Reborn Coffee Inc. Common Stock (REBN)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business with durable economics, honest accounting, and a margin of safety. Reborn Coffee is a specialty coffee operator and franchisor, but the filed figures show a business still searching for profit. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $6.3 million and net loss was $2.6 million. That revenue is much higher than fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $1.8 million, and the loss narrowed from $5.3 million. However, annual results remain weak: FY2025 ended 2025-12-31 had revenue of $8.1 million and a net loss of $9.1 million; FY2024 had revenue of $5.9 million and a net loss of $4.8 million; FY2023 had revenue of $5.5 million and a net loss of $4.7 million. FairStock's calculations at the $1.49 close on 2026-10-13 show a market cap of $12.8 million, P/B of 4.14, ROE of -430.44%, D/E of 11.36, TTM free cash flow of -$5.1 million, and FCF yield of -39.6%. The Altman Z-Score of -3.70 and Piotroski F-Score of 3/9 point to financial stress. The figures show no durable profit, so I cannot identify a moat. Growth without owner earnings can destroy value. The stock may look inexpensive by price alone, but it is not cheap against present losses, negative cash flow, and high leverage. Until the company earns consistent profits and generates cash, the margin of safety is absent.

In plain English: Reborn Coffee runs coffee shops and sells roasted coffee, drinks, and food, including online. Sales are growing, but the company still loses money and spends more cash than it brings in. At $1.49 a share, the price looks expensive relative to its losses and weak financial numbers.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer