CleanCore Solutions Reports 77.7% Revenue Growth but Incurred Net Loss in Latest Quarter

CleanCore Solutions, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company generated $557,915 in revenue for the three months ended March 31, 2025, marking a 77.7% increase from $313,920 in the same period last year. For the nine months ended March 31, 2025, revenue reached $1,180,083, up 31.4% from $898,010 in the prior year. Despite this growth, CleanCore recorded a net loss of $809,354 for the quarter, compared to a loss of $520,670 in the previous year, and a net loss of $2,670,469 for the nine-month period, up from $1,302,763.

The company's operational expenses saw a notable increase, with general and administrative expenses rising to $968,264 for the three months ended March 31, 2025, an 85.9% increase from $520,899 in the same quarter of 2024. This increase was attributed to higher stock compensation expenses, additional personnel costs, and increased professional fees related to the company's recent listing on the NYSE American. As a result, the gross profit margin improved to 55.8% for the quarter, up from 44.8% a year earlier, reflecting a shift towards higher-margin product sales.

In terms of strategic developments, CleanCore Solutions established a wholly-owned subsidiary, CleanCore Global Limited, in Ireland on January 29, 2025, to enhance its international presence. Additionally, the company completed an acquisition of assets from Sanzonate Europe Ltd. on April 15, 2025, for a total purchase price of $2,475,000, which includes cash, a promissory note, and potential earn-out payments based on future sales performance. This acquisition is expected to bolster CleanCore's product offerings in the aqueous ozone market.

Operationally, CleanCore has seen an increase in customer engagement, particularly with its distributor in India, which contributed significantly to the revenue growth. The company reported a total of 8,378,081 shares of Class B common stock outstanding as of March 31, 2025, reflecting ongoing efforts to enhance its capital structure. However, the company also noted a substantial increase in current liabilities, which rose to $2,793,554 from $1,505,506 in the previous fiscal period, primarily due to the issuance of subscription advances and increased accounts payable.

Looking ahead, CleanCore Solutions faces challenges related to liquidity, as management indicated that current resources may not be sufficient to fund planned expenditures over the next 12 months. The company is actively seeking additional capital through equity and debt financing to support its growth strategy. The management's outlook remains cautious, emphasizing the need for continued innovation and customer acquisition to achieve sustainable profitability in a competitive market.