Flora Growth Corp. Reports Decline in Revenue and Profitability for Q2 2025

Flora Growth Corp. reported a decline in financial performance for the second quarter of 2025, with revenues of $14.8 million, down from $15.7 million in the same period last year. For the first half of 2025, total revenue was $26.6 million, a decrease from $33.7 million in the first half of 2024. The company's gross profit also fell to $2.8 million for the quarter, compared to $3.2 million in the prior year, reflecting a gross margin of 19% for Q2 2025, slightly down from 20% in Q2 2024. The net loss for the quarter was $2.4 million, an improvement from a net loss of $2.7 million in Q2 2024, while the loss for the first half of 2025 was $3.2 million, compared to $6.0 million in the same period last year.

The company experienced significant operational changes, including the acquisition of United Beverage Distribution Inc. in February 2025, which contributed $0.2 million in revenue for the quarter. However, Flora also faced challenges, including the insolvency of several subsidiaries, which led to a gain of $1.2 million from the disposal of these entities. The company’s total assets decreased to $22.7 million as of June 30, 2025, down from $26.2 million at the end of 2024, primarily due to reduced cash reserves and inventory levels.

Flora Growth's operational metrics showed a mixed performance. The company reported a decrease in customer engagement, with JustCBD's revenue dropping to $3.2 million from $4.4 million year-over-year. The company’s employee headcount has also been reduced as part of ongoing cost-cutting measures, which contributed to a decrease in consulting and management fees to $2.2 million from $2.3 million in the previous year. The company’s cash position has weakened, with cash and restricted cash totaling $1.5 million at the end of June 2025, down from $6.1 million at the end of 2024.

Looking ahead, Flora Growth Corp. faces substantial challenges, including the need to secure additional capital to support its operations and growth plans. The company has indicated that it may pursue various financing options, including equity and debt offerings, to address its liquidity needs. Additionally, the company is under pressure to comply with Nasdaq's minimum bid price requirement, having been notified of non-compliance in February 2025. To address this, Flora announced a 1-for-39 reverse stock split, effective August 4, 2025, aimed at regaining compliance with Nasdaq listing standards. The company’s management remains focused on achieving profitability and positive cash flows, although uncertainties in market conditions and operational execution persist.