Healthy Choice Wellness Corp. Announces Record First Quarter 2025 Financial Results

Rhea-AI Summary

Healthy Choice Wellness Corp. (NYSE-AM: HCWC) reported strong Q1 2025 financial results with record-breaking performance. Key highlights include:

• Net sales reached $20.3 million, up 27% from Q1 2024
• Gross profit increased 30% to $7.9 million
• Adjusted EBITDA turned positive at $0.02 million, a 109% improvement
• Net loss remained stable at $0.7 million

CEO Jeffrey Holman attributed the growth to successful acquisitions, increased same-store sales across 19 locations, and improved buying efficiencies. The company maintains a strong balance sheet with $1.79 million in cash and total assets of $34.1 million as of March 31, 2025. Management remains committed to their expansion strategy and focus on driving bottom-line profitability.

Positive

• Record quarterly sales of $20.3M, representing 27% YoY growth
• Gross profit increased 30% to $7.9M
• Adjusted EBITDA turned positive to $0.02M from -$0.2M loss last year
• Same store sales growth across all 19 stores
• Improved buying efficiencies resulting in lower shrinkage and spoilage

Negative

• Net loss of $0.7M continues, unchanged from previous year
• Operating expenses increased by 24% to $8.26M
• Cash position decreased from $2.06M to $1.79M since December 2024
• Total stockholders' equity declined from $2.38M to $2.13M

Insights

Financial Analyst

HCWC shows strong revenue growth but profitability still lags with continued net losses despite reaching positive Adjusted EBITDA.

Healthy Choice Wellness Corp's Q1 2025 results demonstrate significant topline growth but reveal a more complex profitability picture. Revenue reached a record $20.3 million, increasing by 27% year-over-year, while gross profit grew even faster at 30% to $7.9 million. This outpaced revenue growth in gross profit signals improving margins, likely driven by the CEO's mentioned "improvement in buying efficiencies" and reduced shrinkage and spoilage.

The company achieved positive Adjusted EBITDA of $20,315 compared to a $238,605 loss in Q1 2024, representing a remarkable 109% improvement. However, this metric excludes significant expenses, as evidenced by the persistent net loss of $712,410, which remained essentially unchanged from the prior year.

The balance sheet reveals concerning trends. Cash decreased from $2.06 million at year-end 2024 to $1.79 million by March 2025, while current liabilities increased from $11.94 million to $13.35 million. This deterioration in working capital position suggests potential cash flow challenges despite the revenue growth.

Stockholders' equity declined from $2.38 million to $2.13 million, reflecting the continued losses. With total liabilities of $31.96 million against $34.09 million in assets, the company operates with a thin equity cushion, creating financial vulnerability despite the operational improvements.

The expansion strategy across 19 stores through acquisitions appears to be driving revenue, but the minimal improvement in bottom-line results raises questions about the efficiency of this growth model. While achieving positive Adjusted EBITDA represents a significant milestone, the company must address the persistent net losses and deteriorating cash position to create sustainable shareholder value.

-First Quarter Record Sales of $20.3 Million, Up 27%, over Q1 2024

-First Quarter Record Gross Profit of $7.9 Million, Up 30%, over Q1 2024

- First Quarter Positive Adjusted EBITDA

HOLLYWOOD, FL, May 12, 2025 (GLOBE NEWSWIRE) -- Healthy Choice Wellness Corp. (NYSE-AM: HCWC) today announced financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Results Highlights:

• Net sales from operations for the three-month period ended March 31, 2025, amounted to a record $20.3 million, compared to $15.9 million, an approximate $4.4 million and 27% increase versus the same period in 2024.
• Gross Profit from operations increased by approximately $1.8 million for the three-month period ended March 31, 2025, amounting to a record $7.9 million, compared to $6.1 million for the same period in 2024, a 30% year-over-year increase.
• Net Loss for the three-month period ended March 31, 2025, amounted to approximately $0.7 million, unchanged from prior year.
• Adjusted EBITDA amounted to a positive $0.02 million versus a $0.2 million loss when compared to the same period last year, an improvement of over $250,000 or 109% when compared to the same period last year.

