Executive Summary

Q3 revenue increased 9% year over year to $2.82M, but declined sequentially from Q2 and missed S&P Global consensus ($3.88M*) as the company ramps its CPG pivot while exiting low-margin categories . EPS was ($1.38) vs ($0.51*) consensus; gross profit fell to $0.27M on higher labor, freight, raw materials, and nutraceutical supply chain inflation .
Non-perishable momentum continued: unit sales +49.3% YoY; CFO cited +54% YoY growth for the shelf-stable portfolio. Core produce saw Hydrobasil up 21%–28.6% YoY, Wheatgrass +59% YoY, reflecting early benefits of the CPG strategy and retail expansion (Kroger, The Fresh Market, PriceSmart, Amazon) .
SG&A rose to $3.8M on NaturalShrimp-related depreciation and professional fees, widening net loss to ($4.0M); cash ended the quarter at $0.83M as the company refinanced debt at lower rates to reduce interest expense and support growth .
Management expects seasonally stronger Q4 to “further demonstrate the positive impact” of the transformation; potential stock catalysts include Kroger roll-out scaling, private-label wins, utilization of the Iowa facility for new CPG production, and lower interest costs from refinancing .

What Went Well and What Went Wrong

What Went Well
- Shelf-stable acceleration: Non-perishable unit sales +49.3% YoY; CFO highlighted the shelf-stable portfolio (KICK, Vitamin Way, Pulp, Pickle Party) up 54% YoY. “We are repositioning Edible Garden as a next-generation sustainable food company...” .
- Retail expansion: USDA Organic fresh herbs launched at Kroger; Fresh Market added Edible Garden-branded herbs; broadened Midwest presence via Pete’s Fresh Market and Angelo Caputo’s .
- Strategic integration and financing: Debt refinancing to lower rates improves flexibility; Iowa (NaturalShrimp) facility build-out for next-gen nutraceuticals/foods and private-label opportunities with major retailers .
What Went Wrong
- Profitability pressure: Gross profit fell to $0.27M vs $0.70M YoY; margin compression from labor, freight, raw materials, and nutraceutical inflation .
- Elevated costs: SG&A increased to $3.8M (vs $2.2M YoY) on depreciation and professional fees tied to NaturalShrimp assets, widening net loss to ($4.0M) .
- Estimate misses: Revenue ($2.82M) vs $3.88M* and EPS ($1.38) vs ($0.51*); sequential revenue down vs Q2 as Q3 is seasonally soft and portfolio mix shifts . Values retrieved from S&P Global.*

Financial Results

Headline vs Prior Year, Prior Quarter, and Consensus

Metric	Q3 2024	Q2 2025	Q3 2025 Actual	Q3 2025 Consensus*
Revenue ($)	$2,584,000	$3,146,000	$2,817,000	$3,876,000*
Diluted EPS ($)	($16.32)	($6.58)	($1.38)	($0.51)*

Notes: Consensus values retrieved from S&P Global.*

Quarterly P&L and Cash Trend

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($)	$2,718,000	$3,146,000	$2,817,000
Gross Profit ($)	$88,000	$634,000	$273,000
Gross Margin (%)	3.2%	~20.1% (calc.)	~9.7% (calc.)
SG&A ($)	$3,015,000	$4,227,000	$3,831,000
Loss from Operations ($)	($2,926,000)	($3,593,000)	($3,558,000)
Net Loss ($)	($3,324,000)	($4,043,000)	($4,045,000)
Cash & Equivalents ($)	$409,000	$2,821,000	$828,000

Note: Calculated margins are derived from cited figures.

KPIs and Operating Highlights

KPI	Q3 2025 YoY
Non-perishable unit sales	+49.3% YoY
Shelf-stable portfolio growth	+54% YoY (CFO call)
Hydrobasil	+21% YoY (CFO) ; +28.6% “same store” (press release)
Potted Herbs	+22.6% YoY (same store)
Wheatgrass	+59.2% YoY
International vitamins/supplements revenue	+90.2% YoY

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q4 2025	Not provided	Q4 historically strongest; expected to “further demonstrate” positive impact of transformation (qualitative)	N/A
Margins/OpEx/OI&E/Tax	FY/Q4	Not provided	Not provided	N/A
Segment/Dividends	FY/Q4	Not provided	Not provided	N/A

Note: No formal quantitative guidance ranges were provided in the press release or call; commentary emphasized seasonal strength and strategy execution .

