Revenue growth remains highly erratic, fluctuating from a 109% surge in 2023Q4 to a 16.9% contraction in 2024Q3, while gross margins have compressed to 35.8% as of 2026Q1.
| Sales/Revenue | 11.61M | 8.09M | 5.93M | 5.51M | 3.24M | 2.28M | 793.09K | 617.82K | 311.1K | 48.17K |
| Revenue Growth % | 90.26% | 36.54% | 7.63% | 69.98% | 42.12% | 187.49% | 28.37% | 98.6% | 545.84% | - |
| Cost of Goods Sold | 5.9M | 3.48M | 2.2M | 1.89M | 1.12M | 2.96M | 1.23M | 937.88K | 160.56K | 62K |
| COGS % of Revenue | - | 42.94% | 37.19% | 34.28% | 34.47% | 129.69% | 154.93% | 151.8% | 51.61% | 128.72% |
| Gross Profit | 5.71M | 4.62M | 3.72M | 3.62M | 2.12M | -676.98K | -435.65K | -320.06K | 150.54K | -13.84K |
| Gross Margin % | 49.21% | 57.06% | 62.81% | 65.72% | 65.53% | -29.69% | -54.93% | -51.8% | 48.39% | -28.72% |
| Gross Profit Growth % | - | 24.03% | 2.88% | 70.47% | 413.66% | -55.39% | -36.12% | -312.61% | 1188.1% | - |
| Operating Expenses | 10.68M | 10.41M | 8.34M | 8.16M | 5.66M | 1.89M | 610.8K | 430.05K | 1.12M | 536.02K |
| OpEx % of Revenue | - | 128.64% | 140.73% | 148.19% | 174.79% | 82.75% | 77.02% | 69.61% | 360.04% | 1112.79% |
| Selling, General & Admin | 9.59M | 9.38M | 8.34M | 8.16M | 5.66M | 1.71M | 1.51M | 313.67K | 1.05M | 502.1K |
| SG&A % of Revenue | - | 115.85% | 140.73% | 148.19% | 174.79% | 75.09% | 190.86% | 50.77% | 338.08% | 1042.38% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 830.66K | 1.03M | 0 | 0 | 16.44K | 174.7K | -902.85K | 116.38K | 0 | 0 |
| Operating Income | -4.97M | -5.79M | -4.62M | -4.54M | -3.54M | -2.56M | -1.06M | -750.11K | -969.54K | -549.85K |
| Operating Margin % | -42.79% | -71.58% | -77.92% | -82.47% | -109.26% | -112.44% | -133.21% | -121.41% | -311.65% | -1141.51% |
| Operating Income Growth % | - | -25.42% | -1.69% | -28.31% | -38.1% | -142.67% | -40.84% | 22.63% | -76.33% | - |
| EBITDA | -4.34M | -5.34M | -4.23M | -4.28M | -3.33M | -2.39M | -934.55K | -633.72K | -901.2K | -515.94K |
| EBITDA Margin % | -37.4% | -66.02% | -71.32% | -77.72% | -102.76% | -104.78% | -117.84% | -102.57% | -289.69% | -1071.1% |
| EBITDA Growth % | 14.24% | -26.39% | 1.23% | -28.55% | -39.39% | -155.63% | -47.47% | 29.68% | -74.67% | - |
| D&A (Non-Cash Add-back) | 625.95K | 449.58K | 391.26K | 262.02K | 210.62K | 174.7K | 121.91K | 116.38K | 68.34K | 33.91K |
| EBIT | -6.74M | -7.67M | -4.59M | -4.59M | -3.52M | -3.42M | -1.05M | -750.11K | -969.54K | -549.85K |
| Net Interest Income | -1.46M | -1.22M | -215.14K | -129.48K | -29.2K | -16.17K | -21.51K | -1.74K | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.46M | 1.22M | 215.14K | 129.48K | 29.2K | 16.17K | 21.51K | 1.74K | 0 | 0 |
| Other Income/Expense | -3.23M | -3.1M | -185.6K | -174.52K | -12.76K | -875.92K | -11.51K | -1.74K | -68.34K | 0 |
| Pretax Income | -8.2M | -8.9M | -4.81M | -4.72M | -3.55M | -3.44M | -1.07M | -751.85K | -969.54K | -549.85K |
| Pretax Margin % | -70.62% | -109.92% | -81.05% | -85.64% | -109.65% | -150.85% | -134.66% | -121.69% | -311.65% | -1141.51% |
| Income Tax | 108.57K | 109.28K | 800 | 7.83K | 1.6K | 800 | 800 | 800 | 800 | 800 |
| Effective Tax Rate % | -1.32% | -1.23% | -0.02% | -0.17% | -0.05% | -0.02% | -0.07% | -0.11% | -0.08% | -0.15% |
| Net Income | -8.78M | -9.14M | -4.81M | -4.73M | -3.55M | -3.44M | -1.07M | -752.65K | -970.34K | -550.65K |
| Net Margin % | -75.59% | -112.93% | -81.06% | -85.78% | -109.7% | -150.89% | -134.76% | -121.82% | -311.91% | -1143.17% |
| Net Income Growth % | -46.13% | -90.21% | -1.71% | -32.92% | -3.33% | -221.9% | -42% | 22.43% | -76.22% | - |
| Net Income (Continuing) | -8.31M | -9.01M | -4.81M | -4.73M | -3.55M | -3.44M | -1.07M | -752.65K | -970.34K | -550.65K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 468.48K | 134.15K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.66 | -1.73 | -1.66 | -2.86 | -2.16 | -0.30 | -0.10 | -0.01 | -0.02 | -0.01 |
| EPS Growth % | 0.51% | -4.22% | 41.96% | -32.41% | -620% | -201.2% | -654.55% | 22.81% | - | - |
