Stealth Startups CEO Guy Costantini Shares Belief-Driven Leadership Model on DesignRush Podcast
Miami, Florida--(Newsfile Corp. - August 4, 2025) - Guy Costantini, CEO of Stealth Startups Careers and former global marketing exec behind gaming hits like League of Legends and The Witcher, joined Episode No. 99 of the DesignRush Podcast to share how stealth-mode founders can scale with community-first strategies, ethical monetization, and humble leadership.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10587/261131_ea33fc7134626b40_001full.jpg
In the episode, Costantini outlines why the most resilient startups don't rely on hype-they're built on trust, belief, and adaptability.
"I have to really care about the thing that you are trying to bring to market," Costantini shares.
"Vision and conviction are required… but adaptability is the human trait that has made us successful."
Tune in to learn:
Why belief-based hiring powers stealth startup momentum
How global fan communities fuel traction faster than ads
Why "win-win" monetization loops build brand nostalgia, not burnout
How AI fits into creative leadership (hint: utility > hype)
Why adaptability is the 2025 founder edge
Costantini, who has led launches for some of gaming's most loved franchises, emphasizes that community is the strategic foundation.
"Focus on where the magic of the fun for players is and kind of pull at that frame and build upon that."
On monetization, he warns against extractive models:
"You can strip mine the hell out of a category and maybe you'll get really rich... but it's destructive to our industry."
Instead, his startup model focuses on lean, self-funded teams, where every hire is mission-aligned and globally distributed.
"The only people working with us are people who really believe."
From launching stealth ventures to steering creative teams through ambiguity, Costantini's leadership framework offers actionable insights for tech leaders, indie founders, and creative entrepreneurs navigating the modern startup landscape.
Want to be featured on the DesignRush Podcast? Send an email to spotlight@designrush.com
About Guy Costantini
Guy Costantini is the co-founder and CEO of Stealth Startups Careers. With 16 years of experience across games, community-building, and global brand strategy, his work has helped shape major titles like League of Legends, Marvel Contest of Champions, and The Witcher. He is a vocal advocate for belief-led hiring, ethical monetization, and adaptability in leadership.
About DesignRush
DesignRush is a media platform and a B2B marketplace connecting businesses with agencies through expert reviews and agency ranking lists, awards, knowledge resources, and personalized agency recommendations for vetted projects.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/261131
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
National Post
12 minutes ago
- National Post
Backblaze Announces Strong Second Quarter 2025 Financial Results
Article content 29% Revenue Growth in B2 Cloud Storage, 16% Revenue Growth Overall in Q2 2025 Article content SAN MATEO, Calif. — Backblaze, Inc. (Nasdaq: BLZE), the cloud storage innovator delivering a modern alternative to traditional cloud providers, today announced results for its second quarter ended June 30, 2025. Article content 'We're pleased with our continued strong quarterly performance, with B2 revenue growth accelerating from 23% to 29% sequentially and solidifying our journey to be Adjusted Free Cash Flow positive in Q4,' said Gleb Budman, CEO of Backblaze. 'We drove innovation with a suite of new cyber security data offerings announced in Q2 and Q3, including AI-powered 'Anomaly Alerts,' functionality designed to help customers detect potential suspicious activity. We also signed our first six-figure B2 Overdrive customer in early Q3, just two months after product launch, demonstrating the clear value our solutions bring to AI workloads. Through product innovation, go-to-market transformation, and the power of AI, we are expanding our role as the leading independent cloud storage provider shaping the AI-driven future.' Article content Second Quarter 2025 Financial Highlights: Article content Revenue of $36.3 million, an increase of 16% year-over-year (YoY). B2 Cloud Storage revenue was $19.8 million, an increase of 29% YoY. Computer Backup revenue was $16.5 million, an increase of 4% YoY. Gross profit of $23.0 million, or 63% of revenue, compared to $17.2 million, or 55% of revenue, in Q2 2024. Adjusted gross profit of $28.8 million, or 79% of revenue, compared to $24.5 million or 78% of revenue in Q2 2024. Net loss was $7.1 million compared to a net loss of $10.3 million in Q2 2024. Net loss per share was $0.13 compared to a net loss per share of $0.25 in Q2 2024. Adjusted EBITDA was $6.6 million, or 18% of revenue, compared to $2.7 million or 9% of revenue in Q2 2024. Non-GAAP net income of $0.8 million compared to non-GAAP net loss of $4.8 million in Q2 2024. Non-GAAP net income per share of $0.01 compared to a non-GAAP net loss per share of $0.11 in Q2 2024. Cash flow from operations during the six months ended June 30, 2025 was $8.5 million, compared to $5.6 million during the six months ended June 30, 2024. Adjusted free cash flow during the six months ended June 30, 2025 was $(6.0) million, compared to $(11.6) million in the six months ended June 30, 2024. Cash and marketable securities totaled $50.5 million as of June 30, 2025. Article content Second Quarter 2025 Operational Highlights: Article content Annual recurring revenue (ARR) was $145.9 million, an increase of 16% YoY. B2 Cloud Storage ARR was $80.7 million, an increase of 29% YoY. Computer Backup ARR was $65.2 million, an increase of 3% YoY. Net revenue retention rate (NRR) was 109% compared to 114% in Q2 2024. B2 Cloud Storage NRR was 112% compared to 126% in Q2 2024. Computer Backup NRR was 106% compared to 105% in Q2 2024. Gross customer retention rate was 90% in both Q2 2025 and 2024. B2 Cloud Storage gross customer retention rate was 89% in both Q2 2025 and 2024. Computer Backup gross customer retention rate was 90% in both Q2 2025 and 2024. Article content Recent Business Highlights: Article content Scaled an AI Customer to Over Several Million Dollars in ARR in Q2: Demonstrates the B2 platform's inherent scalability and performance to accommodate customer's rapid growth. Signed First B2 Overdrive Customer in Early Q3: This highlights the strong product-market fit of B2 Overdrive with AI use cases. Up-Market Momentum: Customers contributing over $50,000 in ARR grew 53% year over year in Q2. Launched a Suite of Enterprise Cyber Security Features in Q2 and Q3: Customers can further safeguard their data with Anomaly Alerts, Enterprise Web Console with role-based access control, and Bucket Access Logs. Backblaze B2 Up to 3.2x More Cost-Effective: Commissioned independent analyst firm, Enterprise Strategy Group, found B2 to be dramatically more cost-efficient and easy-to-use compared to alternatives. Authorized