Heritage Distilling Holding Company, Inc. (CASK) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 3.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 62
• Sector: General
• Sector Strength: N/A
• Industry: Beverages - Alcoholic
• EPS (TTM): N/A
• Shares Outstanding: 26,239,883
• 10 Day Avg. Volume: 4,292,524
• 30 Day Avg. Volume: 3,265,934
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.00
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: $1.00 ▲(0.00% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues, negative profitability, and financial instability. Technical analysis indicates weak momentum, and the lack of valuation metrics further highlights concerns about the company's financial health and market position.

Heritage Distilling Holding Company, Inc. Business Overview & Revenue Model

Company Description

Heritage Distilling Holding Company, Inc. engages in the production, marketing, and sale of craft spirits in the United States and internationally. The company offers whiskeys, vodkas, gins, rums, and ready-to-drink canned cocktails. It sells its products through wholesale distribution, owned and operated distilleries, and tasting rooms, as well as online. The company was founded in 2011 and is headquartered in Gig Harbor, Washington.

How the Company Makes Money

Heritage Distilling Holding Company, Inc. generates revenue primarily through the sale of its craft spirits to both retail and wholesale channels. The company distributes its products through a network of liquor stores, bars, restaurants, and direct-to-consumer sales via its tasting rooms and online platform. Additionally, Heritage Distilling offers unique experiences such as custom cask programs, where customers can create personalized spirits, which also contribute to its revenue. Collaborations with other brands and participation in industry events further enhance the company's market presence and revenue streams.

Heritage Distilling Holding Company, Inc. Financial Statement Overview

Summary

Heritage Distilling is facing significant financial challenges. The income statement reveals declining revenues and negative profitability. The balance sheet is concerning with negative equity and high leverage, indicating financial distress. Cash flow issues further compound the company's difficulties, suggesting a need for strategic financial restructuring.

Income Statement

The company has experienced declining revenue with a negative growth rate of -6.68% in the TTM period. Margins are under pressure, with a negative net profit margin of -35.64% and EBIT margin of -45.76%. The gross profit margin remains relatively stable at 25.54%, but overall profitability is weak.

Balance Sheet

The balance sheet shows significant financial instability, with a negative stockholders' equity and a high debt-to-equity ratio of -51.63 in the TTM period. The return on equity is positive at 16.75%, but this is due to the negative equity, indicating financial distress.

Cash Flow

Cash flow metrics indicate challenges, with negative operating and free cash flows. The free cash flow to net income ratio is slightly above 1, suggesting that cash flow is not significantly worse than net income, but overall cash flow health is poor.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.27M	8.40M	7.97M	8.31M	8.29M
Gross Profit	1.47M	2.13M	2.15M	2.21M	2.24M
EBITDA	-20.43M	-14.92M	-32.34M	-7.76M	-3.30M
Net Income	-18.48M	710.46K	-36.80M	-12.27M	-7.22M
Balance Sheet
Total Assets	26.54M	28.00M	26.27M	27.96M	24.90M
Cash, Cash Equivalents and Short-Term Investments	185.95K	453.16K	76.88K	223.03K	205.28K
Total Debt	16.89M	17.18M	56.38M	26.66M	14.27M
Total Liabilities	29.42M	27.21M	69.69M	34.59M	19.69M
Stockholders Equity	-2.89M	791.77K	-43.42M	-6.63M	5.21M
Cash Flow
Free Cash Flow	-10.41M	-11.32M	-8.51M	-9.94M	-8.88M
Operating Cash Flow	-10.27M	-11.22M	-8.48M	-9.30M	-7.69M
Investing Cash Flow	240.88K	-101.33K	-24.11K	-614.38K	-1.19M
Financing Cash Flow	10.33M	11.69M	8.36M	9.93M	8.88M

