-- Consolidated net revenue was $10.0 million in Q2 2025, a 17% decrease from Q2 2024 -- Flow brand net revenue was $3.6 million in Q2 2025, a 49% decrease from Q2 2024 -- Gross margin1 was 23% in Q2 2025, compared to 28% in Q2 2024 -- Adjusted EBITDA2 loss was $3.0 million in Q2 2025, a $0.5 million improvement compared to an Adjusted EBITDA2 loss of $3.5 million in Q2 2024 -- Subsequent to quarter-end, Flow secured funding of $12.0 million via business purpose loan and secured convertible loan to invest in working capital TORONTO--(BUSINESS WIRE)--June 17, 2025--
Flow Beverage Corp. (TSX:FLOW; OTCPK:FLWBF) ("Flow" or the "Company") today announced its financial results for the fiscal quarter ended April 30, 2025 ("Q2 2025"). All currency amounts are stated in Canadian dollars unless otherwise noted.
Management Commentary
"Flow has secured funding of approximately $14.3 million so far in fiscal 2025 in order to invest in working capital and return to growth in Flow brand net revenue as demand for our flagship products has never been higher. Our Planet A co-packing business continues to contribute positively to consolidated net revenue and gross profit. Furthermore, our operational transformation has made us a leaner and more focused operation and has resulted in an Adjusted EBITDA improvement as compared to the prior year. Flow continues to see strong demand for our Flow brand products which should also be propelled by a busy summer activation program and the launch of Flow Sparkling Mineral Spring Water in Canada. The near-term commissioning of production line 5 at our Aurora production facility will also provide additional capacity to meet Flow brand demand and volumes from our Planet A co-pack partners. I would like to thank the Flow team for their dedication and to our funding partners for providing the working capital for the Company to execute against its long-term strategy," said Nicholas Reichenbach, Founder and Chief Executive Officer of Flow.
Financial Results for Q2 2025
Flow brand net revenue was $3.6 million in Q2 2025, a 49% decrease from $7.0 million in the fiscal quarter ended April 30, 2024 ("Q2 2024"). Flow brand net revenue decreased due to the exit of commercial partnerships with retail and food service partners to meet the Company's profitability targets and temporary disruptions to production and fulfillment due to working capital constraints.
Consolidated net revenue was $10.0 million in Q2 2025, a 17% decrease from $12.1 million in Q2 2024. Offsetting the decrease in Flow brand net revenue, Planet A co-packing net revenue increased 28% in Q2 2025, which is attributable to recently signed co-pack contracts.
Gross margin(1) was 23% in Q2 2025, as compared to 28% in Q2 2024. The variance in gross margin(1) reflects the lower consolidated net revenue and a $0.2 million inventory write-off.
Flow reported an EBITDA(2) loss of $6.1 million in Q2 2025, as compared to an EBITDA(1) loss of $4.2 million in Q2 2024. The variance reflects the factors impacting net revenue and gross margin and also includes decreased sales and marketing expense attributable to a one-time marketing rebate, and higher salaries and benefits due to additions to the U.S. sales team. EBITDA(2) loss also includes a $3.2 million debt modification expense.
Flow reported an Adjusted EBITDA(2) loss of $3.0 million in Q2 2025, as compared to a loss of $3.5 million in Q2 2024. The Adjusted EBITDA(2) loss is attributable to the same factors that impact EBITDA(2) loss, removing stock-based compensation, restructuring charges and the debt modification expense.
