Blum Holdings, Inc.

What they do

Blum Holdings operates cannabis retail and distribution in California through subsidiaries, including dispensaries and the Korova high-potency product brand. It formerly operated Blum Santa Ana, Blum Oakland and Blum San Leandro, which were sold in 2024, and began operating Cookies Sacramento in May 2024. Two of its subsidiaries, Unrivaled Brands and Halladay Holding, filed Chapter 11 in November 2024; those entities are in bankruptcy while the parent and other operations continue.

Revenue drivers

• Retail dispensaries — The company operates California cannabis dispensaries, including Cookies Sacramento and, per the Q3 2025 release, newly acquired stores such as a Redding location and a Santa Clara County store; retail is the primary reported revenue source.
• Korova brand products — Korova is a high-potency cannabis product line sold in California, originating from the UMBRLA acquisition; the 10-K describes it as available across multiple product categories but does not break out its revenue.
• Consulting and management services — The company provides consulting services for two additional Northern California dispensaries and, historically, management services related to sold dispensaries; no separate revenue figures are disclosed.

Recent performance

Q3 2025 revenue was $4.8 million, up 39% from $3.5 million in Q2 2025 and 117% above Q1 2025, which the company attributed to the Redding store acquisition. Gross margin was 48% in Q3 2025 versus 49% in Q2 2025; operating expenses rose 53% to $3.8 million and net loss from operations widened to $1.5 million from $0.8 million. Adjusted EBITDA loss was $1.3 million in Q3 2025 versus $0.6 million in Q2 2025. Full-year 2024 revenue was $13.0 million with net income of $33.1 million, and operating cash flow was negative $1.5 million.

Strategy

Management describes a post-restructuring plan to acquire premium cannabis assets at distressed valuations, having added retail locations such as Cookies Redding and a Santa Clara County store in 2025. The company cites three consecutive quarters of revenue growth and aims to convert that growth into profitability by completing integration and realizing cost synergies. It raised $0.7 million in October 2025, bringing 2025 capital raised to $3.2 million, and is evaluating strategies to address acquired tax liabilities, including potential IRC Section 280E reform or federal rescheduling. Management states 2026 will focus on converting the foundation into cash flow and balance sheet strength.

Risks

• Going concern — The 10-K states regulatory uncertainty and historical lack of profitability raise substantial doubt about the company's ability to continue as a going concern.
• Federal illegality — Cannabis remains a Schedule I controlled substance under federal law, and strict federal enforcement could halt business plans, expose the company to criminal liability, or subject properties to civil forfeiture.
• Chapter 11 of subsidiaries — Unrivaled and Halladay Holding filed Chapter 11 in November 2024 and are subject to Bankruptcy Court oversight, with a liquidating plan filed February 4, 2025.
• Capital needs — The company states it will likely need additional capital to sustain operations and may not be able to obtain financing on acceptable terms or at all.

Outlook

Management expects improved profitability and operating leverage as integration of acquired stores nears completion and cost synergies materialize. It expects to exceed fiscal year 2024 revenue and says 2026 will focus on cash flow and balance sheet strength. The company is monitoring Section 280E reform and federal rescheduling, which it says could significantly reduce tax liabilities.