| EPS (Basic) | - | -1.73 | -1.66 | -2.86 | -2.16 | -0.30 | -0.10 | -0.01 | -0.02 | -0.01 |
| Diluted Shares Outstanding | 5.29M | 5.29M | 2.9M | 1.65M | 1.65M | 11.63M | 10.73M | 56.82M | 56.82M | 56.82M |
| Basic Shares Outstanding | 5.29M | 5.29M | 2.9M | 1.65M | 1.65M | 11.45M | 10.73M | 56.82M | 56.82M | 56.82M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Liquidity and operational scale
According to the provided quarterly data, REBN's revenue growth has exhibited extreme volatility, ranging from a 109% surge in 2023Q4 to a 16.9% contraction in 2024Q3, suggesting that the company's top-line expansion lacks the predictable cadence required for a stable retail growth model.
The erratic nature of revenue suggests that the company is struggling to achieve consistent store-level productivity or that its expansion strategy is heavily reliant on lumpy, non-recurring events. Investors should monitor whether the recent 2.1% growth in 2026Q1 represents a stabilization or a continued inability to scale the brand beyond its initial footprint.
As reported in financial statements, REBN's gross margin has fluctuated significantly, dropping from a peak of 77.1% in 2025Q2 to 35.8% in 2026Q1, which indicates a potential lack of pricing power or rising input costs that the company cannot effectively pass to its customers.
This compression in gross margin is particularly concerning given the company's high fixed-cost retail model. It suggests that the proprietary 'Reborn Process' may not be providing the cost-insulation or premium pricing durability that management initially anticipated.
Based on the income statement history, REBN's operating expenses consistently overwhelm gross profits, with SG&A spending frequently exceeding revenue, resulting in a persistent negative operating margin that reached -71.58% in the most recent period, signaling a failure to achieve necessary economies of scale.
The decoupling of SG&A from revenue growth suggests that the company's corporate overhead is disproportionately high for its current store count. Without a significant increase in average unit volume, the current cost structure appears unsustainable and may require drastic rationalization to reach break-even.
Analysis of the income statement reveals that net income figures are heavily impacted by non-operating items, including significant stock-based compensation of $4.0M in 2025Q3, which obscures the underlying cash-generating capability of the core restaurant operations.
The reliance on equity-based compensation to manage cash outflows warrants further investigation into the company's true operational burn rate. Investors should be wary of headline net income improvements that are driven by accounting adjustments rather than genuine improvements in store-level profitability.
While management emphasizes brand expansion, the company's net margin of -112.93% and limited cash reserves of $2.59M suggest that the current retail-heavy strategy is fundamentally flawed and may be nearing a critical liquidity inflection point.
Short-sellers would likely focus on the high probability of dilutive financing, as the company's current cash position appears insufficient to support continued aggressive expansion. The lack of a clear path to positive operating cash flow suggests that the retail footprint may be a liability rather than an asset.
Quick answers to the most common questions about buying REBN stock.
For fiscal year 2025, Reborn Coffee, Inc. (REBN) reported total revenue of $8.1M. This represents a 16704.6% increase compared to $0.0M in 2016.
Reborn Coffee, Inc. (REBN) reported a net loss of $9.1M for the fiscal year ending 2025.
Reborn Coffee, Inc. (REBN) reported an operating income of $-5.8M, resulting in an operating profit margin of -71.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Reborn Coffee, Inc. (REBN) generated $4.6M in gross profit for the year, representing a gross profit margin of 57.1%. This demonstrates the company's core pricing power and production efficiency.