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
-- Full year 2025 total revenue grew 37% to $8.1 million, compared to $5.9
million for full year 2024, driven by the launch of new service income
and license income revenue streams.
-- Full year 2025 store revenue grew 7% to $6.0 million, compared to $5.6
million for full year 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.
-- Introduced two new revenue streams in 2025: service income of $0.9
million from the newly formed Reborn Logistics subsidiary, and license
income of $1.1 million related to licensing of the Reborn Coffee brand
and system.
-- Operated 10 company-owned retail locations (nine in California and one in
Malaysia) and one California franchisee as of December 31, 2025.
-- Cash and cash equivalents increased to $2.6 million at December 31, 2025,
up from $0.2 million at December 31, 2024, reflecting proceeds from
equity issuances and convertible debt financings during the year.
Subsequent to year-end, completed a Securities Subscription Agreement
with an accredited investor, generating $6.5 million in gross proceeds.
-- Total stockholders' equity increased to $4.6 million at December 31,
2025, up from $2.6 million at December 31, 2024.
2025 and Subsequent Events
-- Appointed Jung Jae Lim as Co-Chief Executive Officer alongside founder
Jay Kim. Mr. Lim brings more than 20 years of leadership experience in
logistics and supply chain management, including large-scale distribution
networks and enterprise partnerships.
-- Announced the successful grand opening of its flagship location in
Shenzhen, China located within Tencent's new headquarters campus,
reflecting the Company's broader strategy to build a scalable presence
across multiple provinces in China.
-- Regained compliance with the minimum stockholders' equity requirement
under Nasdaq Listing Rule 5550(b).
-- Completed a Securities Subscription Agreement with an accredited investor
for the purchase of 1,192,661 shares of common stock at a purchase price
of $5.45 per share, generating $6.5 million in gross proceeds.
-- Completed a warrant exchange and termination transaction with prior
investors, resulting in the cancelation of outstanding warrants and the
elimination of approximately $1.3 million in derivative liabilities.
-- Announced the formation of its new advisory board to drive innovation and
growth within the company and appointed Hisham Elkoustaf as its chair.
The advisory board will help to shape the strategic direction of Reborn
Coffee and ensure that it remains committed to its values of
sustainability and quality.
-- Established Reborn Logistics, Inc., a 51%-owned subsidiary providing
freight forwarding, transportation and logistics services. Reborn
Logistics contributed $0.9 million of service income and approximately
$0.3 million of income from operations in its partial first year.
-- Signed a $1 million exclusive licensing agreement with Reborn Korea Co.,
Ltd. to develop and operate Reborn Coffee retail locations throughout
South Korea.
-- Signed a $1.3 million exclusive master licensing agreement with Reborn
Health Goods (Shenzhen) Co., Ltd., a China-based corporation, granting it
full rights to develop and sublicense Reborn Coffee locations throughout
mainland China.
-- Executed a strategic licensing agreement with The Arjomand Group and IG
International, marking Reborn's expansion into the Republics of Georgia
and Armenia.
-- Entered into a master licensing agreement valued at $1.7 million with the
Arjomand Group to lead the development of Reborn Coffee-branded retail
locations and product lines throughout high-growth markets across the
Middle East, Europe, and MENA regions.
-- Established a Central China Supply Chain Headquarters in Dawu County.
Reborn China will oversee the sourcing and distribution of all
matcha-based products throughout Asia and the UAE, in partnership with an
agricultural group that operates matcha farms and manufacturing
facilities through a China-Japan joint venture.
-- Announced that Bosco Bakery, a well-established bakery in Los Angeles,
California, officially joined Reborn Coffee as a franchise.
-- Partnered with Eachome Shopping, a major retail platform under Shenzhen
Media Group, to expand its retail footprint across China, enabling Reborn
Coffee to scale its retail presence by integrating with Eachome
Shopping's extensive online and offline platforms.
-- Entered into a securities purchase agreement and a common stock purchase
agreement for up to a total of $60 million in financing commitments with
Arena Investors, LP and Arena Business Solutions Global SPC II, Ltd.
-- Approved as U.S. Franchisor, setting the stage for expansive growth
across U.S. markets.
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
-- Commence franchise sales activities in 2026 and target the opening of up
to ten franchise locations across the United States.
-- Scale Reborn Logistics operations to further expand freight forwarding,
transportation and supply chain services to both affiliated and
third-party customers.
-- Complete the structured repayment of the outstanding convertible
debentures pursuant to the Amended and Restated Forbearance Agreement
with Arena Investors, targeting full repayment or conversion by September
30, 2026.
-- Launch a dedicated barista training program designed to support quality
and consistency across company-operated and future franchised locations.
-- Expand domestic roasting capacity and paper goods supply infrastructure
to support anticipated franchisee-driven demand, with an emphasis on
eco-friendly products.
-- Evaluate opportunities to refresh and selectively expand the
company-operated retail footprint in core Southern California markets.
-- Continue to pursue additional strategic financings, as needed, to fund
ongoing operations and growth initiatives.
Full Year 2025 Financial Results
(MORE TO FOLLOW) Dow Jones Newswires
April 23, 2026 08:31 ET (12:31 GMT)
Comments