Jeffrey Holman, Chief Executive Officer of HCWC, expressed his enthusiasm about the company's outstanding performance in the first quarter. "Our revenue has reached $20.3 million, setting a new record for the first quarter. This impressive growth has been largely fueled by the completion of the successful acquisitions throughout the past couple of years and has been complemented by same store sales increases as well as ongoing growth of our co-op vendor programs throughout all 19 stores . Additionally, our gross profit has soared to nearly $8 million, thanks in part to improvement in buying efficiencies, resulting in lower shrinkage and spoilage."

Mr. Holman emphasized the company's forward-looking strategy, stating, "We are steadfast in our commitment to our expansion strategy and are optimistic about achieving another year of robust growth. Our focus remains on leveraging synergies across our brands to drive continued bottom-line profitability. These efforts are central to our mission of delivering sustained value to our shareholders."

Results of Operations

The following table sets forth our Condensed Consolidated Statements of Operations for the three months ended March 31, 2025, and 2024.

HEALTHY CHOICE WELLNESS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
		Three Months Ended March 31,
		2025				2024
SALES, NET		$	20,259,606			$	15,894,358
COST OF SALES			12,407,696				9,839,981
GROSS PROFIT			7,851,910				6,054,377
TOTAL OPERATING EXPENSES			8,261,585				6,656,123
LOSS FROM OPERATIONS			(409,675	)			(601,746	)
TOTAL OTHER (EXPENSE) INCOME, NET			(302,735	)			(99,717	)
NET LOSS		$	(712,410	)		$	(701,463	)
See non-GAAP financial measure discussion
			Three Months Ended March 31,
			2025				2024
ADJUSTED EBITDA
Loss from operations		$	(409,675	)		$	(601,746	)
Depreciation and amortization			429,990				363,141
ADJUSTED EBITDA		$	20,315			$	(238,605	)

Consolidated Balance Sheets:
The following table sets forth our Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024.

HEALTHY CHOICE WELLNESS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
			March 31, 2025 (Unaudited)				December 31, 2024
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	1,792,418			$	2,056,472
Other current assets			9,124,438				7,650,485
TOTAL CURRENT ASSETS			10,916,856				9,706,957
OTHER ASSETS			23,168,353				24,405,560
TOTAL ASSETS		$	34,085,209			$	34,112,517
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES			13,352,471				11,940,313
OTHER LIABILITIES			18,607,647				19,792,203
TOTAL LIABILITIES			31,960,118				31,732,516
TOTAL STOCKHOLDERS’ EQUITY			2,125,091				2,380,001
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	34,085,209			$	34,112,517

Non-GAAP – Financial Measure

The following discussion and analysis contains a non-GAAP financial measure. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternative to, net income, operating income, and cash flow from operating activities, liquidity or any other financial measures. Non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future financial results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.

Management believes stockholders benefit from referring to the Adjusted EBITDA in planning, forecasting, and analyzing future periods. Management uses this non-GAAP financial measure in evaluating its financial and operational decision making and as a means of evaluating period to period comparison.

We define Adjusted EBITDA as loss from operations adjusted for non-cash charges from depreciation and amortization and stock compensation. Management believes Adjusted EBITDA is an important measure of our operating performance because it allows management, investor and analysts to evaluate and assess our core operating results from period to period after removing the impact of significant non-cash charges that effect comparability between reporting periods. Our management recognizes that Adjusted EBITDA has inherent limitations because of the excluded items.

