Healthy Choice Wellness Corp. (HCWC) announced its financial results for the first quarter ended March 31, 2025, on May 12, 2025. The company reported record net sales of $20.3 million, a 27% increase over Q1 2024, and record gross profit of $7.9 million, up 30% from the prior year.
The company also achieved positive Adjusted EBITDA and, notably, generated approximately $1.1 million in positive cash flow from operations, a significant improvement from using $2.5 million in Q1 2024. This operational cash flow shift suggests better management of working capital or improved underlying business performance.
Despite reporting a net loss of $712,410, an improvement from the $601,746 operating loss in Q1 2024, HCWC highlighted positive same-store sales growth, primarily attributed to its new customer loyalty program. The company's liquidity is supported by approximately $1.8 million in cash and a committed $13.25 million in equity financing.
However, HCWC identified material weaknesses in its internal control over financial reporting as of March 31, 2025, related to documentation, segregation of duties, and IT General Controls. Management is actively working on remediation plans, including increasing headcount and establishing new policies.
As of March 31, 2025, total debt net of discount was $10.64 million, with lease liabilities totaling $13.3 million. The company expects to continue incurring losses for the foreseeable future, but management has outlined strategic growth drivers for 2025 focusing on operational efficiencies and new revenue streams.
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