Executive Summary
Upexi Inc delivered a Q2 2025 report showing a meaningful revenue decline year-over-year and quarter-over-quarter, reflecting ongoing top-line headwinds in its consumer-branded product portfolio. Revenue of $4.01 million declined 77.5% YoY and 8.1% QoQ, while gross margin remained robust at approximately 74.25%, underscoring a favorable cost of goods sold posture and potential pricing power within certain product categories. However, the company posted an operating loss of about $1.07 million and a net loss of roughly $1.30 million for the quarter, with EBITDA deeply negative at about $0.83 million, highlighting that fixed-cost absorption and operating expenses remain the principal drivers of cash burn.
From a liquidity and balance-sheet perspective, UPXI continues to exhibit stress: cash and equivalents were about $0.41 million, current liabilities exceed current assets (current ratio ~0.58), and total debt sits at roughly $10.5 million with net debt around $10.1 million. Cash flow from operations was negative at approximately $(1.38) million, contributing to an ongoing free cash burn Π²Πβ a key risk factor for near-term financial flexibility. The equity base remains small relative to debt, and retained earnings are negative, signaling a need for capital discipline or strategic actions to restore profitability and fund ongoing operations.
Looking ahead, UPXI did not publish formal forward guidance in the provided data. The near-term investment thesis hinges on improving top-line growth or accelerating margin-driven improvements, coupled with stronger working-capital efficiency and potential restructuring of operating expenses. Investors should monitor (i) any signs of revenue stabilization or growth acceleration, (ii) cost containment initiatives and potential SG&A optimization, (iii) working-capital improvements and cash-flow trajectory, and (iv) any strategic actions (partnerships, asset divestitures, or fund-raising) that could meaningfully alter liquidity and risk. Given the current metrics, UPXI presents a high-risk, high-uncertainty investment profile with a narrow path to near-term profitability unless revenue and margin dynamics materially improve.
Key Performance Indicators
QoQ: -8.06% | YoY:-77.49%
QoQ: 20.00% | YoY:-933.33%
Key Insights
Revenue: $4,005,492 for Q2 2025; YoY change -77.49%; QoQ change -8.06%
Gross Profit: $2,974,106; Gross Margin 74.25%; YoY Gross Profit change -64.04%; QoQ change +1.50%
Operating Income: -$1,073,199; Operating Margin -26.79%; YoY change +39.95%; QoQ change +19.62%
Net Income: -$1,301,310; Net Margin -32.48%; YoY change +46.62%; QoQ change +19.95%
EBITDA: -$833,447; EBITDA Margin -20.80%
EPS (Diluted): -$1.24; EPS YoY change -933.33%; QoQ change +20.00%
Cash Flow: Net cash from operating activiti...
Financial Highlights
Revenue: $4,005,492 for Q2 2025; YoY change -77.49%; QoQ change -8.06%
Gross Profit: $2,974,106; Gross Margin 74.25%; YoY Gross Profit change -64.04%; QoQ change +1.50%
Operating Income: -$1,073,199; Operating Margin -26.79%; YoY change +39.95%; QoQ change +19.62%
Net Income: -$1,301,310; Net Margin -32.48%; YoY change +46.62%; QoQ change +19.95%
EBITDA: -$833,447; EBITDA Margin -20.80%
EPS (Diluted): -$1.24; EPS YoY change -933.33%; QoQ change +20.00%
Cash Flow: Net cash from operating activities -$1,384,044; Free cash flow -$1,384,044; CFO/Sales ratio -34.6%
Liquidity: Cash and cash equivalents $406,347; Total current assets $6,109,919; Total current liabilities $10,617,127; Current ratio 0.58; Quick ratio 0.37; Cash ratio 0.0383
Leverage and solvency: Total debt $10,520,017; Long-term debt $3,149,232; Total liabilities $13,766,359; Total stockholdersβ equity $3,762,890; Debt to capitalization ~73.7%; Debt to EBITDA not meaningful given negative EBITDA; Net debt $10,113,670; Asset turnover 0.23; Gross margin 0.74; Operating margin -0.27; P/S ratio ~0.92; P/B ratio ~0.98; Enterprise value multiple negative (~-16.54) due to negative equity or low market cap
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
4.01M |
-77.49% |
-8.06% |
| Gross Profit |
2.97M |
-64.04% |
1.50% |
| Operating Income |
-1.07M |
39.95% |
19.62% |
| Net Income |
-1.30M |
46.62% |
19.95% |
| EPS |
-1.24 |
-933.33% |
20.00% |
Key Financial Ratios
operatingProfitMargin
-26.8%
operatingCashFlowPerShare
$-1.32
freeCashFlowPerShare
$-1.32
Management Commentary
Note: Earnings call transcript data are not provided in the supplied dataset. As a result, no direct management quotes or theme-based highlights could be extracted from an earnings call. The analysis below relies on disclosed financials and qualitative context where applicable; please supply the transcript if you want quotes and a transcript-based thematic synthesis.
Forward Guidance
No formal forward guidance was provided by management in the available data. Given the current quarter's negative net income and negative cash flow from operations, the near-term outlook is contingent on improving top-line growth or achieving meaningful operating cost reductions. Potential scenarios include: (1) Revenue stabilization or growth through expand-on brand portfolio, increased e-commerce penetration, and higher-margin product mix; (2) Cost discipline through SG&A optimization, supply-chain improvements, and potential headcount or discretionary expense reductions; (3) Balance-sheet actions such as restructuring, asset monetization, or selective financing to restore liquidity. Investors should monitor quarterly revenue trajectories, gross margin stability, operating expense trends, and any announcements related to cost-reduction programs, capital raising, or strategic partnerships that could alter the financial trajectory. Key factors to watch: revenue growth rate, quarterly EBITDA progression, cash burn rate, and debt maturities.