Reborn Coffee Reports 7.8% Revenue Growth but Faces $3.45 Million Net Loss

Reborn Coffee, Inc. reported a net revenue of approximately $1.36 million for the three months ended September 30, 2025, marking a 7.8% increase from $1.26 million in the same period of the previous year. For the nine-month period, total revenues reached $4.88 million, up 17.7% from $4.15 million in 2024. The growth in revenue was primarily attributed to the introduction of licensing income, which contributed $100,000 during the quarter. However, the company also faced significant increases in operating costs, leading to a net loss of $3.45 million for the third quarter, compared to a loss of $719,748 in the prior year.

The company's operating expenses surged to $4.40 million for the third quarter, a 122% increase from $1.98 million in the same period last year. This rise was driven by higher product costs, which increased by 44.7% to $647,152, and a substantial rise in general and administrative expenses, which climbed 66% to $2.23 million. The increase in expenses was largely due to legal and professional fees, as well as stock compensation expenses amounting to $1.33 million, which were not present in the previous year.

In terms of operational developments, Reborn Coffee has expanded its footprint with the establishment of new retail locations, including two international stores in South Korea and Malaysia. The company currently operates 12 retail locations across California and is focused on enhancing its product offerings, including the introduction of Reborn Coffee Pour Over Packs, which have gained traction in the B2B market. The company aims to capture a larger share of the growing U.S. coffee market, projected to reach $74.3 billion in 2025.

Despite the revenue growth, Reborn Coffee's financial health remains a concern, with total liabilities increasing significantly to $9.62 million as of September 30, 2025, compared to $5.19 million at the end of 2024. The company reported an accumulated deficit of $32.54 million, raising questions about its ability to sustain operations without additional capital. Management has indicated plans to raise funds through equity and debt offerings to support ongoing operations and growth initiatives.

Looking ahead, Reborn Coffee's management acknowledges the challenges posed by rising operational costs and market competition. The company is actively seeking to improve its financial position and operational efficiency while continuing to innovate in its product offerings. However, there is substantial uncertainty regarding its ability to achieve profitability and maintain operations without securing additional financing.