Starco Brands Q2 2026: Revenue Falls 26%, Going Concern Warning Reiterated
STCB has more than doubled off its 52-week low of $0.016 on light trading volume (0.3× avg).
Summary
Starco Brands' Q2 2026 revenue fell 26% to $7.84 million, and the company reiterated its going concern warning with a $2.5 million working capital deficit. New financing includes an $18 million credit facility and a CEO note convertible at $0.04 per share.
Key Events · Earnings and Guidance · STCB
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Revenue Decline
Q2 2026 revenue fell 26% year-over-year to $7.84 million, primarily due to Soylent's inability to receive product from its primary supplier. H1 revenue declined 18% to $16.82 million.
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Going Concern Warning
The company reiterated substantial doubt about its ability to continue as a going concern, citing an accumulated deficit of $104.6 million, net losses of $2.29 million for H1 2026, and a working capital deficit of approximately $2.5 million.
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New Credit Facility
On July 15, 2026, the company entered into an $18 million secured credit facility with Pasadena Private Lending, including an $11 million term loan, $4 million accordion, and $3 million revolver, with financial covenants.
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CEO Note Converted
The $3.47 million note payable to CEO Ross Sklar was amended into a convertible note with a conversion price of $0.04 per share, maturing March 31, 2030, adding potential dilution.
Analysis · STCB · Trade & Services
Starco Brands reported a 26% year-over-year revenue decline to $7.84 million in Q2 2026, driven by Soylent supply chain issues, while reiterating a going concern warning with a $2.5 million working capital deficit and $104.6 million accumulated deficit. The company disclosed a new $18 million credit facility with Pasadena Private Lending and converted its CEO note to a convertible note at $0.04 per share, adding potential dilution. Material weaknesses in internal controls remain unaddressed.
At the time of this filing, STCB was trading at $0.04 on OTC in the Trade & Services sector, with a market capitalization of approximately $29M. The 52-week trading range was $0.02 to $0.07. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.