Starco Brands Reports Third Quarter 2025 Financial Results

Starco Brands, Inc. (the “Company” or “Starco Brands”) (OTCQB: STCB), inventor and acquirer of consumer products and brands, today reported financial results for the three- and nine-month periods ended September 30, 2025.

Management Comments

Starco Brands Chairman & CEO Ross Sklar said: “Our third quarter results reflect the strength of our strategic plan discussed at the beginning of 2025 and validates our focus on operational discipline and profitable growth. We successfully navigated the high-selling season with improved execution across our portfolio, demonstrating that our decisive actions to optimize our channel mix and SKU portfolio are delivering the intended results.”

Mr. Sklar continued, “As we close out 2025, our focus remains on three critical priorities: sustaining the operational momentum we've built throughout 2025, continuing our strong organic growth paths for Skylar, Winona, Whipshots and Soylent, and successfully closing the transformational acquisition of The Starco Group. We are in the final stages of due diligence and documentation and remain on track to complete this strategic combination. This merger will fundamentally transform our business, creating a vertically integrated platform that delivers revenue growth, enhanced margins, manufacturing and supply chain controls, and the scale required to fulfill our ambitious growth plan. The integration planning for Starco Manufacturing and Starco Brands as operating subsidiaries under the new STARCO umbrella is well underway. This structure creates multiple avenues for value creation by accelerating organic growth across our existing portfolio while simultaneously opening the door to strategy acquisitions of both synergistic manufacturers and complementary branded businesses that can also be vertically integrated into our platform. Our house of brands strategy, combined with owned manufacturing capabilities, positions us uniquely in the consumer products landscape and we believe the best is yet to come.”

Third Quarter of 2025 Financial Results

Reported net revenue for the third quarter of 2025 was $11.6 million, compared to $14.8 million in the third quarter of 2024. Gross profit was $4.6 million for the third quarter of 2025, compared to $6.4 million in the third quarter of 2024. The year-over-year decline was primarily due to intentional portfolio optimization, where the Company continued to strategically exit retail distribution of its Soylent division to focus on the more durable and profitable e-commerce business. The Company is prioritizing profitability and repeat purchase behavior by focusing resources on its higher margin direct-to-consumer and e-commerce channels.