Labor Smart, Inc. - Letter from the CEO Q2 2025 Shareholder Update

Rhea-AI Summary

Labor Smart Inc (OTCID:LTNC) released its Q2 2025 shareholder update, highlighting significant transformation and financial growth. The company reported a 25% quarter-over-quarter revenue increase and an impressive 4,200% year-over-year growth. CEO Brad Wyatt emphasized the company's successful transition from a single-brand, direct-to-consumer model to a diversified beverage and wellness platform.

Key achievements include a 19.5% reduction in liabilities and improved operational efficiency. The company's growth-through-acquisition and brand incubation strategy has begun showing positive results, with operations now reaching profitability. Management focuses on aligning expense ratios with strong revenues and gross margins while reducing reliance on dilutive financing measures.

Positive

• Revenue grew 25% quarter-over-quarter and 4,200% year-over-year
• Company achieved profitability milestone
• Liabilities reduced by 19.5% in Q2
• Reduced reliance on dilutive financing measures
• Successfully transformed into a diversified beverage and wellness platform

Negative

• Growth complexity requires additional operational oversight
• Historical reliance on dilutive measures for vendor payments
• Current phase still requires expense ratio alignment

News Market Reaction

+7.69%

1 alert

+7.69% News Effect

On the day this news was published, LTNC gained 7.69%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Labor Smart, Inc. (OTCID:LTNC) - Letter from the CEO about Q2 2025 Financial Reporting

JACKSON, WY / ACCESS Newswire / August 14, 2025 /

Fellow Shareholders,

As we close the second quarter of 2025, I want to reflect on our progress and reaffirm the commitments I shared with you just a few months ago. In Q1, I spoke about our transformation from a single-brand, direct-to-consumer company into a diversified beverage and wellness platform built on strategy, structure, and execution. This quarter's results show that transformation taking root in a very real way.

Q2 revenue surged to 25% better than first quarter performance, representing a year-over-year increase of over 4,200%. This extraordinary growth didn't happen by accident-it is the direct result of our shift in vision and the disciplined execution of our growth-through-acquisition and brand incubation strategy. Importantly, we achieved this growth profitably, a milestone that underscores the scalability and strength of our model.

Just a short time ago, the company operated on much lower revenues and bore expenses more typical of a start-up-conditions that often-required dilutive measures such as paying vendors and partners with equity or notes. Those days are close to being behind us. With our current revenue trajectory and the efficiencies of our brand creation and incubation model, we are entering a phase where the pressure to dilute shareholders will ease. Our focus is on aligning our expense ratio to match the strong revenues and gross margins our new platform is delivering.

Our strategy remains disciplined: acquire and develop high-margin brands, expand distribution intelligently, and strengthen our financial position. The 19.5% reduction in liabilities this quarter reflects our commitment to building a healthier balance sheet. We have streamlined inventory and tightened operational controls without sacrificing our ability to meet demand. These improvements are deliberate steps toward a more resilient and agile company.

We remain humble and determined in the face of what lies ahead. Growth at this scale brings complexity, and complexity requires vigilance. Our attention is fixed on matching the pace of expansion with the operational discipline needed to deliver consistent results. The mission is unchanged-to create lasting value for our shareholders by building a portfolio of brands with enduring consumer appeal and strong financial performance.

To all of you who have supported Labor Smart through this transformation: thank you. The road from vision to execution is never easy, but together, we are proving that it is worth the effort. The progress we've made in the first half of 2025 is only the beginning, and I am confident that with continued focus and discipline, the best is yet to come.

Sincerely,
Brad Wyatt
Chief Executive Officer
Labor Smart, Inc.

About Labor Smart, Inc. (OTCID:LTNC)
Labor Smart, Inc., headquartered in Jackson, Wyoming, is a dynamic brand acquisition and development company focused on building high-growth businesses in the beverage, lifestyle, and wellness sectors. Through strategic partnerships, innovative products, and a scalable infrastructure, LTNC is committed to delivering long-term value to its shareholders.

Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor created by such sections and the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "projects," "may," "will," "should," "could," "potential," "continue," and similar expressions. These forward-looking statements are based on current expectations, estimates, and projections about the Company's industry, management's beliefs, and certain assumptions made by management, and are not guarantees of future performance.

Investor Relations Contact: ir@laborsmartinc.com

SOURCE: Labor Smart, Inc.

View the original press release on ACCESS Newswire

FAQ

What was Labor Smart's (LTNC) revenue growth in Q2 2025?

Labor Smart reported 25% revenue growth compared to Q1 2025 and a remarkable 4,200% increase year-over-year.

How much did Labor Smart (LTNC) reduce its liabilities in Q2 2025?

Labor Smart achieved a 19.5% reduction in liabilities during Q2 2025, demonstrating improved balance sheet health.

What is Labor Smart's (LTNC) current business strategy?

Labor Smart's strategy focuses on acquiring and developing high-margin brands, expanding distribution intelligently, and strengthening its financial position as a diversified beverage and wellness platform.

Has Labor Smart (LTNC) achieved profitability in Q2 2025?

Yes, Labor Smart reached a profitability milestone in Q2 2025, demonstrating the scalability and strength of their business model.

What changes has Labor Smart (LTNC) made to its business model?

Labor Smart has transformed from a single-brand, direct-to-consumer company into a diversified beverage and wellness platform focused on growth through acquisition and brand incubation.