Blum Holdings (BLMH) AI Stock Analysis

• Market Cap: $11.25M
• Dividend Yield: N/A
• Average Volume (3M): 3.23K
• Price to Earnings (P/E): 0.7
• Beta (1Y): 1.24
• Revenue Growth: -44.99%
• EPS Growth: N/A
• Country: US
• Employees: 38
• Sector: Healthcare
• Sector Strength: 50
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.11
• Shares Outstanding: 13,553,473
• 10 Day Avg. Volume: 3,567
• 30 Day Avg. Volume: 3,234
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 1.60
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Blum Holdings' overall stock score reflects a blend of significant financial instability and potential recovery prospects. The company's financial performance remains a primary concern with unstable revenue and high leverage. However, recent corporate events, including settlements and strategic restructuring, present a positive outlook for future stabilization. Valuation metrics suggest possible undervaluation, but the technical indicators remain mixed, offering no strong directional trend.

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 a diversified portfolio of business units. In the technology sector, it earns money by developing and licensing software solutions to enterprise clients, which include proprietary platforms and cloud-based services. In healthcare, the company makes money through the sale and distribution of medical devices, often facilitated by partnerships with hospitals and healthcare providers. Additionally, Blum Holdings capitalizes on the growing demand for renewable energy by manufacturing and installing solar panels and energy storage systems, often working in collaboration with government bodies and private enterprises to deploy large-scale solar projects. Key factors contributing to its earnings include strategic partnerships, a strong focus on research and development, and a commitment to sustainability that aligns with global environmental initiatives.

Blum Holdings Financial Statement Overview

Summary

Blum Holdings faces significant financial challenges. Revenue volatility, negative stockholders' equity, and cash flow issues highlight financial instability. Improvements in gross profit margin and a one-time net income boost in 2024 offer some optimism, but the overall financial position remains weak.

Income Statement

Blum Holdings has experienced significant fluctuations in revenue and profitability. The company shows a drastic decrease in revenue from $52 million in 2022 to $13 million in 2024. The gross profit margin has improved in the latest year, but net income remains negative except for a one-time large net income in 2024. EBIT margins have improved but are inconsistent, indicating operational challenges. Overall, the income statement reflects unstable revenue and profitability trends.

Balance Sheet

The company's balance sheet highlights significant financial distress, with negative stockholders' equity of $4.7 million in 2024, indicating more liabilities than assets. The debt-to-equity ratio cannot be calculated due to negative equity, which is a major risk factor. The equity ratio is negative, and return on equity is not meaningful due to negative equity. The balance sheet reflects high leverage and potential insolvency risks.

Cash Flow

Blum Holdings displays negative operating cash flow and free cash flow, indicating cash flow issues. The operating cash flow to net income ratio is negative, and free cash flow has not shown consistent improvement. The company’s cash flow position suggests ongoing liquidity challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.99M	33.23M	52.02M	42.12M	6.16M
	Gross Profit
6.21M	14.00M	16.90M	11.02M	2.64M
	EBIT
5.38M	-12.60M	-193.76M	-38.33M	-36.59M
	EBITDA
5.38M	-2.26M	-171.57M	-30.07M	-1.83M
	Net Income Common Stockholders
33.10M	-14.13M	-188.93M	-31.27M	-30.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.04M	862.00K	1.20M	6.70M	34.26M
	Total Assets
24.82M	32.07M	40.51M	271.82M	100.29M
	Total Debt
4.79M	37.70M	49.56M	79.41M	23.13M
	Net Debt
3.75M	36.84M	48.36M	72.71M	22.92M
	Total Liabilities
29.56M	77.77M	77.05M	125.34M	41.16M
	Stockholders Equity
-4.74M	-45.70M	-36.54M	142.63M	54.67M
Cash Flow		Free Cash Flow
-2.15M	-1.29M	-9.76M	-21.93M	-16.31M
	Operating Cash Flow
-2.14M	-965.00K	-7.83M	-17.96M	-14.84M
	Investing Cash Flow
2.03M	462.00K	19.61M	21.67M	11.80M
	Financing Cash Flow
143.00K	539.00K	-17.27M	4.50M	2.70M

