Eightco Announces Second Quarter 2025 Financial Results

Rhea-AI Summary

Eightco Holdings (NASDAQ: OCTO) reported its Q2 2025 financial results, showing mixed performance. Revenue increased to $7.6 million, up from $5.3 million in Q2 2024. However, the company recorded a net loss of $1.2 million ($0.38 per share), compared to net income of $4.4 million ($2.15 per share) in the prior year quarter.

For the first half of 2025, revenues reached $17.5 million, up from $13.2 million in H1 2024, while net loss was $3.7 million compared to net income of $6.4 million in the same period last year. The company recognized a gain on divestiture of $1.2 million in Q2 2025, but faced increased operating expenses and interest costs.

Positive

• Revenue growth of 43.4% year-over-year to $7.6 million in Q2 2025
• First half 2025 revenue increased 32.1% to $17.5 million
• Gain on divestiture of $1.2 million recognized in Q2 2025

Negative

• Net loss of $1.2 million in Q2 2025 versus net income of $4.4 million in Q2 2024
• Operating loss increased to $1.2 million from $0.9 million year-over-year
• Gross profit declined to $1.2 million from $1.3 million despite higher revenue
• Interest expenses remained high at $1.3 million in Q2 2025
• First half 2025 net loss of $3.7 million compared to net income of $6.4 million in 2024

Insights

Financial Analyst

Eightco reported mixed Q2 2025 results with 43% revenue growth but swung to a loss without prior year's one-time gains.

Eightco's Q2 results present a mixed financial picture. While revenues grew significantly by 43.4% to $7.6 million compared to $5.3 million in Q2 2024, the company's profitability metrics deteriorated substantially. Gross profit declined slightly to $1.2 million from $1.3 million despite higher sales, indicating margin compression. The gross margin fell from 25.1% to just 16.4%, suggesting higher costs or pricing pressures.

The most notable shift came in the bottom line, where Eightco reported a net loss of $1.2 million (-$0.38 per share) compared to net income of $4.4 million ($2.15 per share) in Q2 2024. However, this dramatic swing is largely explained by non-recurring items. The prior year quarter benefited from a substantial $6.5 million gain on extinguishment of liabilities that masked underlying operational challenges. The current quarter included a $1.2 million gain on divestiture, but this wasn't enough to offset operating losses.

The company's core operations remain under pressure, with operating losses widening to $1.2 million from $0.9 million in the prior year period. SG&A expenses increased by 11.9% to $2.5 million, growing faster than gross profit. Interest expenses remain significant at $1.3 million, highlighting the company's debt burden.

The first half performance mirrors these quarterly trends, with revenues up 32.1% to $17.5 million but a net loss of $3.7 million versus net income of $6.4 million in H1 2024. Without non-recurring gains from the prior year, including $6.1 million from forgiveness of earnout and $6.5 million from extinguishment of liabilities, the company's challenging financial fundamentals become more apparent.

Revenues Increased to $7.6 Million; Net Loss of $1.2 Million

Easton, PA, Aug. 20, 2025 (GLOBE NEWSWIRE) -- Eightco Holdings Inc. (NASDAQ: OCTO) (“Eightco” or the “Company”) today announced financial results for the three and six months ended June 30, 2025.

Second Quarter 2025 Financial Highlights

• Revenues of $7.6 million, compared to $5.3 million in the prior year quarter.
• Gross profit of $1.2 million, compared to $1.3 million in the prior year quarter.
• Operating loss of $1.2 million, compared to $0.9 million in the prior year quarter.
• Net loss of $1.2 million, or ($0.38) per share, compared to net income of $4.4 million, or $2.15 per diluted share, in the prior year quarter.

First Six Months of 2025

• Revenues of $17.5 million, compared to $13.2 million in the first half of 2024.
• Net loss of $3.7 million, compared to net income of $6.4 million in the first half of 2024.

