Functional Brands, Inc. is a U.S.-based company that produces and supplies a comprehensive range of nutraceutical supplements. Its product portfolio targets a broad spectrum of health and wellness needs, encompassing categories like pain management, energy enhancement, prenatal support, general well-being, bone and joint health, gastrointestinal function, immunity, cardiac care, detoxification, cognitive support, sleep aids, and urinary health. In addition to its core nutraceutical offerings, the company also provides a line of hemp-derived products, available in convenient forms such as capsules, gummies, and tinctures.
Functional Brands Announces Second Quarter 2026 Financial Results
Functional Brands reported Q2 revenue of $1.87 million, a 2% increase year-over-year, with gross margin expanding 710 basis points to 59.9%. Despite the margin expansion, the company swung to a net loss of $2.6 million, driven by increased operating expenses and non-cash derivative valuation changes.
The company disclosed that its common stock was delisted from Nasdaq and now trades on OTC Markets, and a proposed blockchain acquisition with BullionFX was terminated. In a separate legal matter, the company noted that the Circuit Court entered judgment largely in its favor regarding litigation brought by True Health Medical Center.
Management issued a going concern warning, stating substantial doubt about the company's ability to continue as a going concern due to a working capital deficit of $2.9 million and cash on hand of only $352,142.