- No corroborating Wall Street Journal reporting was found that an investment firm called "Blum Capital" is on a losing streak, suggesting possible misattribution.
- Blüm Holdings Inc. (BLMH) shows modest revenue growth and better margins/costs, but remains unprofitable and cash-constrained.
- Liquidity is extremely thin (about $0.37M cash) with liabilities exceeding assets and a large working-capital deficit, creating insolvency risk without new funding.
- Key investor risks include likely dilutive financing, tax/regulatory exposure (including IRC 280E), integration execution, and disclosed material internal-control weaknesses.
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First, it is important to clarify that we found no credible reporting that an investment firm named “Blum Capital” is on a losing streak per recent Wall Street Journal coverage. Searches revealed no matching article in WSJ archives or other reputable financial news sources referring to a “Blum Capital” suffering consistent investment losses under that name. Thus, the phrase “Blum Capital on Losing Streak” appears likely to be a confusion with the similarly‐named Blüm Holdings, Inc., which is frequently covered in cannabis-industry financial news. Without the actual WSJ article or text, we cannot confirm its accuracy, but the evidence does not support the existence of such a story as of January 2026.
Second, Blüm Holdings (ticker BLMH) provides a well-documented case of corporate restructuring, operational improvement, but ongoing financial strain. Key metrics include: for the six months ended June 30, 2025, revenue of approximately $5.72 million (up 2.7% YoY), operating loss of $2.11 million (vs. loss of $10.0 million prior), and gross margin improvement to 50.4% from 42.9%. SG&A operating expenses have been dramatically reduced. However liquidity is extremely thin: cash on hand at $0.37 million, liabilities exceeding assets, working capital deficit around $20.8 million, and accumulated deficit exceeding $420 million.
Third, the strategic implications are significant. While operational improvements—store acquisitions, margin focus, cost cutting—are real, Blüm faces existential risk without funding. Further dilutive financing (convertible notes, warrants, equity issuance) appear almost certain. The high tax liabilities and specific California/US cannabis regulatory burdens (such as IRC Section 280E) represent both risk and potential upside if the law changes. Also material are the company’s admitted material weaknesses in internal and disclosure controls, which could undermine investor confidence. Finally, integration of new retail stores and the stabilization of generous product mix will be critical in turning recent revenue gains into sustainable cash flow.
Supporting Notes
- Blüm Holdings reported revenue of ~$5.72 million for six months ended June 30, 2025, up 2.7% year-over-year.
- Gross margin improved to ~50.4% from ~42.9% YoY for the same six-month period.
- Operating loss narrowed sharply to $(2.11 million) vs $(10.0 million) YoY for that period.
- Cash and cash equivalents were only ~$370,000 as of June 30, 2025.
- Total liabilities (~$45.95 million) exceed total assets (~$39.39 million) as of same date, resulting in a working capital deficit of ~$20.82 million.
- Accumulated deficit stood at around $(423.5 million).
- Material weaknesses in internal controls and disclosure controls were disclosed by management as of June 30, 2025.
- Revenue in Q2 2025 increased 55% quarter‐over‐quarter to $3.5 million, but net loss worsened to $(1.9 million), partly due to lower margins at new stores.
- Liability reduction was strong in 2024: total liabilities dropped ~62% from about $77.8 million in 2023 to ~$29.6 million in 2024.
- Net income for fiscal year 2024 was reported at ~$33.1 million, reversing losses of prior years.