PSQ Holdings (NYSE: PSQH) posts 167% revenue surge and deeper Q1 2026 net loss
Rhea-AI Filing Summary
PSQ Holdings, Inc. reported sharp top-line growth but remained unprofitable in the first quarter of 2026. Net revenue from continuing operations rose 167% year over year to $8.2 million, driven by its financial technology segment, while operating expenses fell 18%, improving efficiency.
Operating loss narrowed to $6.1 million from $9.3 million, and operating cash burn improved to $4.1 million from $6.4 million. However, net loss widened to $6.5 million, mainly due to a $7.1 million reduction in gains from fair value changes in warrant and earnout liabilities. Non-GAAP operating loss improved to $0.9 million from $2.8 million.
The company executed an operational restructuring, cutting staff by 41% and winding down its Marketplace segment, which is expected to generate about $8.0 million in annualized cash savings. Revenue per headcount jumped 287% to $173,583. Cash and cash equivalents fell to $10.1 million as of March 31, 2026 from $14.6 million at year-end, while total liabilities remained around $46.0 million.
Positive
- Strong revenue growth and efficiency gains: Net revenue from continuing operations increased 167% year over year to $8.2 million, while operating expenses fell 18% and non-GAAP operating loss improved from $2.8 million to $0.9 million.
- Restructuring driving material savings: A 41% staff reduction, Marketplace wind-down, and other cuts are expected to produce approximately $8.0 million in annualized cash savings, with revenue per headcount rising 287% to $173,583.
Negative
- Net loss still growing with high leverage: Net loss widened to $6.5 million, largely from lower fair value gains on warrants and earnouts, while cash fell to $10.1 million against $28.4 million of convertible notes and a $7.4 million revolving credit balance.
Insights
Revenue growth and cost cuts are strong, but leverage and cash burn still matter.
PSQ Holdings delivered a powerful operating turnaround signal in Q1 2026. Net revenue from continuing operations climbed from $3.1M to $8.2M, a 167% increase, while operating expenses fell 18%. Operating loss narrowed to $6.1M, and non-GAAP operating loss improved to $0.9M from $2.8M.
That improvement reflects a restructuring that cut headcount 41% and is expected to generate about $8.0M in annualized cash savings. Revenue per headcount jumped to $173,583, up 287%, indicating a more efficient cost structure even as the company repositions as a pure-play fintech operator.
Risks remain. Net loss increased to $6.5M, primarily because gains from warrant and earnout revaluation dropped by $7.1M. Cash and cash equivalents declined from $14.6M at December 31, 2025 to $10.1M at March 31, 2026, while total liabilities stayed near $46.0M, including $28.4M of convertible notes. Future filings will show whether revenue growth and cost discipline move the business toward sustained profitability and stable liquidity.
8-K Event Classification
Key Figures
Key Terms
discontinued operations financial
earn-out liabilities financial
warrant liabilities financial
non-GAAP operating loss financial
revolving line of credit financial
Payments Gross Merchandise Volume (GMV) financial
Earnings Snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE
SECURITIES EXCHANGE ACT OF 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Item 2.02 Results of Operations and Financial Condition.
On May 7, 2026, PSQ Holdings, Inc. (the “Company”) issued a press release announcing its financial and operating results for the quarter ended March 31, 2026. A copy of the press release is furnished herewith as Exhibit 99.1.
The information in Item 2.02 of this Current Report on Form 8-K and the press release furnished as Exhibit 99.1 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 7.01 Regulation FD Disclosure.
On May 7, 2026, the Company issued the press release described above in Item 2.02 of this Current Report on Form 8-K. The press release is attached as Exhibit 99.1 and incorporated into this Item 7.01 by reference.
