Labor Smart Inc reported significant Q1 2025 results, marking its transformation from a single-brand DTC business to a diversified beverage and wellness conglomerate. Q1 revenue reached $3.39 million, a remarkable 1300% year-over-year increase. The growth was primarily driven by the acquisition of Creager Mercantile, which expanded the company's presence to over 9,000 retail locations. Despite the revenue surge, the company reported a net loss due to strategic investments in personnel, marketing, legal work, and infrastructure. The company is executing a growth-through-acquisition strategy, focusing on building high-margin brands and developing channel-agnostic distribution strategies across various sectors including retail, school districts, hotels, and on-premise locations.
Labor Smart Inc ha riportato risultati significativi nel primo trimestre del 2025, segnando la sua trasformazione da un'azienda DTC a marchio singolo a un conglomerato diversificato nel settore delle bevande e del benessere. I ricavi del primo trimestre hanno raggiunto 3,39 milioni di dollari, con un notevole aumento del 1300% rispetto all'anno precedente. La crescita è stata principalmente guidata dall'acquisizione di Creager Mercantile, che ha ampliato la presenza dell'azienda a oltre 9.000 punti vendita. Nonostante l'incremento dei ricavi, l'azienda ha riportato una perdita netta a causa di investimenti strategici in personale, marketing, attività legali e infrastrutture. La società sta attuando una strategia di crescita tramite acquisizioni, concentrandosi sulla costruzione di marchi ad alto margine e sullo sviluppo di strategie di distribuzione indipendenti dal canale, in diversi settori tra cui retail, distretti scolastici, hotel e punti vendita on-premise.
Labor Smart Inc meldete bedeutende Ergebnisse für das erste Quartal 2025 und markierte damit den Wandel von einem DTC-Unternehmen mit einer einzigen Marke zu einem diversifizierten Konzern im Bereich Getränke und Wellness. Der Umsatz im ersten Quartal erreichte 3,39 Millionen US-Dollar, was einem bemerkenswerten 1300%igen Anstieg gegenüber dem Vorjahr entspricht. Das Wachstum wurde hauptsächlich durch die Übernahme von Creager Mercantile vorangetrieben, die die Präsenz des Unternehmens auf über 9.000 Einzelhandelsstandorte ausweitete. Trotz des Umsatzanstiegs meldete das Unternehmen einen Nettoverlust aufgrund strategischer Investitionen in Personal, Marketing, Rechtsangelegenheiten und Infrastruktur. Das Unternehmen verfolgt eine Wachstumsstrategie durch Akquisitionen, mit Fokus auf den Aufbau margenstarker Marken und die Entwicklung kanalunabhängiger Vertriebsstrategien in verschiedenen Sektoren, darunter Einzelhandel, Schulbezirke, Hotels und On-Premise-Standorte.
Positive
Revenue surged to $3.39 million in Q1 2025, representing a 1300% YoY growth
Strategic acquisition of Creager Mercantile expanded presence to over 9,000 retail locations
Enhanced distribution infrastructure through strategic acquisitions
Diversification from single-brand DTC to multi-brand, multinational beverage conglomerate
Negative
Company reported a net loss in Q1 2025
Ongoing dilution due to funding needs for acquisitions
Increased expenses from strategic investments impacting profitability
Complex balance sheet cleanup still in progress
JACKSON, WY / / May 21, 2025 / Dear Shareholders,
As we close out the first quarter of 2025, I want to take a moment to acknowledge the progress we've made and the path ahead. The transformation of Labor Smart from a single-brand, direct-to-consumer business into a diversified, multinational beverage and wellness conglomerate is well underway. Though the numbers in this quarter may not yet fully reflect the scale of our ambitions, they reveal a company gaining real momentum-built on strategy, structure, and execution.
Turning a Corner
Q1 revenue surged to $3.39 million, representing a year-over-year increase of more than 1300%. This explosive growth didn't happen by accident-it is a direct result of our shift in vision and the disciplined execution of our growth-through-acquisition strategy.
