Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $4.2 million, representing a 16% year-over-year growth, marking the highest quarterly revenue in company history [6][11] - Gross margin improved to 37% in Q3 2025 compared to 31% in the first half of 2025, reflecting better operational efficiency and a favorable product mix [11][12] - Adjusted EBITDA for Q3 2025 was approximately $153,000, a significant improvement from a loss of approximately $124,000 in the prior year [13] Business Line Data and Key Metrics Changes - The successful start of the 2025-2026 school year contributed to revenue growth, with expanded distribution and improved production consistency from co-manufacturing partners [6][8] - The Pop-and-Go 100% Juice Freeze Pops gained traction in the lunch day part, addressing a larger market opportunity than breakfast [8] - The company is in the process of reintroducing products to customers who had temporarily removed them due to supply constraints, with many reintroductions expected in Q4 [8] Market Data and Key Metrics Changes - The company has achieved approximately 5% market penetration in the education channel, indicating substantial growth potential [8] - The 2025-2026 school year bidding process concluded positively, with strong uptake across the existing product portfolio [8] Company Strategy and Development Direction - The acquisition of Arp's Dairy is expected to enhance the business model by providing owned manufacturing capabilities, driving top-line growth [5][15] - The company aims to transition production to the new facility to capture long-term operational efficiencies and scale benefits [12][15] - The guidance for fiscal year 2025 is reiterated at $14.5 million-$15.5 million, with preliminary guidance for fiscal year 2026 set at $30 million-$35 million, reflecting confidence in growth initiatives [9][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving positive adjusted EBITDA in fiscal year 2026 as the benefits of the integrated manufacturing model are realized [13][16] - The operational improvements and successful integration with Arp's Dairy position the company for a breakthrough period of growth and profitability [15][16] Other Important Information - The Arp's Dairy acquisition was funded through the existing credit facility, and a $2.3 million government grant has been preliminarily approved to support the new facility [14] - Operating expenses were well-controlled, with selling, marketing, and distribution expenses at 22% of revenue, down from 27% in the previous year [12] Q&A Session Summary Question: What has the company been doing to build trust with schools? - The company has maintained close contact with customers, communicating product availability and leveraging a broad broker network to rebuild relationships [19] Question: Is the Q4 to Q1 transition like a pilot trial? - The sales process does not require retrials; once products are available, schools can place orders immediately [22] Question: Can the company provide details on CapEx expectations for retrofitting facilities? - A $2.3 million government grant is expected to support the fit-out for the new facility, with existing operational facilities already in place [23][24]

Revenue Performance - Revenue increased by $594,000, or 16%, to $4,231,000 in Q3 2025 compared to $3,637,000 in Q3 2024[74] - Revenue for the nine months ended September 30, 2025, increased by $857,000, or 11%, to $8,786,000 compared to $7,929,000 in the same period of 2024[84] Profitability and Margins - Gross profit was $1,552,000 (37%) in Q3 2025, up from $1,260,000 (35%) in Q3 2024, with a reduction in gross margin attributed to product mix and inventory costs[77] - Gross profit for the nine months ended September 30, 2025, was $2,958,000 (34%), down from $2,938,000 (37%) in 2024, reflecting a decrease in gross margin[86] - Net loss improved to approximately $290,000 in Q3 2025 from $513,000 in Q3 2024, driven by increased revenue and gross margin[83] Expenses - Selling, marketing, and distribution expenses decreased by approximately $49,000 (5%) from $990,000 in Q3 2024 to $941,000 in Q3 2025[78] - General and administrative expenses increased by approximately $139,000 (20%) from $705,000 in Q3 2024 to $844,000 in Q3 2025, primarily due to costs associated with the Arps acquisition[79] - Cost of revenue for the nine months ended September 30, 2025, increased by $837,000, or 17%, to $5,828,000, attributed to trial costs at a new manufacturer[85] Cash Flow and Liquidity - As of September 30, 2025, working capital was $1,626,000, compared to $606,000 at December 31, 2024, primarily due to capital raised through the sale of common stock[99] - During the nine months ended September 30, 2025, the company used $2,173,000 in operations, with a net loss adjusted for non-cash operating expenses of $1,297,000[98] - Liquidity needs depend on the ability to profitably ramp up sales and control variable operating expenses[100] - Operations have been financed through the sale of securities, convertible debt, and short-term debt[101] - Additional funds may be required if sufficient cash flow from operations is not generated[101] Financial Reporting and Compliance - No off-balance sheet arrangements that materially affect financial condition or results of operations[102] - The company is classified as a smaller reporting company, thus not required to disclose market risk[103]