Cash-Neutral Stock Repurchase Program: Up to $10 million authorized, to be funded by cash proceeds from employee options exercised and purchases under our employee stock purchase plan. Secured New $20M Credit Facility: Enhancing financial flexibility and strategic capital access. Article content Financial Outlook: Article content Based on information available as of the date of this press release, Article content For the third quarter of 2025 we expect: Article content Revenue between $36.7 million to $37.1 million. Adjusted EBITDA margin between 17% to 19%. Basic weighted average shares outstanding of 56.9 million to 57.0 million shares. Article content For full-year 2025 we expect: Article content Revenue between $145.0 million to $147.0 million, which was raised from $144.0 million to $146.0 million previously. Adjusted EBITDA margin range of 17%-19%. For YoY growth in our B2 business, refer to table below: Article content Conference Call Information: Article content Backblaze will host a conference call today, August 7, 2025, at 5:00 a.m. PT (8:00 a.m. ET) to review its financial results. Article content Attend the webcast here: Register to listen by phone here: Phone registrants will receive dial-in information via email. Article content An archive of the webcast will be available shortly after its completion on the Investor Relations section of the Backblaze website at Article content About Backblaze Article content Backblaze is the cloud storage innovator delivering a modern alternative to traditional cloud providers. We offer high-performance, secure cloud object storage that customers use to develop applications, manage media, secure backups, build AI workflows, protect from ransomware, and more. Backblaze helps businesses break free from the walled gardens that traditional providers lock customers into, enabling customers to use their data in open cloud workflows with the providers they prefer at a fraction of the cost. Headquartered in San Mateo, CA, Backblaze (Nasdaq: BLZE) was founded in 2007 and serves over 500,000 customers in 175 countries around the world. For more information, please go to Article content Cautionary Note Regarding Forward-looking Statements Article content This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks and uncertainties. These forward-looking statements are frequently identified by the use of forward-looking terminology, including the terms 'anticipate,' 'believe,' 'continue,' 'could,' 'estimate,' 'expect,' 'intend,' 'likely,' 'may,' 'plan,' 'possible,' 'potential,' 'predict,' 'project,' 'should,' 'target,' 'will,' 'would,' or other similar terms or expressions that relate to our future performance, expectations, strategy, plans or intentions, and include statements in the section titled 'Financial Outlook.' Article content Our actual results could differ materially from those stated in or implied by the forward-looking statements in this press release due to a number of factors, including but not limited to: the impact of our go-to-market transformation and ability to attract and retain customers, including increasingly larger customers; the continued growth of data stored by our customers; continued growth of AI related business; realizing the anticipated benefits relating to cost savings initiatives and the re-investment of savings in additional sales capacity; market competition, including competitors that may have greater size, offerings and resources; effectively managing growth and scaling of our platform; ability to offer new features and other offerings on a timely basis, including new enterprise cyber security features, B2 Overdrive offering and geographic expansion in Canada or other jurisdictions, and achieve desired market adoption; disruption in our service or loss of availability of customers' data; cyberattacks; continued growth consistent with historical levels; the impact of pricing and other product offering changes; material defects or errors in our software; supply chain disruption; ability to maintain existing relationships with partners and to enter into new partnerships; ability to remediate and prevent material weaknesses in our internal controls over financial reporting; hiring and retention of key employees; the impact of changes to global trade and tariff policies, on us or our vendors, partners and customers; war or hostilities, and other significant world or regional events on our business and the business of our customers, vendors, supply chain and partners; litigation and other disputes; third party attempts to generate negative news regarding the Company, regardless of accuracy; availability of additional capital; and general market, political, economic, and business conditions. Further information on these and additional risks, uncertainties, assumptions, and other factors that could cause actual results or outcomes to differ materially from those included in or implied by the forward-looking statements contained in this release are included under the caption 'Risk Factors' and elsewhere in our Quarterly Reports on Form 10-Q and other filings and reports we make with the SEC from time to time. Article content The forward-looking statements made in this release reflect our views as of the date of this press release. We undertake no obligation to update any forward-looking statements in this press release, whether as a result of new information, future events or otherwise. Article content Non-GAAP Financial Measures Article content To supplement the financial measures, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we provide investors with non-GAAP financial measures including (i) adjusted gross profit (and margin), (ii) adjusted EBITDA and adjusted EBITDA margin, (iii) non-GAAP net income (loss) and non-GAAP net income (loss) per share, and (iv) adjusted free cash flow and adjusted free cash flow margin. These non-GAAP financial measures exclude certain items and are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. We present these non-GAAP measures because management believes they are a useful measure of our performance and provide an additional basis for assessing our operating results. Please see the appendix attached to this press release for a reconciliation of non-GAAP adjusted gross margin and adjusted EBITDA margin to the most directly comparable GAAP financial measures. Article content A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses and other factors in the future. For example, stock-based compensation expense-related charges are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict with reasonable accuracy and subject to constant change. Article content Adjusted Gross Profit and Margin Article content We believe adjusted gross profit (and margin), when taken together with our GAAP financial results, provides a meaningful assessment of our performance and is useful to us for evaluating our ongoing operations and for internal planning and forecasting purposes. Article content We define adjusted gross profit as gross