Blum Holdings (BLMH) AI Stock Analysis

• Market Cap: $8.40M
• Dividend Yield: N/A
• Average Volume (3M): 3.56K
• Price to Earnings (P/E): 1.3
• Beta (1Y): 1.52
• Revenue Growth: -49.01%
• EPS Growth: N/A
• Country: US
• Employees: 38
• Sector: Healthcare
• Sector Strength: 53
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.19
• Shares Outstanding: 13,553,473
• 10 Day Avg. Volume: 2,780
• 30 Day Avg. Volume: 3,561
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.78
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 2.33
• Enterprise Value/Ebitda: 1.09
• 1Y Price Target: $0.50
• Price Target Upside: -26.47% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: $0.50 ▼(-26.47% Downside)

Blum Holdings' overall stock score is primarily impacted by its financial challenges, including declining revenues and high leverage. However, the stock's undervaluation and positive corporate events, such as strategic acquisitions and restructuring, provide some optimism for future growth.

Positive Factors

Strategic Acquisition

The acquisition of a cannabis retail operator enhances Blum's market position in California, providing a strategic foothold for growth in a lucrative market.

Turnaround Success

The successful completion of the turnaround phase indicates improved operational efficiency and positions Blum for sustainable growth and long-term value creation.

Retail Expansion

Expanding retail presence in the Bay Area supports revenue growth and strengthens Blum's market position, enhancing its long-term competitive advantage.

Negative Factors

Declining Revenue

Negative revenue growth indicates challenges in maintaining sales momentum, which could hinder future profitability and market competitiveness.

High Leverage

High leverage poses financial sustainability risks, limiting Blum's ability to invest in growth opportunities and manage economic downturns effectively.

Operational Inefficiencies

Operational inefficiencies reflected in negative EBIT margins can erode profitability and impede Blum's ability to optimize its business operations and cost structures.

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 declining revenues and high leverage. Despite a high net profit margin and positive free cash flow growth, the negative equity and operational inefficiencies present substantial financial risks.

Income Statement

Blum Holdings shows a mixed performance in its income statement. The company has a high net profit margin of 72.64% in TTM, but this is largely due to a significant reduction in revenue. The gross profit margin is moderate at 48.79%, indicating some efficiency in production. However, negative EBIT margins over multiple periods highlight operational inefficiencies. Revenue growth has been negative, suggesting declining sales, which is a concern for future profitability.

Balance Sheet

The balance sheet reveals financial instability with a negative stockholders' equity, leading to a concerning debt-to-equity ratio of -1.00 in TTM. This indicates that the company is highly leveraged, which poses a risk in terms of financial sustainability. The return on equity is negative, reflecting poor profitability relative to equity. Overall, the balance sheet suggests significant financial risk.

Cash Flow

Cash flow analysis shows some positive aspects, such as a free cash flow to net income ratio above 1, indicating that the company generates more cash than its net income. However, the operating cash flow is negative, which is concerning as it suggests the company struggles to generate cash from its core operations. Free cash flow growth is positive, but the overall cash flow situation remains precarious.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.14M	12.99M	33.23M	52.02M	42.12M	6.16M
Gross Profit	6.41M	6.21M	14.00M	16.90M	11.02M	2.64M
EBITDA	13.77M	22.00M	-2.26M	-171.57M	-30.07M	-1.83M
Net Income	9.54M	33.10M	-14.13M	-188.93M	-31.27M	-30.12M
Balance Sheet
Total Assets	39.39M	24.82M	32.07M	40.51M	271.82M	100.29M
Cash, Cash Equivalents and Short-Term Investments	370.00K	1.04M	862.00K	1.20M	6.70M	34.26M
Total Debt	6.56M	4.79M	37.70M	49.56M	79.41M	23.13M
Total Liabilities	45.95M	29.56M	77.77M	77.05M	125.34M	41.16M
Stockholders Equity	-6.56M	-6.75M	-45.70M	-36.54M	142.63M	54.67M
Cash Flow
Free Cash Flow	-1.56M	-2.15M	-1.29M	-9.76M	-21.93M	-16.31M
Operating Cash Flow	-1.55M	-2.14M	-965.00K	-7.83M	-17.96M	-14.84M
Investing Cash Flow	-1.26M	2.03M	462.00K	19.61M	21.67M	11.80M
Financing Cash Flow	1.59M	143.00K	539.00K	-17.27M	4.50M	2.70M

Blum Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.68
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 0.68 is above the 20-day moving average (MA) of 0.66, above the 50-day MA of 0.65, and below the 200-day MA of 0.73, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 53.30 is Neutral, neither overbought nor oversold. The STOCH value of 63.30 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
Sector *	51 Neutral	$7.90B	-0.36	-43.38%	2.23%	22.34%	-2.15%
BLMH	51 Neutral	$8.40M	1.34	-27.37%	―	-49.01%	―
BFRI	50 Neutral	$8.92M	―	-531.54%	―	11.20%	63.16%
YCBD	44 Neutral	$6.31M	―	-33.13%	―	-7.80%	90.17%
TLPH	41 Neutral	$17.44M	―	-117.56%	―	-93.22%	36.97%
SISI	―	$226.05M	―	-58.27%	―	―	―
IMCC	39 Underperform	$9.71M	―	-36.94%	―	2.17%	88.34%

Blum Holdings Corporate Events

Blum Holdings Completes Turnaround Phase Successfully

Blüm Holdings announced the close of its turnaround phase in the first half of 2025, marking the start of a new chapter characterized by disciplined restructuring, cost reductions, and strategic growth initiatives. These efforts have transformed the company’s financial and operational foundation, positioning it for sustainable growth and long-term value creation.

Blum Holdings Expands Retail Amid Revenue Growth

Blüm Holdings reported its financial results for the second quarter of 2025, highlighting a revenue increase to $3.5 million, driven by a new Bay Area retail location. The company is focusing on disciplined growth, improving margins, and controlling costs, positioning itself for potential benefits from changes in federal cannabis tax laws. Despite a net loss increase to $1.9 million due to lower gross margins and stable operating expenses, the company reduced its operating expenses by 69% compared to Q2 2024. Blüm is actively expanding its retail presence and strengthening its financial position through strategic acquisitions and capital raises, aiming for sustainable growth in California’s cannabis market.

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.