Blum Holdings (BLMH) AI Stock Analysis

• Market Cap: $10.09M
• Dividend Yield: N/A
• Average Volume (3M): 2.87K
• Price to Earnings (P/E): 0.7
• Beta (1Y): 1.58
• Revenue Growth: -36.70%
• EPS Growth: N/A
• Country: US
• Employees: 38
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.25
• Shares Outstanding: 25,230,686
• 10 Day Avg. Volume: 2,994
• 30 Day Avg. Volume: 2,867
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.56
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -1.76
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 2.17
• Enterprise Value/Ebitda: 0.86
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $0.39 ▼(-43.19% Downside)

The score is held down primarily by weak financial performance—negative equity/leverage risk and poor operating profitability with negative operating cash flow. Technicals add a mildly bearish bias with the stock trading below key moving averages and negative MACD. Valuation is the main offset (very low P/E), while corporate events provide modest support through debt restructuring and an accretive-looking retail acquisition but still highlight dilution/financing dependence.

Positive Factors

Accretive retail acquisition expands cash-generating footprint

Buying a high-volume, fully licensed Bay Area dispensary adds a durable, income-generating retail asset with an established customer base. This materially diversifies revenue toward recurring retail cash flows and positions the company to benefit from long-term cannabis market normalization and scale.

Debt conversion simplified legacy obligations

Converting legacy unsecured debt into equity removed significant obligations and consolidated notes, reducing near-term cash interest outlays and legal complexity. Over months this can improve liquidity flexibility and focus management on operations rather than legacy creditor negotiations.

Positive free cash flow growth and FCF conversion

Despite operational challenges, FCF growth and an FCF-to-net-income ratio above one indicate the company can generate cash relative to reported earnings. Sustained FCF growth supports reinvestment, asset improvements, and gradual deleveraging if management preserves discipline in capital allocation.

Negative Factors

Negative equity and high leverage

Negative shareholders' equity and a negative debt-to-equity metric signal a structurally weakened balance sheet. This elevated leverage constrains borrowing capacity, raises solvency risk, and limits strategic flexibility, making it harder to fund growth or absorb shocks without dilutive financing.

Negative operating cash flow undermines earnings quality

Persistent negative operating cash flow indicates core property operations are not producing sufficient cash, forcing reliance on financing or asset sales. Over months this degrades liquidity, pressures working capital, and increases refinancing risk for routine capex and maintenance needs.

Reliance on equity-linked and related-party financing

Frequent use of convertible notes, warrants, and related-party share issuances raises dilution risk and signals limited access to traditional capital. Structurally, this financing mix can erode shareholder value, complicate governance, and deter larger institutional lenders over a multi-month horizon.

Blum Holdings Business Overview & Revenue Model

Company Description

Blum Holdings (BLMH) is a diversified investment firm primarily focused on the real estate sector, with interests in commercial and residential properties. The company operates through various segments, including property development, management, and investment. BLMH aims to generate sustainable returns by acquiring undervalued assets, enhancing their value through strategic improvements, and effectively managing a portfolio of income-generating properties.

How the Company Makes Money

Blum Holdings generates revenue through multiple streams, primarily from rental income derived from its managed properties, including long-term leases and short-term rentals. Additionally, the company profits from the sale of developed properties, leveraging market appreciation and demand. BLMH also engages in property management services for third-party owners, receiving management fees based on the value of the properties managed. Strategic partnerships with local real estate firms and financial institutions further bolster its revenue, providing access to capital and market insights that enhance investment returns.

Blum Holdings Financial Statement Overview

Summary

Overall fundamentals are weak: operational profitability is poor (TTM EBIT margin deeply negative) and the balance sheet is stressed with negative equity and high leverage/solvency risk. Cash flow is also concerning due to negative operating cash flow, despite positive free-cash-flow growth and a favorable FCF-to-net-income relationship.

Income Statement

Blum Holdings shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a positive net profit margin of 72.64%, but this is overshadowed by a negative EBIT margin of 105.88%, suggesting operational inefficiencies. Revenue growth is modest at 3.68%, but historical data shows volatility with significant revenue declines in previous years. The gross profit margin is relatively stable at around 48.79% in TTM, indicating some pricing power. However, the overall profitability is inconsistent, with significant fluctuations in net income and EBIT margins over the years.

Balance Sheet

The balance sheet of Blum Holdings reveals financial instability. The company has a negative stockholders' equity, resulting in a negative debt-to-equity ratio of -1.00 in TTM, indicating high leverage and potential solvency issues. The return on equity is also negative, reflecting poor profitability relative to equity. The equity ratio is not directly calculable due to negative equity, but the high level of debt compared to assets suggests financial risk. Overall, the balance sheet indicates a precarious financial position with high leverage and negative equity.

