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Bespoke Extracts, Inc. (BSPK)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered record revenue of $467,945, up 19.8% q/q and 68.6% y/y, with 50.0% gross margin; GAAP net loss narrowed to $78,088 .
  • Operational execution drove margin expansion (+860 bps y/y) via material, labor, and packaging efficiencies; production hit a record 209,600 pre-rolls (+81% y/y) .
  • Management initiated Q4 2025 revenue guidance of $425,000–$500,000 and expects blended gross margins of ~50% as new brands launch and throughput increases .
  • Liquidity remains a key watchpoint: cash ended Q3 at $16,743 with accounts payable/accrued liabilities at $1.39M; interest expense increased versus Q3 2024 .
  • No Wall Street consensus estimates available; coverage likely limited for the OTCQB micro-cap, so stock reaction will hinge on operational momentum, margin durability, and Q4 execution .

What Went Well and What Went Wrong

What Went Well

  • Strong topline and margin: revenue of $467,945 (+19.8% q/q; +68.6% y/y) with 50.0% gross margin (+860 bps y/y) on production efficiencies .
  • Record production volumes: 209,600 pre-rolls produced (+81% y/y), supporting improved throughput and scale .
  • Management conviction and operational narrative: “We’re not chasing the market — we’re building it,” and “Q3 was a turning point” emphasizing disciplined execution and margin leadership .

What Went Wrong

  • Persistent GAAP losses despite improvement: net loss of $78,088; interest expense was $24,197, and stockholders’ deficit widened to $(2.60)M, underscoring capital constraints .
  • Liquidity pressure: cash declined to $16,743 and accounts payable/accrued liabilities were $1.39M; near-term working capital management remains critical .
  • Macro headwind context: Colorado’s regulated cannabis market contracted 8.8% y/y in Q1 2025, and management continues to operate in a “shrinking market,” elevating execution risk despite company-specific growth .

Financial Results

Quarterly P&L (Q1–Q3 2025)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD)$263,159 $390,553 $467,945
Gross Profit ($USD)$110,779 $197,499 $234,175
Gross Margin (%)42.1% (calc from $110,779/$263,159) 50.6% 50.0%
Operating Expenses ($USD)$356,117 $359,457 $288,066
Net Loss ($USD)$(260,521) $(205,106) $(78,088)
EPS (Basic & Diluted)$(0.02) $(0.02) $(0.01)
Shares Outstanding (Basic & Diluted)11,153,220 11,153,220 11,249,959

Year-over-Year Comparison (Q3 2024 vs Q3 2025)

MetricQ3 2024Q3 2025
Revenue ($USD)$277,471 $467,945
Gross Profit ($USD)$114,995 $234,175
Gross Margin (%)41.4% 50.0%
Operating Expenses ($USD)$377,463 $288,066
Net Loss ($USD)$(275,613) $(78,088)
EPS (Basic & Diluted)$(0.03) $(0.01)
Shares Outstanding (Basic & Diluted)10,635,068 11,249,959

Actuals vs Estimates (Q3 2025)

MetricActualS&P Global ConsensusSurprise
Revenue ($USD)$467,945 N/A*N/A
EPS ($USD)$(0.01) N/A*N/A

Values retrieved from S&P Global.*

Segment Breakdown

SegmentRevenueNotes
N/AN/ACompany reports consolidated results; operations centered on Colorado pre-roll manufacturing and branded products (FreshJoints, Doobskis, DutchBlunts, Sweet Joints) .

KPIs

KPIQ3 2025Q3 2024Change
Pre-rolls Produced (Units)209,600 N/A+81% y/y (management statement)
Gross Margin (%)50.0% 41.4% +860 bps y/y

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD)Q4 2025N/A$425,000–$500,000 Initiated
Gross Margin (%)Q4 2025N/A~50% blended margins Initiated
New Brand LaunchesQ4 2025N/ATwo new company-owned brands to launch Initiated
Expansion (Geography)Q4 2025+N/AEvaluating replication in MA and NY Initiated

No explicit guidance provided for OpEx, OI&E, tax rate, or dividends .

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript available; themes based on press releases and 8-Ks .

TopicPrevious Mentions (Q-2)Previous Mentions (Q-1)Current Period (Q3)Trend
Market BackdropN/AColorado market contracted 8.8% y/y; company still grew revenue “Shrinking market” but revenue +68.6% y/y; margin leadership Improving relative performance
Brand StrategyN/ARebranding under The Joint Company; launched Doobskis & Dutch Blunts Fresh Joints leads; Doobskis & Dutch Blunts gaining traction; two new brands in Q4 Expanding portfolio
Production & EfficiencyN/ADaily pre-roll production +32% vs Q1 2024; cost efficiencies Record 209,600 pre-rolls; efficiencies in material, labor, packaging Scaling throughput
MarginsN/AExpected margin improvements with scale 50.0% GM (+860 bps y/y); Q4 GM guided ~50% Durable at ~50%
Expansion PlansN/AExploring other state markets Evaluating replication in MA and NY Continued exploration

Management Commentary

  • “We’re not chasing the market — we’re building it… Q3 was a turning point. We produced more pre-rolls, earned strong margins, and expanded our reach — all while holding the line on overhead costs.” — Hunter Garth, President .
  • “Our flexibility to adapt to changing market conditions in our core pre-roll business has allowed us to succeed this year in Colorado, setting us apart from many other participants.” — Michael Feinsod, Chairman & CEO .
  • “The fact that we can grow revenue by approximately 69% while expanding margins in a shrinking market says everything about our team and our process.” — Hunter Garth .
  • “Our team's focus on efficiency and quality has not only driven record growth but also positioned us for scalable expansion.” — Michael Feinsod .
  • Q1 strategic frame: Rebranding to The Joint Company, launches of Doobskis and Dutch Blunts, and continued margin improvement focus despite market contraction .

Q&A Highlights

No Q3 2025 earnings call transcript was available; therefore, no analyst Q&A themes or clarifications could be captured .

Estimates Context

  • No S&P Global Wall Street consensus estimates were available for BSPK in Q3 2025; coverage appears limited for the OTCQB-listed micro-cap. Actuals cannot be benchmarked vs consensus this quarter .
MetricQ3 2025 ConsensusNotes
Revenue ($USD)N/A*No coverage returned for period
EPS ($USD)N/A*No coverage returned for period
# of Estimates (Revenue/EPS)N/A*No coverage returned for period

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Execution outweighs macro: Despite a contracting Colorado market, BSPK delivered record revenue and margin expansion in Q3, indicating share gains and operational leverage .
  • Margin durability: Sustained ~50% gross margin is central to the thesis; efficiencies across materials, labor, and packaging underpin profitability trajectory into Q4 .
  • Volume scaling: Record pre-roll output (209,600 units) supports revenue growth and brand penetration; throughput remains a leading indicator for near-term results .
  • Liquidity vigilance: Low cash ($16,743) and elevated payables ($1.39M) necessitate disciplined working capital and potential financing optionality; watch interest expense and covenant risks .
  • Portfolio expansion catalyst: Q4 launches of two new brands and ongoing traction in Fresh Joints/Doobskis/Dutch Blunts can broaden revenue streams and enhance mix .
  • Geographic optionality: Evaluating replication of The Joint Company model in MA and NY offers medium-term growth vectors, contingent on capital and regulatory execution .
  • Estimates vacuum: With no Street coverage, narrative and prints will drive sentiment; delivery on Q4 guidance and evidence of margin resilience are likely to be near-term trading catalysts .