The information in this Current Report on Form 8-K under Item 7.01 is being “furnished” and not “filed” with the Securities and Exchange Commission (the “SEC”) for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under such section. Furthermore, such information shall not be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, unless specifically identified as being incorporated therein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |
| 99.1 | Press Release, dated May 7, 2026 | |
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PSQ Holdings, Inc. | ||
| Date: May 7, 2026 | By: | /s/ James M. Giudice |
| Name: | James M. Giudice | |
| Title: | Chief Legal Officer and General Counsel | |
Exhibit 99.1
PSQ Holdings, Inc. Announces First Quarter 2026 Financial Results
First Quarter Revenue Growth of 167%
First Quarter Operating Expense Reduction of 18%
First Quarter Revenue Per Headcount Improves 287%
BOZEMAN, MT, May 7, 2026 — PSQ Holdings, Inc. (NYSE: PSQH) (the “Company”), a payments and financial infrastructure company, today reported financial results for the first quarter 2026.
FIRST QUARTER 2026 HIGHLIGHTS
| · | Net revenue from continuing operations, which includes the financial technology (“fintech”) segment, for the quarter ended March 31, 2026 was $8.2 million compared to $3.1 million for the first quarter ended March 31, 2025, a 167% increase compared to the prior year period. | |
| · | Operating expense (defined as general and administrative, sales and marketing, and research and development expense) for the quarter ended March 31, 2026 decreased $2.0 million or a decrease of 18% compared to the prior year period. | |
| · | Operating loss for the quarter ended March 31, 2026 was $6.1 million, an improvement of $3.2 million or 34% compared to $9.3 million for the quarter ended March 31, 2025. | |
| · | Operating cash burn for the quarter ended March 31, 2026 was $4.1 million, an improvement of $2.3 million or 36% compared to $6.4 million for the quarter ended March 31, 2025. | |
| · | Income from discontinued operations, net of tax for the quarter ended March 31, 2026 was $26,710 compared to $2.4 million loss for the first quarter of 2025. | |
| · | Net loss for the quarter ended March 31, 2026 was $6.5 million, an increase of $2.0 million, or 45%, compared to a net loss of $4.4 million for the quarter ended March 31, 2025. This was primarily driven by a $7.1 million decrease in gains related to changes in the fair value of warrant and earnout liabilities. | |
| · | Loss per share for the quarter ended March 31, 2026 increased to $0.12 compared to $0.10 for the first quarter of 2025, a 20% increase, primarily driven by the change in fair value of the warrant and earnout liabilities. | |
| · | Revenue per headcount for quarter ended March 31, 2026 was $173,583 compared to $44,864 for the three months ended March 31, 2025, an improvement of 287%. | |
| · | Non-GAAP operating loss (a Non-GAAP measure) for the quarter ended March 31, 2026 was $0.9 million compared to $2.8 million in the prior year period, an improvement of 70%. |
The definitions and reconciliations of Non-GAAP operating loss to GAAP operating Income loss are provided under the heading Non-GAAP measures at the end of this release.
Dusty Wunderlich, Chairman & CEO of PSQ Holdings, commented, "Q1 2026 was our strongest quarter ever, and the numbers tell the story. Revenue up 167% year over year, operating expenses down 18%, Payments Gross Merchandise Volume (GMV) exceeding $186 million, a record for us, Credit GMV up 32%, and revenue per employee up 287%, proof that doing more with less is not a talking point, it is how we operate, and we intend to keep pushing that number higher.”
“AI is doing exactly what we believed it would, making us more efficient, more capable, and, frankly, better at our jobs. We were early to adopt machine learning, deploying it in underwriting back in 2021, and we have been expanding its use across engineering, finance, and risk management ever since. A lean team with the right tools can do remarkable things, and that 287% improvement in revenue per employee is the proof.”
“We are in the business of earning trust from merchants who need a payments and financial infrastructure partner they can count on. That is not something you claim; it is something you demonstrate quarter after quarter. Q1 is us demonstrating it. The priorities have not changed: grow revenue responsibly, reduce cash burn, and get to profitability. We are executing, the model is working, and the opportunity ahead is significant."
