Sign in

You're signed outSign in or to get full access.

LS

Laird Superfood, Inc. (LSF)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered 18% YoY net sales growth to $11.65M and a narrowed GAAP net loss ($0.2M; -$0.02/share), with positive Adjusted EBITDA ($0.36M), marking the fifth straight quarter of double-digit YoY sales growth .
  • Results beat S&P Global consensus: revenue $11.65M vs $11.34M* and EPS -$0.02 vs -$0.065*, aided by resilient gross margin of 41.9% (incl. 3.3-pt one-time benefit from inbound freight capitalization) .
  • Management reaffirmed full-year 2025 guidance: +20–25% net sales growth, gross margin in the upper-30s, breakeven adjusted EBITDA, and -$1–$2M operating cash flow to build inventory .
  • Catalysts: accelerating wholesale distribution and Amazon execution, normalization of supply after Q4’24/Q1’25 out-of-stocks, and continued gross-margin discipline despite commodity inflation and tariff risk .

What Went Well and What Went Wrong

What Went Well

  • Omnichannel momentum: e-comm +6% YoY (53% mix) and wholesale +35% YoY (47% mix) with distribution gains; CEO: “fifth consecutive quarter of double-digit… growth… driven by… brick-and-mortar… and Amazon” .
  • Margin resilience despite commodity inflation: GM 41.9% (vs 40.0% LY; 38.6% in Q4’24) and positive Adj. EBITDA $0.36M; CFO: “even excluding [freight capitalization], Q1 gross margin was 38.6%, flat sequentially to Q4 2024” .
  • Inventory/supply-chain flexibility rebuilt post stockouts; management: “we are now beyond the inventory issues and supply constraints” and “qualifying additional raw material suppliers” .

What Went Wrong

  • Temporary revenue opportunity loss tied to late-2024/Q1’25 out-of-stocks; Q4 management estimated ~$1M top-line impact and flagged modest Q1 growth headwind (now largely resolved) .
  • Cash used in operations (-$1.27M) as LSF intentionally built safety stock; inventory rose QoQ to $9.51M (from $5.98M) .
  • Tariff/commodity inflation risks linger; management expects to manage within guidance but may “take price” if needed; potential GM headwind offset with P&L levers .

Financial Results

Headline metrics vs prior quarters and estimates

MetricQ3 2024Q4 2024Q1 2025Q1 2025 Consensus
Net Sales ($M)$11.78 $11.61 $11.65 $11.339M*
GAAP Diluted EPS ($)-0.02 -0.04 -0.02 -0.065*
Gross Margin %43.0% 38.6% 41.9% (incl. +3.3 pts one-time) n/a
Net (Loss) Income ($M)-$0.17 -$0.40 -$0.16 n/a
Adjusted EBITDA ($M)-$0.011 $0.153 $0.357 n/a

Note: Q1 gross margin includes ~3.3 pts from inbound freight capitalization tied to increased inventory purchases; underlying GM ~38.6% (flat seq. vs Q4’24) .
Consensus values marked with “*” were retrieved from S&P Global.

Channel mix

Channel MixQ3 2024Q4 2024Q1 2025
E-commerce ($; % of Sales)$6.89M; 58% 58% of sales $6.21M; 53%
Wholesale ($; % of Sales)$4.89M; 42% 42% of sales $5.44M; 47%

Key categories by quarter (sales, $)

CategoryQ3 2024Q4 2024Q1 2025
Coffee creamers$6,273,157 $6,521,777 $6,712,651
Coffee/tea/hot chocolate$3,298,363 $3,196,314 $3,220,892
Hydration/beverage enhancers$2,520,402 $2,318,791 $2,106,179
Snacks/other food$1,558,611 $1,550,974 $1,430,729
Other$75,339 $73,179 $71,682

Additional KPIs

KPIQ3 2024Q4 2024Q1 2025
E-comm YoY growth+42% +12% +6%
Wholesale YoY growth+13% +52% +35%
DTC: % sales from repeat/subscribersn/an/a>75%
Cash & equivalents ($M)$8.20 $8.51 $7.16
Inventory ($M)$6.16 $5.98 $9.51
Cash from ops ($M)n/aFY +$0.87 Q1 -$1.27