Cash Flow

Blum Holdings' cash flow statement shows some positive aspects but also significant challenges. The TTM free cash flow to net income ratio is slightly above 1, indicating that the company is generating cash relative to its net income. However, the operating cash flow is negative, and the operating cash flow to net income ratio is also negative, highlighting cash generation issues. Free cash flow growth is positive at 14.27% in TTM, but historical data shows volatility. Overall, the cash flow situation is concerning due to negative operating cash flows and reliance on free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.62M	12.99M	33.23M	52.02M	42.12M	6.16M
Gross Profit	6.29M	6.21M	14.00M	16.90M	11.02M	2.64M
EBITDA	15.86M	22.00M	-2.26M	-171.57M	-30.07M	-1.83M
Net Income	9.88M	33.10M	-14.13M	-188.93M	-31.27M	-30.12M
Balance Sheet
Total Assets	45.08M	24.82M	32.07M	40.51M	271.82M	100.29M
Cash, Cash Equivalents and Short-Term Investments	388.00K	1.04M	862.00K	1.20M	6.70M	34.26M
Total Debt	8.61M	4.79M	37.70M	49.56M	79.41M	23.13M
Total Liabilities	52.35M	29.56M	77.77M	77.05M	125.34M	41.16M
Stockholders Equity	-7.27M	-6.75M	-45.70M	-36.54M	142.63M	54.67M
Cash Flow
Free Cash Flow	-1.79M	-2.15M	-1.29M	-9.76M	-21.93M	-16.31M
Operating Cash Flow	-1.75M	-2.14M	-965.00K	-7.83M	-17.96M	-14.84M
Investing Cash Flow	-1.28M	2.03M	462.00K	19.61M	21.67M	11.80M
Financing Cash Flow	2.39M	143.00K	539.00K	-17.27M	4.50M	2.70M

Blum Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLMH, the sentiment is Negative. The current price of 0.69 is above the 20-day moving average (MA) of 0.53, above the 50-day MA of 0.60, and above the 200-day MA of 0.66, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 26.24 is Positive, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TLPH	51 Neutral	$44.56M	-2.53	-86.48%	―	-90.04%	44.40%
YCBD	49 Neutral	$10.92M	-0.27	-44.42%	―	-1.50%	80.17%
BLMH	46 Neutral	$10.09M	0.65	-27.37%	―	-36.70%	―
BFRI	45 Neutral	$10.84M	-0.51	-1191.73%	―	5.11%	19.78%
IMCC	40 Underperform	$6.82M	-1.65	-93.87%	―	-0.74%	81.49%

Blum Holdings Corporate Events

Blüm Holdings Restructures Debt and Issues Equity Securities

On December 31, 2025, Blüm Holdings converted approximately $3.05 million of outstanding unsecured debt and accrued interest into 3,248,547 shares of common stock at a fixed price of $0.98 per share, a move that removed a significant portion of legacy obligations from its balance sheet and simplified its capital structure. That same day, the company consolidated two earlier unsecured notes into a new $525,000 senior secured promissory note maturing in 2027 at 8% interest, cancelled related warrants, and ratified a performance-based equity award to related-party adviser Adnant, LLC, issuing 2,551,020 common shares at an implied $0.98 per share, underscoring both a reliance on equity-linked financing and the prominence of related-party arrangements in its capital strategy.

The most recent analyst rating on (BLMH) stock is a Hold with a $0.76 price target. To see the full list of analyst forecasts on Blum Holdings stock, see the BLMH Stock Forecast page.

Blüm Holdings Expands Bay Area Cannabis Retail Footprint

On December 18, 2025, Blüm Holdings, Inc. closed the acquisition of all outstanding equity of a high-volume, fully licensed cannabis retail dispensary in a major Bay Area market, expanding its Northern California footprint. The acquired store, which generates roughly $12 million in annual revenue and has a long operating history with a strong local customer base, was purchased via a stock purchase agreement for a mix of cash and equity, with all closing conditions satisfied, reinforcing Blüm’s strategy of disciplined, opportunistic growth through durable, revenue-generating retail assets in anticipation of a shifting U.S. cannabis regulatory landscape.

The most recent analyst rating on (BLMH) stock is a Hold with a $0.71 price target. To see the full list of analyst forecasts on Blum Holdings stock, see the BLMH Stock Forecast page.

Blum Holdings Secures $1.5M Through Promissory Notes

Blum Holdings, Inc. executed several unsecured promissory notes totaling $1.5 million with a related accredited investor, each bearing an 8% annual interest rate and maturing between September and November 2027. These notes, issued in early December 2025, can be converted into shares of Blum’s capital stock at a discounted valuation, and the lender received warrants to purchase additional shares, exercisable until late 2028. The issuance of these notes and warrants reflects Blum’s strategic financial maneuvers to secure funding and potentially expand its shareholder base, impacting its financial structure and offering investment opportunities to stakeholders.

The most recent analyst rating on (BLMH) stock is a Hold with a $0.58 price target. To see the full list of analyst forecasts on Blum Holdings stock, see the BLMH Stock Forecast page.

Blum Holdings Issues Shares for Debt Repayment

On November 13, 2025, Blum Holdings issued shares of its common stock to various parties, including Adnant, LLC, vendors, and shareholders of acquired companies, as part of debt repayments and acquisition agreements. This strategic move is part of Blum’s broader effort to expand its operations and strengthen its market position. The company reported a 39% revenue increase in Q3 2025 compared to the previous quarter, driven by acquisitions and operational improvements. Despite a net loss from operations, Blum’s consistent revenue growth and strategic acquisitions highlight its potential for future profitability and improved financial stability.

The most recent analyst rating on (BLMH) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Blum Holdings stock, see the BLMH Stock Forecast page.