Business Developments - Barfresh Food Group, Inc. provided an update on recent business developments alongside its Q3 2025 financial results on November 6, 2025[4]. - The conference call discussing these results was held at 1:30 PM Pacific Time on November 6, 2025, with a playback available until November 20, 2025[4]. - Barfresh Food Group, Inc. is registered under the trading symbol BRFH on The Nasdaq Stock Market LLC[2]. Financial Performance - The company reported Adjusted Gross Profit and Adjusted EBITDA as key non-GAAP measures to reflect core business performance, aiding in internal budgeting and strategic planning[5][6]. - The company emphasized that Adjusted Gross Profit and Adjusted EBITDA should not be viewed as alternatives to GAAP measures, highlighting their specific use in performance evaluation[7]. - The company has incurred non-recurring costs related to the acquisition of Arps Dairy, Inc. and other operational adjustments, impacting financial results[5]. Forward-Looking Statements - Forward-looking statements indicate expectations for growth and expansion, though they are subject to various risks and uncertainties[8]. - The report includes cautionary statements regarding the reliability of forward-looking statements, advising investors to consider associated risks[8]. Compliance and Documentation - The financial statements and exhibits related to the earnings report are available in the filed documents[10]. - Riccardo Delle Coste signed the report as CEO, affirming the company's compliance with SEC requirements[12].

Core Insights - Barfresh Food Group Inc. reported record quarterly revenue of $4.2 million for Q3 2025, marking a 16% increase year-over-year, driven by improved production consistency and successful product launches [1][3] - The company achieved a positive adjusted EBITDA of approximately $153,000 for Q3 2025, a significant improvement from a loss of $124,000 in the same period last year [7] - Barfresh reiterated its fiscal 2025 revenue guidance of $14.5 million to $15.5 million and provided preliminary guidance for fiscal 2026 of $30 million to $35 million, indicating potential growth of up to 126% [2][19][20] Financial Performance - Revenue for the first nine months of 2025 increased by 11% to $8.8 million compared to $7.9 million in the same period of 2024, attributed to improved sales of Twist & Go smoothies and the inclusion of Pop & Go sales [9] - Gross margin for Q3 2025 was 37%, up from 35% in Q3 2024, reflecting better operational efficiency and a favorable product mix [4] - The net loss for Q3 2025 improved to $290,000 from a loss of $513,000 in Q3 2024, driven by increased revenue and gross margin [5][15] Operational Developments - The acquisition of Arps Dairy was completed in early October 2025, enhancing Barfresh's manufacturing capabilities and expected to drive both top and bottom-line growth [2][18] - The company is transitioning more Barfresh products from co-manufacturers to Arps Dairy, which is anticipated to resolve previous manufacturing challenges by the end of Q4 2025 [2][17] - As of September 30, 2025, Barfresh had approximately $4.4 million in cash and accounts receivable, and $1.1 million in inventory, indicating a solid balance sheet post-acquisition [17] Future Outlook - The company expects continued growth in fiscal 2026, driven by the full-year contribution from Arps Dairy, market penetration in the education sector, and expansion of the Pop & Go product line [20] - The preliminary fiscal 2026 revenue guidance reflects a significant acceleration in growth potential, underscoring the combined company's capabilities following the acquisition [19][20]

Company Overview - Barfresh Food Group Inc. is a developer, manufacturer, and distributor of ready-to-blend and ready-to-drink beverages, including smoothies, shakes, and frappes [4] - The company primarily serves the education market, foodservice industry, and restaurant chains, offering products in both single serving and bulk formats for on-site preparation [4] - Barfresh's unique system utilizes portion-controlled pre-packaged beverage ingredients to deliver freshly made frozen beverages that are quick, cost-efficient, and reduce waste [4] Upcoming Financial Results - Barfresh will announce its third quarter 2025 results on November 6, 2025, at 1:30 PM Pacific Time (4:30 PM Eastern Time) [1] - A telephonic playback of the call will be available approximately two hours after the call concludes and will remain accessible until November 20, 2025 [2] - Interested parties can also listen to a simultaneous webcast of the conference call on the company's website, with a replay available for approximately 30 days following the call [3]