profit, excluding stock-based compensation expense, depreciation and amortization and restructuring charges within cost of revenue. We define adjusted gross margin as a percentage of adjusted gross profit to revenue. We exclude stock-based compensation, which is a non-cash item, and restructuring charges because we do not consider it indicative of our core operating performance. We exclude depreciation expense of our property and equipment and amortization expense of capitalized internal-use software because these may not reflect current or future cash spending levels to support our business. We believe adjusted gross profit (and margin) provides consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric eliminates the effects of depreciation and amortization. Article content We define Adjusted EBITDA as net loss adjusted to exclude depreciation and amortization, stock-based compensation, interest expense, investment income, income tax provision, realized and unrealized gains and losses on foreign currency transactions, impairment of long-lived assets, restructuring charges, legal settlement costs, and other non-recurring charges. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenues for the period. We use Adjusted EBITDA and Adjusted EBITDA Margin to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Adjusted EBITDA and Adjusted EBITDA Margin, when taken together with our GAAP financial results, provide meaningful supplemental information regarding our operating performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. We consider Adjusted EBITDA and Adjusted EBITDA Margin to be important measures because they help illustrate underlying trends in our business and our historical operating performance on a more consistent basis. Article content We define non-GAAP net income (loss) as net income adjusted to exclude stock-based compensation, realized and unrealized gains and losses on foreign currency transactions, restructuring charges, legal settlement costs, and other items we deem non-recurring. Non-GAAP net income (loss) per share is defined as non-GAAP net income (loss) divided by basic and diluted weighted average common shares outstanding. We believe that non-GAAP net income (loss) and non-GAAP net income (loss) per share, when taken together with our GAAP financial results, provide meaningful supplemental information regarding our operating performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. Article content We believe that Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin are useful metrics for assessing liquidity that provide information to management and investors about the cash generated from our core operations that can be reinvested in the business. However, these measures should not replace cash flows from operations as a liquidity benchmark. One limitation of these metrics is that they do not reflect our future contractual commitments, nor do they capture the overall changes in our cash balance during a specific period. Nonetheless, we believe that Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin are key metrics providing insight into our financial trajectory that helps us make informed decisions as we work towards sustainable positive cash flow. Article content We define adjusted free cash flow as net cash provided by operating activities less purchases of property and equipment, capitalized internal-use software costs, principal payments on finance leases and lease financing obligations, as reflected in our consolidated statements of cash flows, and excluding payments on restructuring charges, payments on legal settlement costs, and payments on other non-recurring charges. Adjusted free cash flow margin is calculated as adjusted free cash flow divided by revenue. Article content Key Business Metrics: Article content Annual Recurring Revenue (ARR) Article content We define annual recurring revenue (ARR) as the annualized value of all Backblaze B2 and Computer Backup arrangements as of the end of a period. Given the renewable nature of our business, we view ARR as an important indicator of our financial performance and operating results, and we believe it is a useful metric for internal planning and analysis. ARR is calculated based on multiplying the monthly revenue from all Backblaze B2 and Computer Backup arrangements, which represent greater than 98% of our revenue for the periods presented for the last month of a period by 12. Our annual recurring revenue for Computer Backup and B2 Cloud Storage is calculated in the same manner as our overall annual recurring revenue based on the revenue from our Computer Backup and B2 Cloud Storage solutions, respectively. Article content To calculate the NRR for a specific quarter, we determine the revenue recognized in that quarter from customers who generated revenue during the same quarter of the previous year. This revenue is then divided by the revenue generated in the prior year quarter. Our overall NRR rate is calculated as the average of these quarterly rates over the past four quarters to provide a comprehensive view of revenue trends. Article content Gross Customer Retention Rate Article content We use gross customer retention rate to measure our ability to retain our customers. Our gross customer retention rate reflects only customer losses and does not reflect the expansion or contraction of revenue we earn from our existing customers. We believe our high gross customer retention rates demonstrate that we provide a vital service to our customers, as the vast majority of our customers tend to continue to use our platform from one period to the next. To calculate our gross customer retention rate, we take the trailing four-quarter average of our quarterly gross customer retention rates. We calculate the quarterly gross customer retention rates by dividing (i) the number of accounts that generated revenue in the last month of the current quarter that also generated recurring revenue during the last month of the corresponding quarter in the prior year, by (ii) the number of accounts that generated recurring revenue during the last month of the corresponding quarter in the prior year. Article content Six Months Ended June 30, 2025 2024 (unaudited) CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (16,421 ) $ (21,401 ) Adjustments to reconcile net loss to net cash provided by operating activities: Noncash lease expense on operating leases 1,964 1,018 Depreciation and amortization 13,238 13,937 Impairment loss on right-of-use assets 59 — Stock-based compensation 14,663 11,057 Gain on disposal of assets (248 ) (6 ) Other 407 31 Changes in operating assets and liabilities: Accounts receivable (1,409 ) (1,014 ) Prepaid expenses 354 273 Other current assets (1,722 ) (332 ) Other assets (827 ) (104 ) Accounts payable, accrued expenses and other current liabilities 441 (1,019 ) Deferred revenue and other liabilities, non-current 88 3,994 Operating lease liabilities (2,099 ) (791 ) Net cash provided by operating activities 8,488 5,643 