Eightco Holdings Reports 41.4% Revenue Decline but Achieves Net Income Recovery

Eightco Holdings Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenues of $39.6 million, a decrease of 41.4% from $67.6 million in 2023. The decline was primarily attributed to reduced capital utilization for inventory purchases, which impacted the company's inventory management solutions segment. The cost of revenues also decreased by 45.1% to $33.6 million, leading to a gross profit of $6 million, down 4.4% from the previous year. Despite the revenue drop, the company achieved a net income of $289,811, a notable recovery from a net loss of $69.1 million in 2023.

Strategically, Eightco has focused on its Inventory Cash Flow Solutions business through its subsidiary, Forever 8, which was acquired in October 2022. The company has shifted away from its previous BTC mining equipment business, which no longer generates revenue. Additionally, Eightco entered into an Asset Purchase Agreement in November 2024 to sell its Corrugated Packaging Business, Ferguson Containers, for approximately $3.1 million, which is expected to close in the second quarter of 2025. This divestiture aligns with the company's strategy to concentrate resources on expanding Forever 8.

Operationally, Eightco's workforce consisted of 23 employees as of March 31, 2025, with 14 in the Corrugated Packaging Business and 9 in Forever 8. The company reported a significant reduction in selling, general, and administrative expenses, which fell by 13.8% to $12.8 million, reflecting cost-cutting measures. The company also noted a decrease in interest expenses, which dropped by 54.2% to $5.3 million, due to the amortization of debt issuance costs related to convertible notes.

Looking ahead, Eightco's management expressed concerns regarding its ability to continue as a going concern, citing an accumulated deficit of $112.6 million and limited cash reserves of approximately $0.2 million as of December 31, 2024. The company anticipates needing additional capital to support ongoing operations and plans to continue accessing funds through debt financing and equity offerings. The outlook remains cautious, with management acknowledging the need for strategic adjustments to navigate the challenging economic landscape and improve financial stability.