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