Guidance Changes

MetricPeriodPrevious Guidance (as of Q4’24)Current Guidance (Q1’25)Change
Net Sales growthFY 2025+20% to +25% +20% to +25% reaffirmed Maintained
Gross MarginFY 2025Upper 30s % Upper 30s % reaffirmed Maintained
Adjusted EBITDAFY 2025Breakeven Breakeven Maintained
Operating cash flowFY 2025-$1M to -$2M (inventory build) -$1M to -$2M (inventory build) Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3’24 and Q4’24)Current Period (Q1’25)Trend
Supply chain & stockoutsQ3: strong GM with direct sourcing; some minor OOS; cash positive . Q4: OOS cut ~$1M sales; flagged Q1 headwind, recovery by end-Q1/early-Q2 .Inventory flexibility rebuilt; OOS largely resolved; safety stock investment in Q1 .Improving supply availability
Commodity inflation (coffee, coconut)Q3: GM 43% on sourcing/trade spend reductions . Q4: inflation managed, pricing where needed; GM to high 30s .GM 41.9% (incl. +3.3-pt one-time); underlying 38.6% flat seq.; monitoring inflation .Stable to cautious
Tariffs/macroQ4: watchful; can manage within P&L, may take price .Management can handle 10% tariffs; if larger levies, would take price; still within guidance .Watchful, manageable
Channel strategy (Amazon & wholesale)Q3: Amazon +133% YoY; wholesale doors/velocity up . Q4: wholesale +52% YoY; Amazon strong .E-comm +6% YoY; wholesale +35% YoY; near 50/50 mix; expect H2 acceleration .Durable, broad-based
Promotion/trade spendQ3: reduced inefficient trade; shift to “quality merchandising” .Prior-period trade spend elevated; mix of deeper/fewer promos; disciplined ROAS .More efficient
Product innovationQ3: liquid creamer upsizing; functional coffee momentum . Q4: liquid creamer transition underway .Vanilla Instant Latte launch; Marketplace (curated partners) to drive DTC engagement .Expanding portfolio/DTC engagement

Management Commentary

  • “Our Q1 results represent the fifth consecutive quarter of double-digit year-over-year sales growth… driven by strategic expansion into brick-and-mortar stores and through Amazon.” — CEO, Jason Vieth .
  • “Even excluding [freight capitalization], Q1 gross margin was 38.6%, which was flat sequentially to Q4 2024, showing resiliency… despite inflationary increases in key commodity costs.” — CFO, Anya Hamill .
  • “The 10% tariff… we’re able to handle… The bigger tariff… will have more impact, but we still feel we can manage that within our P&L… if… really big tariffs… there will be nothing left to do [but] take price.” — CEO, Jason Vieth .
  • “We exited Q1 with… healthy inventory levels… We are reaffirming our full year guidance… net sales… $52–$54 million… and… gross margins… upper 30s.” — CFO, Anya Hamill .

Q&A Highlights

  • Tariffs: Management can absorb current 10%; larger tariffs would modestly pressure GM but could be offset with other P&L levers; pricing is the backstop if industry-wide hikes persist .
  • Wholesale strength and velocity: Coffee solutions (powdered creamers, instant lattes, coffee) led gains; selective, quality merchandising over discounting; prior-period trade costs recognized .
  • Liquid creamer upsizing: Transition complex but on-track; modeled ~0.8x unit conversion initially with potential upside; early feedback constructive .
  • DTC “Marketplace”: Non-revenue focus; a curated, pass-through partner hub to deepen engagement/traffic and retention; no drop-shipping or inventory risk .

Estimates Context

  • Q1 2025 vs S&P Global consensus: Revenue $11.65M vs $11.339M* (beat); GAAP EPS -$0.02 vs -$0.065* (beat). Reaffirmed FY guide implies H2 acceleration after early Q1 OOS headwinds .
  • Implications: Consensus models may lift revenue run-rate modestly on sustained wholesale momentum and normalized inventories; GM to normalize to the high-30s for FY (post Q1 one-time benefit), with breakeven full-year Adj. EBITDA as management reinvests .
    Note: Values marked with “*” retrieved from S&P Global.

Q1 2025 Actuals vs Consensus

MetricActualConsensus
Revenue ($)$11,654,159 $11,339,000*
GAAP Diluted EPS ($)-0.02 -0.065*

Key Takeaways for Investors

  • Beat and reaffirm: Modest top/bottom-line beats with reiterated FY’25 guide (20–25% growth; GM upper-30s; breakeven Adj. EBITDA) support estimate stability to slight upward bias .
  • Margin quality: Q1 GM elevated by a one-time 3.3-pt benefit; underlying 38.6% shows resilience amid input inflation, consistent with full-year “upper-30s” target .
  • Channel durability: Wholesale growth (+35% YoY) and Amazon execution remain the primary drivers; mix trending toward ~50/50 with e-comm, reducing channel concentration risk .
  • H2 acceleration setup: Inventory rebuilt and OOS resolved; liquid creamer upsizing and new items (e.g., Vanilla Instant Latte) add volume levers .
  • Risk management: Tariff/commodity pressures monitored; management prepared to use price and spending levers to protect FY outlook .
  • Cash discipline: Q1 operating cash outflow reflects intentional inventory build; cash $7.16M, no debt, ABL available if needed .
  • Trading implications: Narrative of sustained growth with disciplined profitability and improving supply is constructive; watch GM normalization, tariff headlines, and wholesale velocity as near-term stock drivers .