BLUM HOLDINGS, INC. (BLMH)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 release highlighted a full-year turnaround: FY 2024 revenue rose 67% to $13.0M, net income reached $33.1M, and liabilities fell 62% to $29.6M, reflecting aggressive restructuring and asset optimization .
• Quarterly cadence softened into year-end: Q4 revenue was $3.06M versus $4.36M in Q3 and $3.80M in Q2; Q4 EBITDA was -$4.0M, following -$1.64M in Q3 and +$8.40M in Q2 (values retrieved from S&P Global)*.
• Reported FY gross margin was 48%; EBITDA from continuing operations was $21.2M while Adjusted EBITDA from continuing operations remained a loss of $10.9M, underscoring non-GAAP adjustments and restructuring gains impacting GAAP metrics .
• Management shifted from defensive restructuring to measured expansion; evaluating retail, cultivation, and distribution opportunities, supported by balance sheet repair and limited capital raised (~$1.97M), which could catalyze investor sentiment if execution continues .

What Went Well and What Went Wrong

What Went Well

• Debt and liability reduction: FY liabilities decreased 62% to $29.6M; debt was $9.2M at Sept 30, 2024, enhancing flexibility .
• Operational integration: Three Northern California stores standardized pricing/discounts/ERP, lifting gross margin to 56% in Q3 2024 and improving consistency .
• Management execution and discipline: “We executed one of the most aggressive financial restructurings in the cannabis sector… achieved these extraordinary results with only $1.97 million in new capital raised” — CEO Sabas Carrillo .

What Went Wrong

• Underlying profitability still challenged: FY Adjusted EBITDA from continuing operations remained a loss of $10.9M, indicating core operations need further improvement despite headline GAAP gains .
• Sequential softness into Q4: Q4 revenue fell to $3.06M from $4.36M in Q3, with EBITDA at -$4.0M after -$1.64M in Q3, pointing to near-term demand/operating pressures (values retrieved from S&P Global)*.
• Restructuring and legal complexity: Q3 disclosures flagged Unrivaled Brands/Halladay Holding Chapter 11 proceedings and divestitures (Oakland and San Leandro), highlighting ongoing portfolio pruning and legal overhangs .

Financial Results

Revenue, EPS, Margins – Quarterly Comparison

Notes: “—” indicates not disclosed in company materials for the quarter. Values marked with * are retrieved from S&P Global.

Full-Year Anchors (for context)

Segment/Operations Breakdown (where disclosed)

KPIs and Balance Sheet Markers

Guidance Changes

Management did not provide quantified forward guidance in the Q4/FY release .

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was available in the document set.

Management Commentary

• CEO: “Over the past two years, we executed one of the most aggressive financial restructurings in the cannabis sector… We have positioned ourselves to capitalize on value-accretive opportunities… achieved these extraordinary results with only $1.97 million in new capital raised” — Sabas Carrillo .
• CFO: “Blüm’s 2024 performance is a testament to the disciplined execution of our financial, restructuring, litigation, and operational strategies… foundational improvements have strengthened our financial position” — Patty Chan .
• CFO (Q3): “The Northern California stores and the implementation of consistent operational practices have significantly strengthened our financial and operational foundation” — Patty Chan .

Q&A Highlights

No Q4 2024 earnings call transcript was available; Q&A themes and any guidance clarifications could not be verified from primary sources.

Estimates Context

• Consensus coverage: S&P Global consensus for EPS and target price was unavailable for Q4 2024; revenue and EBITDA fields reflect actuals rather than consensus.
• Reported vs S&P Global actuals: Q4 revenue $3.06M; EBITDA -$3.98M; Q3 revenue $4.36M; EBITDA -$1.64M; Q2 revenue $3.80M; EBITDA $8.40M (values retrieved from S&P Global).*
• Implications: In absence of formal consensus, sell-side estimate revisions are unlikely to be a catalyst; investor focus should remain on operational execution, margin trajectory post-NorCal integration, and continued balance sheet repair.

Disclaimer: Values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

• Balance sheet repair is a core driver: liabilities fell to $29.6M at year-end from $77.8M in 2023, materially improving solvency and optionality .
• Underlying operations still need work: FY Adjusted EBITDA from continuing operations was -$10.94M despite GAAP net income of $33.10M; normalization of non-recurring gains will pressure profitability absent further cost/price actions .
• Near-term cadence: sequential revenue and EBITDA softness in Q4 versus Q3 warrants caution until margin and traffic stabilize (values retrieved from S&P Global).*
• Execution priorities: standardizing retail operations, optimizing pricing/discounts, and disciplined OpEx remain key levers highlighted by management .
• Legal overhang reduced: with litigation resolved and deconsolidations completed, narrative shifts toward measured expansion, potentially improving investor confidence .
• Portfolio pruning continues: divestitures and Chapter 11 processes at non-core entities trimmed risk; focus now on high-performing assets and brand-led growth .
• Trading implications: without formal guidance or consensus coverage, stock is likely to trade on incremental operating updates, margin prints, and any M&A/expansion announcements; monitor quarterly margin progression and store-level KPIs for signal.