Heritage Distilling Holding Company, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCU	75 Outperform	2.20B	13.77	10.55%	3.84%	13.92%	32.69%
SAM	74 Outperform	2.35B	30.38	8.73%	―	2.46%	-7.28%
TAP	66 Neutral	8.95B	9.17	7.72%	4.10%	-5.48%	-6.99%
SBEV	41 Neutral	4.74M	-0.05	127.48%	―	-80.75%	-151.46%
CASK	41 Neutral		―		―	―	―
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

Heritage Distilling Holding Company, Inc. Corporate Events

Heritage Distilling Completes $223.8M Private Placement

On August 25, 2025, Heritage Distilling announced the completion of a $223.8 million private placement, which included a $19.3 million reduction in liabilities and the acquisition of over 53.2 million $IP tokens valued at more than $320 million. This financial restructuring, which eliminated all senior secured debt, strengthens the company’s balance sheet and positions it for growth in both its core distilling operations and the emerging IP tokenization sector. The transaction is expected to enhance operational flexibility and support expansion plans, with the $IP tokens serving as a strategic reserve asset and exposure to the growing programmable IP infrastructure.

Heritage Distilling Completes $223.8M Private Placement

On August 15, 2025, Heritage Distilling Holding Company, Inc. completed a private placement offering, selling pre-funded warrants to purchase 370,378,890 shares of common stock for $223.8 million. The proceeds will be used for corporate purposes, debt repayment, and to establish a cryptocurrency treasury, with a focus on $IP Tokens as a primary reserve asset.

Heritage Distilling Announces $220M Private Placement

On August 11, 2025, Heritage Distilling Holding Company, Inc. announced a $220 million private placement offering to establish a treasury strategy focused on $IP tokens, the native token of the Story network. This strategic move, supported by Story Foundation and prominent investors like a16z crypto, marks Heritage as the first Nasdaq-listed company to adopt $IP as its primary reserve asset, reflecting a shift in how public companies approach strategic reserves. The transaction is expected to close on August 13, 2025, and aims to position Heritage at the forefront of the tokenized intellectual property economy, aligning with transformative technologies in AI and blockchain.

Heritage Distilling’s Recent Stock Sale Agreement

Heritage Distilling Holding Company, Inc. entered into a securities purchase agreement with C/M Capital Master Fund, LP on January 23, 2025, allowing the company to sell up to $15 million of newly-issued shares of its common stock. Between February 19, 2025, and July 30, 2025, the company sold approximately 11.96 million shares for gross proceeds of about $4.82 million, impacting its financial operations by increasing the number of outstanding shares to over 23.62 million.

Heritage Distilling Expands Capital Stock Authorization

On June 24, 2025, Heritage Distilling Holding Company, Inc. held its 2025 Annual Meeting where stockholders approved an amendment to increase the number of authorized shares of capital stock by 420,000,000, bringing the total to 495,000,000 shares. This decision, supported by approximately 96% of the votes cast, was part of eight proposals voted on during the meeting. The amendment was filed and became effective the same day, indicating a strategic move to potentially expand the company’s capital structure and enhance its financial flexibility.

Heritage Distilling Increases Series B Preferred Shares

On June 12, 2025, Heritage Distilling Holding Company, Inc. filed an amendment to increase the authorized shares of its Series B Convertible Preferred Stock from 750,000 to 850,000. This move aims to correct typographical errors and enhance the company’s capital structure, potentially impacting its financial flexibility and shareholder value.

Heritage Distilling Unveils Cryptocurrency Initiatives

On June 10, 2025, Heritage Distilling Holding Company, Inc. presented at an investor conference, where CEO Justin Stiefel discussed the company’s recent cryptocurrency initiatives. These include the formation of a Technology and Cryptocurrency Committee, the adoption of a Cryptocurrency Treasury Reserve Policy, and the launch of new products like Bitcoin Bourbon and House of Doge Bourbon. The company is exploring financing opportunities tied to its cryptocurrency policy, though there is no guarantee of successful transactions. These moves reflect Heritage’s strategy to integrate cryptocurrency into its operations and connect with consumers interested in crypto commerce.