Breaking Down Splash Beverage Group, Inc. (SBEV) Financial Health: Key Insights for Investors

If you are looking at Splash Beverage Group, Inc. (SBEV) right now, you need to understand that this is a story of extreme financial distress and a high-stakes pivot. Forget the typical beverage growth narrative; the latest Q3 2025 report shows the company hit a wall, reporting $0 in revenue for the quarter due to a complete operational halt since March, which is a defintely alarming sign. The immediate liquidity crisis is stark: as of September 30, 2025, the company had only $266,000 in cash, but management estimates they need $2 million just to restart minimal operations. That's a massive gap. Still, the company is betting its future on a radical strategic shift, acquiring $20 million in Costa Rican Water Rights, an intangible asset that offers a new path but requires another $22 million in funding to build the necessary extraction and bottling infrastructure. This stock isn't for the faint of heart; it's a binary bet between an existential crisis and a monumental turnaround, which is why you see analyst price targets ranging wildly from a recent 'Sell' at $1.00 to a more optimistic $20.00 consensus.

Revenue Analysis

You're looking at Splash Beverage Group, Inc. (SBEV) revenue, and the numbers for the 2025 fiscal year are defintely a flashing red light. The direct takeaway is this: the company's revenue has collapsed year-over-year, and the recent quarter showed essentially no sales, which raises immediate questions about its core operations and going concern.

For the trailing twelve months (TTM) ending September 30, 2025, Splash Beverage Group, Inc. reported total revenue of just $1.02 million. That's a staggering drop, marking a year-over-year revenue decline of -83.63%. Honestly, that kind of contraction signals a major operational or strategic failure, not just a market slowdown.

Primary Revenue Streams and the Q3 Shock

Splash Beverage Group, Inc. operates across a portfolio of brands, including Salt Tequila, Copa Di Vino, and Pulpoloco Sangria. The company officially reports its revenue across two main operating segments:

• Manufacture and Distribution: This covers non-alcoholic and alcoholic beverages, and historically generates the majority of the company's revenue.
• Retail Sale: This is primarily the online sale of beverages and groceries, which includes the Qplash resale business.

The core of the business is distribution, but the real shock came in the most recent filing. In the third quarter of 2025, the company reported nil revenue ($0.00), compared to $981,858 in the same quarter a year prior. This zero-revenue quarter is a critical data point, suggesting a near-complete halt in sales activities for that period.

The Segment Contribution Shift

While the overall revenue is minimal, the segment picture is complex. Management has highlighted the restart of the Qplash resale business, which boasts a high gross margin of 59%. This high-margin segment is a small component, but its restart is a strategic move to improve profitability where possible, given the liquidity challenges. Here's the quick math on the TTM revenue, showing the dramatic change:

The company's focus on distribution expansion in regions like the Pacific Northwest and Texas, along with a key authorization for Copa Di Vino in over 800 Circle K franchise stores, shows a strategy to drive future revenue. Still, these efforts have not yet translated into sales, as evidenced by the $0.00 Q3 revenue. What this estimate hides is the impact of inventory limitations and the ongoing legal issues with ABG TapouT, which are clearly suppressing the main distribution segment.

The immediate risk here is that the distribution network gains are not sustainable without product flow, which requires cash. You need to understand the full context of these risks; you can read more about the shareholder base and motivations here: Exploring Splash Beverage Group, Inc. (SBEV) Investor Profile: Who's Buying and Why?

The company is projecting positive cash flow and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) by Q3 2025, but the nil revenue report for that same quarter makes that forecast highly questionable. A revenue collapse of this magnitude is a signal that the business model itself is under immense pressure.

Next Step: Investment Team: Recalculate SBEV's Discounted Cash Flow (DCF) model using a zero-revenue base case for the near-term.

Profitability Metrics

You need to know if a company is making money, and honestly, the profitability profile for Splash Beverage Group, Inc. (SBEV) shows significant operational strain. The simple takeaway is this: for the trailing twelve months (TTM) ending June 30, 2025, the company spent more on the core product than it made in sales, and its net loss is staggering relative to revenue. This is a red flag, defintely.