OPERATIONAL RESTRUCTURING
Over the past two quarters, the Company has executed a comprehensive operational restructuring in conjunction with its strategic repositioning as a pure-play financial technology company. Staff reductions of 41%, implemented from September 2025 through March 2026, combined with the winding down of the Marketplace segment and reductions in corporate operating expenses and contractor and consulting agreements, are expected to result in annualized cash savings of approximately $8.0 million. The results of these efforts are reflected in the Company's Q1 2026 operating metrics: operating expenses declined 18% year over year, headcount decreased from 68 to 47 full-time employees, and revenue per headcount improved 287% to $173,583. The Company views these improvements not as a one-time reset, but as the foundation of a more capital-efficient operating model designed to support sustained revenue growth with disciplined cost management.
FINANCIAL REVIEW
Balance Sheet & Liquidity
| · | As of March 31, 2026, the Company had $11.8 million of restricted cash and cash and cash equivalents, which included $0.2 million related to discontinued operations. |
| · | The Company had an outstanding principal balance of $7.4 million on its $10.0 million revolving line of credit as of March 31, 2026. The Company draws on this credit line to fund new consumer loan and lease originations, and repays it as those loans are collected or sold to third parties. |
Discontinued Operations
| · | Net revenues from discontinued operations, which includes the Brands and Marketplace business segments, for the quarter ended March 31, 2026 was $3.7 million compared to $3.7 million for the quarter ended March 31, 2025. Brands revenue comprised 98% of the net revenues from discontinued operations for the quarter ended March 31, 2026, compared to 88% in the prior year period. |
Note: Beginning with the third quarter 2025 reporting period both the Brands and Marketplace business segments are being shown as discontinued operations in the Company’s financial statements. Results from discontinued operations are provided within the financial tables at the end of this release.
2
BRANDS DIVESTITURE UPDATE
The Company continues to actively pursue the sale of its Brands segment, which includes EveryLife. The sale process remains ongoing, and management expects to enter into a definitive agreement during the first half of 2026. Proceeds from the transaction are expected to be redeployed to the balance sheet in support of the Company's Financial Technology operations.
FINANCIAL LEADERSHIP TRANSITION
As previously announced on April 7, 2026, James Rinn stepped down as Chief Financial Officer effective April 30, 2026. The Board appointed Michael Pena as Chief Financial Officer and Krista Wenzel as Chief Accounting Officer, both effective May 1, 2026.
First Quarter 2026 Conference Call and Webcast
Management will host a teleconference and webcast to discuss its first quarter 2026 results today, May 7, 2026 at 9:00 a.m. ET. The conference call can be accessed live through a link on the PSQ Holdings Investor Relations website at investors.publicsquare.com. During the webcast, the company will take both inbound questions received ahead of the call and questions from equity research analysts. Additionally, you can participate in the conference call by dialing (800) 715-9871 domestically or (646) 307-1963 internationally, and referencing conference ID #6209150. Attendees should log in to the webcast or dial in approximately 15 minutes before the start time of the call.
About PSQ Holdings
PSQ Holdings (NYSE: PSQH) is a payments and financial infrastructure company. We build and operate financial infrastructure in highly regulated environments for industries underserved by traditional financial institutions, including businesses, campaigns, and nonprofits that depend on reliable, compliant payment solutions. For more information, visit publicsquare.com.
