Starco Brands Reports 18% Revenue Decline in Q3 2025, Net Loss Improves

Starco Brands, Inc. reported a decline in financial performance for the third quarter of 2025, with revenues totaling $10.9 million, a decrease of 18% from $13.4 million in the same period last year. For the nine months ending September 30, 2025, total revenue was $31.3 million, down 22% from $40.3 million in 2024. The decrease in revenue was attributed primarily to lower sales from its Soylent product line, as the company shifted focus away from lower-margin sales channels and faced inventory constraints that limited order fulfillment.

The company's gross profit for the third quarter was $4.6 million, down from $6.4 million a year earlier, while gross profit for the nine-month period was $13.8 million, compared to $19.1 million in 2024. Operating expenses significantly decreased to $5.7 million for the third quarter, down from nearly $12 million in the prior year, largely due to reduced marketing and administrative costs. The company reported a net loss of $1.4 million for the quarter, a notable improvement from a loss of $6.3 million in the same period last year. For the nine months, the net loss was $1.3 million, compared to a loss of $22.1 million in 2024.

Starco Brands has been actively pursuing strategic initiatives, including the acquisition of subsidiaries to expand its product offerings. The company completed the acquisition of Soylent Nutrition in February 2023, which has contributed to its product portfolio. Additionally, in July 2025, Starco Brands entered into a license agreement with BlueUTA-I LLC, granting rights to use the likeness and trademarks of artist Leah Kateb for commercial purposes. The company is also in discussions to acquire its contract manufacturers, The Starco Group, which would enhance operational efficiencies and scale.

Operationally, Starco Brands reported a working capital deficit of approximately $6.1 million as of September 30, 2025, an improvement from a deficit of $14.2 million at the end of 2024. The company had total liabilities of $24.2 million, down from $32.5 million at the end of the previous fiscal year. As of the reporting date, Starco Brands had 29 full-time employees, reflecting a focus on streamlining operations. The company is actively seeking alternative financing sources to enhance liquidity and support its ongoing operations, as it continues to navigate challenges related to its accumulated deficit of $82.8 million.

Looking ahead, Starco Brands aims to increase revenue through strategic partnerships and product launches while managing costs effectively. The company remains focused on enhancing its market position and shareholder value, despite the ongoing challenges in the competitive consumer products landscape.