Reborn Coffee Provides Full Year 2025 Corporate Update and Financial Results
Full Year 2025 Revenue Grew 37% to $8.1 Million, Driven by the Launch of Reborn Logistics and New License Revenue Streams
Appointed Jung Jae Lim as Co-Chief Executive Officer and Regained Nasdaq Listing Compliance Subsequent to Year-End
BREA, Calif., April 23, 2026 (GLOBE NEWSWIRE) -- Reborn Coffee Inc. (Nasdaq: REBN), a leader in the specialty coffee market, has reported its financial and operational results for the full year ended December 31, 2025.
Key Financial and Operational Highlights
2025 and Subsequent Events
Management Commentary
“Fiscal 2025 was a transformational year for Reborn Coffee, defined by the diversification of our revenue base, the formation of a new operating subsidiary, and a meaningful strengthening of our balance sheet,” said Jay Kim, Co-Chief Executive Officer of Reborn Coffee. “We grew total revenue 37% year-over-year to $8.1 million, with contributions from our core retail business joined by two entirely new revenue streams: service income from the September 2025 launch of Reborn Logistics, and license income associated with the licensing of our brand and operating system. Together, these new streams contributed approximately $2.0 million of revenue in 2025 and mark an important step in the evolution of Reborn Coffee from a single-channel specialty coffee operator into a multi-channel platform company.
“Our decision to establish Reborn Logistics reflects a broader strategic view that supply chain capabilities are a differentiator in both the specialty coffee and broader consumer sectors. Under the leadership of our newly appointed Co-Chief Executive Officer, Jung Jae Lim, who brings more than two decades of logistics and supply chain expertise, we expect Reborn Logistics to continue to scale in 2026 and play an increasingly important role in both our own distribution network and in serving third-party customers. Having two Co-CEOs — one focused on brand, retail and franchise growth, and one focused on logistics, transportation and operating infrastructure — positions us to pursue both opportunities with the focus and depth each deserves.
“From a capital perspective, during 2025 and in the subsequent period we completed equity and convertible debt financings totaling more than $18 million in aggregate commitments, including the Arena convertible debenture program, the $50 million Equity Line of Credit with Arena, and the $6.5 million Securities Subscription Agreement with Charles Jeong. These transactions materially improved our cash position, which grew to $2.6 million at year-end from $0.2 million a year earlier, and allowed us to enter 2026 with a structured repayment plan with our convertible debenture holders and a regained Nasdaq listing compliance position. While our 2025 results include several non-recurring charges — most notably a $1.6 million asset impairment loss tied to our Korea and Malaysia subsidiaries and approximately $1.8 million of combined debt discount amortization and loss on debt extinguishment — these items reflect actions taken to strategize our international footprint and re-structure our capital position for the next phase of growth.
“Looking to 2026, our priorities are clear: commence franchise sales and target the opening of up to ten franchise locations, further scale Reborn Logistics, complete the structured repayment of the Arena debentures, and continue to build out the supporting infrastructure — including our planned barista training program — that will underpin the next stage of growth. We believe the foundation we built in 2025 puts us in a strong strategic position for the remainder of 2026,” concluded Kim.
Anticipated Milestones
Full Year 2025 Financial Results
Total net revenues for the year ended December 31, 2025 were approximately $8.1 million, compared to $5.9 million for the year ended December 31, 2024, representing an increase of approximately $2.2 million, or 36.5%. The increase was primarily driven by the addition of two new revenue streams in 2025 — service income of approximately $0.9 million from the newly formed Reborn Logistics subsidiary, and license income of approximately $1.1 million — together with a 6.8% increase in company-operated store revenue. Wholesale and online revenue declined to $0.1 million from $0.4 million, reflecting a strategic shift in marketing focus toward retail and service-based revenue streams.
Store, wholesale and online gross profit was approximately $3.7 million for the three-month period ended March 31, 2025, compared to gross profit of approximately $3.7 million for the comparable period in 2024. Store, wholesale and online gross margins for the year ended December 31, 2025, decreased to 61% compared to 63% for the same period in 2024.
Total operating costs and expenses for the year ended December 31, 2025 were approximately $13.9 million, compared to $10.5 million for the year ended December 31, 2024, representing an increase of approximately $3.3 million, or 31.7%.
Net loss attributable to Reborn Coffee shareholders for the year ended December 31, 2025 was approximately $9.1 million, or $(1.73) per basic and diluted share, compared to a net loss of approximately $4.8 million, or $(1.66) per basic and diluted share, for the year ended December 31, 2024.
Net cash used in operating activities for the year ended December 31, 2025 was approximately $6.5 million, compared to $3.5 million for the year ended December 31, 2024.
Cash and cash equivalents totaled approximately $2.6 million as of December 31, 2025, compared to $0.2 million as of December 31, 2024. Subsequent to year-end, completed a Securities Subscription Agreement with an accredited investor, generating $6.5 million in gross proceeds.
About Reborn Coffee
Reborn Coffee, Inc. (NASDAQ: REBN) is a California-based specialty coffee retailer focused on delivering high-quality, handcrafted coffee experiences. With a growing global footprint and a dedication to innovation, Reborn is redefining the coffeehouse model through its premium products and technology-forward initiatives. For more information, visit reborncoffee.com.
Forward-Looking Statements
All statements in this release that are not based on historical fact are "forward-looking statements." While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations sections of our recent filings with the Securities and Exchange Commission ("SEC") including our Form 10-K for the year ended December 31, 2025, which can be found on the SEC's website at www.sec.gov. Such risks, uncertainties, and other factors include, but are not limited to, the Company's ability to continue as a going concern as indicated in an explanatory paragraph in the Company's independent registered public accounting firm's audit report as a result of recurring net losses, among other things, the Company's ability to successfully open the additional locations described herein as planned or at all, the Company's ability to expand its business both within and outside of California (including as it relates to increasing sales and growing Average Unit Volumes at our existing stores), the degree of customer loyalty to our stores and products, the fluctuation of economic conditions, competition and inflation. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Contacts
Investor Relations Contact:
Chris Tyson
Executive Vice President
MZ North America
REBN@mzgroup.us
949-491-8235
Company Contact:
Reborn Coffee, Inc.
ir@reborncoffee.com