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LS

Laird Superfood, Inc. (LSF)·Q3 2025 Earnings Summary

Executive Summary

  • Net Sales grew 10% year-over-year to $12.9M; wholesale +39% YoY now 53% of mix, while e-commerce -11% YoY to 47% . Gross margin contracted to 36.5% from 43.0% YoY and 39.9% in Q2, driven by non-recurrence of a 2024 supplier settlement, commodity inflation, and tariffs .
  • GAAP diluted EPS was -$0.09; adjusted EBITDA turned positive to $0.2M. Management cited higher marketing/selling costs and a $0.66M intangible impairment (Picky Bars) as drivers of the GAAP net loss .
  • Full-year 2025 guidance was cut: Net Sales growth now ~15% vs prior 20–25%; GM reiterated “upper 30%” and breakeven adjusted EBITDA; GAAP net loss reaffirmed .
  • The company reported positive operating cash flow of approximately $1.1M in Q3 and ended with $5.3M cash and no debt; inventory was reduced sequentially versus Q2 as supply normalizes .

What Went Well and What Went Wrong

What Went Well

  • Wholesale acceleration: +39% YoY; mix shift to 53% of sales as distribution gains and velocity improvements drove growth .
  • Profitability resilience: Adjusted EBITDA positive at $0.2M; management executed productivity initiatives despite inflation/tariff pressures .
  • Product and retail momentum: New fall Maple Instant Latte; expanded Costco availability across key regions, reinforcing retail strategy and brand reach .
    • Quote: “Despite the ongoing economic challenges for US consumers, I’m pleased to report another quarter of double-digit growth… expand distribution, improve operational efficiency, and innovate in our core categories.” — CEO Jason Vieth .

What Went Wrong

  • Gross margin compression to 36.5% (vs 43.0% YoY; 39.9% Q2) due to non-recurrence of the 2024 supplier settlement, commodity cost inflation, and tariffs .
  • E-commerce softness: -11% YoY, with DTC new customer acquisition weaker; Amazon partially offset the decline .
  • GAAP net loss widened to $1.0M (EPS -$0.09) vs -$0.2M a year ago driven by Picky Bars intangible impairment and higher marketing/selling costs .

Financial Results

Core Financials vs Prior Year and Sequential

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($USD)$11,776,346 $11,654,159 $11,990,842 $12,895,662
Gross Profit ($USD)$5,064,132 $4,881,540 $4,781,003 $4,702,182
Gross Margin %43.0% 41.9% 39.9% 36.5%
Net Loss ($USD)$(166,120) $(156,182) $(362,178) $(975,066)
Diluted EPS ($)$(0.02) $(0.02) $(0.03) $(0.09)
Adjusted EBITDA ($USD)$(11,440) $356,912 $148,475 $165,108

Consensus vs Actual (Q3 2025)

MetricActual Q3 2025Consensus Q3 2025
Revenue ($USD)$12,895,662 $14,140,330*
Diluted EPS ($)$(0.09) $(0.04333)*
EBITDA ($USD)(standard EBITDA) $(274,342)*$(466,000)*

Values marked with an asterisk were retrieved from S&P Global.

Revenue by Channel (Q3)

ChannelQ3 2024 ($)Q3 2025 ($)
E-commerce$6,887,356 (58%) $6,123,360 (47%)
Wholesale$4,888,990 (42%) $6,772,302 (53%)
Total$11,776,346 $12,895,662

Revenue by Brand (Q3)

BrandQ3 2024 ($)Q3 2025 ($)
Laird Superfood$11,008,406 (93%) $12,472,480 (97%)
Picky Bars$767,940 (7%) $423,182 (3%)
Total$11,776,346 $12,895,662

Revenue by Product (Q3)

Product CategoryQ3 2024 ($)Q3 2025 ($)
Coffee Creamers$6,273,157 (53%) $7,730,555 (60%)
Coffee/Tea/Hot Chocolate$3,298,363 (28%) $4,036,805 (31%)
Hydration & Enhancers$2,520,402 (21%) $1,591,363 (12%)
Snacks & Other Food$1,558,611 (13%) $1,376,125 (11%)
Other$75,339 (1%) $11,506 (—)
Net Sales$11,776,346 $12,895,662

KPIs and Balance Sheet

KPIQ2 2025Q3 2025
Cash & Equivalents ($)$4,184,775 $5,282,232
DebtNone None
Inventory ($)$11,027,615 $9,978,913
Operating Cash Flow (Quarter)n/a~+$1.1M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Sales GrowthFY 202520%–25% YoY ~15% YoY Lowered
Gross Margin %FY 2025Upper 30s Upper 30% Maintained
Adjusted EBITDAFY 2025Breakeven Breakeven Maintained
GAAP Net IncomeFY 2025Net loss expected Net loss expected Maintained
Operating Cash Flow/UseFY 2025Cash use ~$1–$2M (Q1); ~$2M (Q2) Not reiterated in Q3 release Not updated

