Upexi Reports 39% Revenue Decline in Q3 2025, Net Loss Improves

Upexi, Inc. reported a significant decline in financial performance for the three and nine months ended March 31, 2025, as detailed in its latest 10-Q filing. The company generated revenue of $3.16 million for the third quarter, a decrease of 39% from $5.22 million in the same period last year. For the nine-month period, revenue fell to $11.52 million, down 45% from $20.96 million. The decline is attributed primarily to a strategic shift away from the recommerce business, which accounted for approximately $1.9 million of the revenue drop. Despite the decrease in revenue, Upexi reported an increase in gross profit margin to 49%, up from 24% in the prior year, indicating improved cost management.

The company's operating expenses reflected mixed trends. Sales and marketing expenses decreased by 19% to $1.04 million, while general and administrative expenses rose by 46% to $2.62 million, largely due to increased legal and auditing costs. Overall, Upexi reported a net loss of $3.83 million for the third quarter, a slight improvement from a loss of $4.12 million in the same quarter of the previous year. For the nine-month period, the net loss was $6.76 million, compared to $7.91 million in the prior year, reflecting ongoing efforts to streamline operations and reduce costs.

In terms of strategic developments, Upexi has undergone significant organizational changes, including the sale of its subsidiaries, VitaMedica and E-Core Technology, which were classified as discontinued operations. The sale of VitaMedica, completed in June 2024 for $6 million, and the sale of E-Core, finalized in August 2024 for $2 million, are part of the company's strategy to focus on its core branded products. The company also reported a cash balance of $230,392 as of March 31, 2025, down from $661,415 at the end of the previous fiscal year, primarily due to operating losses and increased accounts receivable.

Operationally, Upexi has seen a reduction in its customer base and engagement metrics, with a notable increase in inventory reserves due to slow-moving products. The company has also reported a significant write-off of inventory valued at $369,290 during the quarter. Upexi's total current liabilities stood at $10.8 million, compared to $12.7 million in the previous fiscal period, indicating a slight improvement in its financial obligations. The company continues to focus on consolidating its operations in Florida, which is expected to enhance efficiency and reduce costs in the long term.

Looking ahead, Upexi anticipates that the strategic shift towards branded products will stabilize revenue and improve profitability. The company has indicated plans to raise additional capital through equity or debt securities to support its operations and growth initiatives. Management remains optimistic about returning to cash flow positive status as restructuring efforts are completed and operational efficiencies are realized. However, the company acknowledges the inherent risks and uncertainties in the market, particularly regarding regulatory changes affecting its product lines.