Earnings Call Themes & Trends

Topic	Q1 2025 (prior)	Q2 2025 (prior)	Q3 2025 (current)	Trend
CPG Transformation	Shift to higher-margin shelf-stable; non-perishable +15% YoY; gross profit nearly quadrupled	Exit low-margin lines; invest in better-for-you CPG; non-perishable +15% YoY	Shelf-stable acceleration (+49–54% YoY); diversified brands (KICK, Pulp, Vitamin Way, Pickle Party)	Strengthening
Retail Expansion	Expanded Stop & Shop, Walmart, ShopRite, Berkot’s	Ongoing rollouts incl. Amazon for KICK	Kroger launch; Fresh Market; Midwest banners; international via PriceSmart/Amazon	Broadening
Supply Chain/Costs	Early margin improvement; domestic >90% limits tariff exposure	Margin pressure from mix and investments	Higher labor, freight, raw materials; nutraceutical inflation	Cost headwinds persist
NaturalShrimp/Iowa Asset	Announced $15.5M acquisition; patents to enhance ops	Integration narrative; Prairie Hills platform	Facility build-out; private-label R&D, off-take opportunities; vertical integration	From acquisition to utilization
Private Label	Growing PL relationships	PL outperformed +19.1% YoY (Q2)	Retailers pushing clean-label mandates; blended margin strategy with off-take contracts	Larger role, strategic mix
Regulatory/Retail Standards	Domestic sourcing reduces tariff risk	—	Walmart mandate on removing artificial colors/dyes/sweeteners noted as tailwind	Favorable clean-label shift

Management Commentary

Strategic positioning: “We continued executing our strategic evolution towards a CEA-informed consumer packaged goods… model… we delivered a 9% year-over-year revenue increase… driven by… shelf-stable portfolio” (CEO) .
Brand and channel momentum: “Launching our USDA organic fresh herb line at Kroger… introducing Edible Garden branded herbs at Fresh Market… expanding internationally through PriceSmart and Amazon” (CEO) .
Cost and liquidity actions: “The company refinanced its outstanding debt, securing a lower interest rate… expected to reduce annual interest expense… providing greater flexibility” (CFO) .
Facility build-out and PL strategy: “We’re being asked by major companies to… work on their private-label products… Iowa… will be an incredible… hub” (CEO) .
Closing tone: “We’re executing our strategy with focus… growing our higher margin CPG brands… strengthening operations to support scalable, profitable growth” (CEO) .

Q&A Highlights

Iowa/NaturalShrimp facility utilization: Near-term R&D for next-gen nutraceutical/food products; major retailers engaging on private label; vertical integration expected to enable speed and scale .
Private label strategy and margins: Blend of PL and branded to balance volume and margins; multi-year contracts and off-take provide visibility; retailers support with additional products to underwrite capacity ramp .
Clean-label tailwinds: Retailer mandates (e.g., Walmart) align with Edible Garden’s formulations; positions EG to win PL opportunities in higher-quality formulations .
2026 outlook: Management expects retailer-driven growth with both branded and PL, leveraging Iowa and innovation pipeline .

Estimates Context

Revenue: $2.82M actual vs $3.88M consensus* (miss). EPS: ($1.38) vs ($0.51) consensus* (miss). Only one covering estimate was available for each metric in Q3 2025.*
Values retrieved from S&P Global.

Key Takeaways for Investors

The strategic pivot is gaining commercial traction (shelf-stable and core produce KPIs), but mix/inflation pressures and higher SG&A keep profitability out of reach near term .
Estimate misses on revenue and EPS underscore execution risk during transition; monitor Q4 seasonal lift and sell-through at Kroger/Fresh Market for confirmation of trajectory . Values retrieved from S&P Global.*
Debt refinancing reduces interest burden and improves flexibility; watch cash levels and working capital discipline as Iowa facility ramps .
Private label could become a sizable, more stable revenue stream, but margin outcomes will depend on mix and ability to pair with higher-margin branded products .
Catalysts: Kroger roll-out scaling, new PL contracts/off-take deals, Iowa facility commercialization of next-gen products, improvement in gross margin as shelf-stable mix expands .
Risks: Cost inflation in nutraceutical inputs, ramp costs for Iowa, limited estimate coverage/liquidity, and continued SG&A elevation during transformation .

Notes:

Consensus values marked with * are from S&P Global; Values retrieved from S&P Global.
Calculated percentages are derived from cited figures.

Edible Garden AG Inc (EDBL)·Q3 2025 Earnings Summary