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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)
Year-over-Year Comparison (Q3 2024 vs Q3 2025)
Actuals vs Estimates (Q3 2025)
Values retrieved from S&P Global.*
Segment Breakdown
KPIs
Guidance Changes
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 .
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 .
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 .