Reborn Coffee Reports $1.7 Million Revenue with Increased Losses and International Expansion

Reborn Coffee, Inc. reported a net revenue of approximately $1.7 million for the three months ended March 31, 2025, marking an increase of 11.5% from $1.5 million in the same period of the previous year. The growth was primarily driven by a 14.1% rise in store sales, which reached $1.7 million, while wholesale and online sales saw a significant decline of 69.1%, dropping to $14,326. Despite the increase in revenue, the company experienced a net loss of $2.2 million, compared to a loss of $990,544 in the prior year, reflecting a 121.2% increase in losses attributed to higher operating costs and expenses.

Total operating costs and expenses surged by 42.4% to $3.4 million, up from $2.4 million in the previous year. This increase was largely due to a significant rise in product, food, and drink costs, which more than doubled to $924,364, and a 23.3% increase in general and administrative expenses, which reached $2.5 million. The company's gross margin improved to approximately $1.8 million, a 46.7% increase from the previous year, indicating that the rise in sales was not sufficient to offset the increased costs.

In terms of strategic developments, Reborn Coffee has expanded its operations internationally, with new retail locations in South Korea and Malaysia. The company currently operates 13 retail locations, including its headquarters in California. Additionally, Reborn Coffee has been focusing on enhancing its product offerings, such as the introduction of Pour Over Packs, which have gained traction in the B2B market, particularly with hotels. The company aims to capture a larger share of the growing U.S. coffee market, projected to reach $74.3 billion in 2025.

As of March 31, 2025, Reborn Coffee's total assets amounted to approximately $8.1 million, up from $7.8 million at the end of 2024. However, total liabilities also increased significantly to $7.6 million, compared to $5.2 million in the previous period, primarily due to the issuance of convertible debt and increased operating lease liabilities. The company reported a cash balance of $777,117, a notable increase from $158,215 at the end of 2024, reflecting improved cash flow management.

Looking ahead, Reborn Coffee's management has indicated plans to raise additional capital through equity and debt offerings to support ongoing operations and growth initiatives. However, the company faces substantial risks, including market competition and the need to maintain sufficient liquidity to continue its operations. The management has expressed uncertainty regarding its ability to achieve profitability in the near term, emphasizing the importance of strategic execution and market conditions in shaping future performance.