Revenue expansion is undermined by severe margin compression, with the company reporting a negative gross margin of -11.1% in 2025Q2.
| Sales/Revenue | 13.9M | 12.84M | 9.21M | 8.28M | 6.54M | 3.17M | 4.06M |
| Revenue Growth % | 30.39% | 39.33% | 11.26% | 26.7% | 106.15% | -21.87% | - |
| Cost of Goods Sold | 13.15M | 11.32M | 8.85M | 8.12M | 6.32M | 3.2M | 3.6M |
| COGS % of Revenue | - | 88.19% | 96.05% | 97.99% | 96.72% | 100.85% | 88.73% |
| Gross Profit | 752.47K | 1.52M | 364.39K | 166.09K | 214.59K | -27.08K | 457.45K |
| Gross Margin % | 5.41% | 11.81% | 3.95% | 2.01% | 3.28% | -0.85% | 11.27% |
| Gross Profit Growth % | - | 316.16% | 119.39% | -22.6% | 892.34% | -105.92% | - |
| Operating Expenses | 4.56M | 4.07M | 3.88M | 3.95M | 2.07M | 408.65K | 521.91K |
| OpEx % of Revenue | - | 31.71% | 42.1% | 47.7% | 31.74% | 12.89% | 12.86% |
| Selling, General & Admin | 4.51M | 3.93M | 3.88M | 3.03M | 2.07M | 408.65K | 521.91K |
| SG&A % of Revenue | - | 30.62% | 42.1% | 36.63% | 31.74% | 12.89% | 12.86% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 50K | 139.77K | 0 | 916.89K | 0 | 0 | 0 |
| Operating Income | -3.81M | -2.56M | -3.52M | -3.78M | -1.86M | -435.74K | -64.47K |
| Operating Margin % | -27.42% | -19.9% | -38.15% | -45.69% | -28.45% | -13.74% | -1.59% |
| Operating Income Growth % | - | 27.32% | 7.11% | -103.45% | -326.86% | -575.92% | - |
| EBITDA | -2.82M | -1.69M | -2.97M | -3.13M | -1.72M | -321.26K | 37.95K |
| EBITDA Margin % | -20.29% | -13.19% | -32.23% | -37.74% | -26.33% | -10.13% | 0.94% |
| EBITDA Growth % | -10.95% | 42.99% | 5% | -81.6% | -435.8% | -946.53% | - |
| D&A (Non-Cash Add-back) | 990.42K | 862.15K | 545.55K | 658.37K | 138.66K | 114.48K | 102.42K |
| EBIT | -2.65M | -2.18M | -2.77M | -3.38M | -1.56M | -386.18K | -47.53K |
| Net Interest Income | -638.97K | -455.22K | -218.15K | -88.3K | -52.22K | -51.59K | -64.04K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 638.97K | 455.22K | 218.15K | 88.3K | 52.22K | 51.59K | 64.04K |
| Other Income/Expense | 527.55K | -76.6K | 523.54K | 316.11K | 244.15K | -2.03K | -47.1K |
| Pretax Income | -3.28M | -2.63M | -2.99M | -3.47M | -1.62M | -437.77K | -111.57K |
| Pretax Margin % | -23.62% | -20.5% | -32.47% | -41.87% | -24.72% | -13.81% | -2.75% |
| Income Tax | 29.32K | 34.24K | 48.65K | 19.25K | 14.65K | 12.36K | 22.56K |
| Effective Tax Rate % | -0.89% | -1.3% | -1.63% | -0.55% | -0.91% | -2.82% | -20.22% |
| Net Income | -3.31M | -2.67M | -3.04M | -3.49M | -1.63M | -450.13K | -134.13K |
| Net Margin % | -23.83% | -20.76% | -32.99% | -42.11% | -24.94% | -14.2% | -3.3% |
| Net Income Growth % | -15.97% | 12.32% | 12.82% | -113.89% | -262.23% | -235.6% | - |
| Net Income (Continuing) | -3.31M | -2.67M | -3.04M | -3.49M | -1.63M | -450.13K | -134.13K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.56 | -0.50 | -0.57 | -0.81 | -0.03 | -0.09 | -0.02 |
| EPS Growth % | -5.87% | 12.28% | 29.63% | -2555.74% | 64.94% | -256.56% | - |
| EPS (Basic) | - | -0.50 | -0.57 | -0.81 | -0.03 | -0.09 | -0.02 |
| Diluted Shares Outstanding | 5.96M | 5.38M | 5.32M | 4.31M | 53.38M | 5.18M | 5.5M |
| Basic Shares Outstanding | 5.96M | 5.38M | 5.32M | 4.31M | 53.38M | 5.18M | 5.5M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Operational and liquidity insolvency
As reported in recent financial statements, VSTD achieved a 39.33% year-over-year revenue growth rate, yet this top-line expansion appears disconnected from operational reality as the company continues to report persistent net losses across the majority of the observed ten-quarter period ending in 2025Q2.
While the double-digit revenue growth suggests successful brand penetration in the Southern California market, the lack of corresponding profitability indicates that the current business model may be scaling inefficiencies rather than sustainable demand. Investors should monitor whether this growth is driven by aggressive new unit openings that fail to achieve the necessary average unit volume to reach break-even status.
Based on the provided income statement data, VSTD's gross margin has fluctuated significantly, reaching a low of -11.1% in 2025Q2, which suggests that the company's core food distribution and restaurant operations are struggling to maintain basic cost control amidst rising input and labor expenses.
The inability to maintain a consistent positive gross margin is highly concerning for a consumer defensive entity, as it implies that the cost of goods sold is frequently exceeding the revenue generated per unit. This structural weakness suggests that the company's pricing power is insufficient to offset the inflationary pressures inherent in the California restaurant industry.
According to the quarterly income statement data, VSTD's operating income has remained consistently negative, with the 2025Q2 operating margin of -46.2% indicating that administrative and overhead costs are scaling at a rate that far outpaces the company's ability to generate gross profit.
The lack of positive operating leverage suggests that the company's current cost structure is too heavy for its existing footprint, necessitating a fundamental shift in operational efficiency. Without a significant reduction in SG&A or a dramatic improvement in unit-level economics, the company appears to be trapped in a cycle of funding operational losses through external capital.
As indicated by the recent rebranding and strategic shift toward a crypto treasury, VSTD's transition appears to be a defensive maneuver to mask core operational distress, as the company's negative net margins of -32.6% in 2025Q2 highlight the extreme risk of relying on non-operating assets.
Short-term observers may view the pivot as a visionary capital allocation strategy, but the financials suggest it may be a desperate attempt to decouple from a failing restaurant model. The reliance on speculative digital assets to subsidize operational deficits warrants extreme caution, as it introduces volatility that the company's thin balance sheet is ill-equipped to absorb.
Quick answers to the most common questions about buying VSTD stock.
For fiscal year 2024, Vestand Inc. (VSTD) reported total revenue of $12.8M. This represents a 216.3% increase compared to $4.1M in 2019.
Vestand Inc. (VSTD) reported a net loss of $2.7M for the fiscal year ending 2024.
Vestand Inc. (VSTD) reported an operating income of $-2.6M, resulting in an operating profit margin of -19.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Vestand Inc. (VSTD) generated $1.5M in gross profit for the year, representing a gross profit margin of 11.8%. This demonstrates the company's core pricing power and production efficiency.