Core Insights - The acquisition of Arps Dairy, Inc. positions Barfresh Food Group for accelerated growth by enhancing manufacturing capabilities and operational synergies [1][2][3] - Barfresh anticipates fiscal year 2025 revenue between $14.5 million and $15.5 million, with projections for fiscal year 2026 revenue to exceed $30 million to $35 million, indicating a 126% increase compared to the high range of fiscal year 2025 guidance [3] Company Overview - Barfresh Food Group Inc. specializes in developing, manufacturing, and distributing ready-to-blend and ready-to-drink beverages, primarily targeting the education market, foodservice industry, and restaurant chains [4] - The company utilizes a proprietary system for single-serving, on-site prepared products, which are designed to be quick, cost-efficient, and reduce waste [4] Acquisition Details - The acquisition of Arps Dairy was completed for approximately $1.3 million in debt repayment, funded through an expansion of Barfresh's existing line of credit [1][2] - The acquisition includes a 15,000-square-foot processing facility and a 44,000-square-foot manufacturing facility, which is nearing completion, both located in Defiance, Ohio [2] - Barfresh has commenced production at the existing Arps Dairy facility and plans to complete construction at the larger facility during 2026, with a preliminary government grant of $2.3 million to support this expansion [2] Operational Benefits - The acquisition is expected to eliminate third-party manufacturing fees, improve ingredient procurement efficiency, and reduce freight and cold storage costs through integrated operations [2] - Enhanced oversight of production processes is anticipated to lead to improved operational efficiency and supply chain control [3]

Market Overview - U.S. stocks experienced gains, with the Nasdaq Composite increasing by approximately 100 points on Friday. The Dow rose by 0.34% to 46,297.65, the NASDAQ increased by 0.45% to 22,572.34, and the S&P 500 gained 0.31% to 6,652.30 [1] - Consumer discretionary shares saw a rise of 0.8%, while energy stocks fell by 1% on the same day [1] Company Performance - Lennar Corp. reported weaker-than-expected third-quarter results, with adjusted earnings of $2 per share, missing the consensus estimate of $2.10. Quarterly revenue was $8.81 billion, below the Street estimate of $8.99 billion [2] Commodity Market - In commodity news, oil prices decreased by 1.2% to $62.80, while gold prices increased by 0.3% to $3,690.40. Silver rose by 1.1% to $42.575, and copper saw a slight increase of 0.2% to $4.6080 [5] Stock Movements - AGM Group Holdings Inc. saw a significant increase in shares, rising 378% to $10.67 after announcing the sale of Nanjing Lucun Semiconductor Co. Ltd. for $57.45 million [8] - Barfresh Food Group, Inc. shares surged by 10% to $4.2201 following an increase in revenue guidance for FY26 and an upward revision of FY25 sales guidance [8] - ZOOZ Power Ltd. shares increased by 33% to $3.11 after shareholder approval for a $180 million private placement [8] - Reviva Pharmaceuticals Holdings, Inc. shares dropped by 38% to $0.2615 after announcing a $9 million offering of common shares and warrants [8] - ChowChow Cloud International shares fell by 17% to $4.45 amid post-IPO volatility [8] - Hess Midstream LP shares decreased by 9% to $35.81 after the company revised its financial outlook due to a slowdown in drilling activity by Chevron Corp [8] International Markets - European shares were mostly higher, with the eurozone's STOXX 600 rising by 0.06% and Spain's IBEX 35 Index increasing by 0.64%. However, Germany's DAX 40 fell by 0.02% [6] - Asian markets closed mostly lower, with Japan's Nikkei declining by 0.57% and China's Shanghai Composite falling by 0.30% [9]

