Eastside Distilling, Inc.

Total revenue was $2.7 million, up from $1.4 million in the prior-year period. Revenue included $1.8 million of gain on sale, $395,000 of origination fees, $380,000 from Title, about $50,000 of initial BeelineEquity contribution, and $51,000 of other revenue. Operating expenses were $7.9 million, including about $1 million of noncash stock-based compensation; loss from operations was $5.2 million; net loss was $5.3 million; and adjusted EBITDA was a loss of $3 million versus a $3.8 million loss a year ago. At quarter end, cash was $1.9 million, loans held for sale were $17.3 million, equity was approximately $51 million, and there was no corporate debt. Management said it executed roughly $210,000 per month, or about $2.5 million per year, of run-rate cost reductions, and it is targeting a meaningful reduction in monthly cash burn during 2026. No formal next-quarter revenue or EPS guidance was given; the company reiterated a goal of reaching a $100 million run rate by the end of 2027.

Nick Liuzza said Q1 showed progress on the company’s 2026 plan, highlighting revenue growth, better unit economics, and first BeelineEquity transactions. He emphasized a measured approach in a tough macro environment, with focus on profitable transactions, lower cost structure, and greater mix of capital-light fee revenue. He framed BeelineEquity as structurally differentiated because it is not tied to interest rates and carries zero balance sheet exposure, and he reiterated the long-term $100 million run-rate target by the end of 2027.

Chris Moe said total revenue reached $2.7 million, up from $1.4 million, and that operating expenses were $7.9 million, including about $1 million of stock-based compensation. He noted the company’s operating expenses excluding stock comp grew about 15% year over year versus revenue growth of more than 100%, with net loss narrowing to $5.3 million and adjusted EBITDA loss narrowing to $3 million from $3.8 million. On liquidity, he said quarter-end cash was $1.9 million, operating cash used was $3.6 million, and funding came from about $945,000 of HELOC drawdowns and about $447,000 of ATM activity; he also said the company has further access to those facilities and is working to reduce monthly cash burn during 2026.

Analysts focused first on liquidity, asking how Beeline plans to operate with $1.9 million of cash versus a roughly $3 million quarterly adjusted EBITDA loss. Management said it has an ATM facility, an HELOC arrangement, and other potential equity financing sources, while explicitly saying it is debt avoidant. They also asked whether the company is still on track to reach cash flow breakeven this year; management replied that the mix shift toward more profitable DSCR, bank statement, and non-QM loans, combined with cost cuts, should accelerate progress. Another question addressed durability versus larger digital mortgage competitors, and management said it is avoiding direct head-to-head competition by focusing on niches where major lenders do not offer the same products. On BeelineEquity, management said it should become more meaningful in Q3 and described it as a cash-out solution for equity-rich, cash-poor customers who may not qualify for or want a HELOC or cash-out refinance.