3
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, and for purposes of the “safe harbor” provisions under the United States Private Securities Litigation Reform Act of 1995. Any statements other than statements of historical fact contained herein are forward-looking statements. Such forward-looking statements include, but are not limited to, expectations, hopes, beliefs, intentions, plans, prospects, financial results or strategies regarding PublicSquare, anticipated product launches, our products and markets, future financial condition, expected future performance and market opportunities of PublicSquare. Forward-looking statements generally are identified by the words “anticipate,” “could,” “expect,” “future,” “intend,” “may,” “might,” “strategy,” “target,” “opportunity,” “plan,” “project,” “possible,” “potential,” “project,” “predict,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, and in this press release, include statements about our expected revenue, revenue growth, operating expenses, anticipated growth, ability to achieve profitability, our plans for the Brands and Marketplace segments, and our outlook; however, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication, including, without limitation: (i) unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, expansion and growth of our operations, (ii) changes in the competitive industries and markets in which PublicSquare operates, variations in performance across competitors, changes in laws and regulations affecting PublicSquare’s business and changes in the combined capital structure, (iii) the ability to implement business plans, growth, marketplace and other expectations, and identify and realize additional opportunities, (iv) risks related to PublicSquare’s limited operating history, the rollout and/or expansion of its business and the timing of expected business milestones, (v) risks related to PublicSquare’s potential inability to achieve or maintain profitability and generate significant revenue, (vi) the ability to raise capital on reasonable terms as necessary to develop its products in the timeframe contemplated by PublicSquare’s business plan, (vii) the ability to execute PublicSquare’s anticipated business plans and strategy, (viii) the ability of PublicSquare to enforce its current or future intellectual property, including patents and trademarks, along with potential claims of infringement by PublicSquare of the intellectual property rights of others, (ix) actual or potential loss of key influencers, media outlets and promoters of PublicSquare’s business or a loss of reputation of PublicSquare or reduced interest in the mission and values of PublicSquare and the segment of the consumer marketplace it intends to serve, (x) because the payment processing and credit agreements are terminable at will without notice, merchants that have signed agreements to use PublicSquare's payment processing services may terminate those services or otherwise fail to utilize the services at the expected volume, (xi) the risk of economic downturn, increased competition, a changing regulatory landscape and related impacts that could occur in the highly competitive consumer marketplace, both online and through “bricks and mortar” operations, (xii) the risk of PublicSquare being unable to sell its Brands segment, in a timely manner, at desirable prices, or at all, and (xiii) risks associated with the Company’s ability to execute on its plans to reposition into a Fintech-forward business, including the Company’s pursuit of any money transmitter licenses. The foregoing list of factors is not exhaustive. Recipients should carefully consider such factors and the other risks and uncertainties described and to be described in PublicSquare’s public filings with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Recipients are cautioned not to put undue reliance on forward-looking statements, and PublicSquare does not assume any obligation to, nor does it intend to, update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. PublicSquare gives no assurance that PublicSquare will achieve its expectations.
Investors Contact:
investment@publicsquare.com
Media Contact:
pr@publicsquare.com
4
PSQ HOLDINGS, INC.
Condensed Consolidated Balance Sheets
| March 31, 2026 | December 31, 2025 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 10,057,059 | $ | 14,644,384 | ||||
| Restricted cash | 1,589,586 | 1,119,580 | ||||||
| Accounts receivable, net | 1,932,629 | 1,630,987 | ||||||
| Lease receivable, net | 93,810 | 156,516 | ||||||
| Loans held for investment, net of allowance for credit losses of $768,235 and $778,704 as of March 31, 2026 and December 31, 2025, respectively | 6,876,900 | 6,148,072 | ||||||
