Executive Summary

Q2 2024 revenue declined 17% year over year to $1.43M as the company prioritized marketing ROI over last year’s large spend; gross profit remained strong at $1.08M on improved pricing and lower purchasing costs .
Losses widened: operating loss (EBIT) was $(2.44)M and net loss attributable to stockholders was $(2.47)M, or $(1.35) per share, reflecting higher SG&A (workforce, stock comp, legal/accounting tied to capital raises and the Heidmar process) .
Preliminary H1 commentary guided Stand Flagpoles revenue up 12–15% YoY, signaling underlying demand resilience even as quarterly comps were pressured by prior-year marketing strategy .
Strategic pivot: assignment of the Messi brand license to Centric for $2.0M cash and assumption of €1.5M royalties supports liquidity; definitive business combination with Heidmar targets closing in late Q4 2024 and Nasdaq compliance actions (1-for-10 reverse split) were executed .
No Wall Street consensus from S&P Global was available for Q2 2024 due to missing mapping; estimate comparisons cannot be provided (we checked S&P Global and could not retrieve MGOL) [GetEstimates error].

What Went Well and What Went Wrong

What Went Well

H1 preliminary commentary indicated Stand Flagpoles revenue growth of +12–15% YoY, highlighting product resonance and pricing discipline .
Gross profit in Q2 2024 was $1.08M, with management citing optimized sales prices and reduced purchasing costs improving unit economics despite lower revenue .
Strategic transactions: $2.0M cash received from assignment of Messi license (and Centric’s assumption of €1.5M 2024 royalties) strengthened liquidity; reverse split and compliance plan advanced Nasdaq listing remediation .

Management quote: “2024 is proving to be a very exciting, transformative year… we entered into a strategic business combination agreement with Heidmar, Inc… [with] potentially significant value creation for MGO’s shareholders” .

What Went Wrong

Revenue fell 17% YoY to $1.43M as the company lapped a heavy Q2 2023 marketing push; Q2 2024 marketing spend was lower but last year’s strategy drove higher sales with inadequate ROI, creating tough comps .
Operating expenses surged (SG&A up sharply), driving operating loss (EBIT) of $(2.44)M and net loss to $(2.48)M, with stock-based comp, workforce expansion, and deal-related legal/accounting costs cited as drivers .
Going-concern language persists; cash used in operations in H1 was $(3.22)M, and management cautioned that cash generation may not be sufficient without growth or financing until Heidmar closes .

Financial Results

Core P&L vs prior periods

Metric	Q2 2023	Q1 2024	Q2 2024
Revenue ($USD)	$1,724,293	$670,264	$1,425,589
Gross Profit ($USD)	$1,215,432	$502,532	$1,079,233
Gross Margin (%)	70.5%	75.0%	75.7%
Operating Income (EBIT) ($USD)	$(902,153)	$(1,864,782)	$(2,440,977)
EBIT Margin (%)	(52.3%)	(278.2%)	(171.3%)
Net Income (Loss) ($USD)	$(1,398,205)	$63,163	$(2,475,615)
Net Margin (%)	(81.1%)	9.4%	(173.7%)
EPS (Basic & Diluted) ($USD)	$(0.94)	$(0.01)	$(1.35)

Notes: Gross margin, EBIT margin, and net margin are computed from cited revenue, gross profit, EBIT (operating income), and net income values .

KPIs and operating metrics

KPI	Q2 2023	Q1 2024	Q2 2024
DTC website revenue ($USD)	$1,724,293 (100% of revenue)	$670,264 (100%)	$1,425,589 (100%)
US revenue mix (%)	100%	99.5%+ (US $667,203 of $670,264)	100%
Inventory ($USD, period-end)	n/a	$674,242	$844,719
Cash from operations ($USD)	n/a	n/a	$(3,223,920) (H1 2024)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Stand Flagpoles revenue growth YoY	H1 2024	None disclosed	+12% to +15% vs H1 2023	Introduced range
Nasdaq listing compliance actions	2024 milestones	n/a	1-for-10 reverse split; equity and bid-price compliance plan	Executed actions

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was available in the document catalog; themes are drawn from the 10-Q and 8-K disclosures.