Blum Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 0.83 is above the 20-day moving average (MA) of 0.77, above the 50-day MA of 0.83, and above the 200-day MA of 0.62, indicating a bullish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 52.50 is Neutral, neither overbought nor oversold. The STOCH value of 39.91 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 *	52 Neutral	$5.17B	3.59	-42.19%	2.82%	15.05%	-0.04%
BLMH	50 Neutral	$11.25M	0.74	-27.37%	―	-44.99%	―
BRTX	48 Neutral	$13.36M	―	-96.89%	―	175.03%	55.34%
FLGC	43 Neutral	$11.08M	―	-291.50%	―	-22.58%	82.94%
SNSE	40 Underperform	$10.02M	―	-64.18%	―	―	1.00%
PAVM	36 Underperform	$13.36M	―	-499.57%	―	22.15%	―
NERV	34 Underperform	$11.26M	8.47	>-0.01%	―	―	―

Blum Holdings Corporate Events

Blum Holdings Executes $1M Unsecured Promissory Note

On May 2, 2025, Blum Holdings, Inc. executed an Unsecured Promissory Note worth $1,000,000 with a maturity date of May 2, 2027, and an interest rate of 8% per annum. This financial move allows the lender to convert the note into shares at a discounted rate and includes warrants for purchasing additional shares, potentially impacting Blum’s capital structure and investor relations.

Spark’s Take on BLMH Stock

According to Spark, TipRanks’ AI Analyst, BLMH is a Neutral.

Blum Holdings presents a mixed picture. Significant financial instability, as reflected in negative earnings and cash flow challenges, weighs heavily on the stock. However, recent positive corporate events and a low P/E ratio offer some optimism for recovery. Technical indicators are mixed, reflecting uncertainty. The company’s future performance heavily depends on effective execution of its restructuring and strategic initiatives.

To see Spark’s full report on BLMH stock, click here.

Blum Holdings Announces Settlement with People’s California

On April 14, 2025, Blüm Holdings announced a significant update regarding its settlement with People’s California, LLC, originally reported on February 24, 2025. The settlement, which requires court approval, aims to resolve all outstanding litigation and adversary proceedings involving the company and its subsidiaries, Unrivaled Brands, Inc. and Halladay Holding, LLC, which are currently in Chapter 11 bankruptcy. If approved, this settlement is expected to be a major milestone in Blüm’s restructuring efforts, potentially providing greater clarity and stability for stakeholders.

Spark’s Take on BLMH Stock

According to Spark, TipRanks’ AI Analyst, BLMH is a Neutral.

Blum Holdings’ stock score reflects a mix of financial instability and potential recovery. Significant financial challenges weigh heavily, but recent corporate events and a low P/E ratio provide optimism. Technical indicators are mixed, showing neither strong bullish nor bearish trends. The company’s future performance hinges on executing its strategic initiatives successfully.

To see Spark’s full report on BLMH stock, click here.

Blum Holdings Reports Major Financial Turnaround in 2024

Blum Holdings, a California-based cannabis operator, reported a significant financial turnaround for the year ended December 31, 2024, with a net income of $33.1 million, marking a stark improvement from previous losses. The company’s restructuring efforts, including the strategic divestment of non-core dispensaries and integration of key retail locations, resulted in a 67% revenue increase and a 62% reduction in liabilities. This transformation has positioned Blum Holdings for future growth, as it transitions from restructuring to expansion, focusing on strategic acquisitions and market presence enhancement.

Blüm Holdings Reaches Global Settlement with People’s California

On February 24, 2025, Blüm Holdings, a California-based cannabis operator, announced a global settlement with People’s California, LLC, resolving over two and a half years of litigation. The settlement, which includes mutual releases and the dismissal of several lawsuits, is expected to support the Debtors’ Chapter 11 plan and has been verbally ratified by the involved parties. This resolution marks a significant step for Blüm Holdings, potentially stabilizing its operations and enhancing its industry positioning.