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of marketable securities (28,132 ) (24,127 ) Maturities of marketable securities 18,884 26,523 Proceeds from disposal of property and equipment 30 184 Purchases of property and equipment (1,287 ) (694 ) Capitalized internal-use software costs (4,184 ) (6,828 ) Net cash used in investing activities (14,689 ) (4,942 ) CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on finance leases and lease financing obligations (9,277 ) (9,711 ) Payment of offering costs (20 ) — Proceeds from debt facility — 554 Payment of debt issuance costs (554 ) — Principal payments on insurance premium financing — (590 ) Proceeds from exercises of stock options 1,894 5,012 Taxes paid for net share settlement of equity awards (819 ) — Proceeds from ESPP 1,388 1,359 Net cash used in financing activities (7,388 ) (3,376 ) Net decrease in cash and cash equivalents and restricted cash (13,589 ) (2,675 ) Cash and cash equivalents and restricted cash, at beginning of period 45,776 16,630 Cash and cash equivalents and restricted cash, at end of period $ 32,187 $ 13,955 Cash and cash equivalents $ 32,187 $ 9,273 — 4,682 Total cash and cash equivalents and restricted cash $ 32,187 $ 13,955 Article content Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) Revenue $ 36,298 $ 31,285 $ 70,911 $ 61,253 Adjustments: Adjusted cost of revenue: Cost of revenue 13,257 14,056 28,614 28,213 Less: Depreciation and amortization (5,384 ) (6,879 ) (13,028 ) (13,653 ) Less: Stock-based compensation (432 ) (354 ) (852 ) (740 ) Less: Restructuring charges 13 — 13 — Adjusted cost of revenue 7,454 6,823 14,747 13,820 Adjusted gross margin 79 % 78 % 79 % 77 % Adjusted Operating Expenses: Research and development 11,878 9,589 23,733 19,335 Less: Depreciation and amortization (41 ) (67 ) (99 ) (131 ) Less: Stock-based compensation (3,272 ) (2,250 ) (6,739 ) (4,358 ) Less: Restructuring charges 34 — 34 — Adjusted research and development 8,599 7,272 16,929 14,846 Sales and marketing 10,172 10,991 19,435 21,013 Less: Depreciation and amortization (30 ) (50 ) (70 ) (97 ) Less: Stock-based compensation (1,881 ) (1,762 ) (3,678 ) (3,584 ) Less: Restructuring charges 64 — 64 — Adjusted sales and marketing 8,325 9,179 15,751 17,332 General and administrative 7,708 6,458 14,766 13,011 Less: Depreciation and amortization (19 ) (29 ) (41 ) (56 ) Less: Stock-based compensation (1,719 ) (1,162 ) (3,394 ) (2,375 ) Less: Foreign exchange (loss) gain (477 ) 1 (626 ) 19 Less: Restructuring charges (45 ) — (45 ) — Less: Litigation settlement costs (138 ) — (138 ) — Adjusted general and administrative 5,310 5,268 10,522 10,599 Total Adjusted Operating Expenses (1) $ 22,234 $ 21,719 $ 43,202 $ 42,777 Adjusted EBITDA $ 6,610 $ 2,743 $ 12,962 $ 4,656 Article content (1) Adjusted cost of revenue and operating expenses is a non-GAAP financial measure that we define as each respective GAAP expense category excluding stock-based compensation expense, depreciation and amortization, and other non-recurring charges. This measure provides management with greater transparency into the underlying trends in our business by facilitating period-to-period comparisons of our ongoing cost structure, excluding the impact of certain non-cash or non-recurring items that may not be indicative of our operating performance. These measures are intended to assist in forecasting and budgeting by providing greater visibility into our normalized expense base. Article content Article content Article content Article content Contacts Article content Investors Contact Article content Article content Mimi Kong Article content Article content Sr. Director, Investor Relations and Corporate Development Article content Article content ir@ Article content Press Contact Article content Article content Yev Pusin Article content Article content Article content
National Post
12 minutes ago
- National Post
Kolibri Global Energy Inc. Announces Operations Update
Article content THOUSAND OAKS, Calif. — Kolibri Global Energy Inc. (the ' Company ' or ' Kolibri ') (TSX: KEI, NASDAQ: KGEI) is pleased to provide an operations update on its latest wells in its Tishomingo field in Oklahoma. Article content Article content The Lovina 9-16-1H, Lovina 9-16-2H, Lovina 9-16-3H, and Lovina 9-16-4H wells (all 100% working interest) have been successfully fracture stimulated and have been flowing back the fracture stimulation fluid through a conservative controlled flowback, and are in various stages of frack fluid recovery. While the wells are still cleaning up, they have been continuing to increase their production rates as more fracture stimulation fluid is recovered. For the last four days, the 1H well has been averaging 571 Barrels of oil equivalent per day ('BOEPD') with 473 Barrels of oil per day ('BOPD'), the 2H well has been averaging 643 BOEPD with 523 BOPD, the 3H well has been averaging 416 BOEPD, with 339 BOPD and the 4H has been averaging 322 BOEPD with 271 BOPD. The Lovina wells are producing much higher percentages of oil than many of our previously drilled wells. The higher oil percentage and the longer well lengths, with the controlled conservative flowback have led to a longer cleanup cycle compared to past Kolibri wells. Production tubing strings will be run in the wells starting next week, which previously led to significantly higher production rates in the offset well. Article content The Forguson 17-20-3H well has been successfully fracture stimulated and is anticipated to begin its flowback in the next few days. Kolibri is operator and has a 46% working interest in this well, which is testing the economics of our 3,000 acres located on the eastern side of our acreage. Article content A drilling rig is scheduled to move in on August 11, 2025, to begin drilling the Barnes 6-31-2H and Barnes 6-31-3H wells. These wells are planned to be 1.5-mile laterals, in which Kolibri has a 99.9% working interest. Once the drilling of both wells is complete, completion operations are planned to occur simultaneously with the two previously drilled Velin wells. Article content Wolf Regener, President and CEO, commented, 'We are thrilled about the high oil percentage of the Lovina wells, which we believe generally leads to higher netbacks for the Company and will lead to slower decline rates. We are also looking forward to seeing what the ultimate productivity of these wells will be. Article content The east side acreage, where the Forguson well is located and Kolibri has approximately 3,000 net acres, is not included in the December 31, 2024, reserve report. The Caney target for the Forguson well has very similar characteristics and thickness to the main part of the field in Kolibri's proved acreage, except that it is shallower. If the Forguson well proves to be economic, in addition to adding cash flow, it could lead to many additional development locations for the Company. Article content We are looking forward to the additional production and cash flow from all of these wells, which we expect will significantly increase the Company's cash flow and add incremental value to our shareholders.' Article content About Kolibri Global Energy Inc. Article content Kolibri Global Energy Inc. is a North American energy company focused on finding and exploiting energy projects in oil and gas. Through various subsidiaries, the Company owns and operates energy properties in the United States. The Company continues to utilize its technical and operational expertise to identify and acquire additional projects in oil and gas. The Company's shares are traded on the Toronto Stock Exchange under the stock symbol KEI and on the NASDAQ under the stock symbol KGEI. Article content Product Type Disclosure Article content This news release includes references to sales volumes of 'oil', 'natural gas', and 'barrels of oil equivalent' or 'BOEs'. 