CEA Industries 2026 Q1 Earnings Severe Earnings Deterioration Despite Strategic Shifts

CEA Industries (BNC) reported its fiscal 2026 Q1 earnings on September 22, 2025, delivering a sharp decline in both revenue and profitability. The results fell far below prior-year performance, with no guidance adjustments provided, reflecting a challenging operating environment as the company transitions toward a digital asset treasury model.

Revenue
Total revenue for CEA Industries in 2026 Q1 declined by 34.2% to $4.58 million compared to $6.96 million in the same period of 2025. The drop was driven by weak performance across multiple business segments. Retail Vape sales remained the largest contributor, bringing in $4.18 million. E-commerce Vape sales added $220,675, while Factory direct wholesale Vape sales contributed a modest $7,064. Other Vape-related revenue totaled $12,336. The company’s traditional industrial segments saw significantly lower contributions, with CEA equipment and systems sales amounting to $106,827, and CEA engineering and other services at $49,146. Additional services, including shipping and handling, brought in $988.

Earnings/Net Income
The company swung to a net loss of $5.85 million in 2026 Q1, representing a 925.6% deterioration from a net income of $708,423 in the prior-year period. On a per-share basis, earnings turned negative, with a loss of $6.94 per share, down from a profit of $502.43 in 2025 Q1. The significant drop in profitability underscores the challenges the company faced during the transition phase.

Price Action
The stock price of CEA Industries experienced a sharp decline following the earnings release, dropping 7.03% on the latest trading day. The downward trend continued with a 52.64% decline over the most recent full trading week and a 62.89% drop month-to-date, reflecting investor concern over the earnings performance and uncertainty regarding the company’s strategic pivot.

Post-Earnings Price Action Review
Despite the poor financial results, BNC CEO David Namdar emphasized confidence in the company’s long-term strategy as the premier vehicle for BNB exposure. He highlighted BNB’s native utility, deflationary supply, and potential for mass adoption, noting its market cap of over $146 billion and its outperformance relative to other major cryptocurrencies. Namdar stressed the company’s mission to compound BNB per share through treasury purchases, a $250 million share repurchase program, and disciplined capital deployment. The CEO also mentioned upcoming transparency initiatives, including investor dashboards and NAV tools, signaling a commitment to long-term value creation. The tone was optimistic, with an emphasis on strategic patience amid market volatility.

Additional News
CEA Industries announced a transformative $500 million private placement at the end of its fiscal Q1 2026, which concluded on August 5, 2025, with the potential to raise up to $1.25 billion if all warrants are exercised. As part of its new Digital Asset Treasury strategy, the company aims to acquire 1% of BNB’s total supply by the end of 2025. Notably, the acquisition of digital assets began after the end of the reporting period and will not be reflected in Q1 financials but is expected to be included in Q2 results. The company also transitioned its Nasdaq ticker symbol to “BNC,” marking a new chapter in its evolution as a digital asset-focused entity. Looking ahead, CEA Industries plans to continue deploying capital toward BNB acquisitions and providing transparent updates on its treasury operations.