Bloomia Holdings, Inc.

Operationally, external factors out of the Company’s control had a material impact on results for the year. The average cost of our primary input, tulip bulbs, increased 21% year over year, and was further compounded by a 6% increase in the Euro exchange rate to purchase those bulbs. Further, in the fourth quarter of fiscal year 2026, an industry-wide challenge with mite treatment caused premature bulb aging and resulted in more than $2.5 million of excess production waste, which was concentrated in the Company's highest-demand quarter. Despite all these external challenges, revenue was essentially unchanged at $48.1 million compared to $48.4 million in the prior year. Absent the excess waste, adjusted EBITDA would have been approximately in line with the prior year, despite the dramatic increase in input costs and the increased Euro exchange rate.

Looking forward, the Company has locked in bulb prices for fiscal year 2027. These prices are back to historical averages, which is a projected savings of greater than 20% over fiscal year 2026 for one of our single largest categories of expense. Additionally, we are applying a new mite control treatment to our bulbs which is intended to address the conditions that produced the waste in the fourth quarter of fiscal year 2026.

Co-Chief Executive Officer Dan Philp added, “Results for fiscal year 2026 include two significant non-cash items recognized in the fourth quarter: goodwill impairment of $11.1 million and intangible asset impairment of $2.0 million, together totaling $13.2 million, as well as a $7.0 million gain on settlement of debt. These items are the principal reason reported operating and net results differ from the Company's underlying operating performance. These items did not affect cash flow or liquidity, and are excluded from adjusted EBITDA. I see many operational bright spots in the past fiscal year which we expect to reap future benefits, including continued investment in automation, operational efficiencies, and an even larger focus on waste mitigation and margin improvement. We see significant opportunities across our markets, including continuing to gain market share, further diversifying customer mix, and exploring new distribution channels. We fully intend to capitalize on these growth opportunities, and remain confident in our strategy and ability to deliver improved results.”

Overview

Gross profit was $4.6 million, or 21.1% of sales, compared to $5.4 million, or 23.3% of sales, in the three months ended June 30, 2025.

Operating loss of $11.5 million, including a one-time $13.2 million non-cash impairment charge, compared to operating profit of $2.5 million in the three months ended June 30, 2025.

Net loss from continuing operations was $6.6 million compared to net income from continuing operations of $1.3 million in the three months ended June 30, 2025.

Adjusted EBITDA was $2.3 million compared to $2.6 million in the three months ended June 30, 2025.

Twelve Months Ended June 30, 2026 Net revenue was $48.1 million compared to $48.4 million in the twelve months ended June 30, 2025.