Blum Posts 55 Percent Revenue Gain in Q2
Blum (OTC:BLMH), a California-based cannabis retailer and brand operator, released its earnings for the second quarter of fiscal 2025 on August 14, 2025. The main headline from the release was a sharp quarter-over-quarter revenue increase to $3.5 million (GAAP), driven mainly by the opening of a new Bay Area dispensary. However, performance compared to Q2 2024 remained below expectations, and the period closed with a wider net loss from continuing operations (GAAP) than in the prior quarter. With no analyst estimates provided for comparison, the results show the impact of ongoing restructuring and new investments. Overall, the quarter demonstrated improved cost control, but expanding stores resulted in short-term pressure on profit and liquidity.
Blum operates in California’s regulated cannabis market, running retail dispensaries and developing branded cannabis products. It manages a portfolio of stores under well-known retail banners, and its product mix emphasizes high-potency goods—most notably via its Korova line. Korova is a high-potency cannabis brand that caters to the premium enthusiast segment. The company’s revenue comes from a blend of in-store sales, management fees, and branded products sold to third parties.
Recent months illustrate a pivot in strategy. Blum embarked on cost reduction, restructuring, and the sale of lower-performing assets to regain financial footing. A key element of its model now involves expanding high-traffic locations in Northern California, with emphasis on flagship products and branding to retain customer loyalty. Success for the company depends largely on building operating scale.
Source Fool.com