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
		2025				2024				2025				2024
Revenues, net		$	7,578,646			$	5,283,593			$	17,492,633			$	13,242,290
Cost of revenues			6,333,350				3,959,810				15,434,078				10,529,497
Gross profit			1,245,296				1,323,783				2,058,555				2,712,793
Operating expenses:
Selling, general and administrative expenses			2,451,832				2,191,948				4,681,257				5,319,891
Restructuring and severance			-				-				-				1,414,838
Total operating expenses			2,451,832				2,191,948				4,681,257				6,734,729
Operating loss			(1,206,536	)			(868,165	)			(2,622,702	)			(4,021,936	)
Non-operating income (expense):
Interest income (expense), net			(1,276,726	)			(1,323,594	)			(2,565,530	)			(2,522,365	)
Gain on divestiture			1,231,774				-				1,231,774				-
Gain on forgiveness of earnout			-				-				-				6,100,000
Gain on extinguishment of liabilities			-				6,497,193				-				6,497,193
Other income			81,969				28,137				103,867				54,814
Total non-operating income (expense)			37,017				5,201,736				(1,229,889	)			10,129,642
Net income (loss) before income tax expense			(1,169,519	)			4,333,571				(3,852,591	)			6,107,706
Income tax expense (benefit)			-				-				(28,793	)			-
Net income (loss) from continuing operations		$	(1,169,519	)		$	4,333,571				(3,823,798	)			6,107,706
Net income from discontinued operations			-				115,321				105,553				282,149
Net income (loss)			(1,169,519	)		$	4,448,892				(3,718,245	)			6,389,855
Net loss attributable to non-controlling interest			-				-				-				(12	)
Net income (loss) attributable to Eightco, Inc.			(1,169,519	)			4,448,892				(3,718,245	)			6,389,867

About Eightco

Eightco (NASDAQ: OCTO) is committed to growth of its subsidiaries, made up of Forever 8, an inventory capital and management platform for e-commerce sellers, and Ferguson Containers, Inc., a provider of complete manufacturing and logistical solutions for product and packaging needs, through strategic management and investment. In addition, the Company is actively seeking new opportunities to add to its portfolio of technology solutions focused on the e-commerce ecosystem through strategic acquisitions. Through a combination of innovative strategies and focused execution, Eightco aims to create significant value and growth for its portfolio companies and stockholders.

For additional information, please visit www.8co.holdings

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements of historical fact could be deemed forward looking. Words such as “plans,” “expects,” “will,” “anticipates,” “continue,” “expand,” “advance,” “develop” “believes,” “guidance,” “target,” “may,” “remain,” “project,” “outlook,” “intend,” “estimate,” “could,” “should,” and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements are based on management’s current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: Eightco’s ability to maintain compliance with the Nasdaq’s continued listing requirements; unexpected costs, charges or expenses that reduce Eightco’s capital resources; Eightco’s inability to raise adequate capital to fund its business; Eightco’s inability to innovate and attract users for Eightco’s products; future legislation and rulemaking negatively impacting digital assets; and shifting public and governmental positions on digital asset mining activity. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. For a discussion of other risks and uncertainties, and other important factors, any of which could cause Eightco’s actual results to differ from those contained in forward-looking statements, see Eightco’s filings with the Securities and Exchange Commission (the “SEC”), including in its Annual Report on Form 10-K filed with the SEC on April 15, 2025. All information in this press release is as of the date of the release, and Eightco undertakes no duty to update this information or to publicly announce the results of any revisions to any of such statements to reflect future events or developments, except as required by law.

For further information, please contact:

Investor Relations
investors@8co.holdings

FAQ

What were Eightco's (OCTO) Q2 2025 earnings results?

Eightco reported Q2 2025 revenue of $7.6 million and a net loss of $1.2 million ($0.38 per share), compared to revenue of $5.3 million and net income of $4.4 million in Q2 2024.

How much revenue did Eightco (OCTO) generate in the first half of 2025?

Eightco generated revenue of $17.5 million in the first half of 2025, compared to $13.2 million in the first half of 2024, representing a 32.1% increase.

What caused Eightco's (OCTO) net loss in Q2 2025?

The net loss was driven by increased operating expenses, higher cost of revenues, lower gross profit margins, and significant interest expenses of $1.3 million, despite higher revenue.

What was Eightco's (OCTO) operating loss in Q2 2025?

Eightco reported an operating loss of $1.2 million in Q2 2025, compared to an operating loss of $0.9 million in Q2 2024.

How did Eightco's (OCTO) gross profit change in Q2 2025?

Gross profit declined to $1.2 million in Q2 2025 from $1.3 million in Q2 2024, despite higher revenue, indicating lower profit margins.