Kindcard Reports $85.6 Million Revenue with Improved Gross Profit but Net Loss of $55.1 Million

Kindcard, Inc. reported its financial results for the three months ending April 30, 2025, revealing a revenue of $85.6 million, a slight increase from $85.1 million in the same period last year. The company achieved a gross profit of $65.8 million, up from $62.9 million in the prior year, primarily due to a reduction in the cost of sales, which decreased from $22.1 million to $19.8 million. Despite the increase in revenue and gross profit, Kindcard recorded a net loss of $55.1 million, an improvement from the net loss of $89.5 million reported in the previous year.

The company’s total assets decreased to $84.2 million as of April 30, 2025, down from $86.0 million at the beginning of the fiscal year. This decline was attributed to a reduction in intangible assets, which fell from $40.0 million to $22.1 million. Current liabilities increased to $1.03 billion, compared to $973.2 million at the end of January 2025, largely due to an increase in accounts payable and notes payable. The accumulated deficit also widened to $1.48 billion from $1.42 billion, reflecting ongoing operational challenges.

In terms of operational developments, Kindcard has maintained its customer base with 98.2 million shares of common stock outstanding, consistent with the previous period. The company continues to focus on its strategic initiatives, including the promotion of its "Pay with Deb" platform, which aims to capture market share in the mobile wallet segment. The company has indicated that it will require additional funding to support its operations and growth plans, which may include private placements and advances from related parties.

The filing also highlighted the company's ongoing efforts to improve operational efficiency, as evidenced by a significant reduction in general and administrative expenses, which fell from $133.4 million to $104.4 million year-over-year. This reduction contributed to a decrease in total operating expenses from $152.5 million to $120.9 million. The company’s management remains optimistic about future growth, emphasizing the potential of mobile wallet technology and its plans to expand its market presence.

Looking ahead, Kindcard has expressed the need for additional capital to sustain its operations and achieve profitability. The company’s ability to continue as a going concern is contingent upon its success in raising funds and executing its business strategy effectively. As of the latest report, Kindcard is actively exploring various financing options to support its operational needs and strategic objectives.