Breaking Down Fresh Vine Wine, Inc. (VINE) Financial Health: Key Insights for Investors

You're looking at Fresh Vine Wine, Inc. (VINE) and seeing a company that's defintely in transition, but the numbers reveal a stark, high-stakes trade-off for investors right now. The strategic pivot to the Amaze platform-a digital commerce play-is showing real promise, with Q3 2025 net revenue hitting $1.25 million and an exceptionally high gross margin of 93.6%, validating their new operational model. But, and this is the critical part, that momentum is being consumed by a severe burn rate; the net loss expanded to a staggering $5.15 million in Q3 2025, largely driven by a jump in Selling, General, and Administrative (SG&A) expenses. Here's the quick math: the company reported only about $311,000 in cash as of June 30, 2025, alongside a working capital deficit of roughly $27 million, which means the clock is ticking on their liquidity. We need to dissect whether the aggressive cost-cutting and the push for GAAP profitability by Q1 2026 can outrun the current cash crunch, especially with the stock trading around $0.58 as of mid-November 2025.

Revenue Analysis

The core takeaway for Fresh Vine Wine, Inc. (VINE) revenue is simple: the company is no longer a wine business. The March 2025 acquisition of Amaze Software, Inc. has fundamentally shifted the revenue engine, moving from low-margin wine sales to high-margin digital commerce services.

This pivot drove a massive year-over-year revenue increase in the first half of 2025, but it also introduced a new set of risks. Honestly, you're analyzing two different companies under one ticker now.

Breakdown of Primary Revenue Sources

Post-acquisition, Fresh Vine Wine operates under two primary segments, radically changing the source of income. The new business model is predominantly driven by the Amaze platform, which focuses on the creator economy and brand monetization.

• E-commerce/Subscriptions: This is the dominant new segment, stemming from the Amaze platform, which provides software and services for creators to launch and manage their own digital storefronts and products.
• Wine Products: This segment continues to sell the original low-carb, low-calorie "Fresh Vine" wines across the U.S. and Puerto Rico, but its contribution is now minor.

The Amaze platform's operational model is validated by an exceptional gross margin of 93.6% on its Q3 2025 revenue, generating $1.17 million in gross profit. This margin profile confirms that the E-commerce segment is the financial heart of the new entity, even if the old wine business still exists on the books.

Year-over-Year Growth and Segment Contribution

The revenue figures for 2025 demonstrate a dramatic acceleration, largely due to the inclusion of Amaze's operations starting in Q2. For the first half of 2025 (H1 2025), total revenues reached approximately $930,000, representing a staggering 431% increase from the $175,000 reported in H1 2024. This is a massive jump, but what this estimate hides is the fact that the old wine business was essentially winding down.

Looking at the most recent data, Q3 2025 net revenue grew 44% sequentially over Q2 2025, hitting $1.25 million. This sequential growth is critical; it shows the new E-commerce business has momentum. Here's the quick math on the segment shift, using the Q3 2025 data as the clearest snapshot of the new reality:

This table makes the shift clear: the E-commerce segment is responsible for nearly all the company's gross profit. If you want to dig deeper into the people behind this change, you should read Exploring Fresh Vine Wine, Inc. (VINE) Investor Profile: Who's Buying and Why?

Analysis of Significant Revenue Changes

The most significant change is the pivot from a consumer-packaged goods (CPG) company to a Software-as-a-Service (SaaS) and services model. The acquisition of Amaze Software, Inc. on March 7, 2025, is the sole driver of the revenue growth and the shift in margin profile. This move represents a strategic decision to trade the challenging, capital-intensive wine industry for the higher-growth, higher-margin digital commerce space.

While the revenue numbers are up, the TTM (Trailing Twelve Months) revenue as of November 2025 was still reported at a low $0.29 Million USD, a decrease from the $1.82 Million USD in 2023. This defintely highlights the complete collapse of the original wine business before the Amaze acquisition could fully offset the decline. Your focus as an investor should be entirely on the growth trajectory of the new E-commerce segment, not the historical wine figures.

Profitability Metrics

The profitability picture for Fresh Vine Wine, Inc. (VINE) in the third quarter of 2025 is a study in contrasts: an exceptionally high gross margin validates the new business model, but it is completely overshadowed by an unsustainable operating burn that resulted in a massive net loss. You need to focus on the operational efficiency gap between the cost of goods sold (COGS) and the Selling, General, and Administrative (SG&A) expenses.

