Reborn Coffee, Inc. (NASDAQ: REBN) reported full‑year 2025 results that showed total revenue of $8.1 million, a 37 % increase from $5.9 million in 2024. The jump was driven largely by a $0.9 million contribution from the newly launched Reborn Logistics service and $1.1 million in licensing income, while core retail sales grew modestly by 6.8 %.
Gross margin for the year fell to 61 % from 63 % in 2024, reflecting compression in store, wholesale, and online segments. The decline was driven by higher commodity costs and increased labor expenses that offset the pricing power enjoyed by the new logistics and licensing businesses.
Operating expenses rose 31.7 % to $13.9 million, up from $10.5 million in 2024, as the company invested in expanding its logistics network and supporting new licensing agreements. Net loss widened to $9.1 million from $4.8 million in 2024, partly due to $1.6 million in asset impairment losses related to subsidiaries in Korea and Malaysia and $1.8 million in debt‑related expenses, including discount amortization and loss on debt extinguishment.
The year‑end cash balance increased to $2.6 million from $0.2 million in 2024, a result of a $6.5 million equity subscription and a convertible debenture program with Arena Investors that bolstered liquidity and helped the company regain Nasdaq listing compliance.
CEO Jay Kim said, “Fiscal 2025 was a transformational year for Reborn Coffee, defined by the diversification of our revenue base, the formation of a new operating subsidiary, and a meaningful strengthening of our balance sheet.” He added, “The receipt of $6.5 million in premium‑priced equity capital at approximately three times our current market price, combined with the elimination of warrant‑related derivative liabilities, significantly strengthens our balance sheet.” Kim also noted, “Reborn Logistics represents an important step in strengthening the backbone of our growth.” Management reiterated its expectation of achieving positive cash flow in the first quarter of 2026.
Investors welcomed the capital raise and the expansion into logistics and licensing, viewing these moves as key tailwinds that improve the company’s financial resilience and broaden its revenue base.
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