Flora Growth (FLGC) Q4 2025 earnings summary

Executive summary

• Transitioned to a decentralized AI treasury and asset management model, focusing on OG Tokens and digital assets, while divesting legacy hemp and cannabis businesses as of September 2025.

• Phatebo subsidiary remains the core revenue generator, distributing pharmaceuticals primarily in Germany and Europe.

• Significant capital raised through multiple private placements and convertible notes, with proceeds allocated to digital asset acquisitions and working capital.

Financial highlights

• Revenue for 2025 was $35.7 million, nearly flat compared to $35.9 million in 2024, all from pharmaceutical distribution.

• Gross profit declined to $1.6 million (gross margin 5%) from $2.2 million (6%) in 2024, reflecting margin compression.

• Net loss for 2025 was $119.7 million, up from $15.9 million in 2024, driven by a $143.0 million loss from changes in fair value of digital assets.

• Operating expenses surged to $156.3 million in 2025 from $11.1 million in 2024, mainly due to digital asset fair value losses.

• Non-operating income of $39.3 million in 2025, primarily from revaluation gains on convertible notes.

• Cash at year-end 2025 was $5.6 million, with working capital of $0.1 million.

• Digital assets on the balance sheet totaled $121.0 million as of December 31, 2025.

Outlook and guidance

• Management believes current liquidity is sufficient for ongoing operations and digital asset strategy, but acknowledges the need for future capital raises to support growth.

• Focus remains on expanding digital asset holdings, particularly OG Tokens, and leveraging AI-driven opportunities.