Quarter Driven by Focus on Deploying Capital into the Refurbished Apple Products Business and Prioritizing Financial Stability for Long-Term Growth

First quarter 2025 revenue growth of 25% to $9.9mn compared to $8.0mn for the prior year quarter, due to focus on refurbished apple products sales
First quarter 2025 operating loss of $1.4mn, a reduction of 55% compared to an operating loss of $3.2mn for the prior year quarter, due to lower SG&A and absence of restructuring and severance expenses in the first quarter of 2025

Easton, PA, May 16, 2025 (GLOBE NEWSWIRE) -- Eightco Holdings Inc. (NASDAQ:OCTO) (the "Company" or "Eightco") today announced financial results for the three months ended March 31, 2025.

Paul Vassilakos, CEO of Eightco and President of Forever 8 Fund, LLC, the Company's primary operating subsidiary ("Forever 8"), stated "In order to improve our cost structure to deliver long-term value to shareholders, we continue to reduce operating costs and address selling and administrative expenses. Our goal is to remain on this path to further support the Company's growth as it continues to explore funding options."

Mr. Vassilakos continued, "Our current operations provide the infrastructure to significantly scale revenues with a relatively modest increase in expenses. I continue to witness substantial progress within Eightco and believe our accomplishments provide a strong foundation to scale revenues rapidly. The demand for our inventory capital, especially in the refurbished apple products business, continues to underscore the value we believe we can bring to clients. We have now emerged from a transformative period, where I am confident in our ability to accelerate growth and drive sustained success for Eightco and our stakeholders."

Financial Highlights and Commentary

Reallocation of capital back into the refurbished apple products business resulted in revenue growth. This also resulted in a reduction in gross margins from 8.2% for the first quarter of 2025, compared to 17.5% in the first quarter of 2024. The Company also saw a 28% decrease in selling, general and administrative expenses this quarter compared to the prior year quarter, which helped in improving operating losses of $1.4mn compared to a $3.2mn loss in the first quarter of 2024.

First quarter 2025 revenues of $9.9mn representing a 25% improvement on the first quarter 2024 revenue of $8.0mn
First quarter 2025 gross profit of $0.8mn compared to a gross profit $1.4mn in the first quarter of 2024
First quarter 2025 gross profit margin of 8.2%, compared to 17.5% in the first quarter of 2024, due to shift in product mix back into cell phones
A 55% improvement in operating losses, down to a $1.4mn loss in the first quarter of 2025, compared to a $3.2mn loss in the first quarter of 2024
First quarter 2025 SG&A of $2.2mn, down 29% from $3.1mn in the first quarter of 2024, as a result of continued streamlining and operating costs reduction across all areas of the business
First quarter 2025 net loss of $2.5mn compared to a net income of $1.9mn in the first quarter of 2024
First quarter 2025 Adjusted EBITDA loss from continuing operations of $0.8mn, compared to Adjusted EBITDA loss from continuing operations of $1.2mn for the first quarter of 2024

	For the Three Months Ended
	March 31,
	2025		2024
Revenues, net	9,913,987		7,958,697
Cost of revenues	9,100,728		6,569,687
Gross profit	813,259		1,389,010

Operating expenses:
Selling, general and administrative expenses	2,229,425		3,127,943
Restructuring and severance	-		1,414,838
Total operating expenses	2,229,425		4,542,781
Operating loss	-1,416,166		-3,153,771

Non-operating income (expense):
Interest income (expense), net	-1,288,804		-1,198,771
Gain on forgiveness of earnout	-		6,100,000
Other income	21,898		26,677
Total non-operating income (expense)	-1,266,906		4,927,906

Net income (loss) before income tax expense	-2,683,072		1,774,135

Income tax expense (benefit)	-28,793		-

Net income (loss) from continuing operations	-2,654,279		1,774,135
Net income from discontinued operations, net of tax	105,553		166,828
Net income (loss)	-2,548,725		1,940,963
Net loss attributable to non-controlling interest	-		-12
Net income (loss) attributable to Eightco Holdings Inc.	-2,548,725		1,940,975


	For the Three Months Ended
	March 31,
	2025		2024
Net income (loss)	(2,654,279	)	1,774,135
Interest (income) expense, net	1,288,804		1,198,771
Gain on forgiveness of interest	-		-
Income tax expense	-28,793		-
Depreciation and amortization	574,642		556,299
EBITDA	(819,626	)	3,529,205
Stock-based compensation	0		0
Loss on issuance of warrants	-		-
Restructuring			1,414,838
Gain on extinguishment of liabilities	-		-6,100,000
Adjusted EBITDA	(819,626	)	(1,155,957	)

Reconciliation of EBITDA and Adjusted EBITDA

EBITDA and Adjusted EBITDA are non-GAAP performance measures. Management believes EBITDA and Adjusted EBITDA, in addition to operating profit, net (loss) income and other GAAP measures, are useful to investors to evaluate the Company's results because they exclude certain items that are not directly related to the Company's core operating performance. Investors should recognize that EBITDA and Adjusted EBITDA might not be comparable to similarly-titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance prepared in accordance with GAAP.

Reconciliations of the non-GAAP measures used in this press release are included in the table below. Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures. Items excluded to arrive at forward-looking non-GAAP measures may have a significant, and potentially unpredictable, impact on our future GAAP results.

A reconciliation of EBITDA and Adjusted EBITDA to the most directly comparable GAAP measure in accordance with SEC Regulation G as above.

About Eightco

Eightco (NASDAQ:OCTO) is committed to growth of its subsidiaries, made up of Forever 8, an inventory capital and management platform for e-commerce sellers, and Ferguson Containers, Inc., a provider of complete manufacturing and logistical solutions for product and packaging needs, through strategic management and investment. In addition, the Company is actively seeking new opportunities to add to its portfolio of technology solutions focused on the e-commerce ecosystem through strategic acquisitions. Through a combination of innovative strategies and focused execution, Eightco aims to create significant value and growth for its portfolio companies and stockholders.

For additional information, please visit www.8co.holdings

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements of historical fact could be deemed forward looking. Words such as "plans," "expects," "will," "anticipates," "continue," "expand," "advance," "develop" "believes," "guidance," "target," "may," "remain," "project," "outlook," "intend," "estimate," "could," "should," and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements are based on management's current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: Eightco's ability to maintain compliance with the Nasdaq's continued listing requirements; unexpected costs, charges or expenses that reduce Eightco's capital resources; Eightco's inability to raise adequate capital to fund its business; Eightco's inability to innovate and attract users for Eightco's products; future legislation and rulemaking negatively impacting digital assets; and shifting public and governmental positions on digital asset mining activity. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. For a discussion of other risks and uncertainties, and other important factors, any of which could cause Eightco's actual results to differ from those contained in forward-looking statements, see Eightco's filings with the Securities and Exchange Commission (the "SEC"), including in its Annual Report on Form 10-K filed with the SEC on April 15, 2025. All information in this press release is as of the date of the release, and Eightco undertakes no duty to update this information or to publicly announce the results of any revisions to any of such statements to reflect future events or developments, except as required by law.

For further information, please contact:

Investor Relations

investors@8co.holdings

Eightco Announces First Quarter 2025 Financial Results