Eightco Holdings Reports 43.4% Revenue Increase but Faces Operational Losses in Q2 2025

Eightco Holdings Inc. reported its financial results for the second quarter of 2025, revealing a significant increase in revenue but continued operational losses. For the three months ended June 30, 2025, the company generated $7.58 million in revenue, a 43.4% increase from $5.28 million in the same period last year. However, the cost of revenues also rose sharply to $6.33 million, up 59.9% year-over-year, leading to a gross profit of $1.25 million, which represents a 5.9% decline compared to the previous year. The operating loss for the quarter was $1.21 million, worsening from a loss of $868,165 in Q2 2024.

In the first half of 2025, Eightco's total revenue reached $17.49 million, a 32.1% increase from $13.24 million in the first half of 2024. The cost of revenues for this period also increased significantly to $15.43 million, resulting in a gross profit of $2.06 million, down 24.1% from the prior year. The company reported a net loss of $3.72 million for the first half of 2025, compared to a net income of $6.39 million in the same period last year, primarily due to the absence of prior gains from extinguished liabilities and earnouts.

Strategically, Eightco has undergone significant changes, including the divestiture of its Corrugated Packaging Business, which was completed on April 7, 2025. This sale resulted in a gain of $1.23 million, which was recognized in the current quarter. The company now focuses solely on its Inventory Management Solutions through its subsidiary, Forever 8, which has seen increased demand, contributing to the revenue growth reported.

Operationally, Eightco's customer base remains concentrated, with one customer accounting for 83% of total revenues in the latest quarter. The company reported a total of 3,044,744 shares outstanding as of June 30, 2025, reflecting an increase from 2,479,363 shares at the end of 2024. The company’s cash and cash equivalents improved to $696,252 from $239,187 at the end of the previous fiscal year, although it still raises concerns about liquidity, as the company anticipates needing additional capital to support its operations over the next 12 months.

Looking ahead, Eightco's management has expressed concerns regarding its ability to continue as a going concern, citing negative cash flows and an accumulated deficit of $116.29 million as of June 30, 2025. The company plans to explore additional capital-raising opportunities while continuing to implement cost-reduction strategies. The outlook remains uncertain, with management emphasizing the need for strategic decisions to stabilize and grow the business in the coming quarters.