Blackboxstocks Reports 24.2% Revenue Decline in Q2 2025 Amid Merger Plans

Blackboxstocks Inc. reported a decline in financial performance for the second quarter of 2025, with total revenues of $518,783, a decrease of 24.2% compared to $684,712 in the same period of 2024. For the first half of 2025, revenues totaled $1,105,861, down 17.1% from $1,334,132 in the prior year. The company attributed this decline to a reduction in subscriber numbers and lower revenue per subscriber, which averaged $63.88 in Q2 2025 compared to $76.11 in Q2 2024. The gross margin also fell significantly, from 48.0% in Q2 2024 to 32.2% in Q2 2025, primarily due to fixed cost absorption issues and reduced average revenue per subscriber.

Operating expenses increased to $1,310,677 in Q2 2025, up 13.7% from $1,153,612 in Q2 2024. This rise was largely driven by higher selling, general, and administrative expenses, which grew by $192,001, primarily due to increased professional fees related to a pending merger with REalloys Inc. The company reported an operating loss of $1,143,453 for the quarter, compared to a loss of $824,917 in the same quarter of the previous year. For the six months ended June 30, 2025, the operating loss was $2,031,119, up from $1,688,883 in the prior year.

In terms of strategic developments, Blackboxstocks is in the process of merging with REalloys Inc., which is expected to enhance its capital structure and operational capabilities. The merger is subject to various conditions, including SEC approval and stockholder consent. The company has also entered into a Securities Purchase Agreement with Five Narrow Lane LP, which has provided $2,050,000 in financing, with an additional $250,000 expected upon the completion of the merger. Furthermore, Blackboxstocks has initiated an At-The-Market Issuance Sales Agreement to raise up to $5,795,000 through the sale of common stock.

Operationally, Blackboxstocks reported a decrease in average subscribers, with 2,707 in Q2 2025 compared to 2,996 in Q2 2024. The company continues to expand its user base across over 40 countries, leveraging its proprietary analytics and social media platform for stock and options traders. As of June 30, 2025, the company had cash reserves of $38,164, an increase from $17,036 at the end of 2024, but still raises concerns about its liquidity given the ongoing operational losses.

Looking ahead, Blackboxstocks faces significant challenges, including the need to secure additional financing and successfully complete the merger with REalloys to stabilize its financial position. The company has expressed uncertainty regarding its ability to continue as a going concern, emphasizing the importance of the merger and capital raising efforts to support its operations in the coming months.