The company's strategic pivot to the Amaze creator-focused platform has fundamentally changed its cost structure. The gross margin, which measures product-level profitability, is stellar, but the massive SG&A costs are consuming all of that gross profit and more. Here's the quick math for Q3 2025:

Gross Margin Trends and Operational Efficiency

The 93.6% gross margin is an exceptional figure, especially when compared to the typical 30% to 80% range for e-commerce platforms. This metric defintely validates the operational leverage (the ability to generate high profit per unit of revenue) of the Amaze platform, which focuses on high-margin digital and physical sales with a low incremental cost. For context, the company's gross margin was a negative -141.6% in 2023 when it was primarily a wine business, so this is a massive, positive shift in the core business model.

However, the high gross profit is immediately wiped out by the operating expenses. The net loss of $5.15 million in Q3 2025 was primarily driven by a $4.3 million increase in Selling, General, and Administrative (SG&A) expenses. This high burn rate is due to the costs of the new creator-focused business model, including personnel, marketing, and transaction-related professional fees associated with the merger.

• Gross margin is excellent; operational efficiency is currently poor.
• SG&A is the primary cost-management challenge.
• Management is targeting GAAP profitability by Q1 2026.

Near-Term Risks and Actions

The massive -412% net loss margin is unsustainable. The company had only $0.30 million in cash at the end of Q3 2025, which was critical considering the loss. While a subsequent $9.2 million equity raise provides a temporary liquidity buffer, it only funds roughly 1.8 quarters of losses at the current burn rate. Management has already announced a strategic cost reduction of approximately $215,000 per month starting in December 2025, driven by the expansion of its AI initiatives. This is a necessary survival move, not just an optimization. To understand the full context of this shift and who is betting on this new model, you should be Exploring Fresh Vine Wine, Inc. (VINE) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

You need to know how Fresh Vine Wine, Inc. (VINE) is funding its pivot, and the short answer is that while their long-term debt looks tiny, the true financial picture is much more complicated. The company's trailing 12-month (ttm) Debt-to-Equity (D/E) ratio is a low 0.08, suggesting minimal reliance on debt, but this figure is defintely misleading because of the massive strategic shift that happened in early 2025.

As of the second quarter of 2025, Fresh Vine Wine, Inc. (VINE) reported total debt of roughly $5.89 million. The far more critical figure, however, is the company's total liabilities, which stood at approximately $28.3 million as of June 30, 2025. What this estimate hides is that nearly all of those liabilities are current, meaning they are due within the next year. That's a huge short-term cash crunch.

Here's the quick math on the leverage comparison:

• Fresh Vine Wine, Inc. (VINE) D/E Ratio: 0.08
• Wineries & Distilleries Industry Average D/E Ratio: 0.50

On the surface, Fresh Vine Wine, Inc.'s D/E ratio of 0.08 looks incredibly safe compared to the average of 0.50 for the Wineries & Distilleries sector. But you can't compare a wine company to a tech platform. The low debt figure reflects the asset-light model of the original wine business, not the new reality of the combined entity, Amaze Holdings, Inc. The company's equity base is approximately $70.63 million as of Q2 2025, largely propped up by the Amaze Software acquisition, which is what gives the D/E ratio its low reading, despite the high current liabilities.

The company's financing strategy is currently defined by a major pivot from debt-averse wine producer to a capital-hungry e-commerce platform focused on the creator economy, a market expected to be worth $191.55 billion in 2025. This shift is driving a move toward equity funding to fuel growth and cover operational burn. The key actions here are all about raising fresh capital:

• Strategic Acquisition: Completed the acquisition of Amaze Software, Inc. in March 2025, immediately changing the business model and financial profile.
• Refinancing Activity: The company is actively seeking additional financing to maintain operations, a clear sign of liquidity strain despite the low D/E ratio.
• Equity Funding: Filed an S-1 IPO Registration Statement in September 2025, signaling a clear intent to raise significant capital through a public equity offering rather than new debt.

The balance is clearly tipping toward equity funding now. They are choosing to dilute ownership to fund the new growth strategy and shore up the balance sheet, rather than taking on more interest-bearing debt, which is a smart move for a growth-focused tech-adjacent company. For a deeper dive into who is backing this new direction, you should be Exploring Fresh Vine Wine, Inc. (VINE) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

Fresh Vine Wine, Inc. (VINE) faces an extremely challenging liquidity position, which is the most critical near-term risk for investors. Simply put, the company does not have enough liquid assets to cover its immediate debts, a situation that requires constant capital raises to stay afloat.

