HUMBL, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded a net income of $9.25 million, a stark contrast to a net loss of $2.90 million during the same period in 2024. This turnaround was primarily driven by a gain of $16.84 million from the disposal of discontinued operations, specifically the sale of HUMBL.com assets to WSCG, Inc. The company did not generate any revenue from continuing operations during this period, consistent with its strategic shift following the asset sale.
In terms of operational changes, HUMBL's total assets increased to $36.51 million as of June 30, 2025, up from $23.22 million at the end of 2024. This growth was largely attributed to the acquisition of FinCapital, a Brazilian company specializing in magnesium silicate, which is valued at $20 million. The company’s cash reserves also saw a substantial increase, rising to $125,549 from $20,487 at the end of the previous fiscal year. However, the company continues to face a working capital deficit of $7.72 million, down from $23.69 million, indicating some improvement in its financial health.
HUMBL's operational metrics reflect a strategic pivot towards a holding company model, focusing on acquiring undervalued assets in Brazil and Latin America. The company has transitioned away from its previous Web 3.0 initiatives, with FinCapital being its first subsidiary under this new structure. The company plans to leverage its controlling interest in FinCapital to explore opportunities in the mining sector, particularly in selling magnesium silicate for industrial applications.
Despite the positive net income reported, HUMBL's operational expenses increased to $3.27 million for the six months ended June 30, 2025, compared to $2.98 million in the prior year. This rise was driven by higher professional fees and a one-time settlement expense of $450,000. The company anticipates a reduction in professional fees as it scales back on external contract labor in light of its new business direction. The filing also highlighted a substantial increase in interest expenses, which rose to $1.29 million, reflecting the company's ongoing debt obligations.
Looking ahead, HUMBL's management expressed concerns regarding its ability to continue as a going concern, citing the need for effective cash management and operational adjustments to stabilize its financial position. The company aims to capitalize on its new business model and the potential profitability of its mineral assets, while also addressing its working capital challenges.
About HUMBL, INC.
HUMBL, Inc. is a holding company focused on digital commerce and industrial assets. It previously offered blockchain-based payment solutions, verified social media, and digital collectibles. Its core activities include operating digital wallets, e-commerce platforms, and managing mineral assets like magnesium silicate. The company targets consumers, merchants, and industrial markets in the U.S. and Latin America, leveraging proprietary technology and strategic acquisitions.
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