Upexi Reports 46% Revenue Decline and Ongoing Losses in Latest Quarterly Filing

Upexi, Inc. reported significant financial challenges in its latest quarterly filing, revealing a substantial decline in revenue and ongoing operational losses. For the three months ended December 31, 2024, the company generated revenue of $4.0 million, a decrease of 46% from $7.5 million in the same period last year. The six-month revenue figures also reflected a similar trend, dropping 47% to $8.4 million from $15.7 million. The net loss for the quarter was $1.3 million, an improvement from a loss of $2.4 million in the prior year, while the six-month net loss was $2.9 million compared to $3.8 million in the same period last year.

The decline in revenue was attributed primarily to a strategic shift away from the recommerce business, which accounted for approximately $3.4 million of the revenue drop. Additionally, direct-to-consumer sales from the company's MW Products segment also saw a decline of about $350,000. Despite the overall revenue decrease, Upexi noted an increase in gross profit margin, which rose to 74% from 61% year-over-year, indicating a focus on higher-margin product sales.

Operationally, Upexi has undergone significant changes, including the divestiture of several subsidiaries. The company sold its subsidiary, VitaMedica, for $6 million in June 2024, and E-Core Technology for $2 million in August 2024. These sales were part of a broader strategy to streamline operations and focus on core product offerings. The company also reported a reduction in operating expenses, with sales and marketing costs decreasing by 36% and distribution costs down by 49% compared to the previous year.

As of December 31, 2024, Upexi's current assets totaled $6.1 million, down from $11.4 million at the end of the previous fiscal period, while current liabilities were reported at $10.6 million. This resulted in a working capital deficit of $4.5 million, compared to a deficit of $1.2 million six months prior. The company’s cash position also weakened, with cash decreasing to $406,347 from $661,415. Upexi indicated that it expects to require additional capital to support its operations and plans to pursue various financing options.

Looking ahead, Upexi's management expressed cautious optimism about future performance, emphasizing a commitment to enhancing product sales and operational efficiency. However, the company acknowledged substantial doubt about its ability to continue as a going concern without securing additional funding. The management plans to implement cost-reduction strategies and seek new capital to stabilize its financial position in the coming months.