As of June 30, 2025, the company's financial health showed a significant strain, primarily due to a substantial working capital deficit (Current Assets minus Current Liabilities). This isn't a minor issue; it's a structural problem that management is actively trying to fix following the pivot to the Amaze platform business.

Current and Quick Ratios: A Stark Picture

The company's short-term liquidity ratios are alarming. The Current Ratio, which measures the ability to cover short-term liabilities with short-term assets, was calculated at approximately 0.046 as of June 30, 2025. Here's the quick math: Current Assets of around $1.3 million divided by Current Liabilities of approximately $28.3 million.

The Quick Ratio (or acid-test ratio), which excludes inventory and other less-liquid current assets, is even more concerning. Using the cash and restricted cash of approximately $311,000 as the most liquid assets, the Quick Ratio is a mere 0.011. A ratio below 1.0 means the company cannot pay its current bills with its most liquid assets. A ratio this low means Fresh Vine Wine, Inc. (VINE) is defintely dependent on external funding to meet obligations.

Working Capital and Cash Flow Trends

The working capital deficit of approximately $27.0 million as of June 30, 2025, highlights the severity of the liquidity stress. This deficit is a clear sign that the company needs to either drastically reduce liabilities or raise substantial capital. What this estimate hides is the nature of the liabilities, which often include convertible notes that can be a double-edged sword: they postpone cash payments but dilute equity when converted.

Looking at the cash flow statement for the six months ended June 30, 2025, the picture gets clearer:

• Operating Cash Flow: Net cash used in operating activities was approximately $3.9 million. This is a significant increase from the prior year and shows the high cash burn rate associated with scaling the new Amaze platform business, including increased Selling, General, and Administrative (SG&A) expenses.
• Investing Cash Flow: Net cash used in investing activities was about $308,000, mainly tied to a note receivable from the acquisition. This is a relatively minor use of cash compared to operations.
• Financing Cash Flow: The company raised capital, including $855,000 from preferred stock and $4,732,000 from notes payable. This financing is the only thing keeping the company solvent.

The core message is that operations are not generating enough cash-they are consuming it at a fast pace. The company must rely on financing activities to cover the burn, which is why the subsequent $9.2 million equity raise after Q3 2025 was a necessary, albeit temporary, liquidity buffer.

Near-Term Liquidity Concerns and Action

The primary liquidity concern is the high cash burn rate. The $5.15 million net loss in Q3 2025, driven by high SG&A, is unsustainable without repeated capital injections. Management has a stated goal of reaching GAAP profitability by Q1 2026, which is an aggressive target that hinges entirely on successful cost curtailment and monetization efficiency of the Amaze platform's large user base.

For you, the investor, the action is clear: monitor the cash burn rate and the progress toward profitability. If the net loss doesn't shrink significantly in Q4 2025, Fresh Vine Wine, Inc. (VINE) will need another major capital raise. You can review the strategic direction and long-term goals in the Mission Statement, Vision, & Core Values of Fresh Vine Wine, Inc. (VINE).

Valuation Analysis

You want to know if Fresh Vine Wine, Inc. (VINE) is a bargain or a trap. Based on the 2025 fiscal year data, the company is not easily valued using traditional metrics because it's generating losses, which typically signals a high-risk, speculative situation. The core takeaway is that VINE's valuation metrics point to an undervalued stock only if you believe its recent strategic pivot-the acquisition of Amaze Software, Inc.-will fundamentally turn the business around.

The numbers show the company is deeply distressed as a wine operation. For instance, the Trailing Twelve Months (TTM) Price-to-Earnings (P/E) ratio sits at a negative -1.98 as of November 2025. A negative P/E means the company is losing money, so the ratio is not useful for comparison; it just confirms the lack of profitability. Similarly, the Enterprise Value-to-EBITDA (EV/EBITDA) ratio is also negative at -2.46, which again points to negative core operating earnings (EBITDA). This is a classic sign of a company struggling with operational efficiency.