'Oil' refers to light crude oil and medium crude oil combined, and 'natural gas' refers to shale gas, in each case as defined by NI 51-101. Production from our wells, primarily disclosed in this news release in BOEs, consists of mainly oil and associated wet gas. The wet gas is delivered via gathering system and then pipelines to processing plants where it is treated and sold as natural gas and NGLs. Article content Cautionary Statements Article content In this news release and the Company's other public disclosure: The Company's natural gas production is reported in thousands of cubic feet ('Mcfs'). The Company also uses references to barrels ('Bbls') and barrels of oil equivalent ('Boes') to reflect natural gas liquids and oil production and sales. The references to Boes reflect natural gas, natural gas liquids and oil. Boes may be misleading, particularly if used in isolation. A Boe conversion ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. Discounted and undiscounted net present value of future net revenues attributable to reserves do not represent fair market value. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves. Article content Readers should be aware that references to initial production rates and other short-term production rates are preliminary in nature and are not necessarily indicative of long-term performance or of ultimate recovery. Readers are referred to the full description of the results of the Company's December 31, 2024 independent reserves evaluation and other oil and gas information contained in its Form 51-101F1 Statement of Reserves Data and Other Oil and Gas Information for the year ended December 31, 2024, which the Company filed on SEDAR+ on March 13, 2025. Article content Certain statements contained in this news release constitute 'forward-looking information' as such term is used in applicable Canadian securities laws and 'forward-looking statements' within the meaning of United States securities laws (collectively, 'forward looking information'), including statements regarding the timing of and expected results from planned wells development, wells performing as anticipated, including anticipated increases in production, cash flow, higher netbacks, rates of return and efficiencies, statements regarding timing of flowback, that the Barnes 6-31-2H and Barnes 6-31-3H wells will be 1.5 mile laterals, statements regarding drilling and completion operations, and statements regarding additional development locations for the Company. Forward-looking information is based on plans and estimates of management and interpretations of data by the Company's technical team at the date the data is provided and is subject to several factors and assumptions of management, including that indications of early results are reasonably accurate predictors of the prospectiveness of the shale intervals, that required regulatory approvals will be available when required, that no unforeseen delays, unexpected geological or other effects, including flooding and extended interruptions due to inclement or hazardous weather conditions, equipment failures, permitting delays or labor or contract disputes are encountered, that the necessary labor and equipment will be obtained, that the development plans of the Company and its co-venturers will not change, that the offset operator's operations will proceed as expected by management, that the demand for oil and gas will be sustained, that the price of oil will be sustained or increase, that the gathering system issues will be resolved, that the Company will continue to be able to access sufficient capital through cash flow, debt, financings, farm-ins or other participation arrangements to maintain its projects, and that global economic conditions will not deteriorate in a manner that has an adverse impact on the Company's business, its ability to advance its business strategy and the industry as a whole. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions on which such forward looking information is based vary or prove to be invalid, including that the Company or its subsidiaries is not able for any reason to obtain and provide the information necessary to secure required approvals or that required regulatory approvals are otherwise not available when required, that unexpected geological results are encountered, that equipment failures, permitting delays, labor or contract disputes or shortages of equipment, labor or materials are encountered, the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration and development projects or capital expenditures; the uncertainty of reserve and resource estimates and projections relating to production, costs and expenses, and health, safety and environmental risks, including flooding and extended interruptions due to inclement or hazardous weather conditions), the risk of commodity price and foreign exchange rate fluctuations, that the offset operator's operations have unexpected adverse effects on the Company's operations, that completion techniques require further optimization, that production rates do not match the Company's assumptions, that very low or no production rates are achieved, that the gathering system operator doesn't get the issues resolved, that the price of oil will decline, that the Company is unable to access required capital, that occurrences such as those that are assumed will not occur, do in fact occur, and those conditions that are assumed will continue or improve, do not continue or improve, and the other risks and uncertainties applicable to exploration and development activities and the Company's business as set forth in the Company's management discussion and analysis and its annual information form, both of which are available for viewing under the Company's profile at Article content Article content , any of which could result in delays, cessation in planned work or loss of one or more leases and have an adverse effect on the Company and its financial condition. