Arcadia Biosciences, Inc. (RKDA)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 revenue was $1.216M (+56% YoY), driven by a 124% YoY surge in Zola coconut water; net loss attributable to common stockholders was $4.064M ($2.98 per share), primarily impacted by warrant/option liability fair value changes .
• Full-year 2024 delivered $5.045M revenue (+13% YoY), gross profit ~$2.1M and gross margin 41.3%, consistent with the May guidance framework; SG&A in H2 ran above plan due to ~$1.2M transaction fees tied to asset sales and the pending Roosevelt deal .
• Zola added >1,600 new stores and expanded retail distribution 86% in 2024; scan data shows category outperformance across 4 weeks (+73.7% vs +28.7%), 13 weeks (+71.8% vs +29.2%), and full year (+38.5% vs +18.5%) .
• Management expects healthy 2025 distribution pipeline and completion of the Roosevelt business combination toward end of Q2 2025; ~$2.5M principal/interest payment from the GoodWheat note is scheduled for May 2025, bolstering liquidity .

What Went Well and What Went Wrong

• What Went Well

  • Zola momentum: “Zola sales increased 124% [in Q4]… For full year 2024, Zola sales increased 46%” with >1,600 new stores and 86% distribution growth; gross margin for Zola was 33% .
  • Category outperformance: “Based on Nielsen… grocery grew 28.7% while Zola increased 73.7% [4 weeks]; category +29.2% vs Zola +71.8% [13 weeks]; full year +18.5% vs Zola +38.5%” .
  • Cash discipline: Operating cash use fell 30% in H2 vs H1 despite transaction fees; FY operating cash consumption at lowest level since IPO .

• What Went Wrong

  • Margin compression: Full-year gross margin declined to 41% from 51% in 2023 due to product mix shift; Q4 gross margin was 32% as Zola scaled and cost of revenues rose (+36% YoY to ~$3.0M) .
  • Elevated SG&A in H2: SG&A was $4.9M in H2 vs prior quarterly run-rate guidance of ~$2.0M, reflecting ~$1.2M of transaction-related fees ($0.7M in Q4) .
  • GLA oil winds down: Full-year GLA revenue was $0.756M; Q4 was $0.055M and the business is now completely sold out—no sales expected in 2025, limiting legacy revenue contribution .

Financial Results

Segment and KPI details:

• Zola coconut water: Q4 revenue +124% YoY; FY 2024 revenue +46% YoY .
• GLA oil: FY 2024 revenue $0.756M; Q4 2024 revenue $0.055M; no sales expected in 2025 .
• Distribution KPIs: >1,600 new stores added; retail distribution +86% in 2024 .
• Nielsen scan-market KPIs: 4 weeks ending Dec 28, 2024—category +28.7% vs Zola +73.7%; latest 13 weeks—category +29.2% vs Zola +71.8%; FY 2024—category +18.5% vs Zola +38.5% .

Guidance Changes

Management did not provide quantified FY 2025 guidance; they reiterated a “healthy pipeline” and expect Roosevelt closing toward end of Q2 2025 .

Earnings Call Themes & Trends

Management Commentary

• CEO perspective: “We are extremely pleased with the progress we made in 2024… Our focus on Zola coconut water led to 80 percent revenue growth for the brand in the back half of the year and drove total Arcadia revenue growth above 30 percent… maintained tight cost controls, resulting in the lowest use of cash from operations since Arcadia went public” .
• Strategy delivery: “The results we are reporting today illustrate the successful execution of our strategy with full year revenues of just over $5 million, gross profit of $2.1 million and gross margins of 41.3%” .
• Transaction update: “We filed a registration statement on Form S-4… we currently expect the transaction to be completed towards the end of Q2” .
• CFO detail: “The gross margin rate in Q4 of 2024 was 32%.… SG&A… $9.6M [FY], including $2M of transaction costs… Q4 SG&A was $2.7M, including $700,000 of transaction-related costs… cash $4.2M at year-end… scheduled to receive approximately $2.5M in May 2025” .

Q&A Highlights

• 2025 distribution pipeline: Management expects a “healthy pipeline” with benefit from full-year impact of H2 2024 wins; no specific numbers provided .
• GLA housekeeping: FY GLA revenue $0.756M; Q4 $0.055M; “completely out of GLA inventory”—no 2025 sales .
• IP monetization: Wheat IP portfolio monetization likely via multiple transactions; “advanced stages,” target to announce in H1 2025 .

Estimates Context

• S&P Global consensus estimates (EPS, revenue, EBITDA) for Q4 2024 were unavailable at time of query due to data access limits; therefore, no vs-consensus comparisons are included. If you want, we can re-run S&P Global once access resets to add a beat/miss assessment.

Key Takeaways for Investors

• Zola-led growth inflection: Distribution expansion and category outperformance are the primary near-term revenue drivers; watch for 2025 velocity and new account wins translating to sustained double-digit growth .
• Margin trajectory: Mix shift to Zola and higher product costs compressed gross margin (FY 41.3%; Q4 32%); monitor pricing, COGS initiatives, and supplier terms to stabilize margins .
• Cost discipline vs one-offs: H2 SG&A exceeded run-rate guidance due to ~$1.2M transaction costs; with Roosevelt closing and legacy wind-down complete, opex should normalize—track quarterly SG&A .
• Liquidity milestones: ~$2.5M cash inflow in May 2025 from the GoodWheat note; combined with reduced operating cash use, this supports runway while strategic transactions progress .
• Strategic optionality: Roosevelt business combination (expected end-Q2 2025) transforms the asset base; concurrently, potential IP monetization events in H1 could provide additional non-dilutive capital .
• Legacy exit completed: GLA is sold out; 2025 is a cleaner Zola-centric story—better comparability and focus .
• Trading implications: Near term, watch for S-4 effectiveness, shareholder vote, and closing timeline; operationally, monthly/quarterly scan-data trends and distribution wins are key catalysts for sentiment and potential re-rating .

Citations: All figures and statements are sourced from Arcadia’s Q4 2024 8-K press release and exhibits , Q4 2024 earnings call transcripts and prior press releases (Q3 and Q2 2024) .