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LS

Laird Superfood, Inc. (LSF)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered 20% YoY net sales growth to $12.0M, driven by Wholesale (+47% YoY) while e‑commerce grew 2%; gross margin was 39.9% (down ~190 bps YoY) amid higher trade spend, commodity inflation, and mix shift to Wholesale .
  • Results vs S&P Global consensus: revenue modest miss ($12.14M* vs $11.99M actual) and EPS beat (-$0.057* vs -$0.03 actual), on higher gross profit dollars but increased marketing/selling and stock‑based comp .
  • Guidance reaffirmed: FY25 net sales growth 20–25%, gross margin in the high‑30s, breakeven adjusted EBITDA, and ~($2M) operating cash use to build inventory; GAAP net loss expected .
  • Key narrative: execution on retail distribution (grocery/club) and Amazon offset tariff/commodity pressures; inventory was built to meet demand and pre‑buy raw materials, with AR timing shifting cash collection into Q3 .

What Went Well and What Went Wrong

  • What Went Well

    • Wholesale channel momentum: +47% YoY; 48% of sales as distribution expanded across grocery and club; trade spend remained nearly flat .
    • Sustained gross margin quality: 39.9% despite tariffs/commodities; management characterized margin “among the best in our industry” and maintained FY margin outlook .
    • Adjusted EBITDA positive for third straight quarter ($0.15M), evidencing operating leverage as top line scales .
    • CEO: “Very proud of our second quarter results… delivered 20% net sales growth… and approximately 40% gross margin in a challenging… environment” .

  • What Went Wrong

    • Gross margin compression vs prior year (down ~190 bps) on higher promotional spend, commodity cost inflation, and channel mix shift to Wholesale .
    • Net loss widened YoY to ($0.36M) on higher marketing/selling and stock‑based compensation despite revenue growth .
    • Cash outflows from operations ($4.1M YTD) as inventory was built to address prior out‑of‑stocks and pre‑buy for tariffs; AR timing also weighed on cash in Q2 .

Financial Results

Actuals by quarter (oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
Revenue / Net Sales ($USD)$11.606M $11.654M $11.991M
Gross Margin (%)38.6% 41.9% 39.9%
Net Income (Loss) ($USD)($0.398M) ($0.156M) ($0.362M)
Diluted EPS ($)($0.04) ($0.02) ($0.03)
Adjusted EBITDA ($USD)$0.153M $0.357M $0.148M
Cash, Cash Eq. & Restricted ($USD)$8.514M $7.163M $4.185M

Estimates vs actual (Q2 2025)

MetricConsensusActual
Revenue ($USD)$12.143M*$11.991M
Diluted EPS ($)($0.057)*($0.03)

Values with asterisks (*) retrieved from S&P Global.

Segment/channel disaggregation

Segment / Channel (Q2)Q2 2024Q2 2025
Coffee Creamers ($)$4,696,979 $6,770,922
Coffee/Tea/Hot Chocolate ($)$2,503,529 $3,599,037
Hydration & Beverage Enhancing ($)$2,309,600 $1,824,025
Snacks & Other Food Items ($)$1,683,776 $1,412,979
E‑commerce ($)$6,098,327 $6,237,344
Wholesale ($)$3,905,327 $5,753,498

KPIs and balance sheet highlights

KPIQ1 2025Q2 2025
Wholesale % of Net Sales47% 48%
E‑commerce % of Net Sales53% 52%
Inventory ($)$9.512M $11.028M
Accounts Receivable ($)$2.318M $2.752M
Total Liabilities ($)$8.162M $7.053M
Shares (WASO basic)10.345M 10.518M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Sales GrowthFY 2025+20% to +25% (Q1 PR, May 7) +20% to +25% (Q2 PR, Aug 6) Maintained
Gross MarginFY 2025“Upper 30s%” “High 30s%” Maintained
Adjusted EBITDAFY 2025Breakeven Breakeven Maintained
Operating Cash FlowFY 2025($1M) to ($2M) use ~($2M) use Tightened to ~$2M
GAAP Net IncomeFY 2025Not specified (implicit loss in Q4 outlook) GAAP Net Loss expected Clarified loss

Earnings Call Themes & Trends

Note: A Q2 2025 earnings call transcript was not available in our document set (searched Aug 1–20); themes below reflect prepared remarks, filings, and earnings materials.

