Blum Holdings (BLMH) AI Stock Analysis

• Market Cap: $9.27M
• Dividend Yield: N/A
• Average Volume (3M): 3.42K
• Price to Earnings (P/E): 0.5
• Beta (1Y): 1.56
• Revenue Growth: -56.27%
• EPS Growth: N/A
• Country: US
• Employees: 38
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.11
• Shares Outstanding: 13,553,473
• 10 Day Avg. Volume: 2,867
• 30 Day Avg. Volume: 3,422
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.80
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -1.76
• Enterprise Value/Market Cap: 1.73
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 2.54
• Enterprise Value/Ebitda: 0.69
• 1Y Price Target: $0.50
• Price Target Upside: -28.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: $0.50 ▼(-28.57% Downside)

Blum Holdings' overall stock score is primarily impacted by its financial instability, with negative equity and cash flow issues posing significant risks. However, strategic acquisitions in the cannabis sector and an undervalued P/E ratio provide potential upside, balanced by neutral technical indicators.

Blum Holdings Business Overview & Revenue Model

Company Description

Blum Holdings, Inc. cultivates, manufactures, distributes, and retails medical and adult use cannabis products in California. The company operates through Cannabis Retail and Cannabis Distribution segments. It also manages medical marijuana retail and adult use dispensaries, cultivation, and manufacturing facilities. The company was formerly known as Unrivaled Brands, Inc. and changed its name to Blum Holdings, Inc. in January 2024. Blum Holdings, Inc. was founded in 2010 and is headquartered in Santa Ana, California.

How the Company Makes Money

Blum Holdings generates revenue through multiple streams, primarily from its investments in real estate, which include rental income and property sales. The technology sector contributes through software solutions and consultancy services that optimize business operations for clients. Additionally, the company is involved in sustainable energy initiatives, generating income from the sale of renewable energy credits and energy-efficient products. Key partnerships with industry leaders enhance Blum's market position, enabling access to new technologies and customer bases, which further bolster its revenue generation capabilities.

Blum Holdings Financial Statement Overview

Summary

Blum Holdings faces significant financial challenges, with negative stockholders' equity and inconsistent revenue growth. Despite strong gross profit and EBITDA margins, the company struggles with cash flow generation and high leverage, indicating financial instability.

Income Statement

Blum Holdings has shown a volatile income statement with significant fluctuations in revenue and profitability. The TTM data indicates a gross profit margin of 46.93% and a net profit margin of 26.21%, which are positive. However, the EBIT margin is negative due to high operating expenses, and revenue growth has been inconsistent, with a decline from previous years. The EBITDA margin is strong at 171.72%, indicating good operational cash flow generation.

Balance Sheet

The balance sheet of Blum Holdings reveals a concerning financial structure with negative stockholders' equity, indicating more liabilities than assets. The debt-to-equity ratio cannot be calculated due to negative equity, posing a risk. The equity ratio is also negative, reflecting financial instability. Return on equity is not meaningful with negative equity, highlighting the need for improved financial management.

Cash Flow

Cash flow analysis shows challenges in generating positive cash flow. The operating cash flow to net income ratio is negative, indicating operational inefficiencies. Free cash flow remains negative, though there is a slight improvement in the TTM period. The company needs to focus on enhancing cash flow generation to support its operations and reduce reliance on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.46M	12.99M	33.23M	52.02M	42.12M	6.16M
Gross Profit	6.31M	6.21M	14.00M	16.90M	11.02M	2.64M
EBITDA	23.10M	22.00M	-2.26M	-171.57M	-30.07M	-1.83M
Net Income	35.27M	33.10M	-14.13M	-188.93M	-31.27M	-30.12M
Balance Sheet
Total Assets	23.77M	24.82M	32.07M	40.51M	271.82M	100.29M
Cash, Cash Equivalents and Short-Term Investments	430.00K	1.04M	862.00K	1.20M	6.70M	34.26M
Total Debt	5.02M	4.79M	37.70M	49.56M	79.41M	23.13M
Total Liabilities	29.03M	29.56M	77.77M	77.05M	125.34M	41.16M
Stockholders Equity	-7.65M	-4.74M	-45.70M	-36.54M	142.63M	54.67M
Cash Flow
Free Cash Flow	-965.00K	-2.15M	-1.29M	-9.76M	-21.93M	-16.31M
Operating Cash Flow	-964.00K	-2.14M	-965.00K	-7.83M	-17.96M	-14.84M
Investing Cash Flow	333.00K	2.03M	462.00K	19.61M	21.67M	11.80M
Financing Cash Flow	332.00K	143.00K	539.00K	-17.27M	4.50M	2.70M

