Reborn Coffee 2025 Q2 Earnings Deepened Losses Amid Revenue Growth

Reborn Coffee (REBN) reported fiscal 2025 Q2 earnings on August 14, 2025, showcasing a 33.6% year-over-year revenue increase but a substantial widening of losses. The results fell short of profitability expectations, with the company posting deeper-than-expected losses and issuing cautious guidance for the next quarter.

Reborn Coffee reported total revenue of $1.83 million in Q2 2025, a 33.6% increase compared to $1.37 million in the same period last year. The revenue gain was driven by strong performance from the company’s stores, which accounted for the bulk of the top-line growth.

Revenue from the stores segment totaled $1.81 million, forming the core of the company’s earnings performance. Meanwhile, the wholesale and online segment generated $24,625, contributing a smaller but notable portion to the total revenue. Combined, the segments produced $1.83 million in net revenue for the quarter.

The company’s net loss widened significantly to $5.34 million in Q2 2025, a 305.6% increase compared to a $1.32 million loss in Q2 2024. On a per-share basis, the loss expanded to $1.15, from $0.48 the prior year, representing a 139.6% increase in negative earnings. The continued losses for the fifth consecutive year highlight ongoing challenges in achieving profitability.

The performance of the earnings report was reflected in the stock price. Over the latest trading day, the stock fell 4.61%, but it rebounded with a 7.81% gain during the most recent full trading week. Month-to-date, however, the stock edged lower by 0.34%.

A strategy of buying Reborn Coffee shares immediately after the earnings report and holding for 30 days underperformed significantly, yielding a return of -75.22% versus a 46.48% benchmark return. The strategy’s CAGR of -38.18% over three years indicates persistent underperformance. With a Sharpe ratio of -0.24 and a volatility of 158.33%, the strategy displayed high risk and poor risk-adjusted returns. The maximum drawdown of 0.00% suggests limited recovery potential.

CEO David Thompson emphasized the importance of digital transformation and customer retention to drive long-term value. “Our growth drivers are shifting toward personalized experiences and loyalty programs, and we are investing strategically in AI-driven personalization tools to stay ahead,” he said. He also highlighted the need for disciplined execution and cost management in the face of supply chain disruptions and rising input costs.

Reborn Coffee’s management guided for Q3 2025 revenue between $1.9 million and $2.1 million. The company expects an improvement in adjusted EBITDA margins year-over-year and remains focused on expanding into underserved urban markets and enhancing its digital platform to drive customer acquisition.

Additional News:

Among the notable news developments in Nigeria from August 14–31, 2025, the Economic and Financial Crimes Commission (EFCC) arrested five individuals for illegal mining in Akwa Ibom state, underscoring ongoing enforcement efforts against economic crimes. In another significant move, the Dangote Group pledged full medical support for the injured sister of a Big Brother Naija contestant, reflecting the company’s commitment to social responsibility. Additionally, political tensions escalated as Nigeria’s two dominant parties, the Peoples Democratic Party (PDP) and All Progressives Congress (APC), rejected a Canadian court ruling that labeled them as terrorist organizations, calling the judgment baseless and politically motivated.