We have included a reconciliation of our non-GAAP financial measure to loss from operations as calculated in accordance with GAAP. We believe that providing the non-GAAP financial measure, together with reconciliation to GAAP, helps investors make comparisons between the Company and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to specific definition being used and to the reconciliation between such measures and the corresponding GAAP measure provided by each company under applicable rules of the Securities and Exchange Commission (“SEC”). The table above presents a reconciliation of Adjusted EBITDA to loss from operations, a GAAP financial measure:

About Healthy Choice Wellness Corp.
Healthy Choice Wellness Corp. is a holding company focused on providing consumers with healthier daily choices with respect to nutrition and other lifestyle alternatives. 

Through its wholly owned subsidiaries, the Company operates:

		Ada’s Natural Market, a natural and organic grocery store offering fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products and natural household items (www.Adasmarket.com).
		Paradise Health & Nutrition’s three stores that likewise offer fresh produce, bulk foods, vitamins, and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products and natural household items (www.ParadiseHealthDirect.com).
		Mother Earth’s Storehouse, an organic and health food and vitamin store in New York’s Hudson Valley, which has been in existence for over 40 years (www.MotherEarthStorehouse.com).
		Greens Natural Foods’ eight stores in New York and New Jersey, offering a selection of 100% organic produce and all-natural, non-GMO groceries and bulk foods; a wide selection of local products; an organic juice and smoothie bar; a fresh foods department, which offers fresh and healthy “grab & go” foods; a full selection of vitamins & supplements; as well as health and beauty products. (www.Greensnaturalfoods.com).
		Ellwood Thompson’s, an organic and natural health food and vitamin store located in Richmond, Virginia (www.ellwoodthompsons.com). GreenAcres Market, an organic and natural health food and vitamin chain with five store locations in Kansas and Oklahoma. GreenAcres Market is a chain of premier natural foods stores, offering organic and all natural products and vitamins from both top national brands as well as locally sourced specialty brand (www.greenacres.com).

Through its wholly owned subsidiary, Healthy U Wholesale, the Company sells vitamins and supplements, as well as health, beauty and personal care products on its website (www.TheVitaminStore.com).

Forward Looking Statements
This press release contains forward-looking statements within the meaning of that term in the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Additional written or oral forward-looking statements may be made by the Company from time to time in filings with the Securities and Exchange Commission (SEC) or otherwise. Statements contained in this press release that are not historical facts are forward looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are based on management’s estimates, assumptions and projections and are not guarantees of future performance. The Company assumes no obligation to update these statements. Forward-looking statements may include, but are not limited to, projections or estimates of revenue, income, or loss, exit costs, cash flow needs and capital expenditures, statements regarding future operations, expansion or restructuring plans, including our recent exit from, and winding down of our wholesale distribution operations. In addition, when used in this release, the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” and “plans” and variations thereof and similar expressions are intended to identify forward looking statements.

Factors that may affect our future results of operations and financial condition include, but are not limited to, fluctuations in demand for our products, the introduction of new products, our ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of our liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in our filings with the SEC.

Contact Information

Healthy Choice Wellness Corp.
3800 North 28th Way, Hollywood, FL 33020
305-600-5004
Email: ir@hcwc.com

FAQ

What were HCWC's Q1 2025 earnings results?

HCWC reported Q1 2025 net sales of $20.3M (up 27% YoY), gross profit of $7.9M (up 30%), and a net loss of $0.7M. Adjusted EBITDA turned positive at $0.02M compared to a $0.2M loss in Q1 2024.

How many stores does Healthy Choice Wellness Corp operate in 2025?

According to the Q1 2025 earnings report, Healthy Choice Wellness Corp operates 19 stores.

What is HCWC's current cash position as of Q1 2025?

As of March 31, 2025, HCWC reported cash and cash equivalents of $1.79 million, down from $2.06 million at the end of December 2024.

What drove HCWC's revenue growth in Q1 2025?

HCWC's revenue growth was driven by successful acquisitions, same store sales increases, and growth of co-op vendor programs across all 19 stores.

What is HCWC's total debt and liabilities as of Q1 2025?

As of March 31, 2025, HCWC's total liabilities were $31.96 million, consisting of $13.35 million in current liabilities and $18.61 million in other liabilities.