Reborn Coffee Reports 33.6% Revenue Growth but Increases Net Loss in Q2 2025

Reborn Coffee, Inc. reported a significant increase in revenue for the second quarter of 2025, with total net revenues reaching $1.83 million, a 33.6% increase from $1.37 million in the same period last year. For the six months ending June 30, 2025, revenues totaled $3.53 million, up 22% from $2.89 million in the prior year. The growth was primarily driven by a 51.5% increase in store sales, which accounted for nearly 99% of total revenues, while wholesale and online sales saw a substantial decline of 82.7%.

Despite the revenue growth, Reborn Coffee reported a net loss of $5.34 million for the second quarter, compared to a loss of $1.32 million in the same quarter of 2024. The six-month net loss also widened to $7.53 million from $2.31 million in the previous year. The increase in losses was attributed to rising operating costs, particularly in general and administrative expenses, which rose to $4.28 million for the first half of 2025, up from $3.73 million in 2024. Additionally, stock compensation expenses of $2.67 million were recorded for the first half of 2025, a new cost not present in the previous year.

Operationally, Reborn Coffee has expanded its footprint, now operating 13 retail locations, including new stores in South Korea and Malaysia. The company has also focused on enhancing its product offerings, notably through the introduction of Reborn Coffee Pour Over Packs, which have gained traction in the B2B market, particularly with hotels. The company’s strategic initiatives aim to capture a larger share of the growing U.S. coffee market, projected to reach $74.3 billion in 2025.

The company’s balance sheet reflects a total asset value of approximately $6.38 million as of June 30, 2025, down from $7.79 million at the end of 2024. Current liabilities surged to $6.46 million, primarily due to increased accounts payable and loans payable. Reborn Coffee's accumulated deficit has grown to $29.09 million, raising concerns about its ability to continue as a going concern without additional financing. The company plans to raise funds through equity and debt offerings to support its operations and growth strategies.

Looking ahead, Reborn Coffee remains focused on expanding its market presence and product lines while managing its operational costs. The company acknowledges the challenges posed by increased competition and economic conditions but aims to leverage its innovative product offerings and strategic partnerships to drive future growth.