LQR House Inc. Reports 11% Revenue Decline in Q2 2025, Despite Improved Gross Profit

LQR House Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $498,528, a decrease of 11% from $557,917 in the same period last year. The company's revenue from services fell significantly by 62% to $15,319, while product revenue decreased by 7% to $483,209. The decline in revenue is attributed to lower customer traffic and order activity on the CWS Platform, which the company believes was influenced by seasonal fluctuations and reduced promotional activities compared to the previous year. Despite the revenue drop, LQR House achieved a gross profit of $84,506, a notable improvement from a gross loss of $152,190 in the prior year.

In terms of operational performance, LQR House's total operating expenses increased by 8% to $2,288,288, primarily due to higher general and administrative costs, which rose by 63% to $2,207,612. Conversely, sales and marketing expenses saw a significant reduction of 89%, reflecting the absence of website development costs that had been incurred in the previous year. The company reported a net loss of $2,202,382 for the quarter, slightly better than the loss of $2,209,293 recorded in the same quarter of 2024.

LQR House has made strategic moves to enhance its market position, including the acquisition of the CWS Platform, which is expected to bolster its e-commerce capabilities. The company also entered into a funding commitment agreement with KBROS, its product handler, to ensure adequate inventory purchasing. As of June 30, 2025, LQR House had cash and cash equivalents of $4,566,936, down from $5,386,789 at the end of 2024. The company raised approximately $15.6 million in net proceeds through stock issuances during the first half of 2025, including $11.6 million from an at-the-market offering.

Looking ahead, LQR House plans to utilize the funds raised to support its operations and growth initiatives. The company is optimistic about its ability to meet financial obligations for the next 12 months, bolstered by the recent capital raised. However, it acknowledges the ongoing challenges of generating profits, having reported net losses of $4,592,032 and $4,636,685 for the six months ended June 30, 2025, and 2024, respectively. The company continues to explore additional capital sources and strategic partnerships to enhance its market presence and operational efficiency.