Revenue Performance: Q2 revenue fell by 38.55% YoY to $6.5M, down from $10.6M in Q2 2024, reflecting significant challenges in sales volume. Quarter-over-quarter, revenue decreased by 34.87%. The decline is attributed to an active brand partner base reduction from 18,100 to 13,900 and the effects of inflation on consumer spending.
Profitability: Gross profit decreased by 47.22% YoY to $3.65M, leading to a gross margin of 56%. Operating income showed significant deterioration with a loss of $2.5M, compared to a profit in the previous year. Consequently, net income declined sharply to a loss of $1.8M, resulting in an EPS of -$0.22.
Liquidity and Balance Sheet Health: Current ratio stands robust at 3.67, indicating sound liquidity despite operational challenges. Cash flow from operations remains negative at -$866K. Cash and cash equivalents totaled $753.8K, supplemented by inventory holdings of $35.5M, though management reported a need to actively manage excess inventory estimated at around $30M.