LFTD Partners Inc. Reports Improved Net Loss and Increased Sales in Q2 2025

LFTD Partners Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $268,950, a significant improvement from the $523,212 loss recorded in the same period last year. For the six months ending June 30, 2025, the company reported a net loss of $571,992, compared to a loss of $1,664,216 for the first half of 2024. The company's net sales for the second quarter reached $10.3 million, up from $9.5 million in the prior year, while total sales for the first half of 2025 were $19.4 million, slightly down from $20.2 million in 2024. The increase in quarterly sales was primarily driven by a rise in non-hemp product sales.

The company’s cost of goods sold (COGS) for the second quarter was $7.1 million, compared to $5.9 million in the same quarter of 2024. For the first half of 2025, COGS totaled $14 million, up from $13.2 million in the previous year. The increase in COGS was attributed to higher raw material costs and inventory write-offs, which amounted to $780,929 in the first half of 2025, down from $1.05 million in the same period of 2024. Operating expenses decreased to $3.4 million in the second quarter from $4.1 million a year earlier, reflecting cost-cutting measures including layoffs and restructuring efforts.

LFTD Partners' balance sheet as of June 30, 2025, showed total assets of $48.1 million, an increase from $47.3 million at the end of 2024. Current assets rose to $17.9 million, driven by an increase in accounts receivable, which reached $4 million, up from $2.4 million at the end of 2024. Current liabilities also increased to $7.6 million, primarily due to a rise in deferred revenue, which jumped to $1.7 million from $674,676 at the end of 2024. The company’s accumulated deficit stood at $4.5 million as of June 30, 2025.

Strategically, LFTD Partners has been focusing on expanding its product offerings and market presence. The company has launched several initiatives aimed at increasing sales and reducing operating expenses, including enhancing its marketing efforts for its hemp-free brands. However, the company faces challenges from regulatory changes affecting the hemp-derived product market, particularly in states like Florida and Texas, which could impact future sales. The management is actively exploring opportunities to acquire profitable businesses outside the hemp industry to mitigate these risks.

Looking ahead, LFTD Partners remains cautious about its financial outlook, emphasizing the need for continued operational improvements and potential acquisitions to sustain its business. The company is also addressing internal control weaknesses identified in its financial reporting processes, which it believes will enhance its operational efficiency and financial stability moving forward.