The core profitability metrics tell a clear story of a company struggling with its cost structure and scale. Here is the quick math based on the TTM data ending June 30, 2025, which reflects the most comprehensive recent period:

• Gross Profit Margin: -3.98%
• Operating Profit Margin: -420.4%
• Net Profit Margin: -1,291.2%

A negative gross profit margin is a serious issue. It means the Cost of Revenue-the direct cost of making or acquiring the beverages-was $2.09 million against a total revenue of only $2.01 million for that TTM period. You're losing money before you even pay for the lights or the CEO's salary. That's a tough spot.

Operational Efficiency and Margin Trends

The deeply negative margins point directly to severe operational inefficiency and a lack of cost management that has worsened over time. The Gross Margin trend is the most concerning indicator of the core business health. While typical beverage brands operate with a Gross Margin between 40% and 65% (even wholesale arrangements are usually 20% to 35%), SBEV's -3.98% shows that their product pricing, sourcing, or production process is fundamentally broken right now.

Moving down the income statement, the Operating Profit Margin of -420.4% highlights that Selling, General, and Administrative (SG&A) expenses are overwhelming the minimal revenue base. This is a common problem for small, growth-focused companies, but the magnitude here is extreme. The company's net loss for the TTM period was $25.90 million. More recently, the reported net loss for the third quarter ended September 30, 2025, was $9.89 million.

Comparison to Industry Averages

When you stack SBEV's performance against the broader beverage industry, the gap is alarming. The average TTM Operating Margin for alcoholic beverage companies is around 32.92%, and even the overall Food and Beverage sector sees an average operating profit rate of about 7.6%.

Here is a quick comparison to put SBEV's operational challenge in perspective:

What this estimate hides is the company's continuous effort to restructure its balance sheet, including exchanging approximately $12.7 million of debt for preferred equity in Q1 2025 to reduce obligations. Still, the underlying business is not yet generating profit, and the financial filings as of September 30, 2025, cite 'substantial doubt' about the company's ability to continue as a going concern (a business that can meet its obligations as they come due). This is the highest level of risk disclosure. For a deeper look at the shareholder base navigating this risk, check out Exploring Splash Beverage Group, Inc. (SBEV) Investor Profile: Who's Buying and Why?

The clear action here is to wait for evidence of a sustained, positive Gross Margin-a sign that the core product economics are finally working-before considering a long position.

Debt vs. Equity Structure

You're looking at Splash Beverage Group, Inc. (SBEV)'s balance sheet to understand how they fund their operations, and the key takeaway is that their recent strategy hinges on swapping debt for equity to shore up their financial foundation. This is a critical move to improve their solvency (long-term ability to pay debts), but it comes with a trade-off: shareholder dilution.

As of the second quarter of 2025 (June 30, 2025), the company's total liabilities stood at $13,518,808. Their core debt components-Notes Payable and Accrued Interest-amounted to approximately $6.08 million. This debt structure is heavily influenced by the company's need for working capital, especially given the reported $0 revenue in Q2 2025 due to a lack of operating capital. That's a serious liquidity crunch.

Here's the quick math on their leverage, using the most recent data:

• Total Debt (Notes Payable + Accrued Interest): $6,077,770
• Total Stockholders' Equity: $8,718,081

This gives Splash Beverage Group, Inc. (SBEV) a Debt-to-Equity (D/E) ratio of about 0.70:1. This ratio means the company has 70 cents of debt for every dollar of shareholder equity. To be fair, this is a significant improvement from their prior position, which included an equity deficit at the end of 2024. A D/E ratio below 1.0 is generally considered healthy, but you need to look at the 'why.'

When you compare this to the industry, the ratio looks favorable. The average Debt-to-Equity ratio for the Beverages - Non-Alcoholic industry is around 0.83 as of November 2025. Splash Beverage Group, Inc. (SBEV)'s 0.70:1 is lower, but this lower leverage is a direct result of recent, dramatic balance sheet maneuvers, not consistent operating profitability.

The company's most important recent activity was a major shift in its financing balance, moving away from debt toward equity. In Q2 2025, Splash Beverage Group, Inc. (SBEV) completed large-scale debt-for-equity exchanges (a financial transaction where a company's debt is converted into common or preferred stock). Specifically, they issued 126,710 shares of Series B Preferred Stock in exchange for roughly $12.7 million in notes and accrued interest. This action materially changed the balance sheet, improving total stockholders' equity from a deficit to a positive $8,718,081. They are defintely prioritizing survival over minimizing dilution right now.