| Lease merchandise, net of accumulated depreciation of $1,000,916 and $938,959 as of March 31, 2026 and December 31, 2025, respectively | 486,490 | 960,024 | ||||||
| Interest receivable | 246,370 | 250,450 | ||||||
| Prepaid expenses and other current assets | 2,266,149 | 2,450,321 | ||||||
| Current assets held for sale (Note 4) | 3,868,785 | 4,407,921 | ||||||
| Total current assets | 27,417,778 | 31,768,255 | ||||||
| Loans held for investment, net of allowance for credit losses of $154,694 and $150,702 as of March 31, 2026 and December 31, 2025, respectively, non-current | 1,198,913 | 1,189,832 | ||||||
| Lease merchandise, net of accumulated depreciation of $94,163 and $72,335 as of March 31, 2026 and December 31, 2025, respectively, non-current | 235,839 | 329,463 | ||||||
| Property and equipment, net | 156,992 | 187,262 | ||||||
| Intangible assets, net | 13,793,270 | 14,573,323 | ||||||
| Goodwill | 10,930,978 | 10,930,978 | ||||||
| Operating lease right-of-use assets | 591,169 | 669,356 | ||||||
| Deposits | 29,939 | 29,939 | ||||||
| Total assets | $ | 54,354,878 | $ | 59,678,408 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Revolving line of credit | $ | 7,404,248 | $ | 6,174,546 | ||||
| Accounts payable | 5,145,602 | 5,351,651 | ||||||
| Accrued expenses | 1,461,783 | 1,205,386 | ||||||
| Operating lease liabilities, current portion | 333,899 | 323,842 | ||||||
| Current liabilities held for sale (Note 4) | 1,893,180 | 2,612,041 | ||||||
| Total current liabilities | 16,238,712 | 15,667,466 | ||||||
| Convertible promissory notes, related party (Note 10) | 20,000,000 | 20,000,000 | ||||||
| Convertible promissory notes | 8,449,500 | 8,449,500 | ||||||
| Earn-out liabilities | 501,500 | 540,000 | ||||||
| Warrant liabilities | 572,000 | 1,230,250 | ||||||
| Operating lease liabilities | 267,732 | 354,286 | ||||||
| Total liabilities | 46,029,444 | 46,241,502 | ||||||
| Commitments and contingencies (Note 16) | ||||||||
| Stockholders’ equity | ||||||||
| Preferred stock, $0.0001 par value; 50,000,000 authorized shares; no shares issued and outstanding as of March 31, 2026 and December 31, 2025 | — | — | ||||||
| Class A Common Stock, $0.0001 par value; 500,000,000 authorized shares; 48,726,402 shares and 46,492,639 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively | 4,873 | 4,650 | ||||||
| Class C Common Stock, $0.0001 par value; 40,000,000 authorized shares; zero and 3,213,678 shares issued and outstanding as of March 31, 2026, and December 31, 2025, respectively | — | 321 | ||||||
| Additional paid in capital | 171,287,594 | 169,944,031 | ||||||
| Accumulated deficit | (162,967,033 | ) | (156,512,096 | ) | ||||
| Total stockholders’ equity | 8,325,434 | 13,436,906 | ||||||
| Total liabilities and stockholders’ equity | $ | 54,354,878 | $ | 59,678,408 | ||||
5
PSQ HOLDINGS, INC.
Condensed Consolidated Statements of Operations
| For the Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenues, net | $ | 8,158,417 | $ | 3,050,785 | ||||
| Costs and expenses: | ||||||||
| Cost of revenue (exclusive of depreciation and amortization expense shown below) | 3,599,955 | 630,009 | ||||||
| General and administrative | 6,615,164 | 8,260,744 | ||||||
| Sales and marketing | 1,604,807 | 1,538,462 | ||||||
| Research and development | 624,095 | 1,030,222 | ||||||
| Depreciation and amortization | 1,848,044 | 906,824 | ||||||
| Total costs and expenses | 14,292,065 | 12,366,261 | ||||||
| Operating loss | (6,133,648 | ) | (9,315,476 | ) | ||||
| Other (expense) income: | ||||||||
| Other (expense) income, net | (97,280 | ) | 309,819 | |||||
| Changes in fair value of earn-out liabilities | 38,500 | 450,000 | ||||||
| Changes in fair value of warrant liabilities | 658,250 | 7,381,500 | ||||||
| Interest expense, net | (947,469 | ) | (868,457 | ) | ||||
| Loss before income taxes from continuing operations | (6,481,647 | ) | (2,042,614 | ) | ||||
| Income tax expense | — | (8,240 | ) | |||||
| Loss from continuing operations | (6,481,647 | ) | (2,050,854 | ) | ||||
| Income / (loss) from discontinued operations, net of tax | 26,710 | (2,396,491 | ) | |||||
| Net loss | $ | (6,454,937 | ) | $ | (4,447,345 | ) | ||
| Continuing operations loss per common share, basic and diluted | $ | (0.12 | ) | $ | (0.05 | ) | ||
| Discontinued operations income/(loss) per common share, basic and diluted | — | (0.05 | ) | |||||
| Net loss per common share, basic and diluted | $ | (0.12 | ) | $ | (0.10 | ) | ||
| Weighted average shares outstanding, basic and diluted (1) | 54,027,862 | 42,953,447 | ||||||
(1) Pre-funded warrants, issued in December 2025, can be exercised for little consideration (an exercise price per share equal to $0.0001 per share), and 5,018,184 remain unexercised as of March 31, 2026.
