Stemtech Q2 Revenue Falls 9.8%, Shares Outstanding Surge 543% as Convertible Debt Converts
STEK filed a Earnings and Guidance on light trading volume (0.1× avg).
Summary
Stemtech's Q2 2026 filing reveals continued revenue decline, a widening working capital deficit, a 543% surge in shares outstanding from convertible debt conversions, and new defaults on merchant cash advances.
Key Events · Earnings and Guidance · STEK
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Q2 Revenue Declines 9.8%
Net sales fell to $629,312 in Q2 2026 from $697,925 a year earlier, driven by constrained product availability. Six-month revenue dropped 30.2% to $1,092,269.
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Shares Outstanding Surge 543%
Shares outstanding jumped from 425,980,711 at year-end 2025 to 2,738,521,585 at June 30, 2026, primarily from 2.04 billion shares issued on convertible note conversions and 277 million shares issued for services. Subsequent to quarter-end, total shares reached 2,997,032,856.
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Working Capital Deficit Widens
Working capital deficit increased to $10,541,731 at June 30, 2026 from $10,129,951 at December 31, 2025. The company has an accumulated deficit of $36.3 million and continues to raise substantial doubt about its ability to continue as a going concern.
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New Inventory Financing with Warrants
In April 2026, the company entered an inventory financing agreement with 21 Kislev LLC for up to $500,000. The deal includes 1,600,000 warrants exercisable at $0.001 per share and 4.9% non-dilutable preferred convertible stock.
Analysis · STEK · Trade & Services
Stemtech's Q2 2026 report shows revenue down 9.8% year-over-year to $629,312, with a net loss of $292,358. The company's working capital deficit widened to $10.5 million, and shares outstanding ballooned from 426 million to 2.74 billion in six months — a 543% increase driven by convertible debt conversions and stock issued for services. Subsequent to quarter-end, shares outstanding reached nearly 3 billion. The company also disclosed it is in default under certain Merchant Cash Advance agreements, with lenders filing legal proceedings. This is a highly distressed micro-cap with a going concern warning, massive dilution, and mounting legal pressure.
At the time of this filing, STEK was trading at $0.00 on OTC in the Trade & Services sector, with a market capitalization of approximately $216.9K. The 52-week trading range was $0.00 to $0.03. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.