Reborn Coffee, Inc.

What they do

Reborn Coffee operates retail coffee stores and kiosks, focusing on specialty-roasted coffee using its proprietary 'Reborn Wash Process' that involves magnetized water. The company also sells wholesale coffee, tea, branded water, bakery and dessert products, and has introduced 'Pour Over Packs' for B2B hotel sales. It has a franchising subsidiary (Reborn Coffee Franchise, LLC) that has no franchisees as of December 31, 2025, and a 51%-owned logistics subsidiary (Reborn Logistics, Inc.) providing trucking and transportation services.

Revenue drivers

• Retail coffee stores — Nine retail locations in California plus one store each in Korea and Malaysia generate revenue from beverage and food sales; these are the primary physical sales channels.
• Wholesale distribution — Reborn Holdings operates wholesale distribution, selling coffee, tea, branded water and other products to third-party customers, contributing to B2B revenue.
• Pour Over Packs (B2B) — Introduced to major hotels, these pour-over coffee packs have increased B2B sales, as noted in the 10-Q MD&A.
• Franchise operations — Reborn Coffee Franchise, LLC is developing a franchise system, but as of December 31, 2025, it had no franchisees, so current revenue from this segment is minimal.

Recent performance

Annual revenue grew from $5.9M in 2024 to $8.1M in 2025, a 37% increase, while net loss widened from $4.8M to $9.1M. Quarterly revenue was $1.8M for Q2 2025, $1.4M for Q3 2025, $3.2M for Q4 2025, and $5.2M for Q1 2026, indicating strong sequential growth in the most recent quarter. Operating cash flow deteriorated to -$6.5M in 2025 from -$3.5M in 2024. As of March 31, 2026, the company had cash of $266,382, total assets of $14.2M, total liabilities of $10.7M, and shareholder equity of $3.4M.

Strategy

Management focuses on expanding retail footprint, developing the franchise system, and growing B2B sales through Pour Over Packs. They also launched Reborn Logistics in September 2025 to add trucking and logistics revenue. Debt restructuring was executed in March and April 2026 to improve liquidity. The company aims to capture market share in the growing US specialty coffee market, which IBIS estimates at $74.3 billion in 2025.

Risks

• Going concern uncertainty — The auditor included a going concern explanatory paragraph for 2025, and the company has an accumulated deficit of $30.7 million.
• Recurring losses — The company has incurred net losses every year since 2021, with the most recent annual loss at $9.1 million in 2025.
• Cash position thin — Cash and equivalents were only $266,382 as of March 31, 2026, against $5.2M quarterly revenue and negative operating cash flow.
• Franchise development risk — The franchising business has no franchisees yet, so growth plans depend on attracting franchisees in a competitive market.

Outlook

Management expects to continue expanding retail locations and developing the franchise system, but the primary focus is on mitigating going concern risk through debt restructuring and cost management. They also plan to grow wholesale and logistics revenues to improve cash flow. The 10-K and 10-Q do not provide specific forward-looking revenue or profit guidance.