6
PSQ HOLDINGS, INC.
Condensed Consolidated Statements of Cash Flows
| For the Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net loss | $ | (6,454,937 | ) | $ | (4,447,345 | ) | ||
| Adjustment to reconcile net loss to net cash used in operating activities: | ||||||||
| Changes in fair value of warrant liabilities | (658,250 | ) | (7,381,500 | ) | ||||
| Changes in fair value of earn-out liabilities | (38,500 | ) | (450,000 | ) | ||||
| Share-based compensation | 1,365,556 | 3,622,845 | ||||||
| Amortization of step-up in loans held for investment | — | 169,607 | ||||||
| Provision for credit losses on loans held for investment | 194,269 | 661,963 | ||||||
| Origination of loans and leases for resale | (13,460,365 | ) | (7,869,448 | ) | ||||
| Proceeds from sale of loans and leases for resale | 15,554,070 | 8,931,822 | ||||||
| Gain on sale of loans and leases | (2,093,706 | ) | (1,062,374 | ) | ||||
| Impairment (recovery) of lease merchandise | (50,192 | ) | — | |||||
| Depreciation and amortization | 1,848,044 | 1,211,110 | ||||||
| Non-cash operating lease expense | 78,187 | 41,485 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (312,613 | ) | (226,613 | ) | ||||
| Lease receivable | 62,706 | — | ||||||
| Interest receivable | 4,080 | 75,070 | ||||||
| Inventory | 371,311 | 230,837 | ||||||
| Prepaid expenses and other current assets | 180,492 | 53,034 | ||||||
| Deposits | 18,445 | (6,905 | ) | |||||
| Accounts payable | (611,889 | ) | (373,712 | ) | ||||
| Accrued expenses | 103,323 | 425,259 | ||||||
| Deferred revenue | (151,700 | ) | 4,083 | |||||
| Operating lease liabilities | (76,498 | ) | (41,485 | ) | ||||
| Net cash used in operating activities | (4,128,167 | ) | (6,432,267 | ) | ||||
| Cash flows from Investing Activities | ||||||||
| Additions to lease merchandise, net of disposals | 242,666 | (1,106,117 | ) | |||||
| Software development costs | (671,284 | ) | (656,658 | ) | ||||
| Principal paydowns on loans held for investment | 3,210,956 | 4,532,763 | ||||||
| Disbursements for loans held for investment | (4,143,133 | ) | (4,577,597 | ) | ||||
| Net cash used in investing activities | (1,360,795 | ) | (1,807,609 | ) | ||||
| Cash flows from Financing Activities | ||||||||
| Proceeds from revolving line of credit | 4,440,659 | 2,270,331 | ||||||
| Repayments on revolving line of credit | (3,210,955 | ) | (2,343,207 | ) | ||||
| Net disbursement for closing costs from private equity transaction | (22,091 | ) | — | |||||
| Net cash provided by/(used in) financing activities | 1,207,613 | (72,876 | ) | |||||
| Net decrease in cash, cash equivalents and restricted cash | (4,281,349 | ) | (8,312,752 | ) | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 16,117,319 | 36,589,607 | ||||||
| Cash, cash equivalents and restricted cash, end of the period | $ | 11,835,970 | $ | 28,276,855 | ||||
| Cash and cash equivalents from continued operations | $ | 10,057,059 | $ | 28,039,959 | ||||
| Restricted cash from continued operations | 1,589,586 | 236,896 | ||||||
| Cash and cash equivalents from discontinued operations | 189,325 | — | ||||||
| Total cash, cash equivalents and restricted cash, end of the period | $ | 11,835,970 | $ | 28,276,855 | ||||
| Supplemental Cash Flow Information | ||||||||
| Cash paid for interest for convertible notes and revolving line of credit | $ | 947,469 | $ | 868,457 | ||||
7
Discontinued Operations
The following table summarizes the key components of the operating results of the discontinued operations within the Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025:
| For the three months ended March 31, 2026 | For the three months ended March 31, 2025 | |||||||||||||||
| Marketplace | Brands | Marketplace | Brands | |||||||||||||
| Revenues, net | $ | 85,567 | $ | 3,581,557 | $ | 428,649 | $ | 3,270,187 | ||||||||
| Cost of revenues (exclusive of depreciation and amortization shown below) | 597 | — | 104,310 | 1,926 | ||||||||||||
| Cost of goods sold (exclusive of depreciation and amortization shown below) | 1,344 | 2,245,274 | 412 | 2,072,862 | ||||||||||||
