LQR House Inc. Reports Q1 2025 Financial Results with Revenue Decline and Increased Service Revenue

LQR House Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $429,340, a decrease of 11% from $481,094 in the same period of 2024. The decline was primarily driven by a 20% drop in product revenue, which fell to $351,984 from $437,303, attributed to reduced customer traffic and order activity on its CWS Platform. In contrast, service revenues increased by 77% to $77,356, reflecting a higher volume of marketing services provided. The company recorded a gross profit of $30,158, a significant improvement from a gross loss of $79,497 in the prior year.

Operating expenses for the quarter rose slightly to $2,430,014 from $2,392,876, with general and administrative costs increasing by 26% to $2,023,161, largely due to higher professional fees and personnel-related expenses. Sales and marketing expenses decreased by 48% to $406,853, as the company did not incur significant website development costs that had impacted the previous year. LQR House reported a net loss of $2,389,650, a marginal improvement from the net loss of $2,427,392 in the first quarter of 2024.

In terms of operational developments, LQR House completed a reverse stock split of 1-for-35 on April 21, 2025, aimed at increasing the per-share price and improving marketability. The company also raised $9.2 million in net proceeds through stock issuances during the quarter, including $5.1 million from an at-the-market offering and $4.1 million from the exercise of warrants. As of March 31, 2025, LQR House had cash and cash equivalents of $7,889,597, up from $5,386,789 at the end of 2024.

The company continues to face challenges, including negative cash flows from operations of $6,619,373 for the quarter, raising concerns about its ability to sustain operations without additional capital. LQR House has indicated that it will seek further financing to support its operations and growth strategies, which include expanding its marketing services and product offerings. The management remains focused on customer acquisition and exploring partnerships to enhance revenue generation.

Looking ahead, LQR House's management has expressed optimism about its growth potential, particularly through its marketing services and the CWS Platform. However, the company acknowledges the need for ongoing capital to navigate its current financial challenges and achieve profitability. The outlook remains cautious, with management emphasizing the importance of generating sufficient cash flows and securing additional funding to support its business objectives.