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Tariffs & Commodity InflationManagement “can manage” 10% tariffs; would take price if materially higher; aim to keep GM in upper 30s . Q2 noted GM compression from trade spend, inflation, mix .GM compressed to 36.5%; reiterated upper-30s FY GM; continued tariff/commodity headwinds .Ongoing headwinds; mitigated with productivity and mix.
Supply Chain & InventoryResolved late-2024 out-of-stocks; built flexible supply chain; invested in inventory safety stock .Inventory reduced sequentially vs Q2; OCF +$1.1M in Q3; continued normalization .Improving execution; inventory “right-sized.”
Channel MixTargeting 50/50 wholesale/e-comm; Amazon strength; wholesale velocity gains .Wholesale 53% of sales (+39% YoY); e-comm -11% YoY; mix shift to wholesale .Structural tilt to wholesale.
Product InnovationLiquid creamer resets; Instant Latte growth; DTC marketplace for wellness engagement .New Maple Instant Latte; Costco expansion; call emphasized new organic creamers and “Protein Coffee” launch .Acceleration; retail and new categories.
Brand Portfolio (Picky Bars)Picky Bars present but shrinking .Impairment taken in Q3; later decision to discontinue Picky Bars by Q2 2026 discussed on call .Focus on core Laird brand.
Retail FootprintN/ABroad Costco rollout across key regions .Expanding wholesale presence.

Management Commentary

  • Prepared remarks emphasized resilient growth amid consumer headwinds and continued execution: “double-digit growth… expand distribution, improve operational efficiency, and innovate in our core categories” — CEO Jason Vieth .
  • Q3 call highlighted upcoming innovation: organic relaunch of creamers in post-consumer recycled packaging and entrance into protein-enhanced coffee aligning with health/GLP-1 trends .
  • Strategy shift: planned discontinuation of Picky Bars to redeploy resources to Laird Superfood brand scale (discussed on call) .

Q&A Highlights

  • Tariffs and GM management: Management reiterated ability to manage current tariff levels within P&L and maintain upper-30s GM through spend levers and supply actions, with pricing as a potential lever if tariffs rose materially .
  • Wholesale strength and velocity: Discussion focused on distribution gains and velocity improvements across creamers and instant lattes; continued promotional efficiency driving trial and momentum .
  • Product roadmap: Call commentary on organic creamers relaunch and Protein Coffee introduction to access a broader category, supporting wellness trends .

Estimates Context

  • Revenue missed Street: Actual $12.90M vs consensus ~$14.14M*; EPS missed: -$0.09 vs consensus -$0.04333* .
  • Consensus EBITDA (standard) implied a loss; actual standard EBITDA was modestly negative* while non-GAAP adjusted EBITDA printed positive $0.2M — definition differences matter for comparability .
  • Given the pivot to wholesale and e-comm softness, Street models likely need to temper top-line growth and near-term GM assumptions due to tariff/commodity/mix dynamics.

Values marked with an asterisk were retrieved from S&P Global.

Q3 2025 Consensus vs Actual (S&P Global)

MetricActual Q3 2025Consensus Q3 2025
Revenue ($USD)$12,895,662 $14,140,330*
Diluted EPS ($)$(0.09) $(0.04333)*

Key Takeaways for Investors

  • Guidance cut to ~15% FY Net Sales growth is a negative surprise; GM and adjusted EBITDA targets held — expect models to recalibrate growth/mix assumptions. Bold miss: revenue below consensus; EPS more negative than expected .
  • Mix is structurally shifting toward wholesale; near-term variability from retail order timing increases, but broader distribution should sustain growth .
  • Margin headwinds (tariffs, commodity inflation, loss of one-time settlement) continue; productivity initiatives and mix management are offsetting, but GM likely in upper-30s rather than 40%+ .
  • Cash discipline evident: Q3 operating cash flow positive and cash balance improved sequentially, with no debt — reduces near-term financing risk .
  • Strategic focus sharpening: Picky Bars impairment and planned brand exit point to resource redeployment to higher-potential Laird Superfood portfolio .
  • Product innovation and retail expansion (Costco, seasonal lattes, protein coffee) should support velocity and category reach; monitor execution and consumer uptake .
  • Near-term trading implication: Expect sensitivity to wholesale order timing headlines and GM prints; medium-term thesis rests on scaling wholesale distribution and maintaining upper-30s margin with positive adjusted EBITDA trajectory .