| Operating costs | 42,282 | 1,258,056 | 1,490,789 | 2,098,113 | ||||||||||||
| Depreciation and amortization | — | — | 269,261 | 35,025 | ||||||||||||
| Operating income/(loss) | 41,344 | 78,227 | (1,436,123 | ) | (937,739 | ) | ||||||||||
| Other expense, net | (15,000 | ) | (77,861 | ) | (22,629 | ) | — | |||||||||
| Income tax expense | — | — | — | — | ||||||||||||
| Income/(Loss) from discontinued operations, net of tax | $ | 26,344 | $ | 366 | $ | (1,458,752 | ) | $ | (937,739 | ) | ||||||
Assets and liabilities of segments classified as held for sale in the Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, consist of the following:
| March 31, 2026 | December 31, 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 189,325 | $ | 353,355 | ||||
| Accounts receivable, net | 83,342 | 72,372 | ||||||
| Inventory | 2,293,892 | 2,665,203 | ||||||
| Prepaid expenses and other current assets | 219,666 | 215,986 | ||||||
| Intangible assets, net | 1,072,762 | 1,072,762 | ||||||
| Deposits | 9,798 | 28,243 | ||||||
| Total assets held for sale | $ | 3,868,785 | $ | 4,407,921 | ||||
| Liabilities | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 440,802 | $ | 854,889 | ||||
| Accrued expenses | 284,819 | 357,183 | ||||||
| Deferred revenue | 1,167,559 | 1,399,969 | ||||||
| Total liabilities held for sale | $ | 1,893,180 | $ | 2,612,041 | ||||
The cash flows related to the discontinued operations have not been segregated and are included in the Condensed Consolidated Statements of Cash Flows. The following table presents cash flow for the discontinued segments.
| For the Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Net cash used in operating activities | $ | (343,389 | ) | $ | (873,842 | ) | ||
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Non-GAAP Financial Measures
The non-GAAP financial measures below have not been calculated in accordance with GAAP and should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. We caution investors that non-GAAP financial information, by its nature, departs from traditional accounting conventions. Therefore, its use can make it difficult to compare our current results with our results from other reporting periods and with the results of other companies.
Our management uses these non-GAAP financial measures, in conjunction with GAAP financial measures, as an integral part of managing our business and to, among other things: (i) monitor and evaluate the performance of our business operations and financial performance; (ii) facilitate internal comparisons of the historical operating performance of our business operations; (iii) facilitate external comparisons of the results of our overall business to the historical operating performance of other companies that may have different capital structures and debt levels; (iv) review and assess the operating performance of our management team; (v) analyze and evaluate financial and strategic planning decisions regarding future operating investments; and (vi) plan for and prepare future annual operating budgets and determine appropriate levels of operating investments.
For the periods presented, we define non-GAAP operating loss as GAAP operating loss, adjusted to exclude, as applicable, certain expenses as presented in the table below:
| For the Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Reconciliation: | ||||||||
| GAAP operating loss | $ | (6,133,648 | ) | $ | (9,315,476 | ) | ||
| Non-GAAP adjustments: | ||||||||
| Corporate costs not allocated to segments | (2,063,978 | ) | (1,971,372 | ) | ||||
| Share-based compensation expense | (1,365,556 | ) | (3,622,845 | ) | ||||
| Depreciation and amortization | (1,848,044 | ) | (906,824 | ) | ||||
| Non-GAAP operating loss | $ | (856,070 | ) | $ | (2,814,435 | ) | ||
| For the
three months ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenue per headcount: | $ | 173,583 | $ | 44,864 | ||||
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