TopicPrevious Mentions (Q4’24, Q1’25)Current Period (Q2’25)Trend
Tariffs & CommoditiesFlagged commodity inflation; margin at 38.6% in Q4’24, strong YoY margin expansion for FY’24 Margin 39.9%; cited tariff pressures and commodity inflation; guidance reaffirms high‑30s% Managing headwinds; outlook intact
Wholesale vs E‑comm MixQ4’24 Wholesale +52% YoY; E‑comm +12% YoY Q2’25 Wholesale +47% YoY; E‑comm +2% YoY; Wholesale 48% of sales Wholesale outgrowing e‑comm
Supply Chain & InventoryOut‑of‑stocks late 2024; Q1’25 built flexibility; inventory rebuild Built inventory to meet demand and pre‑buy raw materials; AR timing shifted cash to Q3 Proactive working capital actions
Retail/Club DistributionBroad expansion (Costco momentum noted post‑Q2 as of June 30 slide) Continued distribution gains in grocery and club; Costco availability expanded in July (post‑Q2 PR) Expansion continues
Product InnovationFY’24: strong performance across lines New Protein Instant Latte; mushroom powders; Bluestone Lane partnership (Q2) Innovation/foodservice tie‑ins
Cash/LiquidityFY’24 cash +$0.8M; no debt Cash $4.2M, no debt; access to up to $1.8M factoring; plan to normalize cash in H2 Liquidity managed; watch burn

Management Commentary

  • CEO Jason Vieth: “Very proud of our second quarter results… delivered 20% net sales growth… and approximately 40% gross margin… growth was once again driven by our Wholesale business… Even in the face of unprecedented tariff pressures, we were able to deliver gross margin results that are among the best in our industry.”
  • Strategy in Q2: “Going forward we will continue to invest into the growth of our brand” with reaffirmed FY outlook .
  • Working capital stance: cash use in H1 to “bolster our inventory to meet high demand… and to forward purchase raw materials to mitigate anticipated tariff costs,” with normalization expected as inventory converts to cash .

Q&A Highlights

The Q2 2025 earnings call transcript was not available in our document set (no transcript located for Aug 1–20 search window). As a result, Q&A themes and any guidance clarifications from live Q&A are not available. We relied on the press release, 10‑Q, and earnings materials for this recap .

Estimates Context

  • Revenue modestly missed consensus ($12.14M* vs $11.99M actual), while EPS beat consensus (-$0.057* vs -$0.03 actual), reflecting solid gross profit dollars offset by higher marketing/selling and stock‑based compensation .
  • Consensus breadth was limited (3 estimates for revenue and EPS*), suggesting low coverage; estimate dispersion risk is higher for micro‑caps [GetEstimates].
  • With FY guidance reaffirmed and Wholesale strength, Street models may raise Wholesale growth run‑rate but temper gross margin assumptions given Q2 trade/commodity mix, keeping FY margin in “high 30s” as guided .

Values with asterisks (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Wholesale is the growth engine (+47% YoY), and mix shift is intentional; expect e‑commerce steady but Wholesale to surpass e‑comm as a share of sales over time .
  • Margin discipline remains credible (39.9% in Q2; FY guide high‑30s) despite tariffs and commodity inflation; mix and promo cadence are the swing factors .
  • Cash burn in H1 reflects deliberate inventory build and AR timing; management expects normalization as sell‑through and collections accelerate in H2; liquidity backstop via $1.8M factoring and no debt .
  • Innovation and channel expansion (e.g., Protein Instant Latte; Bluestone Lane; expanding Costco footprint) should support velocity and distribution gains in H2 and into 2026 .
  • Net loss widened YoY on higher marketing/selling and stock‑based comp; continued positive adjusted EBITDA underscores operating leverage as scale builds .
  • Narrative likely stock catalysts: continued Wholesale distribution wins/velocity, margin resilience vs tariff/commodity headwinds, and evidence of inventory/cash normalization in Q3 .