Bloomia Holdings — Fiscal Year 2026 Earnings Summary

Financial Performance

• Reported net revenue of $48.1 million for the fiscal year ended June 30, 2026, a decrease from $48.4 million in the prior year; Q4 revenue was $21.8 million compared to $23.2 million in Q4 2025.
• Gross profit for the fiscal year was $7.9 million (16.4% of sales) compared to $10.1 million (20.9% of sales) in the prior year; Q4 gross profit was $4.6 million (21.1% of sales) versus $5.4 million (23.3% of sales) in Q4 2025.
• Reported a net loss attributable to Bloomia Holdings of $11.2 million ($4.43 per diluted share) for the fiscal year, compared to a net loss of $2.6 million ($1.45 per diluted share) in the prior year; Q4 net loss was $5.3 million ($1.11 per diluted share) versus net income of $1.0 million ($0.58 per diluted share) in Q4 2025.
• Adjusted EBITDA for the fiscal year was a loss of $0.5 million, compared to a profit of $2.0 million in the prior year; Q4 adjusted EBITDA was $2.3 million compared to $2.6 million in Q4 2025.
• Operating loss for the fiscal year was $16.9 million, including a $13.2 million non-cash impairment charge, compared to an operating loss of $1.3 million in the prior year; Q4 operating loss was $11.5 million compared to an operating profit of $2.5 million in Q4 2025.
• Cash used in operations was $4.0 million for the fiscal year, compared to $1.0 million in the prior year.
• Total debt decreased $12.4 million (36%) to $21.7 million at June 30, 2026, from $34.1 million at June 30, 2025; interest expense in Q4 2026 was $0.6 million, a 33% decrease from $0.9 million in Q4 2025.
• Cash and cash equivalents totaled $1.5 million at June 30, 2026, compared to $0.9 million at June 30, 2025; working capital was $7.3 million at June 30, 2026, compared to $1.1 million at June 30, 2025.

Guidance and Future Outlook

• The Company has locked in bulb prices for fiscal year 2027, which are back to historical averages, representing a projected savings of greater than 20% over fiscal year 2026 for one of its largest expense categories.
• Management expects margins to improve in fiscal year 2027 due to contracted bulb prices near fiscal year 2025 rates.
• The Company is applying a new mite control treatment to bulbs to address the conditions that caused excess waste in the fourth quarter of fiscal year 2026.
• Management intends to capitalize on growth opportunities including gaining market share, diversifying customer mix, and exploring new distribution channels.
• The Company believes its cash balance, cash generated by operations, and borrowings available under its Amended Credit Agreement will provide adequate liquidity and capital resources for at least the next twelve months.

Business Segments and Product Lines

• The decrease in revenue was primarily driven by lower stem sales, particularly in the fourth quarter, resulting from unprecedented waste in production due to an industry-wide mite issue, partially offset by a 12% price increase in fiscal year 2026.
• The Company experienced over $2.5 million of excess production waste in the fourth quarter of fiscal year 2026 due to premature bulb aging caused by an industry-wide mite treatment challenge.
• The average cost of primary input (tulip bulbs) increased 21% year over year, compounded by a 6% increase in the Euro exchange rate.
• The first and second calendar quarters remain the strongest sales quarters, benefiting from Valentine's Day, Easter, Mother's Day, and the start of the Spring season.
• The Company received a $0.6 million one-time grant from the USDA which partially offset cost challenges.

Market and Competitive Landscape

• The Company operates as a specialty agricultural business and is the majority owner of Bloomia, one of the largest producers of fresh-cut tulips in the United States.
• The Company faces industry-wide challenges regarding mite treatment that resulted in premature bulb aging and excess waste across the sector.
• Management sees significant opportunities to continue gaining market share and further diversifying the customer mix.

Risks and Challenges

• Unpredictable industry-wide growing difficulties, specifically mite treatment issues, had an outsized negative impact on margins and resulted in over $2.5 million of waste.
• Significant increases in input costs, including a 21% rise in bulb prices and a 6% increase in the Euro exchange rate.
• Concentration of historical revenue among a small number of customers.
• Reliance on one or a small number of employees.
• Potential adverse classifications if the Company is unsuccessful in executing business plans.
• Risks related to the ability to integrate and continue to successfully operate the Bloomia business.
• Economic and market conditions that may restrict or delay opportunities.
• Ability to comply with the requirements of the Amended Credit Agreement and operate within its restrictions.

Management Commentary and Tone

• Chairman and Co-CEO Mark Jundt stated that the fiscal year reminded the company it is an agricultural business and that underlying business demonstrated significant resilience despite external challenges.
• Co-CEO Dan Philp noted that reported results included two significant non-cash items ($13.2 million in impairments) and a $7.0 million gain on debt settlement, which do not reflect underlying operating performance.
• Management expressed confidence in the strategy and ability to deliver improved results, citing operational bright spots including continued investment in automation and waste mitigation.
• Management described the successful capital raise and debt retirement as a "big win" that makes the company much stronger and more resilient.

Other Key Points

• The Company successfully completed a capital raise via a rights offering that commenced in February 2026 and expired on April 1, 2026.
• The rights offering generated gross proceeds of $12.1 million, consisting of approximately $5.0 million in cash and $7.1 million in conversion of outstanding debt, resulting in the issuance of approximately 3,000,000 shares at $4.05 per share.
• Net cash proceeds from the rights offering were used primarily for a $4.9 million long-term debt payment, and the Company settled over $12 million of debt at a significant discount.
• The Company retired over $19 million of debt obligations in total during the fiscal year.
• On January 28, 2026, the Company changed its name from Lendway, Inc. to Bloomia Holdings, Inc., and its stock began trading on Nasdaq under the ticker symbol "TULP" effective February 2, 2026.
• A $7.0 million gain on settlement of debt was recognized in the fourth quarter of fiscal year 2026.
• Goodwill impairment of $11.1 million and intangible asset impairment of $2.0 million were recognized in the fourth quarter of fiscal year 2026.