Blüm Holdings’ Financial Strain: Cannabis Operator, Not Blum Capital, at the Heart of Revenue Rise & Deep Losses

The primary article title—“Blum Capital on Losing Streak” from The Wall Street Journal—appears not to align with recent reporting on Blüm Holdings (OTCQB: BLMH), which is a cannabis operator and brand owner. Extensive searches yielded detailed financial disclosures for Blüm Holdings, but nothing confirming Blum Capital (the private equity/ventures firm) is currently suffering a documented string of losses. Given this, it seems likely that the “losing streak” refers to Blüm Holdings rather than Blum Capital.

Assuming the entity in question is Blüm Holdings (BLMH), we see a mixed but gradually improving financial picture as of Q3 2025. Revenue has been steadily increasing—$2.24 M in Q1, up to $4.85 M in Q3—driven by acquisitions and expansion of its dispensary footprint. Gross margins have also improved from prior periods, reflecting a shift toward higher-margin product mix and stronger pricing discipline. Cost control has been effective: SG&A and other operating expenses have been significantly trimmed compared to 2024. Key positive milestones include reaching positive EBITDA in Q1 2025, an improved adjusted EBITDA loss, and net losses narrowing sequentially.

However, these improvements are overshadowed by acute financial distress in some core areas. Cash on hand is almost depleted (≈ $0.37-0.39 million), assets are outstripped by liabilities, there is a large working capital deficit, and management has explicitly expressed substantial doubt about the company’s ability to continue as a going concern without capital infusions. Tax liabilities and derivative liabilities exacerbate risk. Also, recent net losses have increased in Q3 versus Q2, despite revenue growth, indicating that margin pressures from expansion and new store integrations remain a drag.

Strategically, Blüm is doubling down on disciplined growth: acquiring new retail/dispensary locations (Northern California), exiting underperforming assets, maintaining SG&A discipline, and aiming to leverage regulatory tailwinds (e.g., possible reforms to IRC §280E or federal cannabis law). But unless liquidity is rebuilt, dilution will likely follow, and any misstep in integration, regulatory compliance, or tax exposure could derail improvements.

Open questions include: Which entity does the WSJ article refer to—Blum Capital or Blüm Holdings? What is the immediate capital-raising plan for Blüm (if that is the entity)? Can the improvements in adjusted EBITDA and margins scale to positive operating cash flow? What is the exposure to tax liabilities under current federal regulation, and how dependent is upside on legislative reform?