CFN Enterprises Inc. Reports Revenue Surge to $18.7 Million Amid Increased Losses in Latest 10-Q

CFN Enterprises Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2025. The company achieved net revenues of $18.7 million for the three months ended June 30, 2025, a substantial increase from $5.9 million in the same period last year. For the first half of 2025, revenues reached $24.6 million, compared to $9.7 million in the prior year, marking a year-over-year increase of 152%. However, the company also reported a net loss of $2.3 million for the quarter and $4.8 million for the six-month period, widening from losses of $1.3 million and $1.9 million, respectively, in the previous year.

The increase in revenue is attributed primarily to the full integration of Ranco LLC, which CFN acquired in July 2023. This acquisition has allowed CFN to expand its product offerings and customer base, particularly in the co-packing and white label manufacturing sectors. The company also began sourcing nicotine-related bulk raw materials from a related party, contributing to the revenue growth. Despite the revenue increase, the cost of revenue surged to $17.9 million for the quarter, up from $4.9 million a year earlier, largely due to higher shipping and delivery expenses associated with increased sales volume.

Operationally, CFN's total assets decreased to $7.1 million as of June 30, 2025, down from $8.7 million at the end of 2024. The company's current liabilities rose significantly to $28.3 million, compared to $24.5 million at the end of the previous fiscal year, reflecting increased accounts payable and accrued liabilities. The company reported a working capital deficit of $24.1 million and an accumulated deficit of $83.9 million, raising concerns about its ability to continue as a going concern. Management plans to address these challenges by seeking additional capital, reducing operating costs, and pursuing strategic opportunities, including launching an e-commerce network for wellness products.

CFN's employee headcount has increased as a result of the Ranco acquisition, which has expanded its operational capabilities. The company is also focusing on enhancing its market presence in the cannabis industry through its CFN Business, which provides sponsored content and marketing services. The company’s strategic direction includes leveraging its recent acquisitions to improve profitability and market share in the growing cannabis sector.

Looking ahead, CFN Enterprises Inc. aims to stabilize its financial position by managing its debt obligations and enhancing operational efficiencies. The company is optimistic about the potential growth from its new product lines and the anticipated launch of its e-commerce platform. However, the ongoing financial challenges and the need for additional capital raise uncertainties regarding its future performance and operational sustainability.