Topic	Previous Mentions (Q4 2023 / Q1 2024)	Current Period (Q2 2024)	Trend
Marketing ROI discipline	Q1 noted heavy prior-year push; shift to higher-return spend	Q2 decline in revenue attributed to lapping 2023 push; focus on ROI	Sustained optimization
Supply chain and COGS	Perpetual Stand Flagpoles license; pricing/purchasing efficiencies	Gross profit supported by improved pricing and reduced purchasing costs	Improving unit economics
Business combination (Heidmar)	Definitive BCA signed; ownership split expectations	Advancing toward late Q4 2024 closing; strategic rationale reiterated	Progressing to close
Capital markets/Nasdaq	ATM usage; deficiency notices; hearing	Reverse split effected; equity and bid-price remediation ongoing	Compliance actions executed
Discontinued operations (Messi)	Assignment to Centric; $2.0M cash; €1.5M royalties assumed	Wind-down continued; positive H1 discontinued result	De-risking legacy obligations
Liquidity/going concern	Going-concern language; need for growth/financing	Going-concern language persists; H1 cash use $(3.22)M	Cautious until Heidmar close

Management Commentary

“The fundamental strength of Heidmar’s business plan… historical financial performance… growth outlook… should serve as force multipliers for… significant value creation for MGO’s shareholders” — Maximiliano Ojeda, CEO .
“MGO is very proud of our efforts to establish Stand Flagpoles… a respected niche digital brand… continued solid performance since… March 2023” — Maximiliano Ojeda, CEO .
“When we file our 10-Q… we expect… total revenues from Stand Flagpoles… for H1 2024 will rise in the range of 12%–15% vs H1 2023” — Company statement .

Q&A Highlights

No Q2 2024 earnings call transcript was available; Q&A highlights and any call-driven guidance clarifications are therefore unavailable from primary sources.

Estimates Context

We attempted to retrieve S&P Global consensus for Q2 2024 (EPS and revenue); MGOL lacked a CIQ mapping in S&P Global, so Wall Street consensus estimates were unavailable and we cannot provide beats/misses versus consensus. Values would otherwise be “retrieved from S&P Global,” but were not accessible due to mapping error [GetEstimates error].

Key Takeaways for Investors

Revenue pressure is largely comp-driven; underlying demand indicators (H1 +12–15% Stand Flagpoles revenue growth) and gross profit strength suggest healthy unit economics as pricing and purchasing efficiencies take hold .
Expense intensity drove losses; with stock comp, workforce expansion, legal/accounting (capital raises and Heidmar process) weighing on Q2—expect near-term losses until Heidmar close and integration .
Liquidity improved via $2.0M Centric proceeds and ATM, but operating cash burn (H1 $(3.22)M) and going-concern language warrant caution; near-term financing flexibility and closing the Heidmar transaction are critical .
Strategic pivot away from Messi exposure de-risks royalties and focuses the portfolio; Heidmar combination, if closed, is transformative to scale and profitability profile (Heidmar FY2023 net income $19.6M cited by management) .
Corporate actions (1-for-10 reverse split and Nasdaq plan) reduce delisting risk; successful compliance and transaction closing are potential stock catalysts alongside improved marketing efficiency .
With no available sell-side consensus in S&P Global, market reaction may hinge on transaction milestones, liquidity updates, and evidence of sustained gross margin strength; monitor filings and 8-Ks closely [GetEstimates error].

Cross-References and Disclosures

8-K Item 2.02 and Exhibit 99.1: Preliminary H1 growth and strategic highlights .
Q2 2024 10-Q: Full financial statements, MD&A, liquidity and Nasdaq compliance details .
Q1 2024 10-Q: Prior-quarter baseline, Messi assignment proceeds, and operating trends .
Third-party press releases: Shareholder investigations around the Heidmar transaction (context for legal/regulatory watch) .

MGO Global Inc. (MGOL)·Q2 2024 Earnings Summary