This debt-to-equity conversion is a clear, aggressive strategy to reduce the immediate burden of interest payments and debt principal, which is crucial when cash is low (only $17,213 on hand as of June 30, 2025). The cost, however, is the potential dilution from the new preferred stock and its convertible nature, which investors must factor into their valuation. For a deeper dive into the company's full financial picture, you can read the complete analysis at Breaking Down Splash Beverage Group, Inc. (SBEV) Financial Health: Key Insights for Investors.

Liquidity and Solvency

The liquidity position of Splash Beverage Group, Inc. (SBEV) is extremely tight, a major red flag that demands your immediate attention. Simply put, the company's current assets-what it can convert to cash quickly-are nowhere near enough to cover its short-term debts. This is a classic, high-risk situation for a micro-cap stock.

Current and Quick Ratios: A Stark Picture

When you look at the fundamental metrics, the numbers tell a stark story about the company's ability to meet its near-term obligations. The current ratio and quick ratio (or acid-test ratio) are key indicators of financial health, and for Splash Beverage Group, Inc., they are deeply concerning. A ratio below 1.0 means a company cannot pay off all its current liabilities with its current assets, and SBEV is far below that threshold.

• Current Ratio: 0.13. This means for every dollar of short-term debt, Splash Beverage Group, Inc. has only 13 cents in current assets to cover it.
• Quick Ratio: 0.04. Removing inventory (which is less liquid) makes the situation even more dire, showing only 4 cents in highly liquid assets per dollar of current debt.

Honestly, a current ratio of 0.13 is a sign of severe financial distress. You don't see numbers like this in healthy, operating businesses.

Analysis of Working Capital Trends

The low current ratio directly translates into a significant negative working capital position (Current Assets minus Current Liabilities). The trend here is a sharp contraction, driven by insufficient capital that forced the company to temporarily suspend operations in February 2025. The lack of liquidity has already impacted operations, leading to a collapse in revenue for the nine months ended September 30, 2025, which dropped to $438,272 from $3.57 million in the prior-year period. This cycle-low cash leading to suspended operations, which then tanks revenue-is a difficult one to break. It's a liquidity spiral.

Cash Flow Statements Overview

The cash flow statement confirms the company's difficulty in generating cash from its core business. Over the nine months ended September 30, 2025, the net cash used in operating activities was approximately $3.83 million. This is the cash burn rate from day-to-day operations. The company is losing cash just by existing.

Here is a quick overview of the cash flow trends for the nine months ended September 30, 2025, and the first quarter of 2025 (Q1 2025) for a clearer picture:

The positive financing cash flow in Q1 2025, which was $0.8 million, came primarily from new debt, such as a convertible note. This is a critical point: the company is relying on external financing to cover its operating cash deficit. That's not sustainable growth; it's life support.

Potential Liquidity Concerns and Strengths

The primary liquidity concern is the company's explicit disclosure of substantial doubt about its ability to continue as a going concern without significant new funding. This is the most serious warning a company can issue. The cash and cash equivalents were even reported as $0 as of March 31, 2025. The company is entirely dependent on its ability to raise new capital, like the recent convertible note financing and equity line agreement.

A potential strength, or at least a future opportunity, is the multi-year anchor customer purchase order for the Costa Rican water business, valued at approximately $6 million annually. If they can execute on this, with deliveries expected to start in Q1 2026, it could provide a much-needed, stable revenue and cash flow source. Still, that's a future event, and the near-term is about survival.

For a deeper look into who is funding this operation, you should read Exploring Splash Beverage Group, Inc. (SBEV) Investor Profile: Who's Buying and Why?

Your action item here is to monitor the new financing agreements and the progress on the $6 million water contract. If the company fails to secure more capital or if that water deal stalls, the risk of a complete financial collapse is defintely high.

Valuation Analysis

You're looking at Splash Beverage Group, Inc. (SBEV) and trying to figure out if the stock price makes any sense, which is a fair question when the financials are this volatile. My direct takeaway is that SBEV is currently priced like a deep-value or distressed asset based on trailing metrics, but its valuation is defintely a value-trap risk unless management executes flawlessly on their projected growth.

The core issue is that traditional valuation metrics (multiples) are skewed by the company's lack of profitability and its recent stock performance. The market capitalization is quite small at around $1.77 million, yet the Enterprise Value (EV), which includes debt, is significantly higher at roughly $7.91 million, showing the debt load is a major factor in the total company value.