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law. Article content Caution Regarding Future-Oriented Financial Information and Financial Outlook Article content This news release may contain information deemed to be 'future-oriented financial information' or a 'financial outlook' (collectively, 'FOFI') within the meaning of applicable securities laws. The FOFI has been prepared by management to provide an outlook of the Company's activities and results and may not be appropriate for other purposes. The FOFI has been prepared based on a number of assumptions including the assumptions discussed above under 'Caution Regarding Forward-Looking Information'. The actual results of operations of the Company and the resulting financial results may vary from the amounts set forth herein, and such variations may be material. The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments. FOFI contained in this news release was made as of the date of this news release and the Company disclaims any intention or obligations to update or revise any FOFI contained in this news release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Article content Article content Article content Article content Contacts Article content For further information, contact: Article content Article content Article content Email: Article content Article content
National Post
12 minutes ago
- National Post
The Cannabist Company Reports Second Quarter 2025 Results
Article content CHELMSFORD, Mass. — The Cannabist Company Holdings Inc. (Cboe CA: CBST) (OTCQB: CBSTF) ('The Cannabist Company' or the 'Company'), one of the most experienced cultivators, manufacturers and retailers of cannabis products in the U.S., today reported its financial and operating results for the second quarter ended June 30, 2025. All financial information presented in this release is in U.S. GAAP, unaudited, and in thousands of U.S. dollars, unless otherwise noted. Article content Second Quarter 2025 Financial Highlights Article content Article content (in $ thousands, excl. margin items): Article content For the Three Months Ended June 30, 2025 March 31, 2025 June 30, 2024 Revenue $ 86,350 $ 87,440 $ 125,190 Gross Profit $ 17,153 $ 29,285 $ 48,052 Adj. Gross Profit [1,2] $ 28,553 $ 31,225 $ 48,214 Adj. Gross Margin [1,2] 33.1 % 35.7 % 38.5 % Income (Loss) from Operations $ (15,837 ) $ (8,159 ) $ 8,006 Net Income (Loss) $ (77,386 ) $ (32,206 ) $ (13,643 ) Adj. EBITDA [1,2] $ 8,483 $ 8,293 $ 17,537 [1] Denotes a Non-GAAP measure. See 'Non-GAAP Financial Measures' in this press release for more information regarding the Company's use of non-GAAP financial measures, as well as Table 4 for reconciliation, where applicable. [2] Both Adj. Gross Profit and Adj. EBITDA exclude $11.4 million in Q2 2025, $1.9 million in Q1 2025 and $162 thousand in Q2 2024; see the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2025 for additional disclosure. Article content 'During the second quarter of 2025, we made critical progress in managing the balance sheet with the completion of the debt restructuring transaction, extending the maturity of all senior debt obligations to at least December 2028. We made strides with footprint optimization and bringing cash onto the balance sheet during the quarter, closing on the sale of our remaining license in Florida and 2 retail locations in California. Today, we are announcing a transaction for the sale of our 3 retail locations in Pennsylvania for approximately $10 million, as we pivot to a wholesale business model in that market, retaining exposure for an eventual adult use transition,' said David Hart, CEO of The Cannabist Company. Article content He continued, 'As we continued to make progress in optimizing the business, we saw a 30-basis point improvement in Adjusted EBITDA margin sequentially. We will continue to take costs out of the business and right-size operations, while we enhance our product offering and improve pricing architecture. We are thrilled to have launched adult use at all three of our locations in Delaware on August 1 and look forward to opening additional retail locations in Ohio during the third and fourth quarters. Our focus remains on managing liquidity, proactively addressing the balance sheet, and optimizing our operating footprint.' Article content Colorado, Article content Article content Maryland, New Jersey, Ohio, Virginia Article content Financial Highlights for Second Quarter 2025 Article content Second quarter revenue of $86.4 million, a decrease of 1% compared to Q1, in part due to the sale of 2 locations in California during the quarter. Adjusted Gross Margin in the second quarter was 33%, down from 36% in Q1, largely due to inventory obsolescence, primarily in New York, and an inventory reduction initiative across 8 targeted markets. Adjusted EBITDA in Q2 of $8.5 million; adjusted EBITDA margin increased 30 basis points sequentially to 9.8%. For the 10 markets that will remain following the completion of market divestitures of Florida, California and Illinois, Adjusted EBITDA Margin was 11.7% in Q2. Capital expenditures in the second quarter were $2 million; the Company continues to expect capital expenditures to average $2 to $3 million per quarter in 2025, primarily for new store openings. The Company ended the second quarter with $15.5 million in cash, compared to $18.9 million at the end of Q1. On April 17, the Company closed on the sale of its remaining MMTC license in Florida for gross proceeds of $5 million; the sale of 1 cultivation facility in Florida is pending finalization. On May 29, the Company closed the previously announced plan of arrangement to extend the maturities of senior secured notes to December 2028, with options to extend through 2029. During the quarter, the Company implemented a corporate restructuring for an estimated $2 million in annualized cost savings due to adjustments to align with a simplified footprint; this is in addition to several rounds of corporate restructuring during 2024, where the Company achieved $23 million in annualized cost savings. Subsequent to quarter close, on August 7, the Company announced a transaction for the sale of its 3 Pennsylvania medical dispensaries for approximately $10 million in cash, paid at closing, as well as the signing of a concurrent supply agreement; the Company will transition to a wholesale model in Pennsylvania, retaining exposure for an eventual transition to adult use in that market. Article content Operational Highlights for First Quarter 2025 Article content For Q2 2025, wholesale revenue increased 16% sequentially to $18.4 million, compared to 3.5% sequential growth in Q1; wholesale accounted for approximately 21% of total revenue, compared to 18% in Q1. Efforts continue to rationalize SKUs and improve pricing architecture across our markets. In April, adult use sales began at the Company's third retail location in New Jersey, Cannabist Mays Landing, which opened on December 31, 2024. In June, the Company launched a brand partnership with COAST Cannabis Co. edibles in Maryland, bringing a new selection of premium, function-forward gummies to adult-use consumers and medical patients. As a result of the sale of 2 retail locations in California, the