Through the acquisition of Creager Mercantile, we've immediately expanded our footprint into over 9,000 retail locations. This was not just an acquisition of revenue-it was an acquisition of infrastructure, relationships, and access. We now control a critical piece of the supply chain, giving us the distribution backbone needed to build and scale multiple brands under one roof.
From Lockd'In to Go Fast and More!
Our roots as a single-brand, direct-to-consumer company served their purpose. But our future lies in building and acquiring high-margin brands, developing channel-agnostic distribution strategies, and unlocking institutional and B2B revenue across independent stores, chain retail, school districts, hotels, and on-premise locations.
We've paired this innovation with a refreshed marketing push for Go Fast Energy, aligning it with an omnichannel growth strategy. These efforts signal a focused intent: not just to participate in the consumer goods market-but to lead it.
Managing the Growth Curve
We are under no illusions-turnarounds are difficult. Growth comes with complexity, and complexity often comes before profitability. We closed the quarter with a net loss, but it's critical to understand why: our expenses reflect strategic investments in personnel, marketing, legal work, and infrastructure required to scale. We are confident that these short-term costs will yield long-term returns.
At the same time, we have been aggressive in cleaning up our balance sheet. Carefully balancing the cost of expansion with a careful blend of equity and debt, that will be offset by significantly increased revenues and improved margins that will scale with profitability as we strategically attack liabilities and dilution with this transformation of the company. This is all part of a long-term strategy that will make sense in the coming quarters. We remain committed to thoughtful capital deployment. While some dilution is necessary to fund key acquisitions and partnerships, shareholder value remains a top priority. We will create a strategy and eventually execute the plan that will enhance the cap table while improving the value to the shareholder.
Looking Ahead
Labor Smart is no longer just a company with a vision-we are a company with traction. With each quarter, you will see further progress: more revenue, more brands, deeper market penetration, and growing alignment between our operational model and financial performance.
Our north star is sustainable profitability. And while that won't happen overnight, it will happen-with discipline, execution, and your continued support.
Thank you for believing in our transformation. The journey isn't easy-but the destination is worth it.
Sincerely, Brad Wyatt Chief Executive Officer Labor Smart, Inc.
About Labor Smart, Inc.
Labor Smart Inc. (OTC PINK:LTNC) is a forward-thinking brand development and product innovation company specializing in the consumer packaged goods industry. The Company is committed to delivering high-quality products that resonate with consumers while driving growth through strategic partnerships and market expansion. Focused on the snack and beverage sectors, Labor Smart aims to meet the evolving demands of today's consumers with innovative, convenient, and high-quality offerings.
Forward-Looking and Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the federal securities laws. These statements, which include the Company's new name, ticker symbol, and transformation, involve risks and uncertainties that could cause actual results to differ materially from those expressed. These statements are based on current expectations and assumptions, which are subject to various risks. Labor Smart, Inc. assumes no obligation to update or revise any forward-looking statements, except as required by law.
Labor Smart reported Q1 2025 revenue of $3.39 million, representing a 1300% year-over-year increase.
How many retail locations does Labor Smart (LTNC) have after acquiring Creager Mercantile?
Through the acquisition of Creager Mercantile, Labor Smart expanded its footprint to over 9,000 retail locations.
Was Labor Smart (LTNC) profitable in Q1 2025?
No, Labor Smart reported a net loss in Q1 2025 due to strategic investments in personnel, marketing, legal work, and infrastructure.
What is Labor Smart's (LTNC) current business transformation strategy?
Labor Smart is transforming from a single-brand direct-to-consumer business into a diversified beverage and wellness conglomerate through acquisitions and development of high-margin brands.
What brands does Labor Smart (LTNC) currently operate?
The company operates brands including Lockd'In and Go Fast Energy, with plans to build and acquire more high-margin brands.
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