Quarterly ResultMay 15, 2026, 06:07 AM
LFTD Partners Q1 Net Loss $(4.16)M; $5.06M Inventory Reserve
AI Summary
LFTD Partners reported a significant net loss of $4.16 million for Q1 2026, a substantial increase from the $0.30 million loss in Q1 2025. This was primarily driven by a $5.06 million inventory reserve against hemp-derived and kratom-derived products, following a federal act banning intoxicating hemp-derived consumables from November 2026. Despite a slight increase in net sales to $9.16 million, gross profit turned negative, and operating expenses rose, contributing to the increased loss.
Key Highlights
- Net Loss for Q1 2026 was $(4,159,949), significantly higher than $(303,042) in Q1 2025.
- Basic Earnings Per Share (EPS) for Q1 2026 was $(0.28), down from $(0.02) in Q1 2025.
- A total inventory reserve of $5,061,673 was recorded against hemp-derived and 7-OH inventory.
- The hemp-derived inventory reserve of $4,720,659 was due to a federal ban effective November 2026.
- Net Sales slightly increased to $9,158,206 in Q1 2026 from $9,123,850 in Q1 2025.
- Gross Profit turned negative at $(1,706,080) in Q1 2026, from $2,217,393 in Q1 2025.
- Total Shareholders' Equity decreased to $8,468,984 from $12,632,260 since December 31, 2025.
- Net Cash Provided by Operating Activities increased to $458,860 from $351,751 year-over-year.
Price Impact