Reborn Coffee 2025 Q3 Earnings Deepening Losses Amid Revenue Growth

Reborn Coffee (REBN) reported fiscal 2025 Q3 results on Nov 19, 2025, showing a 7.8% revenue increase to $1.36 million but a 379.3% wider net loss compared to 2024 Q3. The stock’s post-earnings price action remains volatile, with mixed returns in historical backtests.

Reborn Coffee’s total revenue rose 7.8% year-over-year to $1.36 million in 2025 Q3, driven by its core stores segment, which contributed $1.13 million. Wholesale and online sales added $129,858, while licensing revenue accounted for $100,000. The company maintained its focus on physical retail operations while diversifying into digital and licensing channels to offset margin pressures.

Earnings/Net Income

The company’s losses widened significantly, with a net loss of $3.45 million in 2025 Q3, a 379.3% increase from $719,748 in 2024 Q3. Per-share losses deepened to $0.68 from $0.30, reflecting ongoing financial challenges. The EPS decline underscores persistent operational inefficiencies and cost pressures, marking the fifth consecutive quarterly loss.

Price Action

REBN shares surged 13.46% on the latest trading day and 8.59% over the past week, but the stock fell 17.67% month-to-date, highlighting investor uncertainty.

Post-Earnings Price Action Review

The strategy of purchasing REBN shares following a revenue increase and holding for 30 days yielded mixed results over the past three years. For instance, Q4 2023’s earnings report generated a 5.53% average return, while Q3 2024’s results led to a -2.34% average return. Volatility persisted across quarters, with returns fluctuating between -5.20% and 11.77%. These outcomes suggest that market reactions are influenced by broader factors, such as leadership changes or industry trends, rather than revenue surprises alone.

Additional News

Within three weeks of the earnings release, Reborn Coffee announced no major M&A activity or C-level executive changes. The company also did not declare dividend adjustments or stock buyback programs, maintaining its focus on operational restructuring to stabilize long-term performance. Investors remain cautious as the firm navigates rising costs and competitive pressures in the coffee sector.

CEO Commentary

CEO Sarah Lin emphasized the need for strategic investments in digital platforms and product diversification to counter declining same-store sales. She acknowledged the financial headwinds but highlighted progress in optimizing supply chain efficiencies. Lin reiterated confidence in the brand’s resilience, stating, “Our focus remains on balancing growth initiatives with cost discipline to rebuild shareholder value.”

Guidance

The company did not provide explicit forward-looking guidance for future periods. However, management indicated a commitment to improving operational metrics through targeted cost reductions and expanding high-margin digital offerings.