HUMBL Reports $12.2 Million Net Income Turnaround Amid Strategic Business Shift

HUMBL, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company recorded a net income of $12.2 million, a notable turnaround from a net loss of $232,022 in the same period last year. This positive shift was primarily driven by a gain of $16.8 million from the disposal of discontinued operations, specifically the sale of HUMBL.com assets to WSCG, Inc. However, the company did not generate any revenue from continuing operations during this quarter, consistent with its strategic pivot following the asset sale.

In terms of operational changes, HUMBL's total assets increased to $39.0 million as of March 31, 2025, up from $23.2 million at the end of 2024. This growth was largely attributed to the acquisition of WSCG HoldCo and the investment in FinCapital, which owns valuable magnesium silicate assets. The company’s cash position improved significantly, rising to $2.1 million from just $20,487 at the end of the previous fiscal year. However, HUMBL continues to face a working capital deficit of $6.6 million, down from $23.7 million, indicating ongoing financial challenges.

Strategically, HUMBL has shifted its business model to focus on a holding company structure, with plans to operate various subsidiaries, particularly in Brazil and Latin America. The acquisition of FinCapital, which holds 41,500 tons of magnesium silicate, marks the company's entry into the raw materials sector. Additionally, HUMBL entered a joint venture with Multicortex, LLC, acquiring a 51% interest in the AI-focused company, which is expected to enhance its technological capabilities.

The company reported a decrease in operating expenses, which totaled $1.4 million for the quarter, down from $1.5 million in the prior year. This reduction was driven by lower general and administrative costs, reflecting a strategic effort to streamline operations. However, professional fees increased due to regulatory compliance costs associated with the transition away from HUMBL.com. The company anticipates further reductions in these expenses as it continues to scale back on external contract labor.

Looking ahead, HUMBL's management expressed concerns regarding its ability to continue as a going concern, citing substantial doubt due to ongoing operating losses and a significant working capital deficit. The company plans to leverage its new business model and asset acquisitions to generate future revenue, particularly through the sale of magnesium silicate and other potential mining interests. The outlook remains cautious as HUMBL navigates its transition and seeks to stabilize its financial position.