Margin Compression

Eightco Holdings (NASDAQ: OCTO) reported Q1 2025 revenue of $9.9 million (+25% YoY), driven by its expansion into the high-volume, low-margin refurbished Apple products market. Operating losses narrowed 55% to $1.4 million through reduced SG&A expenses (-28% to $2.2 million), but gross margins collapsed to 8.2% from 17.5%, raising concerns about balancing growth with profitability amid rising interest costs ($1.3 million) and a $2.5 million net loss versus prior-year $1.9 million profit.