Executive Summary
GPO Plus Inc (GPOX) delivered a challenging QQ2 2025, characterized by a modest year-over-year revenue decline and a return to negative profitability metrics, underscored by a substantive cash burn and a severely stretched balance sheet. Revenue for the quarter stood at 1.189 million USD, down 2.33% year-over-year and 1.54% quarter-over-quarter, while gross profit reached 0.225 million with a gross margin of 18.96%. The company reported an EBITDA of -0.501 million and a net income of -0.585 million, translating to a net margin of -49.22% and an EPS of -0.0101. These results reflect ongoing top-line pressure and structural cost headwinds, including elevated SG&A, and indicate a fragile near-term profitability trajectory.
Liquidity and balance sheet signals remain a major concern. At quarter-end, cash and cash equivalents were a mere 16,363 USD, with total current liabilities of 4.93 million and total assets of 0.603 million, producing extremely thin liquidity ratios (current ratio 0.0515, quick ratio 0.0196, cash ratio 0.0033). The balance sheet shows negative stockholders’ equity (-4.446 million) and a high level of liabilities relative to assets, signaling solvency risk absent a material restructuring or capital inflection. Net debt stood at approximately 152.1 thousand USD, against total debt of 168.5 thousand USD. Cash flow from operations was negative at -0.246 million, driven by working capital movements (notably a large increase in inventory and sizable payables adjustments) and non-cash adjustments, resulting in free cash flow of -0.246 million. Financing activity provided a modest inflow of 0.205 million after stock issuances and a small debt/other financing activity, but the net cash change for the period was -0.040 million.
Strategically, the company remains in a nascent stage of monetizing its GPO model across HealthGPO and cbdGPO verticals. The QQ2 2025 performance implies that the opportunity remains substantial, but execution requires tighter cost controls, improved working capital management, and perhaps strategic partnerships or capital allocation to accelerate top-line growth. Without explicit forward-looking guidance, investors should monitor management’s ability to stabilize operating leverage, reduce cash burn, and equity financing needs to support ongoing operations and potential growth initiatives.
Key Performance Indicators
QoQ: -13.86% | YoY:12.31%
Key Insights
Revenue: 1,189,151 USD for QQ2 2025, YoY -2.33%, QoQ -1.54%; Gross Profit: 225,476 USD, Gross Margin: 18.96%; Operating Income: -501,148 USD, Operating Margin: -42.14%; EBITDA: -501,148 USD, EBITDA Margin: -42.14%; Net Income: -585,294 USD, Net Margin: -49.22%; EPS: -0.0101; Weighted Avg Shares: 57,684,644; Cash from Operations: -245,831 USD; Free Cash Flow: -245,831 USD; Cash and Equivalents: 16,363 USD; Total Current Liabilities: 4,927,005 USD; Total Assets: 603,222 USD; Total Liabilities: 6,9...
Financial Highlights
Revenue: 1,189,151 USD for QQ2 2025, YoY -2.33%, QoQ -1.54%; Gross Profit: 225,476 USD, Gross Margin: 18.96%; Operating Income: -501,148 USD, Operating Margin: -42.14%; EBITDA: -501,148 USD, EBITDA Margin: -42.14%; Net Income: -585,294 USD, Net Margin: -49.22%; EPS: -0.0101; Weighted Avg Shares: 57,684,644; Cash from Operations: -245,831 USD; Free Cash Flow: -245,831 USD; Cash and Equivalents: 16,363 USD; Total Current Liabilities: 4,927,005 USD; Total Assets: 603,222 USD; Total Liabilities: 6,966,963 USD; Stockholders’ Equity: -4,446,587 USD; Current Ratio: 0.0515; Quick Ratio: 0.0196; Cash Conversion Cycle: -120.72 days; Net Debt: 152,104 USD; Debt: 168,467 USD.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.19M |
-2.33% |
-1.54% |
| Gross Profit |
225.48K |
12.31% |
-13.86% |
| Operating Income |
-501.15K |
33.74% |
-3.29% |
| Net Income |
-585.29K |
39.97% |
0.24% |
| EPS |
-0.01 |
54.91% |
0.98% |
Key Financial Ratios
operatingProfitMargin
-42.1%
operatingCashFlowPerShare
$-0
Management Commentary
No earnings call transcript was provided in the data set. As a result, transcript-based themes and management quotes cannot be substantiated. The following highlights are based on the QQ2 2025 10-Q data and typical investor considerations for a small-cap OTC industrials/services business:
- Growth and profitability trajectory: Management commentary is not available in the supplied materials; the reported numbers imply a need to improve operating leverage and monetize higher-margin segments.
- Capital structure and liquidity: Given the near-term cash burn and minimal cash balance, liquidity is a critical focus for management and investors alike.
- Strategic priorities: The HealthGPO and cbdGPO platforms indicate a diversified product/vertical approach, but execution risk remains high in a capital-constrained environment.
Not available in the provided transcript data.
— Management
Not available in the provided transcript data.
— Management
Forward Guidance
No formal forward-looking targets or numeric guidance were disclosed in the provided QQ2 2025 materials. Given the weak current-quarter profitability and tight liquidity, investors should watch for: (i) management commentary on operating leverage improvements, cost discipline, and SG&A restructuring; (ii) any announced plans for working capital optimization (inventory, receivables, payables); (iii) potential capital actions (debt refinancing, equity raises, or strategic partnerships) that could broaden the company’s liquidity runway; and (iv) updates on the HealthGPO and cbdGPO monetization timeline and customer acquisition strategy. The absence of explicit guidance increases the importance of qualitative commentary around milestones and milestones-driven milestones for growth.