Blackboxstocks Reports 9.6% Revenue Decline in Q1 2025 Amid Merger Plans

Blackboxstocks Inc. reported a decline in financial performance for the first quarter of 2025, with total revenues of $587,078, down 9.6% from $649,420 in the same period of 2024. The decrease in revenue was attributed to a reduction in subscriber numbers, averaging 2,707 compared to 2,996 in the prior year, alongside a slight drop in average revenue per subscriber from $72.19 to $69.22. The company's cost of revenues also decreased, resulting in a gross margin of 41.6%, down from 44.9% a year earlier.

The company incurred an operating loss of $887,666 for the quarter, slightly improved from a loss of $863,966 in the previous year. Total operating expenses decreased marginally to $1,131,741 from $1,155,428, primarily due to a reduction in advertising and marketing costs, which fell by 50.8% to $65,329. However, selling, general, and administrative expenses rose significantly, driven by increased professional fees related to a pending merger with REalloys Inc.

In terms of strategic developments, Blackboxstocks is in the process of merging with REalloys, which is expected to enhance its capital position. The merger agreement, signed on March 10, 2025, is subject to various conditions, including SEC approval. The company anticipates that REalloys will raise $5 million upon completion of the merger. Additionally, Blackboxstocks entered into a Securities Purchase Agreement with Five Narrow Lane LP, which has provided $1,050,000 in financing, with further funding expected.

Operationally, Blackboxstocks reported a cash balance of $215,346 as of March 31, 2025, a significant increase from $17,036 at the end of 2024. The company’s liabilities also rose, with current liabilities totaling $5,356,082, up from $4,267,710. The increase in liabilities was primarily due to the issuance of a senior secured debenture. The company continues to face challenges, including a substantial accumulated deficit of $23,785,251, raising concerns about its ability to sustain operations without additional financing.

Looking ahead, Blackboxstocks remains focused on expanding its product offerings, particularly in educational services, which it expects to contribute positively to future revenues. However, the company acknowledges the uncertainties surrounding its ability to complete the merger with REalloys and secure necessary funding, which are critical for its ongoing operations and growth strategy.