STCBOTCServices-Advertising AgenciesUS GAAP · USD

Starco Brands, Inc.

Starco Brands, Inc. develops and markets consumer brands across food, beverage, personal care, fragrance, and household categories. The company operates through a mix of owned brands and licensed products, with manufacturing and commercialization tied to related-party and third-party agreements in the United States.

Operating profit (EBIT)-18.8m USD
−30.5 %y/y
Net income-20.9m USD
−18.6 %y/y
Free cash flow-1.0m USD
−153.2 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-50-250255075m USD2020: 1.4 m USD2020: EBIT 0.53 m USD20202021: 0.67 m USD2021: EBIT -2.3 m USD20212022: 7.8 m USD2022: EBIT 1.1 m USD20222023: 65 m USD2023: EBIT -45 m USD20232024: EBIT -14 m USD20242025: EBIT -19 m USD2025-19
RevenueOperating profit (EBIT)

Business

Share of revenue
Food and beverage brands40 %

Plant-based nutrition, whipped cream, and other food/beverage products sold through retail and eCommerce channels.

Personal care and skincare20 %

Body care, skincare, and related consumer wellness products sold under owned brands.

Fragrance and beauty15 %

Fragrances and adjacent beauty products marketed to consumer retail and online buyers.

Household and air care15 %

Spray, cleaning, air care, and other household consumer products developed for retail distribution.

Licensing and royalties10 %

Royalty income from licensed products where third parties manufacture and sell under contract.

Customers

Starco Brands sells primarily to retailers, eCommerce platforms, and consumers through retail and online channels. Its products are designed for mass-market consumer use, including grocery, beauty, wellness, and lifestyle categories, while some revenue is generated through licensing arrangements with third-party manufacturers. The customer base is therefore a mix of retail buyers, digital shoppers, and license partners that commercialize the brands.

Retailers

Buy food, beverage, personal care, fragrance, and household products for brick-and-mortar distribution and shelf placement.

eCommerce platforms and online shoppers

Purchase products through direct online channels and Amazon FBA, especially for beauty, fragrance, and nutrition brands.

Licensees and manufacturing partners

Use Starco brand rights to manufacture and sell products under royalty-bearing agreements.

Consumer end users

Buy the company’s branded products for everyday use in food, personal care, and household categories.

Strategy

The company’s strategy is to build and acquire behavior-changing consumer brands, then commercialize them through retail and online channels. It also relies on licensing and manufacturing relationships to expand product lines across food, personal care, fragrance, and household categories. Growth depends on launching new products, scaling existing brands, and maintaining access to capital for expansion.

Expand the brand portfolioMedium term

A broader portfolio reduces dependence on any single brand and increases cross-category reach.

Scale through retail and eCommerce channelsShort term

Distribution breadth is central to consumer brand adoption and repeat sales.

Leverage licensing and manufacturing relationshipsShort term

External manufacturing and royalty structures allow the company to commercialize brands without owning all production assets.

Geography

Starco Brands is headquartered in Los Angeles, California and operates primarily in the United States. Its disclosures emphasize U.S. retail and online distribution, and its manufacturing relationship with The Starco Group is also centered in Los Angeles. The business is therefore concentrated in the U.S. consumer market, with geography mainly affecting channel access, manufacturing coordination, and brand reach.

Risks

Starco Brands depends on consumer acceptance of new and existing brands in highly competitive categories, where large multinational and store-brand competitors are entrenched. Its model also relies on capital access, licensing arrangements, and related-party manufacturing, which can create concentration and execution risk if financing, supply, or partner relationships weaken. Because many products are sold through retail and eCommerce channels, demand shifts, channel concentration, and brand performance can materially affect results.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Financing dependence1Related-party and licensing concentration3
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Financing dependenceImpact: HighLikelihood: High

    Growth and product launches depend on the ability to raise capital through equity or other sources.

    Exposure: New product development and acquisition strategy

  2. Competitive pressure in consumer categoriesImpact: High

    The company competes against multinational brands and store brands on price, quality, and recognition.

    ExposureFoodBeveragePersonal careFragranceHousehold products
  3. Related-party and licensing concentrationImpact: MediumLikelihood: Medium

    Manufacturing and certain brand rights are tied to related-party agreements and license terms.

    ExposureThe Starco GroupTemperanceOther licensing arrangements
  4. Brand execution riskImpact: Medium

    Consumer brands require sustained marketing, shelf presence, and repeat purchase to scale.

    ExposureWhipshotsSoylentSkylarWinonaFuture launches

Accounting

Judgemental items
Revenue recognition by channel

Different timing rules apply to retail, eCommerce, and royalty arrangements, affecting quarterly comparability.

Impact: Shipment-based recognition and royalty timing can shift revenue between periods

Goodwill and intangible impairment

Acquisitions create goodwill and brand intangibles that must be tested for recoverability.

Impact: Impairment charges could materially reduce earnings and asset values

Inventory valuation and net realizable value

Consumer products can face obsolescence, demand changes, and write-down risk.

Impact: Inventory reserves can affect gross profit and working capital

Fair value estimates and share-based adjustments

The company uses valuation assumptions for acquisitions, contributed services, and equity awards.

Impact: Management judgment can materially affect expenses and balance sheet values

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026