The Skewed Multiples: P/E, P/B, and EV/EBITDA

When a company is unprofitable, its Price-to-Earnings (P/E) ratio is negative, making it useless for comparison. For the second quarter of 2025, SBEV's P/E ratio was reported at -0.13, which simply confirms the net losses. Likewise, the Enterprise Value-to-EBITDA (EV/EBITDA) ratio, which strips out non-cash items and capital structure, was also negative at approximately -0.35 for the 2025 second quarter. Negative multiples tell you the company is burning cash, not generating profit.

However, the Price-to-Book (P/B) ratio is a different story, sitting at a low 0.18. This suggests the stock is trading for less than its net asset value (what shareholders would theoretically get if all assets were sold and all liabilities paid), which is a classic sign of an undervalued stock or, critically, a market signal that investors don't trust the book value of those assets. The other key metric to watch is the Enterprise Value-to-Sales (EV/Sales) ratio, which is high at 7.73 on a trailing twelve-month (TTM) basis, indicating the market is paying a premium for each dollar of recent revenue. Here's the quick math on the 2025 projections versus TTM data:

• TTM Revenue: $1.02 million
• 2025 Forecasted Annual Revenue: $73 million
• Q3 2025 Expected Net Loss: Approximately $7.0 million

Stock Performance and Capital Structure

The stock price trend over the last 12 months tells a story of significant capital destruction. The 52-week range is staggering, moving from a high of around $13.59 to a low of $0.74, reflecting a year-over-year decline of over 90% as of November 2025. This massive drop was compounded by a 1-for-40 reverse stock split enacted in March 2025, which artificially boosted the share price but did not fix the underlying operational issues. The stock is volatile, but the trend has been sharply negative. That's a serious red flag for investor confidence.

Regarding income distribution, Splash Beverage Group, Inc. does not pay a dividend. The TTM dividend yield is 0.00% because the company is focused on reinvesting or, more accurately, funding its operating losses. You can read more about the company's strategy in their Mission Statement, Vision, & Core Values of Splash Beverage Group, Inc. (SBEV).

Conflicting Analyst Consensus

The analyst community is sharply divided on SBEV, which is common for micro-cap growth stocks with high risk. This makes your decision harder, not easier. One analyst has a 'Buy' rating with a highly optimistic price target of $20.00, suggesting a massive upside of over 2,500% from the current price. But, you also have a recent 'Sell' rating with a target of just $1.00, and an AI-driven analysis labeling the stock as 'Underperform.'

Here's a snapshot of the target conflict:

What this estimate hides is the execution risk. The huge price targets are based on the assumption that the company hits its aggressive growth projections, like the $73 million in 2025 revenue. If they miss, which is a real possibility given the expected $7.0 million net loss in Q3 2025, the stock will likely fall toward the lower price targets. Your action here must be grounded in your conviction about their ability to scale distribution and brand awareness quickly.

Risk Factors

You are looking at Splash Beverage Group, Inc. (SBEV) and the risks are significant, honestly. The most immediate and existential concern is the Breaking Down Splash Beverage Group, Inc. (SBEV) Financial Health: Key Insights for Investors liquidity crisis. The company is navigating a severe cash crunch that led to an explicit financial statement disclosure of substantial doubt about its ability to continue as a going concern (a business that can meet its financial obligations). This is the biggest red flag.

The core operational risk is simple: they can't buy inventory. Splash Beverage Group, Inc. reported $0 in revenue for Q3 2025 and has been unable to generate commercial sales since March 2025 because it lacks the capital to acquire product. As of September 30, 2025, the company held only $266,000 in cash, but management estimates they need at least $2 million just to restart minimal operations. That's a huge gap.

Beyond the operational halt, the financial and strategic risks are complex. Here's the quick math on the near-term challenges:

• Leadership Instability: Both the CEO and CFO resigned in November 2025, creating a vacuum at a critical time.
• Extreme Dilution: Non-cash share-based compensation hit a massive $7.9 million in the first nine months of 2025 (9M 2025), largely from executive warrants, which defintely dilutes common equity value.
• Expected Losses: The company expects to report a net loss of approximately $7.0 million for Q3 2025, a significant increase from the $4.7 million loss in the same quarter last year.

