Innovation Beverage Group (IBG) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was $2.77M, down 5.1% year-over-year, mainly due to a missed order cycle from Coca-Cola Europacific Partners, resulting in only 11 months of recognized sales.

• Gross profit fell 44.9% to $1.23M, with gross margin dropping to 44.2% from 76.1% due to higher raw material costs and a $330K inventory writedown.

• Net loss increased 31.8% to $6.19M, driven by lower gross profit, higher tax expense, and increased contracted services costs.

• The company completed a $6M public offering in March 2026 and established an at-the-market program, raising $2M by report date.

• A proposed merger with BlockFuel Energy, Inc. is underway, with BlockFuel equityholders expected to own 90% post-merger.

Financial highlights

• Revenue: $2.77M in 2025 vs. $2.92M in 2024 (-5.1%).

• Gross profit: $1.23M in 2025 vs. $2.23M in 2024 (-44.9%).

• Gross margin: 44.2% in 2025 vs. 76.1% in 2024.

• Operating expenses: $6.61M in 2025, down 9.3% from $7.29M in 2024.

• Net loss: $6.19M in 2025 vs. $4.70M in 2024.

• Cash at year-end: $128K, with a working capital deficit of $2.0M.

Outlook and guidance

• Management is focused on revenue growth, cost control, and securing additional financing.

• Substantial doubt exists about the company’s ability to continue as a going concern without further capital.

• The proposed merger with BlockFuel Energy, Inc. will shift the business focus to oil and gas assets and digital energy infrastructure.