Here's the quick math on key valuation metrics:

• P/E Ratio (TTM): -1.98
• EV/EBITDA Ratio: -2.46
• Price-to-Book (P/B) Ratio: 0.07 (as of Nov 2024)

A P/B ratio of 0.07 suggests the stock is trading for pennies on the dollar compared to its net asset value, which is a common indicator of being undervalued. However, what this estimate hides is the market's deep skepticism about the quality of those assets and the company's ability to monetize them, especially given the ongoing losses.

Stock Trend and Analyst View

The stock price trend over the last 12 months reflects this market skepticism. The 52-week range has been between a low of $0.25 and a high of $1.25, but the stock has dramatically underperformed, with a decrease of 98.70% over the last year. That is a severe destruction of shareholder value. The latest close price is around $0.27. This kind of volatility and decline is a massive red flag.

On the income side, you should know that Fresh Vine Wine, Inc. does not pay a dividend, so the dividend yield is 0.00%. This is expected for a company focused on survival and a pivot, not returning capital to shareholders.

Analyst consensus is straightforward: the general sentiment is bearish. The stock was even downgraded to a 'does not qualify' status by some firms due to its poor financial metrics. This is not a 'hold' or a 'sell' recommendation; it's a statement that the company's financials are too challenged to even fit into a standard analytical framework. The market is defintely not buying the old story.

The real question for investors now is how to value the new company. Fresh Vine Wine, Inc. is in the process of changing its name to Amaze Holdings, Inc. and its ticker to AMZE following its acquisition of Amaze Software, Inc. You are no longer investing solely in a wine company; you are betting on the success of a strategic shift into the creator economy software space. That's a completely different risk profile. If you want to dive deeper into who is holding the stock through this transition, you can check out Exploring Fresh Vine Wine, Inc. (VINE) Investor Profile: Who's Buying and Why?

Your next step should be to look at the financial projections for Amaze Software, Inc. to see if the new business model can justify the current low Price-to-Book ratio, or if the stock is a value trap.

Risk Factors

You're looking at Fresh Vine Wine, Inc. (VINE) and seeing a company in the middle of a massive strategic pivot, which means the risks have fundamentally changed. The direct takeaway is this: the primary risk has shifted from the wine industry's competitive pressures to the execution and liquidity challenges of integrating a new, high-growth e-commerce platform.

The biggest near-term problem is financial. As of June 30, 2025, Fresh Vine Wine, Inc. (VINE) reported a working capital deficit of approximately $27.0 million. That's a serious liquidity stressor. Plus, cash and restricted cash stood at only about $311,000 at the end of Q2 2025, which is defintely a razor-thin margin for error. The company must secure additional financing, and that always carries the risk of significant shareholder dilution or onerous debt terms.

Here's a quick look at the core risks affecting the new combined entity, which is now operating as Amaze Holdings, Inc. (AMZE) following the March 2025 acquisition:

• Liquidity Risk: Insufficient cash to fund operations, necessitating continuous capital raises.
• Integration Risk: Failure to successfully merge the legacy wine business with the new Amaze Software, Inc. e-commerce platform.
• Execution Risk: Rapidly escalating operating expenses outpacing new revenue growth in the creator economy segment.

Operational and Financial Risks from Recent Filings

The financial reports for the first three quarters of 2025 clearly map out the new operational risks. While the strategic pivot to the creator-focused commerce platform has driven revenue growth-Q3 2025 total net revenue increased 1,884% to $1.25 million year-over-year-it has also dramatically increased costs.

For the third quarter ended September 30, 2025, the net loss was $5.15 million, or $(0.85) per share. The increase in net loss was largely driven by a $4.3 million surge in Selling, General, and Administrative (SG&A) expenses. This is the cost of building the new business: personnel expenses, legal fees tied to the reverse merger, and marketing costs to acquire creators and drive platform growth. The new business model is high-margin, but the initial ramp-up is expensive. That's the trade-off you're seeing in the numbers.

To be fair, the company did report a gross profit increase of 668% to $1.17 million in Q3 2025, reflecting the higher operating leverage of the new e-commerce platform compared to the traditional wholesale wine model. But the cash burn is still the immediate concern. Cash used in operating activities was approximately $3.9 million for the six months ended June 30, 2025.

External and Strategic Headwinds

Beyond the internal financial structure, the external risks are now dual-pronged. You're not just competing with other premium wine brands anymore; you're also competing in the hyper-competitive creator economy space against much larger, established platforms. The wine segment still faces competition, distribution challenges, and regulatory hurdles common to the alcohol industry.

