42)
Diluted EPS – Continuing Ops ($USD)$(0.35)*$(0.08)*

Values marked with * were retrieved from S&P Global.

Margins (selected)

MetricQ3 2024Q4 2024Q1 2025
Gross Margin %56% 45% 53%
EBITDA Margin %N/A593.7% (EBITDA $18.15M / Rev $3.06M) 2.5% (EBITDA $0.06M / Rev $2.24M)

Note: Q4 2024 EBITDA was materially impacted by one-time gains (e.g., disposal of assets), which are excluded in Adjusted EBITDA .

Segment breakdown and KPIs

  • Segment detail: Not disclosed in Q1 2025 press release .
  • Selected KPIs:
    • Northern California store alignment and operational protocol standardization (three stores) in 2024 underpinning margin progress .
    • Disposition of Oakland and San Leandro stores (Nov 2024) to optimize footprint .
    • Capital raised YTD 2025: $1.6M .
    • Positive EBITDA milestone achieved in Q1 2025 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Company revenue/marginsFY/Q2 onwardNot providedNot providedMaintained (no formal guidance)
Acquisition target revenue (Bay Area dispensary)Post-close 12 monthsN/A~$12.0M annual revenue expectation (Target)New disclosure

Note: Guidance ranges were not issued; acquisition revenue is an expectation tied to the Target and subject to definitive agreements and approvals .

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was found in the document set searched (2025-01-01 to 2025-06-30) [List: earnings-call-transcript none]. Themes below reflect quarterly press releases.

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024/Annual)Current Period (Q1 2025)Trend
Balance sheet and debtDebt reduced to $9.2M; liabilities down materially; focus on financial flexibility Liabilities reduced to $29.6M in 2024; substantial turnaround; EBITDA from continuing ops $21.2M driven by restructuring items Capital raised $1.6M YTD; focus on strengthening balance sheet Improving balance sheet; selective capital raising
Retail footprint optimizationAligned 3 Northern CA stores; standardization of ERP, discounting, staffing Disposed Oakland/San Leandro to streamline footprint Amended LOI to acquire Bay Area dispensary; integration expected Active portfolio optimization + expansion
Gross margin and pricingGross margin improved to 56% QoQ via pricing strategy FY gross margin 48% Gross margin 53%; mix/pricing discipline Sustained margin focus
Legal/regulatoryUnrivaled/Halladay Chapter 11; pro forma liabilities outlined 2024 transformation with litigation resolved initiatives Global settlement with People’s California; court approval entered, effectiveness post appeal period Overhang reducing
Capital and M&A pipelineN/AStrategic financing and intended acquisitions disclosed (Cookies-related stakes; Northern CA retail) Amended LOI; immediate operational/economic control via MSA; earn-outs; working capital notes Building accretive pipeline
Brand initiativesReinvigorating Korova brand Multi-brand platform emphasis Continued brand/retail ecosystem leverage Ongoing brand support

Management Commentary

  • CFO Patty Chan: “We’re encouraged by the financial improvements we achieved in Q1 2025, including our positive EBITDA… Our reduced SG&A expenditure demonstrates prudent financial management… We remain focused on optimizing cash flow and exploring capital solutions to support continued progress.”
  • CEO Sabas Carrillo: “Following a multi-year restructuring effort and the resolution of legacy litigation, Blüm has achieved breakeven operations on an EBITDA basis. Our business is now stabilized, and we are strategically positioned to scale… we remain focused on securing capital… and evaluating strategic acquisition opportunities… add margin-positive revenue streams… leverage our existing overhead infrastructure…”

Q&A Highlights

No Q1 2025 earnings call transcript was available in the document set; therefore, Q&A themes and responses could not be synthesized. We searched 2025-01-01 to 2025-06-30 and found no earnings-call-transcript for BLMH [List: earnings-call-transcript none].

Estimates Context

  • S&P Global consensus estimates for Q1 2025 were unavailable for BLMH (no consensus values returned); as a result, beat/miss vs Street could not be determined [GetEstimates: Q1 2025].
  • The press release furnished actual results (revenue $2.24M), but without externally sourced consensus, investors should anchor on internal trajectory (margin gains, OpEx reductions) and pipeline events when calibrating models .

Key Takeaways for Investors

  • Margin expansion and cost discipline drove EBITDA positivity; the step-change vs prior year supports near-term sentiment, but sustained profitability still requires continued execution .
  • The litigation settlement materially reduces strategic overhang, potentially improving capital access and M&A close probabilities in coming quarters .
  • The amended LOI (~$12.0M target annual revenue) and immediate operational control via MSA can be accretive if closed; focus on performance milestones and regulatory approvals is critical to timing and economics .
  • Q1 lacked formal guidance and Street consensus, suggesting the stock may trade more on operational milestones (acquisition close, margin trajectory, capital raises) than on estimate beats/misses in the near term .
  • Watch adjusted EBITDA trajectory—excluding one-time items (notably Q4 gains)—as the cleanest signal of core profitability improvement .
  • Capital formation remains a key lever; incremental financing at competitive terms can accelerate footprint expansion while leveraging existing corporate overhead .
  • For trading, catalysts include: acquisition close announcements, further margin gains, additional settlements or legal resolutions, and updates on capital plans; near-term risks include deal execution, regulatory approvals, and maintaining cost discipline .

Values marked with * were retrieved from S&P Global.