Eightco Holdings (ORBS) just posted its FY 2025 third quarter numbers, reporting revenue of US$5.3 million and a loss per share of US$0.58, alongside a trailing twelve month loss per share of US$2.42 on revenue of US$43.1 million. Over the past few reported quarters, revenue has moved from US$7.6 million in Q2 FY 2025 and US$9.9 million in Q1 FY 2025, while quarterly EPS has ranged from a loss of US$0.38 to a loss of US$0.87 and was US$1.81 in Q3 FY 2024. With the business still loss making on both the latest quarter and trailing twelve month view, margins remain the key lens investors may use to evaluate whether this result indicates any change in the path toward profitability.

See our full analysis for Eightco Holdings.

With the latest figures on the table, the next step is to see how these margins and revenue trends compare with the prevailing narratives around Eightco Holdings and where the numbers may challenge those stories.

TTM loss of US$32.2 million against US$43.1 million in sales

• Over the last twelve months, Eightco generated US$43.1 million in revenue while reporting a net loss of US$32.2 million, which means a large portion of each sales dollar has been absorbed by costs rather than dropping to the bottom line.
• What stands out for a cautious, bearish view is that net losses have grown at an annualized 14.8% over five years, and recent quarterly net income excluding extra items went from a loss of US$1.2 million in Q2 FY 2025 to a much larger loss of US$25.8 million in Q3 FY 2025, which heavily supports concerns about earnings pressure and business scalability.
  • Bears also point to the trailing twelve month loss per share of US$2.42 and Q3 FY 2025 basic EPS loss of US$0.58 as evidence that profitability has not stabilized yet.
  • The combination of ongoing losses and no earnings forecasts in the data means those worried about downside risk are relying mainly on these historical loss trends rather than any quantified turnaround plan.

P/S of 5.2x versus industry at 1x

• The company is trading on a P/S ratio of 5.2x compared with the North American Packaging industry average of 1x and a peer average of 0.6x, so investors are currently paying a multiple of sales that is more than 5x the broader industry level.
• Critics who lean bearish argue that this premium multiple is hard to square with the current earnings profile, since the business is unprofitable on a trailing twelve month basis with a net loss of US$32.2 million and basic EPS of negative US$2.42, which puts a lot of pressure on the idea that sales alone justify such a valuation.
  • They also point out that there is no DCF based valuation or forward earnings data in the figures provided, so there is no model based cash flow support in these numbers for the high P/S ratio.
  • Against a current share price of US$1.13, investors who share this cautious stance may focus closely on whether future reported revenue and margin trends bring that sales multiple closer to industry levels.

Shareholder dilution and volatile price add to risk

• Over the past year, the company has reported substantial shareholder dilution together with a share price that has been more volatile than the broader US market, which can amplify the impact of any new financial results on investor holdings.
• What reinforces a bearish narrative here is the mix of higher than market volatility and ongoing losses, since the trailing twelve month net loss of US$32.2 million and the 14.8% annualized increase in losses over five years give little buffer if sentiment weakens and newly issued shares or price swings further affect existing holders.
  • Higher volatility can cut both ways, but when paired with dilution and no available earnings forecasts, investors focused on downside risk tend to see this as a sign that capital structure and pricing could remain under pressure.
  • The risk section of the data specifically flags dilution and short term price moves as major issues, which lines up with the unprofitable status of the business over the trailing period.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Eightco Holdings's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

If this all sounds cautious, that is exactly why it helps to look at the numbers yourself and decide how they stack up for your portfolio. To see what stands out on the risk side, start with these 3 important warning signs.

Explore Alternatives

Eightco Holdings is still loss making with a trailing twelve month net loss of US$32.2 million, a wide loss per share, shareholder dilution and a P/S multiple well above industry levels.

If you are concerned about ongoing losses, dilution and volatility, it is worth comparing this situation with companies in the 71 resilient stocks with low risk scores that have more resilient profiles and potentially steadier returns.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.