From a governance perspective, the company's bylaws contain provisions-like requiring advance notice for stockholder proposals and restricting special meetings-that may limit shareholder control over corporate actions. Also, the company had to address a NYSE American notice of noncompliance in January 2025 for not holding its annual meeting, which was resolved only after the acquisition.

Here is a snapshot of the key financial risks based on the first half of 2025:

Mitigation Strategies and Next Steps

The strategic pivot itself is the company's main mitigation plan. The acquisition of Amaze Software, Inc. and the rebranding to Amaze Holdings, Inc. is a bet that the high-growth, high-margin e-commerce segment can eventually fund the entire operation and provide a path to profitability that the wine business alone could not. The company successfully regained NYSE American compliance in March 2025, reporting preliminary stockholders' equity of approximately $80 million post-acquisition, well above the $4 million threshold. This was a direct result of the merger, which contributed $98 million in goodwill and intangibles.

They also raised capital in the first half of 2025, including $855,000 from a preferred stock offering and $4,732,000 from notes payable. This shows management is actively trying to bridge the liquidity gap. For a deeper understanding of the new direction, you should review the Mission Statement, Vision, & Core Values of Fresh Vine Wine, Inc. (VINE).

Your action item is clear: Monitor the Q4 2025 earnings report for a stabilization of the SG&A-to-revenue ratio in the new e-commerce segment. If the revenue growth rate starts to slow while SG&A remains elevated, the integration is failing to deliver operating leverage, and the liquidity risk will become even more acute.

Growth Opportunities

You need to look past the old wine segment to see where Fresh Vine Wine, Inc. (VINE) is headed. The real growth story for 2025 is the strategic pivot, which is why the company changed its name to Amaze Holdings, Inc. and its ticker to AMZE on March 24, 2025. The takeaway is simple: the company is now a digital commerce platform that happens to sell wine, not just a wine company.

The core growth driver is the acquisition of Amaze Software, Inc. in March 2025, which shifts the business into the high-growth creator economy. This move immediately created two operating segments: E-commerce/Subscriptions and Wine Products. The E-commerce segment is already showing significant traction, driving a massive surge in top-line numbers. For the first half of 2025, total net revenue was approximately $930,000, a 431% increase compared to the $175,000 reported in the same period of 2024. That's a serious jump. Here's the quick math: the new e-commerce business is the engine now.

The financial impact of this pivot is clear, even with the expanded net loss of approximately $7.1 million for the first half of 2025 due to integration and operating expenses. The Gross Merchandise Value (GMV) for the Amaze platform alone hit $3.8 million in the second quarter of 2025, signaling the platform's early success in facilitating product sales and subscriptions. This is the number you should be watching.

The company's future revenue growth projections are entirely tied to the E-commerce segment's ability to monetize its vast creator network. The platform supports over 14 million creators, entrepreneurs, and businesses, giving it an enormous, ready-made distribution channel. This is how they plan to scale.

• Launch exclusive, custom-branded wine and spirits for creators.
• Expand the product catalog beyond wine to apparel, accessories, and digital content.
• Use social media integrations (TikTok, YouTube, Discord) to drive sales.

This new model gives Fresh Vine Wine, Inc. (VINE) a clear competitive advantage over traditional wineries. They've combined their premium, 'better-for-you' wine brand-which retails between $14.99 and $24.99 per bottle-with an innovative, creator-powered commerce solution. This is defintely a unique position in the market. The old wine segment's asset-light production model also integrates well into Amaze's global supply chain capabilities, offering creators a seamless path from concept to consumer for a physical product like wine.

To be fair, the challenge is turning that revenue growth into profitability, as the Q2 2025 net loss was approximately $5.1 million. Still, the strategic initiatives are focused on high-margin digital commerce. The strategic partnership with Amaze, which includes integrations with platforms like Adobe Express, solidifies their position in the creator economy. If you want a deeper dive into the investor base that is betting on this pivot, you should check out Exploring Fresh Vine Wine, Inc. (VINE) Investor Profile: Who's Buying and Why?

Here is a snapshot of the segments driving the 2025 growth:

The action is to monitor the E-commerce Gross Merchandise Value (GMV) and the trajectory of the net loss. A shrinking loss margin on rapidly growing revenue will be the signal that the pivot is working.