Eightco Holdings Inc. Reports $9.9 Million Revenue with Increased Losses and Strategic Changes

Eightco Holdings Inc. reported a net revenue of $9.9 million for the three months ended March 31, 2025, marking a 24.6% increase from $8.0 million in the same period of 2024. The growth was primarily driven by increased sales from its inventory management solutions business, attributed to improved access to capital. However, the company's gross profit decreased by 41.5% to $813,259, down from $1.4 million, largely due to a shift towards lower-margin products in its inventory management segment.

The company's operating expenses also saw a significant reduction, decreasing by 50.8% to $2.2 million from $4.5 million year-over-year. This decline was mainly due to the absence of restructuring and severance costs, which totaled $1.4 million in the previous year. Despite the reduction in operating expenses, Eightco reported an operating loss of $1.4 million, an improvement from a loss of $3.2 million in the prior year. The net loss attributable to Eightco Holdings Inc. was $2.5 million, compared to a net income of $1.9 million in the same quarter of 2024, primarily due to the absence of a significant gain on the forgiveness of earnout rights that occurred in the previous year.

In terms of operational metrics, Eightco's customer base and engagement levels were not explicitly detailed in the filing. However, the company did report a significant increase in its weighted average number of common shares outstanding, which rose to 3,044,744 from 997,839, reflecting recent equity issuances. The company also noted that it had approximately $0.4 million in cash and cash equivalents as of March 31, 2025, a slight increase from $0.2 million at the end of 2024, but still insufficient to meet its projected operating requirements for the next 12 months.

Strategically, Eightco has undergone significant changes, including the completion of the sale of its Corrugated Packaging Business, which has been classified as discontinued operations. The sale was finalized on April 7, 2025, and the company is now focused on its inventory management solutions. The filing also highlighted the company's ongoing efforts to reduce costs and seek additional capital to support its operations, as it anticipates further losses in the near term.

Looking ahead, Eightco's management expressed concerns regarding its ability to continue as a going concern, given its accumulated deficit of $115.1 million and the need for additional capital to sustain operations. The company plans to explore various financing options, including potential equity and debt financing, although it acknowledges that such financing may not be available on favorable terms. The outlook remains cautious as the company navigates its financial challenges while aiming to stabilize and grow its core business.