Starco Brands Reports Q4, Fiscal 2025 Financial Results

Starco Brands, Inc. reported full year 2025 net revenue of $40.5 million and fourth quarter net revenue of $7.0 million.

Reported net revenue for the fourth quarter of 2025 was $7.0 million, compared to $12.1 million in the fourth quarter of 2024. Gross profit was $1.9 million for the fourth quarter of 2025, compared to $1.8 million in the fourth quarter of 2024. Officials said the year-over-year revenue decline was due to intentional portfolio optimization, where the company exited retail distribution of its Soylent division to focus on the far more durable and profitable e-commerce business. The company says it’s prioritizing profitability, dependable repeat purchase behavior and an over three-year LTV, by focusing resources on its higher margin direct-to-consumer and e-commerce channels.

Starco Brands reported net revenue for the full year of 2025 was $40.5 million, compared to $58.7 million for the full year of 2024. Officials attribute the year-over-year decline to intentional and continued strategic exit out of the historically suboptimal margined retail channel for Soylent to focus attention and resources on the company’s significantly higher margin and durable direct-to-consumer and e-commerce channels The retail channel also required an over build that strained resources and caused go forward inventory constraints which limited capacity to fulfill e-commerce customer orders, an issue that is largely solved for 2026. Gross profit was $15.7 million for the full year of 2025, compared to $20.9 million for the full year of 2024.

Adjusted EBITDA was approximately $3.1 million for the full year of 2025, compared to $1.3 million for the full year of 2024.

Segment Gross Revenues for Skylar

Segment gross revenues for Skylar were $10.9 million for the full year of 2025, compared to $10.5 million for the full year of 2024. Segment gross profit of $6.2 million for the full year of 2025, compared to $6.2 million for the full year of 2024. Adjusted EBITDA was $2.8 million for the full year of 2025 compared to $1.8 million for the full year of 2024.

Said Starco Brands Chairman & CEO Ross Sklar, “2025 was a year of margin growth, portfolio distribution alignment and expansion driven by innovation. We said we would optimize the portfolio, reduce costs, improve profitability, and launch innovation and we did all four. The difference maker was new product innovation driving revenue and consumer adoption. Our full year Adjusted EBITDA improved 135%, or $1.8 million year-over-year, driven by disciplined execution of our portfolio, channel priority and R&D coming to life expanding our offering, consumer engagement and e-commerce distribution.”

He continued, “With the expected close of The Starco Group merger in 2026, we will have the manufacturing capability, branded portfolio, and financial structure to pursue both organic growth and strategic acquisitions that can benefit from our integrated model. We are focused on completing this transaction in 2026.”