DOWNEY, Calif. — Blum Holdings Inc., a California-based publicly traded holding company, reported its financial results for the second quarter ended June 30, 2025.
Blüm believes it has has completed its turnaround and is now entering a disciplined growth phase aimed at expanding revenue, improving margins, controlling costs, and adding new locations without overextending capital. The Company believes that this strategy positions the Company to benefit from potential future changes to federal cannabis tax laws.
Key Highlights from Second Quarter 2025
Revenue increased from $2.2 million during Q1 2025 to $3.5 million in Q2 2025 driven by mid-quarter contributions from a newly added Bay Area retail location.
Gross margin improved to 49%, up from 42% in Q2 2024, driven by a strong product mix and pricing strategies. Compared to Q1 2025, gross margin decreased slightly from 53% to 49%, mainly due to the initial inventory build and promotional pricing during the ramp-up of a new store.
Operating expenses were $2.5 million, a 69% reduction from $8.0 million in Q2 2024 as the Company pursues a leaner cost structure and benefits from the completion of its restructuring, and the substantial decrease in litigation expense. Compared to Q1 2025, operating expenses remained unchanged at $2.5 million, showing that cost controls kept expenses stable despite the integration of a new location.
Net loss from continuing operations was $1.9 million in Q2 2025, compared to $0.6 million in Q1 2025, an increase of $1.3 million quarter-over-quarter, driven primarily by lower gross margins and flat operating expenses during the integration of a new location. This compared to net income of $7.3 million in Q2 2024, which included significant one-time gains related to the sale of Blüm Santa Ana.
Adjusted EBITDA loss was $0.6 million for Q2 2025, compared to $0.4 million in Q1 2025. For the six months ended June 30, 2025, Adjusted EBITDA loss improved by 85% to $1.0 million, versus $7.0 million in the first half of 2024, reflecting the impact of substantially reduced operating expenses.
Total assets increased by $14.6 million compared to year-end 2024, primarily due to the acquisition of a new retail dispensary in Northern California, which is expected to generate approximately $12.0 million in annualized revenue. This acquisition also contributed to the $16.4 million increase in total liabilities from year-end 2024, reflecting the consolidation of the acquired store’s tax obligation. The Company is actively evaluating strategies to address this tax obligation, including potential future settlement opportunities under IRC Section 280E reform or federal rescheduling. Based on expert guidance and past precedents, management believes that a significant portion of such liabilities could be reduced or eliminated with the IRS upon legalization, representing potential long-term upside for shareholders.
Recent Strategic and Corporate Updates
New acquisition – On July 1, the Company entered into a binding term sheet to acquire a cannabis retail dispensary in Northern California. If completed, the acquisition is expected to add approximately $4.1 million in annualized revenue.
Capital raise – On August 11, the Company secured an additional $0.5 million from an accredited investor, bringing the total capital raised in calendar year 2025 to $2.1 million, all on terms that the Company considers to be competitive.
“Over the past year, we’ve moved from selling non-core assets and reducing overhead to adding profitable retail locations in markets where we see long-term opportunity,” said Sabas Carrillo, Chief Executive Officer of Blüm Holdings. “We’ve done this in a way that matches our resources and capital commitments from our investor partners, sometimes buying outright, sometimes operating under agreements that give us full control without tying up large amounts of cash.
“We’re also breathing new life into our flagship high-potency brand and expanding our presence under globally recognized retail banners. These efforts are designed to improve margins, keep customers coming back, and make our stores a stronger platform for our own brands, our sister companies, and close partners.
“On the financial side, we continue to focus on strengthening our cash position and reducing high-cost debt through a mix of short-term loans, convertible notes, and strategic investor participation. This marks a shift from short-term crisis management to planning for sustainable medium- and long-term growth.
“We expect revenue and gross margins to improve over the coming quarters as new locations stabilize and purchasing consolidates. The Company remains focused on disciplined capital deployment, margin expansion, and selective M&A in core California markets.”
About Blüm Holdings Inc.
Blüm Holdings, through its subsidiaries, operates leading dispensaries throughout California as well as several leading company-owned brands including Korova, known for its high potency products across multiple product categories, including the 1000 mg THC Black Bar. As both a holding company and a marketing platform, Blüm aims to leverage its growing ecosystem to accelerate customer and retail investor acquisition, increase brand awareness, and create value across its portfolio.
Related Articles:
