MEHA Functional Brands Inc.
Price Chart
Executive Summary
Functional Brands Inc. reported Q1 2026 revenue of $1.65M (+3.5% YoY) and gross margin expansion of 390 bps to 58.4%, but operating loss widened to $0.68M from $0.03M due to public company expenses. Net loss of $7.0M was driven by a $6.3M non-cash charge on preferred stock issuance, and the balance sheet shows stockholders' equity swung to a deficit of $4.5M from positive $1.5M at year-end 2025. The capital structure simplification (extinguishing Series A/B preferred, issuing Series C preferred and convertible notes) adds complexity, while cash burn continues with operating cash flow of -$0.42M.
Key Financial Metrics
Actionable Insight
The widening operating loss and cash burn despite revenue growth signal that public company costs are overwhelming the business. With only $1.08M cash and negative equity, the company may need additional financing. Monitor for further dilution from the Series C preferred and convertible note, and watch for progress on the Tru2u.health platform and the BullionFX LOI as potential catalysts.
Key Facts
- Revenue grew 3.5% YoY to $1.65M, but operating loss widened to $0.68M from $0.03M
- Net loss of $7.0M included a $6.3M non-cash loss on issuance of preferred stock
- Stockholders' equity swung to a deficit of $4.5M from $1.5M positive at Dec 2025
- Cash balance fell to $1.08M from $2.73M at year-end 2025; operating cash flow was -$0.42M
- Capital structure simplified: Series A/B preferred extinguished, Series C preferred ($6.0M) and convertible note ($0.84M) issued
- Gross margin improved 390 bps to 58.4% on higher-margin direct-to-consumer channel mix
Financial Impact
Revenue $1.65M vs $1.59M prior year; net loss $7.0M vs $0.13M prior year; operating loss $0.68M vs $0.03M prior year
Risk Factors
- Cash runway limited with $1.08M and negative operating cash flow
- Stockholders' equity deficit of $4.5M raises going-concern risk
- Dilution from Series C preferred and convertible note issuance
- Operating expenses growing faster than revenue (G&A up 92% YoY)
- Uncertainty around BullionFX asset acquisition and integration
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001213900-26-058120 |
| Document: ea0291258-8k_functional.htm | 0001213900-26-058120 |
| Document: 0001213900-26-058120-index-headers.html | 0001213900-26-058120 |
| Document: 0001213900-26-058120-index.html | 0001213900-26-058120 |
| Document: 0001213900-26-058120.txt | 0001213900-26-058120 |
| 8-K Data (Synthetic) | 0001213900-26-058120 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
May 28, 2026
12d ago
|
8-K
| $0.0810 $0.0680 | ▲ +16.05% | ▲ +16.00% | $0.0510 (+37.04%) |
|
May 27, 2026
13d ago
|
DEFA14A
| $0.0810 $0.0680 | ▼ −16.05% | ▼ −16.00% | $0.0510 (−37.04%) |
|
May 27, 2026
13d ago
|
DEFA14A
| $0.0800 $0.0690 | ▼ −13.75% | ▼ −14.96% | $0.0510 (−36.25%) |
|
May 22, 2026
18d ago
|
8-K
| $0.1060 $0.0830 | ▲ +21.70% | ▲ +23.37% | $0.0510 (+51.89%) |
|
May 20, 2026
20d ago
|
3
| $0.0770 $0.0810 | ▲ +5.19% | ▲ +3.60% | $0.0510 (−33.77%) |
|
May 20, 2026
20d ago
|
8-K
| $0.0770 $0.0810 | ▲ +5.19% | ▲ +3.60% | $0.0510 (−33.77%) |
|
May 19, 2026
21d ago
|
DEFA14A
| $0.0850 $0.0800 | ▼ −5.88% | ▼ −7.12% | $0.0510 (−40.00%) |
|
May 18, 2026
22d ago
|
8-K
| $0.0740 $0.0850 | ▼ −14.86% | ▼ −13.25% | $0.0510 (+31.08%) |
|
May 11, 2026
29d ago
|
8-K
| $0.1200 $0.0740 | ▼ −38.33% | ▼ −38.25% | $0.0510 (−57.50%) |
|
Apr 20, 2026
7w ago
|
8-K
| $0.1250 $0.1040 | ▼ −16.80% | ▼ −17.88% | $0.0510 (−59.20%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access