GPO Plus Inc (GPOX) Q2 2025 Earnings Report

GPO Plus Inc (GPOX) delivered a challenging QQ2 2025, characterized by a modest year-over-year revenue decline and a return to negative profitability metrics, underscored by a substantive cash burn and a severely stretched balance sheet. Revenue for the quarter stood at 1.189 million USD, down 2.33% year-over-year and 1.54% quarter-over-quarter, while gross profit reached 0.225 million with a gross margin of 18.96%. The company reported an EBITDA of -0.501 million and a net income of -0.585 million, translating to a net margin of -49.22% and an EPS of -0.0101. These results reflect ongoing top-line pressure and structural cost headwinds, including elevated SG&A, and indicate a fragile near-term profitability trajectory.

Liquidity and balance sheet signals remain a major concern. At quarter-end, cash and cash equivalents were a mere 16,363 USD, with total current liabilities of 4.93 million and total assets of 0.603 million, producing extremely thin liquidity ratios (current ratio 0.0515, quick ratio 0.0196, cash ratio 0.0033). The balance sheet shows negative stockholders’ equity (-4.446 million) and a high level of liabilities relative to assets, signaling solvency risk absent a material restructuring or capital inflection. Net debt stood at approximately 152.1 thousand USD, against total debt of 168.5 thousand USD. Cash flow from operations was negative at -0.246 million, driven by working capital movements (notably a large increase in inventory and sizable payables adjustments) and non-cash adjustments, resulting in free cash flow of -0.246 million. Financing activity provided a modest inflow of 0.205 million after stock issuances and a small debt/other financing activity, but the net cash change for the period was -0.040 million.

Strategically, the company remains in a nascent stage of monetizing its GPO model across HealthGPO and cbdGPO verticals. The QQ2 2025 performance implies that the opportunity remains substantial, but execution requires tighter cost controls, improved working capital management, and perhaps strategic partnerships or capital allocation to accelerate top-line growth. Without explicit forward-looking guidance, investors should monitor management’s ability to stabilize operating leverage, reduce cash burn, and equity financing needs to support ongoing operations and potential growth initiatives.