quarter-end active retail count was 53, compared to 55 at the end of Q1. Subsequent to quarter close, the Company signed an MSA for its manufacturing and production facility in Balboa, California, in advance of a final sale of that facility. Subsequent to quarter close, on August 1, the Company celebrated the start of adult-use sales in all three retail locations in Delaware. The Company has additional retail locations in development, including one in Virginia and three in Ohio, with one Ohio location expected to open in Q3. Article content Conference Call and Webcast Details Article content The Company will host a conference call on Thursday, August 7, 2025 at 8:00 a.m. ET to discuss financial and operating results for the second quarter of 2025. Article content To access the live conference call via telephone, participants must pre-register at After registering, instructions will be shared on how to join the call for those who wish to dial in. A live audio webcast of the call will also be available in the Investor Relations section of the Company's website at or at Article content A replay of the audio webcast will be available in the Investor Relations section of the Company's website approximately 2 hours after completion of the call and will be archived for 30 days. Article content The Cannabist Company, formerly known as Columbia Care, is one of the most experienced cultivators, manufacturers and providers of cannabis products and related services, with licenses in 12 U.S. jurisdictions. The Company operates 80 facilities including 64 dispensaries and 16 cultivation and manufacturing facilities, including those under development. Columbia Care, now The Cannabist Company, is one of the original multi-state providers of cannabis in the U.S. and now delivers industry-leading products and services to both the medical and adult-use markets. In 2021, the Company launched Cannabist, its retail brand, creating a national dispensary network that leverages proprietary technology platforms. The company offers products spanning flower, edibles, oils and tablets, and manufactures popular brands including dreamt, Seed & Strain, Triple Seven, Hedy, gLeaf, Classix, Press, and Amber. For more information, please visit Article content In this press release, the Company refers to certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit and Adjusted Gross Margin. The Company considers certain non-GAAP measures to be meaningful indicators of the performance of its business. These measures are not recognized measures under GAAP, do not have a standardized meaning prescribed by GAAP and may not be comparable to (and may be calculated differently by) other companies that present similar measures. Accordingly, these measures should not be considered in isolation from nor as a substitute for our financial information reported under GAAP. These non-GAAP measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our business that may not otherwise be apparent when relying solely on GAAP measures. These supplemental non-GAAP financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented. We also recognize that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of companies within our industry. Article content With respect to non-GAAP financial measures, the Company defines EBITDA as net income (loss) before (i) depreciation and amortization; (ii) income taxes; and (iii) interest expense and debt amortization. Adjusted EBITDA is defined as EBITDA before (i) share-based compensation expense; (ii) goodwill and intangible impairment, (iii) adjustments for acquisition and other non-core costs; (iv) gain on remeasurement of contingent consideration, net, (v) fair value changes on derivative liabilities; and (vi) fair value mark-up for acquired inventory. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Revenue. Adjusted Gross Profit is defined as gross profit before the fair mark-up for acquired inventory. Adjusted Gross Margin is defined as gross margin before the fair mark-up for acquired inventory. Article content The Company views these non-GAAP financial measures as a means to facilitate management's financial and operational decision-making, including evaluation of the Company's historical operating results and comparison to competitors' operating results. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results and the reconciliations to the corresponding GAAP financial measure, may provide a more complete understanding of factors and trends affecting the Company's business. The determination of the amounts that are excluded from these non-GAAP financial measures are a matter of management judgment and depend upon, among other factors, the nature of the underlying expense or income amounts. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company's reported results of operations, management strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety. Article content Reconciliations of non-GAAP financial measures to their nearest comparable GAAP measures are included in this press release and a further discussion of some of these items is contained in our annual report on Form 10-K and in subsequent quarterly securities filings. Article content Caution Concerning Forward-Looking Statements Article content This press release contains certain statements that constitute forward-looking information or forward looking statements within the meaning of applicable securities laws and reflect the Company's current expectations regarding future events. Statements concerning the Company's objectives, goals, strategies, priorities, intentions, plans, beliefs, expectations and estimates, and the business, operations, financial performance and condition of the Company are forward-looking statements. The words 'believe', 'expect', 'anticipate', 'estimate', 'intend', 'may', 'will', 'would', 'could', 'should', 'continue', 'plan', 'goal', 'objective', and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward looking statements in this press release include, among others, statements related to: the Company's recently completed debt restructuring transaction; the Company's liquidity; the Company's corporate restructuring and related expected savings; the divestiture of the Company's Florida, Illinois, and California assets and expected impacts thereof; the planned divestiture of the Company's Pennsylvania dispensaries and the shift to being solely a wholesale business in that market; adult use sales in Delaware; expectations related to growth, cost management and financial numbers including free cash flow and capital expenditures; our ability to continue to reduce corporate SG&A, reduce leverage, enhance cash flow from operations; the planned opening of additional Cannabist locations; the Company's ability to reduce debt; our ability to execute on divestiture transactions; and ongoing business expectations. Article content The Company has made assumptions with regard to its ability to execute on initiatives, which although considered reasonable