Blue Star Foods Corp. (BSFC)·Q1 2023 Earnings Summary

Executive Summary

• Q1 2023 revenue was $1.90M, down 64% year over year (vs. $5.30M in Q1 2022), with gross margin improving to 15.0% (vs. 9.2% a year ago). Net loss widened to $2.0M on higher non-cash/one-time items, and adjusted EBITDA loss was $0.9M .
• RAS revenue reached $0.60M, signaling continued traction of the aquaculture strategy despite a “slow beginning” to the year; management noted demand improved late in the quarter and reaffirmed intent to expand RAS, albeit with delays vs. prior expectations .
• Liquidity and capital actions were a focus: the company raised $1.8M in an underwritten offering during Q1 and subsequently executed additional financing steps; it also disclosed a pending Nasdaq compliance hearing regarding minimum bid price, a material overhang for the equity .
• No formal financial guidance was provided; management expects to share specific details on RAS expansion “over the next few months,” and ramped shipments under a supply agreement for “up to $4M annually” with JustFoodForDogs .
• Wall Street consensus estimates from S&P Global were unavailable via our data retrieval; therefore, no beat/miss assessment to estimates is shown (values would be pulled from S&P Global by default when available).

What Went Well and What Went Wrong

What Went Well

• RAS revenue increased to $0.60M in Q1, underscoring the strategic pivot toward recirculating aquaculture systems; CEO: “Our RAS business continues to perform well…” .
• Gross margin improved to 15.0% vs. 9.2% in Q1 2022 despite revenue declines, reflecting mix/operations, though the release does not detail specific drivers .
• Commercial progress: supply agreement with JustFoodForDogs for “up to $4M annually,” with shipments ramping subsequent to quarter-end, providing an incremental demand channel .

What Went Wrong

• Top line contraction: revenue fell 64% year over year to $1.90M, driven primarily by lower poundage sold; adjusted EBITDA loss increased to $0.9M vs. $0.4M in Q1 2022 .
• Net loss widened to $2.0M, including $1.1M in non-cash/one-time items (loss on settlement of stock $0.65M, accrued convertible debt $0.27M, stock comp $0.05M, D&A ~$0.003M), elevating GAAP losses and masking underlying run-rate .
• Expansion timing: management acknowledged RAS expansion plans are “taking longer than previously expected,” consistent with prior timeline slippage from Q2/Q3 2022 disclosures that had targeted commercial harvest in late 2023 .

Financial Results

Quarterly Performance (oldest → newest)

Notes: Q3 2022 gross margin percentage not disclosed in the press release; Q2/Q3 figures shown for trend context.

Year-over-Year Comparison (Q1)

Segment/Contribution Breakdown (where disclosed)

KPIs and Balance Items

Additional Q1 2023 details: non-cash/one-time operating expenses totaled $1.1M (loss on settlement of stock $0.65M; accrued portion of convertible debt $0.27M; stock comp $0.05M; D&A ~$0.003M) .

Guidance Changes

Earnings Call Themes & Trends

No Q1 2023 earnings call transcript available; themes below track narrative from company press releases.

Management Commentary

• “We got off to a slow beginning for 2023, but started to see some increase in demand and orders towards the end of the first quarter. Our RAS business continues to perform well and… remain poised for expansion.” — John Keeler, Chairman & CEO .
• “We hope to have specific details on our RAS expansion to share over the next few months.” — John Keeler .
• “Subsequent to the end of the first quarter, we raised $150,000 in equity… [and]… entered into a non-binding term sheet with Lind Global Fund II… for a secured, two-year, convertible promissory note… approximately $1,200,000…” — John Keeler .
• “We have requested the hearing before the Nasdaq Hearings Panel… [to] regain compliance with Nasdaq’s Minimum Bid Price Requirement… including… a shareholder approved reverse stock split if necessary.” — John Keeler .

Q&A Highlights

No Q1 2023 earnings call transcript was found; therefore, no Q&A highlights or analyst guidance clarifications available in primary documents [ListDocuments returned 0 earnings-call-transcript for 2023].

Estimates Context

• S&P Global Wall Street consensus estimates for Q1 2023 (EPS and Revenue) were unavailable in our retrieval due to access limits; thus, no beat/miss comparison is shown. We would normally anchor estimate comparisons to S&P Global consensus when accessible.

Key Takeaways for Investors

• Revenue contraction was severe (-64% YoY to $1.90M), but gross margin expanded to 15.0%, suggesting underlying operational/mix improvements despite volume pressure .
• RAS contribution continued to grow ($0.60M in Q1), validating the aquaculture strategy as an incremental revenue driver amid legacy volume softness .
• GAAP losses were elevated by $1.1M in non-cash/one-time operating items, which obscures run-rate performance; adjusted EBITDA loss was $0.9M .
• Commercial traction and channel diversification are a bright spot: the JustFoodForDogs supply agreement (up to $4M annually) and ramped shipments post-Q1 are potential catalysts for H2 demand .
• RAS expansion timelines have slipped vs. 2022 plans; investors should monitor upcoming “specific details” on the expansion and the cadence of capex/execution milestones .
• Liquidity actions and listing status are critical: recent capital raises and the pending Nasdaq Hearings Panel decision on minimum bid price compliance (with reverse split authorized) are near-term stock drivers .
• With no formal guidance and unavailable consensus estimates, positioning hinges on execution in RAS, traction from new channels, and resolution of listing risk; subsequent updates could reset expectations and sentiment .