Sign in

You're signed outSign in or to get full access.

UI

UPEXI, INC. (UPXI)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 FY2025 (three months ended September 30, 2024) revenue fell 47% year-over-year to $4.36M and declined 70% sequentially from Q4 FY2024 as Upexi exited recommerce and consolidated operations; gross profit was $2.93M and net loss was $1.63M (EPS $(1.55)) .
  • Gross profit margin improved structurally versus recommerce-heavy prior periods given mix shift to branded/manufactured products, while sales and marketing and distribution costs declined materially YoY; management expects further G&A normalization following consolidation .
  • No formal quarterly guidance was issued; prior filings highlighted cost savings from facility consolidation (~$220k rent and ~$138k utilities annualized) and “sufficient working capital” expectations, later supplemented by capital raises and asset sales in subsequent quarters .
  • There was no Q1 FY2025 earnings call transcript filed; the Q3 FY2024 press release emphasized restructuring decisions (discontinuing certain electronics SKUs, debt reduction, asset sales) as the key catalyst narrative for operational reset .

What Went Well and What Went Wrong

  • What Went Well

    • Mix shift and cost control: YoY declines in sales and marketing (−43%) and distribution costs (−32%) in Q1 FY2025, reflecting tighter focus on core brands and operational consolidation .
    • Margin profile improving: Despite lower sales, Q1 FY2025 gross profit was $2.93M on $4.36M revenue; management noted gross margin resilience versus last year’s recommerce footprint .
    • Strategic simplification: Post-divestitures (VitaMedica, E-Core, Interactive Offers) the company now reports a single operating segment centered on branded products (manufacturing in Florida), simplifying execution and reporting .

  • What Went Wrong

    • Top-line compression: Q1 FY2025 revenue dropped to $4.36M (−47% YoY; −70% vs Q4 FY2024) as recommerce revenue rolled off and consolidation temporarily impacted sales ramp .
    • Higher G&A: Q1 FY2025 G&A rose 13% YoY due to reserve on Amazon receivables and elevated legal/auditing costs, with management expecting normalization post-June 2025 .
    • Continued losses: Net loss of $(1.63)M and EPS $(1.55) in Q1 FY2025; working capital remained negative (−$2.98M), highlighting near-term liquidity constraints pre later capital actions .

Financial Results

MetricQ1 FY2024 (Sep 30, 2023)Q4 FY2024 (Mar 31, 2024)Q1 FY2025 (Sep 30, 2024)
Revenue ($USD)$8,274,690 $14,444,957 $4,356,515
Gross Profit ($USD)$5,429,489 $2,883,123 $2,930,068
Sales & Marketing ($USD)$1,816,702 $1,547,161 $1,041,425
Distribution Costs ($USD)$2,131,892 $2,291,945 $1,455,725
G&A ($USD)$1,578,350 $2,399,387 $1,367,690
Net Income ($USD)$(1,355,388) $(4,118,612) $(1,625,577)
Diluted EPS ($USD)$(1.34) $(0.20) $(1.55)

Segment/disaggregation (Q1 FY2025):

DisaggregationQ1 FY2025
Geography – United States ($USD)$4,280,593
Geography – Other ($USD)$75,922
Product Source – Internally Manufactured ($USD)$2,166,341
Product Source – Contract Manufactured ($USD)$578,316
Product Source – Purchased as Finished Good ($USD)$1,611,858

Selected KPIs (Q1 FY2025):

  • Cash at period end: $1,790,391; Working capital: $(2,981,121) .
  • Deferred revenue: $178,016; expected to be recognized in FY2025 .
  • Inventory reserve: $605,470 (unchanged vs June 30, 2024) .
  • Basic/diluted weighted average shares: 1,045,429 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Facility-related savings (rent/utilities)FY2025 run-rate—~$220k rent and ~$138k utilities annually from Odessa/Tampa consolidation Introduced
Operating expense (G&A) trendFY2025—Management expects G&A to decline post consolidation and return to normal levels (legal/audit spike in Q1 FY2025) Qualitative – lower
Liquidity/working capital outlookNext 12 months (from Q1 filing date)—Company estimated sufficient working capital to fund operations and meet obligations Maintained qualitative
Nasdaq complianceCurrentRisk of non-compliance earlierRegained bid-price compliance as of Oct 17, 2024 Achieved

Note: No formal quarterly revenue/EPS/margin ranges were provided in Q1 FY2025 filings; disclosures were qualitative and cost-focused .

Earnings Call Themes & Trends

No Q1 FY2025 earnings call transcript was filed. Trend themes based on recent filings/press releases:

TopicPrevious Mentions (Q3 FY2024, Q4 FY2024)Current Period (Q1 FY2025)Trend
Restructuring/exiting recommerceDiscontinued electronics SKUs; inventory write-offs; debt reduction; asset sales Continued wind-down of recommerce impacts revenue; cost reductions underway Ongoing execution
Supply chain/consolidationConsolidation to Florida facilities; distribution network changes Florida manufacturing fully operational; Odessa/Tampa leases active Consolidation completed
Cost disciplineS&M and distribution costs declining YoY S&M −43%, distribution −32% YoY; G&A expected to normalize post spike Improving
Nasdaq listing complianceAddressed via reverse split; target to regain compliance Regained compliance confirmed Resolved
Crypto/treasury strategyNot presentNot in Q1; introduced later (SOL treasury, staking in May 2025 press release) New in subsequent quarter

Management Commentary

  • “Our year-over-year quarterly financial results include management’s decision to discontinue sales of certain products… This reset will allow management to focus on opportunities for profitable growth without the debt issue hampering success.” — CEO Allan Marshall, Q3 FY2024 press release .
  • Q1 FY2025 MD&A emphasized cost actions and margin stabilization: sales and marketing −43%; distribution −32%; focus on core products and continued reduction of general and administrative costs .
  • Compliance: Company confirmed it regained Nasdaq bid-price compliance in October 2024 following the reverse split .

Q&A Highlights

  • No Q1 FY2025 earnings call transcript was filed; there were no published Q&A clarifications for this quarter [ListDocuments returned none for earnings-call-transcript in period].

Estimates Context

  • S&P Global consensus estimates for Q1 FY2025 were unavailable via our data service at the time of analysis (API request limit exceeded). As a result, we cannot quantify beats/misses versus Street for revenue or EPS this quarter. Values retrieved from S&P Global were not accessible due to service limits.

Key Takeaways for Investors

  • The quarter reflects deliberate revenue contraction from exiting recommerce with improving cost structure; near-term losses persist but operating expense run-rate is trending lower post consolidation .
  • Margin profile is structurally better in branded/manufactured products versus prior recommerce-heavy periods; this should support eventual profitability as volumes rebuild .
  • Liquidity was tight in Q1 (negative working capital); subsequent quarters addressed capital via private placement and treasury strategy, but Q1 snapshot underscores funding sensitivity pre-actions .
  • Execution focus: continue ramping internally manufactured and contract-manufactured SKUs, reduce reliance on purchased finished goods (higher returns/low liquidation value flagged in prior release) .
  • Watch for G&A normalization post legal/audit spikes and Amazon receivable reserve impacts; management expects G&A to revert as restructuring completes .
  • Compliance risk mitigated (Nasdaq bid price); operational focus can shift to growth and margin expansion without listing overhang .
  • Near-term trading: narrative remains “reset and rebuild”—stock likely reacts to evidence of sequential revenue stabilization and confirmation of opex savings hitting P&L; medium-term thesis hinges on mix-driven margin sustainability and disciplined capital allocation .