- The WSJ link appears inaccessible, and the analysis likely maps the headline to Blm Holdings (BLMH), which is growing sales but remains unprofitable.
- Revenue rose from about $2.2M in Q1 2025 to $3.5M in Q2 and $4.85M in Q3, while gross margin stayed roughly in the high-40% range.
- Losses persist as store openings, acquisitions, and integration costs keep EBITDA negative despite year-over-year cost cuts.
- Liquidity is the central risk, with under ~$0.4M in cash, a ~$20$25M working-capital deficit, and reliance on dilutive financing while hoping for regulatory/tax relief (e.g., 280E reform).
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“Blum on Losing Streak” likely misidentifies or references Blüm Holdings (BLMH), which in recent disclosures has documented operational improvements but remains unprofitable—still experiencing net losses, negative cash flows, and liquidity shortfalls. The trajectory shows fundamental improvement from 2023 into 2024 (net income of ~$33.1M for FY2024 following large prior losses), but 2025 reveals renewed stress as expansion and integration incur cost pressures. ([ir.blumholdings.com](https://ir.blumholdings.com/news-events/press-releases/detail/401/blum-holdings-inc-reports-remarkable-2024-financial?utm_source=openai))
Revenue growth is solid: from ~$2.2M in Q1 to ~$3.5M in Q2 2025, and ~$4.85M in Q3 2025. However, gross margin has plateaued around the high-40% range; new stores and promotional activity are diluting margin gains. ([ir.blumholdings.com](https://ir.blumholdings.com/news-events/press-releases/detail/408/blum-holdings-inc-reports-second-quarter-2025-financial?utm_source=openai))
Operating expenses (SG&A etc.) have been cut drastically year-over-year, but quarterly increases are evident tied to new store openings and integration costs. Adjusted EBITDA remains negative. ([ir.blumholdings.com](https://ir.blumholdings.com/news-events/press-releases/detail/408/blum-holdings-inc-reports-second-quarter-2025-financial?utm_source=openai))
The most acute issues are cash, liabilities, and working capital. With under US$0.4M in cash and current liabilities exceeding current assets by a factor of ~12–15 (cash/assets ≈ 0.07-0.08× liabilities), the short-term solvency is highly challenged. ([beyondspx.com](https://www.beyondspx.com/quote/BLMH/blum-holdings-solvency-sprint-can-stock-fueled-growth-outrun-a-24m-working-capital-deficit-otc-blmh?utm_source=openai))
Management’s strategic narrative aims at operational leverage: scaling store count, leveraging SG&A, integrating acquisitions, pushing “working capital activation” as the lever for turning EBITDA positive in 2026. Regulatory tailwinds, especially potential relief under IRC Section 280E, are identified as possible upside, but are external and uncertain. ([ir.blumholdings.com](https://ir.blumholdings.com/news-events/press-releases/detail/408/blum-holdings-inc-reports-second-quarter-2025-financial?utm_source=openai))
Risks remain elevated. Dilution through financing, fragile cash reserve, dependence on continued capital access, execution risk in integrating acquisitions, overexposure to regulatory/tax obstacles in the cannabis industry, and credibility of financial reporting are all open questions. The fiscal improvement of FY2024 may provide a foundation, but 2025 will test sustainability.
Supporting Notes
- Blüm’s revenue rose 26 % YoY in Q1 2025 to US$2.2M; in Q2 rose to US$3.5M; in Q3 to US$4.85M. ([ir.blumholdings.com](https://ir.blumholdings.com/news-events/press-releases/detail/404/blum-holdings-inc-reports-first-quarter-2025-financial?utm_source=openai))
- Gross margins improved to ~53 % in Q1, ~49 % in Q2; stabilized around 48-49 % in Q3 despite rollout of new locations. ([ir.blumholdings.com](https://ir.blumholdings.com/news-events/press-releases/detail/404/blum-holdings-inc-reports-first-quarter-2025-financial?utm_source=openai))
- Operating expenses dropped ~69 % YoY in Q2 2025 versus Q2 2024, but rose from US$2.5M in Q2 to US$3.8M in Q3 due to store acquisition/integration costs. ([ir.blumholdings.com](https://ir.blumholdings.com/news-events/press-releases/detail/408/blum-holdings-inc-reports-second-quarter-2025-financial?utm_source=openai))
- Net losses: US$0.6M in Q1, US$1.9M in Q2, US$1.5M in Q3. EBITDA/Adjusted EBITDA remain negative. ([ir.blumholdings.com](https://ir.blumholdings.com/news-events/press-releases/detail/404/blum-holdings-inc-reports-first-quarter-2025-financial?utm_source=openai))
- Cash & equivalents as of Q2: ~US$0.37-0.39M. Working capital deficits: US$20-$25M; current assets only ≈0.07-0.08× of current liabilities. ([panabee.com](https://www.panabee.com/news/blum-earnings-q2-2025-report?utm_source=openai))
- Fiscal year 2024: net income US$33.1M following a US$14.1M loss in 2023; liabilities fell 62 %; revenue grew 67 % to ~$13.0M. ([ir.blumholdings.com](https://ir.blumholdings.com/news-events/press-releases/detail/401/blum-holdings-inc-reports-remarkable-2024-financial?utm_source=openai))
- Management quotes: Carrillo in Q3 2025: “we’ve turned recovery into disciplined growth … 2026 will be about converting this foundation into cash flow and balance sheet strength.” ([globenewswire.com](https://www.globenewswire.com/news-release/2025/11/14/3188271/26002/en/Blum-Holdings-Inc-Reports-Third-Quarter-2025-Financial-Results.html?utm_source=openai))
- Potential external upside: management is “evaluating” strategies around Section 280E reform and federal rescheduling, which could relieve the tax burden. ([ir.blumholdings.com](https://ir.blumholdings.com/news-events/press-releases/detail/408/blum-holdings-inc-reports-second-quarter-2025-financial?utm_source=openai))