by the Company, may prove to be incorrect and are subject to known and unknown risks and uncertainties that may cause actual results, performance or achievements of the Company to be materially different from those expressed or implied by any forward-looking information. Forward-looking information involves numerous assumptions, including the fact that cannabis remains illegal under federal law; the application of anti-money laundering laws and regulations to the Company; legal, regulatory or political change to the cannabis industry; access to the services of banks; access to public and private capital for the Company; unfavorable publicity or consumer perception of the cannabis industry; expansion into the adult-use markets; the impact of laws, regulations and guidelines; the impact of Section 280E of the Internal Revenue Code; the impact of state laws pertaining to the cannabis industry; the Company's reliance on key inputs, suppliers and skilled labor; the difficulty of forecasting the Company's sales; constraints on marketing products; potential cyber-attacks and security breaches; net operating loss and other tax attribute limitations; the impact of changes in tax laws; the volatility of the market price of the common shares of the Company; reliance on management; litigation including existing claims and those which may surface from time to time; future results and financial projections; the impact of global financial conditions and disease outbreaks; projected revenue and expected gross margins, capital allocation, EBITDA break even targets and other financial results; growth of the Company's operations via expansion; statements relating to the business and future activities of, and developments related to, the Company after the date of this press release, including such things as future business strategy, competitive strengths, goals, expansion and growth of the Company's business, operations and plans; expectations that planned transactions will be completed as previously announced; expectations regarding cultivation and manufacturing capacity; expectations regarding receipt of regulatory approvals; expectations that licenses applied for will be obtained; potential future legalization of adult-use and/or medical cannabis under U.S. federal law; expectations of market size and growth in the U.S. and the states in which the Company operates; expectations for other economic, business, regulatory and/or competitive factors related to the Company or the cannabis industry generally; the impact of the Company's plans to reduce debt; and other events or conditions that may occur in the future. Article content Forward-looking statements may relate to future financial conditions, results of operations, plans, objectives, performance or business developments. These statements speak only as at the date they are made and are based on information currently available and on the then-current expectations. Holders of securities of the Company are cautioned that forward-looking statements are not based on historical facts but instead are based on reasonable assumptions and estimates of management of the Company at the time they were provided or made and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, as applicable, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Securityholders should review the risk factors discussed under 'Risk Factors' in the Company's Form 10-K for the year ended December 31, 2024, as filed with the applicable securities regulatory authorities and as also described from time to time in other documents filed by the Company with U.S. and Canadian securities regulatory authorities. Article content The purpose of forward-looking statements is to provide the reader with a description of management's expectations, and such forward-looking statements may not be appropriate for any other purpose. In particular, but without limiting the foregoing, disclosure in this press release as well as statements regarding the Company's objectives, plans and goals, including future operating results and economic performance may make reference to or involve forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. A number of factors could cause actual events, performance or results to differ materially from what is projected in the forward-looking statements. No undue reliance should be placed on forward-looking statements contained in this press release. Such forward-looking statements are made as of the date of this press release. Article content The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. Article content TABLE 1 – CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in US $ thousands, except share and per share figures, unaudited) Three Months Ended June 30, 2025 March 31, 2025 June 30, 2024 Revenue $ 86,350 $ 87,440 $ 125,190 Cost of sales (69,197 ) (58,155 ) (77,138 ) Gross profit 17,153 29,285 48,052 Selling, general and administrative expenses (32,990 ) (37,444 ) (40,046 ) Profit (loss) from operations (15,837 ) (8,159 ) 8,006 Other income (expense), net (18,328 ) (23,253 ) (12,007 ) Income tax benefit (expense) (43,221 ) (794 ) (9,642 ) Net income (loss) (77,386 ) (32,206 ) (13,643 ) Net income (loss) attributable to non-controlling interests 495 (2 ) 698 Net income (loss) attributable to Cannabist Company shareholders $ (77,881 ) $ (32,204 ) $ (14,341 ) Weighted average common shares outstanding – basic and diluted 484,713,110 473,012,103 460,653,957 Earnings per common share attributable to Cannabist Company shareholders – basic and diluted $ (0.16 ) $ (0.07 ) $ (0.03 ) Article content TABLE 2 – CONDENSED CONSOLIDATED BALANCE SHEET (SELECT ITEMS) (in US $ thousands, unaudited) Three Months Ended June 30, 2025 March 31, 2025 December 31, 2024 Cash $ 15,456 $ 18,936 $ 33,607 Total current assets 168,693 186,519 194,997 Property and equipment, net 212,442 218,459 228,396 Right of use assets 120,689 135,540 150,254 Total assets 563,838 648,779 696,173 Total current liabilities 179,007 227,882 228,710 Total liabilities 702,684 710,752 726,232 Total equity (138,846 ) (61,973 ) (30,059 ) Total liabilities and equity $ 563,838 $ 648,779 $ 696,173 Article content TABLE 4 – RECONCILIATION OF US GAAP TO NON-GAAP MEASURES (in US $ thousands, unaudited) Three Months Ended June 30, 2025 March 31, 2025 June 30, 2024 Net income (loss) $ (77,386 ) $ (32,206 ) $ (13,643 ) Income tax (benefit) expense 43,221 794 9,642 Depreciation and amortization 8,205 8,646 13,583 Net interest and debt amortization 18,029 12,559 13,121 EBITDA (Non-GAAP) $ (7,931 ) $ (10,207 ) $ 22,703 Share-based compensation $ 643 $ 292 $ (8,144 ) Goodwill and intangible impairment – – – Adjustments for other acquisition and non-core costs 14,699 18,208 2,996 Gain on remeasurement of contingent consideration, net – – – Article content Article content Article content Article content Article content Contacts Article content Investor Contact Article content Article content Lee Ann Evans Article content Article content Article content Article content
