California-based Unrivaled Brands Inc. (OTCQB: UNRV) reported preliminary revenue of $8.6 million and a gross margin increase to 51% for its second quarter ending June 30, demonstrating financial resilience in a fluctuating market, the company said Thursday.
The company’s second quarter revenue, primarily from its three retail stores and cultivation facility, remained largely stable sequentially versus the previous period’s $8.7 million. Despite the slight revenue dip, Unrivaled’s gross margin grew from 48% to 51%, reflecting successful efforts to optimize operations.
Sabas Carrillo, who has served on the company’s board of directors since December 2022, was appointed as the chairman of the board. At the same time, the company promoted Chief Operating Officer James Miller to a directorial position on the board.
This follows the appointment of Patty Chan as permanent chief financial officer last month, a role she held on an interim basis since September 2022.
These appointments, Carrillo suggested, align with Unrivaled’s goal of building a dynamic, knowledgeable leadership team capable of navigating the complexities of the current cannabis market.
Unrivaled also renegotiated its settlement terms with People’s California LLC. That deal resulted in extended maturity dates for certain principal debt payments and an option to pay 50% of the monthly interest payments in registered common stock, which it says improves the company’s financial flexibility.
The company shaved its workforce count to 145 employees as of June 30, it said, down from 238 the previous year.
As the broader California cannabis market continues to show signs of contraction, the company said it recognized a decline in revenue from last year.
Regardless of the market challenges, the company’s leadership remains optimistic. “Although there are still significant hurdles facing the legal cannabis market, the company has built a nimble foundation to navigate these uncertain times,” interim CFO Chris Rivera said in a statement.