Starco Brands Reports Worsening Q1 Loss, Cash Burn, and Persistent Going Concern Warning
STCB sits 74% above its 52-week low of $0.016 on elevated volume (9.8× avg).
Summary
Starco Brands reported a net loss and significant cash burn in Q1 2026, with its cash balance dropping below $1 million, reinforcing its going concern warning and internal control weaknesses.
Key Events · Earnings and Guidance · STCB
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Worsening Financial Performance
Starco Brands reported a net loss of $829,720 for Q1 2026, a significant decline from a $1,976,105 net income in Q1 2025 (which included a non-recurring gain). Revenue decreased by 14.8% year-over-year.
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Increased Cash Burn & Low Liquidity
The company used $707,412 in cash from operating activities during Q1 2026, a reversal from cash generation in the prior year. Its cash balance dropped to $997,836 as of March 31, 2026.
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Worsening Working Capital Deficit
The working capital deficit increased to approximately $1.6 million as of March 31, 2026, from $1.38 million at year-end 2025.
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Persistent Going Concern Warning
Management reiterated substantial doubt about the company's ability to continue as a going concern, citing recurring net losses and continued working capital deficiencies.
Analysis · STCB · Trade & Services
Starco Brands' Q1 2026 results show a significant deterioration in financial health, with a net loss of $829,720 and $707,412 in cash used from operations. The company's cash balance has fallen below $1 million, and its working capital deficit has worsened to $1.6 million. This report reiterates the substantial doubt about the company's ability to continue as a going concern and highlights persistent material weaknesses in internal controls, signaling severe liquidity and operational challenges.
How filings like this one have moved
In the 30 days to Sep 30, 2026, 34.9% of the 1020 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.54%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, STCB was trading at $0.03 on OTC in the Trade & Services sector, with a market capitalization of approximately $21.2M. The 52-week trading range was $0.02 to $0.09. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.