---
title: "Functional Brands reports Q2 2026: revenue $1.87M, gross profit $1.12M, net loss $2.63M"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/296140944.md"
description: "Functional Brands reported Q2 2026 results with revenue of $1.87M (up 2% YoY) and gross profit of $1.12M. However, the company posted a net loss of $2.63M due to higher administrative costs and non-cash derivative adjustments. Key developments include the termination of a letter of intent with BullionFX and delisting from Nasdaq to OTC Markets. Management highlighted momentum in the Kirkman business despite strategic challenges."
datetime: "2026-08-17T20:03:01.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/296140944.md)
  - [en](https://longbridge.com/en/news/296140944.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/296140944.md)
generator: "portal-rs"
---

# Functional Brands reports Q2 2026: revenue $1.87M, gross profit $1.12M, net loss $2.63M

Functional Brands reported second-quarter 2026 results with net revenue of $1.87 million and gross profit of $1.12 million, representing a 2% year-over-year revenue increase and a 16% rise in gross profit. The company recorded an operating loss of $1.32 million and a net loss of $2.63 million for the quarter, driven by higher general and administrative costs and non-cash derivative adjustments. Management highlighted momentum in the Kirkman business while noting strategic and capital challenges including delisting to OTC Markets and the termination of a letter of intent with BullionFX.

**Financial Highlights**

-   Revenue: $1,870,548 for the three months ended June 30, 2026 (up ~2% from $1,832,532 in Q2 2025).
-   Gross profit: $1,120,341 for Q2 2026; gross margin 59.9% (increase of ~710 basis points year‑over‑year).
-   Operating loss: $(1,320,398) for the three months ended June 30, 2026 (versus $(155,437) in prior-year period).
-   Net loss: $(2,630,548) for Q2 2026, or $(0.06) per basic and diluted share.
-   Six months ended June 30, 2026 net loss: $(9,621,337), including a $6,310,464 non-cash charge related to preferred stock exchange.

**Business Highlights**

-   Direct-to-consumer demand and contract manufacturing sales contributed to year-over-year revenue growth in the quarter.
-   Gross margin expansion driven by a shift toward higher-margin channels and an Amazon business model transition.
-   Kirkman brand continued to show underlying momentum, cited as the core operational focus of the business.
-   Corporate developments: termination of the BullionFX letter of intent (June 29, 2026) and delisting from Nasdaq with trading moved to OTC Markets.
-   Litigation update: post-quarter judgment largely in favor of the company in the True Health Medical Center matter, with a limited award of $68,271 against a related party.

Original SEC Filing: Functional Brands Inc. \[ MEHA \] - 8-K - Aug. 17, 2026

**Disclaimer**

This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**