Blum Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLMH, the sentiment is Positive. The current price of 0.7 is above the 20-day moving average (MA) of 0.64, above the 50-day MA of 0.66, and above the 200-day MA of 0.69, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.52 is Neutral, neither overbought nor oversold. The STOCH value of 47.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLMH.

Blum Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BLMH	53 Neutral	$9.27M	0.51	-27.37%	―	-56.27%	―
Sector *	51 Neutral	$7.40B	-0.29	-44.86%	2.30%	24.10%	0.12%
BFRI	50 Neutral	$9.30M	―	-384.98%	―	14.27%	87.31%
IMCC	46 Neutral	$9.04M	―	-63.75%	―	9.34%	69.69%
TLPH	41 Neutral	$8.61M	―	-106.83%	―	-95.85%	49.94%
SISI	―	$276.94M	―	-58.27%	―	―	―
YCBD	44 Neutral	$8.65M	―	-8.46%	―	-9.22%	89.90%

Blum Holdings Corporate Events

Blum Holdings Acquires Majority Interest in Cannabis Retail

On July 1, 2025, Blüm Holdings entered into a binding term sheet to acquire a majority interest in a Northern California cannabis retail operator. The transaction, valued at $5 million, is structured as an all-stock deal with performance-based earn-outs. Through a Management Services Agreement, Blüm has gained operational control of the target’s business, consolidating its operations into Blüm’s financial statements. This acquisition is part of Blüm’s strategy to expand its retail platform and strengthen its market position in California, with the transaction expected to close in Q3 2025.

Blum Holdings Announces Acquisition of Cannabis Brand Stake

On May 15, 2025, Blum Management Holdings, a subsidiary of Blüm Holdings, entered into a Management Service Agreement with a licensed cannabis retail operator in the Bay Area, granting it exclusive operational control while the Target retains the license. This agreement allows Blüm to consolidate the Target’s operations into its financial statements, enhancing its control over operations and financial outcomes. Additionally, on May 21, 2025, Blüm Holdings announced a binding term sheet to acquire a holding company with an equity interest in Cookies, a leading cannabis brand. This strategic move is part of Blüm’s long-term strategy to increase its economic exposure to major cannabis brands, with the transaction expected to close in Q3 2025.

Blum Holdings Announces Share Exchange Agreement

On May 12, 2025, Blum Holdings, Inc. announced its intention to acquire 100% of the membership interests in a holding company with equity in Cookies Creative Consulting & Promotions, Inc. through a Share Exchange Agreement. The transaction will involve issuing shares and warrants valued at $562,500, subject to customary conditions and approvals, although completion is not guaranteed.

Blum Holdings Announces Major Acquisition in California

On May 15, 2025, Blüm Holdings announced the execution of an Amended and Restated Binding Letter of Intent to acquire a licensed retail cannabis operator in Northern California. This acquisition is expected to more than double Blüm’s annual revenue, significantly enhancing its market position in California’s cannabis industry. The transaction involves a total consideration of $2.0 million, structured with cash and common stock, and includes performance-based earn-outs to align with Blüm’s growth objectives. This strategic move is part of Blüm’s plan to become a dominant brand in the California cannabis market.

Blum Holdings Acquires Bay Area Cannabis Operator

On May 13, 2025, Blüm Holdings executed an Amended and Restated Binding Letter of Intent to acquire a licensed retail cannabis operator in the Bay Area for $2.0 million, gaining immediate operational control. The company also appointed Brad Hirsch to its Board of Directors on May 8, 2025, and reported significant financial improvements for Q1 2025, including a 26% revenue increase and positive EBITDA, reflecting operational efficiency and strategic restructuring.