Eightco Holdings Inc. (NASDAQ: ORBS) reported a significant decline in financial performance for the fiscal year ending December 31, 2025, with revenues of $32.98 million, down 16.76% from $39.62 million in 2024. The decrease was attributed to lower volumes through its Forever 8 inventory management platform as the company exited unprofitable customer relationships. The cost of revenues also decreased to $32.45 million from $33.64 million, but the gross profit plummeted by 91.07% to $534,329, reflecting a gross margin of just 1.62%, compared to 15.10% in the previous year.
The company's operating expenses surged to $57.75 million, a 307.41% increase from $14.17 million in 2024, primarily due to a $33.85 million impairment charge related to goodwill and intangible assets from the Forever 8 acquisition. Selling, general, and administrative expenses rose by 87.27% to $23.89 million, driven by increased share-based compensation and professional fees associated with the company's new Digital Asset Treasury (DAT) strategy. This strategy, adopted in September 2025, involves deploying capital into digital assets, with the company holding approximately $176 million in digital assets by year-end.
Eightco's net loss from continuing operations was $262.11 million, compared to a profit of $289,811 in 2024. The loss was exacerbated by a $202.30 million loss on the change in fair value of digital assets, reflecting the volatility in the digital asset market. The company also recognized a gain of $1.23 million from the divestiture of its corrugated packaging business, which was completed in April 2025. The total net loss for the year was $262.01 million, a stark contrast to the net income of $708,527 reported in the previous year.
Operationally, Eightco's workforce consisted of nine employees as of December 31, 2025, with no union representation. The company has focused on enhancing its digital asset strategy, which includes significant investments in Worldcoin and Ethereum. The strategic pivot towards digital assets is expected to continue, with management anticipating that digital assets will remain a key component of its long-term capital allocation framework.
Looking ahead, Eightco's management expressed optimism about the potential for growth in the digital asset space, although they acknowledged the inherent risks associated with market volatility and regulatory uncertainties. The company plans to pursue additional capital raises to support its strategic initiatives, which may lead to further dilution for existing shareholders. The outlook remains cautious as the company navigates the complexities of its new operational focus while managing the financial impacts of its recent strategic decisions.
About Eightco Holdings Inc.
Eightco Holdings Inc. is a diversified company focused on inventory financing, digital media, and packaging solutions. Its core businesses include Forever 8, providing automated funding for e-commerce sellers, and Ferguson Containers, manufacturing custom packaging from recycled materials. The company serves online retailers and consumer product industries, emphasizing innovation, customer relationships, and sustainable practices within competitive markets.
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