Three months ended April 30
2025 2024
-------------------------------------------
In thousands of Canadian dollars, except
percentage amounts
------------------------------------------- ------------ --- --------------
Net revenue 10,040 12,055
Cost of revenue 7,759 8,713
Gross profit 2,282 3,342
Operating expenses 6,545 8,030
Finance expense, net 3,025 2,127
Restructuring and other costs 203 299
Net loss for the period (10,462) (7,028)
EBITDA(2) loss (6,140) (4,226)
Adjusted EBITDA(2) loss (2,975) (3,500)
Adjusted net loss (7,100) (6,301)
Gross margin(1) 23% 28%
Three months ended April 30
-------------------------------------------
In thousands of Canadian dollars, except
percentage amounts 2025 2024
------------------------------------------- ----------------- --------------
Consolidated net loss: (10,462) (7,028)
Finance expense, net 3,025 2,127
Amortization and depreciation 1,297 675
------------- -----------
EBITDA(2) loss (6,140) (4,226)
------------- -----------
Share-based compensation (25) 511
Restructuring and other costs 203 299
Foreign exchange loss (197) (1)
Gain on option revaluation (12) (83)
Loss (gain) on debt modification and other 3,196 -
------------- -----------
Adjusted EBITDA(2) loss (2,975) (3,500)
------------- -----------
(1) Gross margin is a supplementary financial measure and is used throughout
this press release. See "Non-IFRS and Other Financial Measures" in the
MD&A for more information on the supplementary of financial measure and
"How We Assess the Performance of Our Business" in the MD&A for an
explanation of the composition of such measure.
(2) This is a non-IFRS financial measure and is used throughout this press
release. See "Non-IFRS and Other Financial Measures" in the MD&A for more
information on each non-IFRS financial measure and "How We Assess the
Performance of Our Business" in the MD&A for an explanation of the
composition of such measure.
Subsequent Events
Effective May 23, 2025, the Company entered into a $2 million secured term note (the "$2M Note") with NFS Leasing Canada Ltd. ("NFS"), bearing interest at 15% per annum and maturing May 23, 2028. Pursuant to the $2M Note, no payments are required for the first three months, followed by equal monthly installments over 33 months.
On June 4, 2025, the Company closed a secured term note with NFS of up to $4 million (the "$4M Loan"). The $4M Loan will mature on a date that is three years from the date of issue and bear interest at a rate of 15% per annum. Pursuant to the $4M Loan, no payments are required for the first three months, followed by equal monthly installments over 33 months.
On June 4, 2025, the Company closed a secured convertible loan with RI Flow LLC of up to $ 6 million (the "$6M Convertible Loan"). The "$6M Convertible Loan bears interest at 15% per annum, matures in 18 months, and includes a conversion option into subordinate voting shares of the Company ("SVS") at the conversion price of $0.065 per SVS after one year from issuance and upon the occurrence of certain prescribed events.
Appointment of Chief Financial Officer
Today, Flow appointed Paul Dowdall as the Company's Chief Financial Officer.
Mr. Dowdall is a Chartered Professional Accountant bringing nearly twenty-five years of progressive management experience, including nine years in Chief Financial Officer and Chief Operating Officer roles. His career reflects a strong and diverse skill set in accounting, financial management, corporate strategy, operational management and optimization, and technology implementation. Most recently, Mr. Dowdall has operated within the start-up world serving as Chief Operating Officer or Chief Financial Officer with his most recent engagements in the Canadian fintech space. Prior to this, Mr. Dowdall's focus was in the North American consumer packaged goods sector, with a specific focus on beverages, as CFO of companies such as Ice River Springs, a prominent bottled water manufacturer, and Diamond Estates Wines and Spirits (TSXV:DWS), a national wine producer and distributor. Earlier in his career, Mr. Dowdall gained valuable experience at organizations including Bell Canada, Blackberry, and Apple.
Mr. Dowdall has successfully led the recapitalization and restructuring of several companies, demonstrating a strong capacity for financial stewardship in dynamic environments. He has also overseen the implementation of diverse operational areas, including regulatory compliance, supply chain logistics, customer support, and management information systems, while managing various functions such as sales, IT, legal, and human resources.
Conference Call and Webcast Details
Date: June 17, 2025
Time: 8:30 a.m. ET
Conference ID: 04309
Dial-in: (289) 514-5100 or (800) 717-1738
Webcast: Link
Replay: (289) 819-1325 or (888) 660-6264
Passcode: 04309
Available until July 17, 2025
About Flow
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June 17, 2025 07:00 ET (11:00 GMT)
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