The strategic pivot to the Costa Rican water business, while a potential long-term play, introduces a massive new risk. Splash Beverage Group, Inc. acquired $20 million in Costa Rican Water Rights, booking it as an indefinite-lived intangible asset. The problem is, monetizing this asset requires securing an estimated $22 million to build the necessary extraction and bottling infrastructure. If they can't raise this capital, that $20 million asset valuation faces a material impairment charge.

External pressures and compliance issues compound these internal problems. One analysis places the company's probability of financial distress at a high 88%, far exceeding the Food Products sector average. Plus, the company delayed filing its Q3 2025 Form 10-Q due to auditor review issues, which is never a good sign for investor confidence.

The mitigation strategies are aggressive and high-stakes. To maintain its NYSE American listing, Splash Beverage Group, Inc. executed a $12.7 million debt-to-equity swap in June 2025. This eliminated current liabilities but saddled the company with senior equity that carries a mandatory 12% cumulative dividend, creating a significant, long-term non-cash financial burden. They are also trying to expand into the THC beverage category and launch Chispo Tequila across six states to find a new revenue stream. It's a race against the clock for capital.

Your next step should be to monitor their capital raise efforts and the Q3 2025 filing status; if they can't secure the $2 million needed for operations soon, the going concern risk becomes a certainty.

Growth Opportunities

You're looking at Splash Beverage Group, Inc. (SBEV) and seeing a micro-cap company with a choppy financial history, but you need to know if the recent strategic pivots are defintely going to pay off. The short answer is that management is aggressively pursuing high-growth, high-margin categories, which is why analysts are projecting an enormous jump in top-line revenue for 2025.

The core of the growth story rests on three clear pillars: product innovation, tapping into emerging markets, and strategic acquisitions. This isn't just a slow, organic distribution play anymore; they're making big bets. You can dig deeper into the investor base by reading Exploring Splash Beverage Group, Inc. (SBEV) Investor Profile: Who's Buying and Why?.

Future Revenue and Earnings Estimates

Let's cut straight to the numbers. Wall Street analysts are forecasting a significant revenue surge for 2025, which is the primary opportunity here. The consensus for Splash Beverage Group, Inc.'s 2025 annual revenue is approximately $29,498,572, based on an average of three analyst forecasts. That implies a forecast annual revenue growth rate of a staggering 586.04%, which is a massive leap over the industry average.

Here's the quick math: that kind of growth, while exciting, still leaves the company in the red. Analysts also project 2025 earnings to be an average loss of -$27,110,735. What this estimate hides is the high cost of this aggressive expansion-new product launches, distribution build-out, and acquisition-related expenses-but the goal is to build a much larger revenue base for future profitability.

Key Growth Drivers and Strategic Moves

The company's strategy is to be a platform that acquires and accelerates brands, and their recent actions show them executing on this. They are broadening their business focus to include high-growth sectors outside of their traditional beverage portfolio, which is a smart way to diversify risk and capture trends.

The key drivers for this projected growth include:

• Launch Chispo Tequila across six major states: California, Nevada, Texas, Oklahoma, New York, and Florida.
• Expansion into the high-potential THC beverage category, with discussions underway with multiple brands.
• Leveraging the water rights secured in Costa Rica, which is backed by a multi-year anchor customer purchase order valued at approximately $6 million annually, with deliveries starting in Q1 2026.

Also, the company recently shored up its balance sheet by exchanging $12.7 million in convertible notes for preferred equity and issuing $20 million in preferred shares to secure those Costa Rican water rights. This is a crucial step in stabilizing their capital structure to support the expansion.

Competitive Advantages and Positioning

Splash Beverage Group, Inc.'s competitive edge isn't in one massive brand, but in its platform approach and agility. They focus on category innovation and building scalable brands, which allows them to pivot quickly into hot markets, like the THC beverage space. The company remains committed to securing an anchor acquisition-a larger, more established brand-that could dramatically enhance their growth trajectory and accelerate the path to profitability.

Plus, their existing brand, Pulpoloco Sangria, expanded distribution in late 2024 with Total Wine & More across over 115 stores in key states like Arizona and Texas, which will provide a solid base of sales momentum heading into 2025. This multi-brand, multi-category approach is their framework for creating sustainable value.

Next Step: Portfolio Manager: Assess the probability of the anchor acquisition closing by Q2 2026 and model its potential revenue contribution.