Core Insights - Company has increased its fiscal year 2025 revenue guidance to a range of $14.5 million to $15.5 million, up from a previous range of $12.5 million to $14.0 million [1][2] - Preliminary fiscal year 2026 pro forma revenue guidance is set at $30 million to $35 million, indicating a 126% increase compared to the high end of fiscal 2025 guidance [1][2] - Acquisition of Arps Dairy, Inc. for approximately $1.6 million in debt repayment is expected to enhance manufacturing capabilities and be accretive to earnings in fiscal 2026 [1][2][3] Revenue Guidance - Fiscal year 2025 revenue guidance raised to $14.5 million to $15.5 million, reflecting operational efficiencies from the acquisition [2] - Preliminary fiscal year 2026 revenue guidance of $30 million to $35 million reflects the full-year impact of enhanced manufacturing capabilities and operational synergies [1][2] Acquisition Details - Barfresh is acquiring Arps Dairy, which includes a 15,000-square-foot processing facility and a nearly completed 44,000-square-foot manufacturing facility [1][2] - The acquisition is structured as a stock purchase for approximately $1.6 million, with closing expected by October 1, 2025 [3] - The acquisition is expected to eliminate third-party manufacturing fees, reduce freight costs, and improve operational oversight [2] Operational Advantages - The acquisition is anticipated to provide multiple operational advantages, including lower cold storage costs and more efficient ingredient procurement [2] - Barfresh has already commenced manufacturing certain products at Arps Dairy's existing facility and plans to expand production immediately upon closing [2]

Core Viewpoint - Barfresh Food Group Inc. reported a quarterly loss of $0.06 per share, consistent with the Zacks Consensus Estimate, and an improvement from a loss of $0.07 per share a year ago [1]. Financial Performance - The company posted revenues of $1.63 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 31.72%, but showing an increase from $1.46 million in the same quarter last year [2]. - Over the last four quarters, Barfresh has not surpassed consensus EPS estimates, although it has topped consensus revenue estimates twice [2][1]. Stock Performance - Barfresh shares have increased approximately 3.1% since the beginning of the year, while the S&P 500 has gained 9.6% [3]. - The current Zacks Rank for Barfresh is 3 (Hold), indicating expected performance in line with the market in the near future [6]. Earnings Outlook - The consensus EPS estimate for the upcoming quarter is breakeven on revenues of $5.11 million, and -$0.10 on revenues of $15.32 million for the current fiscal year [7]. - The trend of estimate revisions for Barfresh was mixed ahead of the earnings release, which could change following the recent report [6]. Industry Context - The Beverages - Soft drinks industry, to which Barfresh belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8].

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1,600,000, representing an 11% year-over-year growth from $1,500,000 in Q2 2024 [6][10] - Gross margin decreased to 31% in Q2 2025 from 35% in Q2 2024, attributed to product mix and new manufacturer trial costs [11] - Net loss for Q2 2025 was $880,000, an improvement from a net loss of $1,000,000 in Q2 2024 [12] Business Line Data and Key Metrics Changes - The company is expanding its manufacturing capacity with two co-manufacturers now producing products, which is expected to improve operational consistency [5][6] - The company is building inventory for the first time in many quarters, preparing for the high selling season in the education channel [7] Market Data and Key Metrics Changes - The company has only 5% market penetration in the education channel, indicating significant growth potential [8] - Interest in new products like Pop and Go 100% Juice Freeze Pops is increasing, targeting the lunch market [8] Company Strategy and Development Direction - The company is focused on solidifying its long-term supply chain and enhancing production capabilities to support sustainable growth [5][15] - The company is revising its fiscal year 2025 revenue guidance to $12,500,000 to $14,000,000, reflecting anticipated growth despite earlier manufacturing constraints [8] Management Comments on Operating Environment and Future Outlook - Management acknowledged that product supply shortages impacted revenue but emphasized progress in resolving manufacturing challenges [15] - The company expects revenue growth in the second half of the year as manufacturing capacity increases and operational consistency improves [9] Other Important Information - As of June 30, 2025, the company had approximately $1,300,000 in cash and accounts receivable and $1,800,000 in inventory [14] - Adjusted EBITDA for Q2 2025 was a loss of approximately $600,000, an improvement from a loss of approximately $682,000 in Q2 2024 [13] Q&A Session Summary Question: Progress on new school year contracts and interest in Pop and Go products - Management reported good interest in Pop and Go products, with large school districts already approving them, and the bidding process is nearing completion [20][21] Question: Commitment from customers who took products off their menus - Management indicated that most products are already approved, and customers will return them to menus once consistent supply is established [23] Question: Specific regions for near-term expansion opportunities - Management noted that increased capacity will allow broader penetration across the country, with a focus on larger populated areas [25] Question: Composition of inventory at the end of the quarter - The inventory primarily consists of bottles, built up to prepare for the school year [29][30] Question: Future manufacturing capacity and product distribution - Management expects the new manufacturing capacity to allow production in the range of 20,000,000 to 25,000,000 bottles next year, with significantly more capacity for cartons [41][42]