Revenue Performance - Revenue increased by $101,000, or 4%, to $2,930,000 in Q1 2025 compared to $2,829,000 in Q1 2024, driven by higher sales of bottled Twist & Go smoothies[67]. Cost and Expenses - Cost of revenue rose by $371,000, or 22%, to $2,030,000 in Q1 2025, attributed to trial costs at a new manufacturer and elevated supply costs[69]. - Selling, marketing, and distribution expenses increased by approximately $130,000 (19%) to $824,000 in Q1 2025, with sales and marketing expenses rising by $103,000 (31%)[72]. - General and administrative expenses decreased by approximately $108,000 (13%) to $747,000 in Q1 2025, primarily due to a reduction in legal and consulting fees[74]. Profitability - Gross profit decreased to $900,000 (31% margin) in Q1 2025 from $1,170,000 (41% margin) in Q1 2024, reflecting a 10.7 percentage point reduction in gross margin[70][78]. - Net loss for Q1 2025 was approximately $761,000, an increase of $312,000 from a net loss of $449,000 in Q1 2024[78]. Working Capital and Liquidity - Working capital increased to $2,848,000 as of March 31, 2025, compared to $606,000 at December 31, 2024, mainly due to capital raised through common stock sales[82]. - Liquidity needs will depend on the ability to ramp up sales profitably and control operating expenses[83]. Future Outlook - The company expects gross margin to normalize in the second half of 2025 as new co-manufacturers reach full capacity[78]. - The company raised $2,000,000 through a privately placed convertible debt offering, with $1,390,000 issued and converted into common stock[79][80].

Business Updates - Barfresh Food Group, Inc. provided an update on recent business developments alongside its Q1 2025 financial results on May 1, 2025[4]. - The company reported its financial results during a conference call held at 1:30 PM Pacific Time on May 1, 2025[4]. Financial Measures - Barfresh Food Group utilizes non-GAAP measures such as Adjusted Gross Profit and Adjusted EBITDA to reflect core business performance[5]. - Adjusted Gross Profit and Adjusted EBITDA are used for internal budgeting, forecasting, and strategic planning[6]. - The press release dated May 1, 2025, includes reconciliations of non-GAAP measures to GAAP measures[5]. Forward-Looking Statements - The company cautions that forward-looking statements regarding future performance are subject to risks and uncertainties[8]. - Investors are advised to consider the company's risk factors and cautionary statements in its SEC filings[8]. - The company does not intend to update forward-looking statements unless required by law[8]. Stock Information - Barfresh Food Group's common stock is traded on The Nasdaq Stock Market under the symbol BRFH[2]. - The company is incorporated in Delaware and has its principal executive offices in Los Angeles, California[1].

Core Viewpoint - Barfresh Food Group Inc. reported a 4% year-over-year revenue increase to $2.9 million for Q1 2025, achieving gross margin of 31%, exceeding guidance, and reiterating fiscal year 2025 revenue guidance of $14.5 million to $16.6 million [1][12]. Financial Performance - Revenue for Q1 2025 was $2.9 million, up from $2.8 million in Q1 2024, driven by expanded bottle capacity at existing manufacturers [3]. - Gross margin for Q1 2025 was 31%, down from 41% in Q1 2024, attributed to temporary production inefficiencies and increased logistics costs [4]. - Net loss for Q1 2025 was $761,000, compared to a loss of $449,000 in Q1 2024 [5]. - Adjusted EBITDA for Q1 2025 was a loss of approximately $506,000, compared to a gain of approximately $53,000 in Q1 2024 [6]. Operational Insights - The company is onboarding new co-manufacturers, which is expected to resolve production inefficiencies by the end of Q2 2025, allowing for increased production capacity [2]. - The company continues to secure new customers in the education sector, which is anticipated to enhance revenue in the latter half of 2025 [2]. Balance Sheet and Financing - As of March 31, 2025, the company had approximately $3.4 million in cash and accounts receivable, and $1.1 million in inventory [11]. - In February 2025, the company secured $3.0 million in growth financing through a common stock offering to support production scaling [11]. Outlook - The company expects to achieve record fiscal year revenue between $14.5 million and $16.6 million for 2025 [12].

Core Viewpoint - Barfresh Food Group Inc. (BRFH) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended March 2025, with a consensus outlook indicating a loss of $0.05 per share and revenues of $2.7 million, down 4.6% from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for May 1, and the stock may experience upward movement if the reported numbers exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 20% lower in the last 30 days, reflecting a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Barfresh is the same as the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. - The stock currently holds a Zacks Rank of 5, making it challenging to predict an earnings beat [11]. Historical Performance - In the last reported quarter, Barfresh was expected to post a loss of $0.01 per share but actually reported a loss of $0.06, resulting in a surprise of -500% [12]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [13]. Industry Comparison - Coca-Cola (KO), another player in the beverages industry, is expected to report earnings of $0.71 per share for the same quarter, reflecting a year-over-year change of -1.4% and revenues of $11.12 billion, down 1.6% [17]. - Coca-Cola's consensus EPS estimate has been revised 0.3% upward in the last 30 days, but it currently has an Earnings ESP of -0.86%, indicating difficulty in predicting an earnings beat [18].

Core Viewpoint - Barfresh Food Group Inc. is set to host a business update call on May 1, 2025, to discuss company developments and performance [1]. Group 1: Company Overview - Barfresh Food Group Inc. (NASDAQ:BRFH) specializes in the development, manufacturing, and distribution 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 utilizes a proprietary system for its single-serving products, which involves portion-controlled pre-packaged beverage ingredients, ensuring quick, cost-efficient, and waste-free beverage preparation [4]. Group 2: Investor Relations - The company has provided contact information for investor relations, including John Mills and Deirdre Thomson from ICR, with their respective phone numbers and email addresses [5].

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $2.8 million compared to $1.9 million for Q4 2023, and full-year revenue for 2024 was a record $10.7 million compared to $8.1 million in 2023 [16] - Gross margin for Q4 2024 was 26% compared to 33% in Q4 2023, while adjusted gross margin for Q4 2024 was 30% compared to 33% in the prior year [17] - Net loss for Q4 2024 was $852,000 compared to a net loss of $701,000 in Q4 2023, and net loss for the full year of 2024 was comparable to 2023 at $2.8 million [20] Business Line Data and Key Metrics Changes - The increase in revenue was primarily due to expanded bottle production capacity and improvements in smoothie carton and bulk sales [16] - The new product, Pop & Go, launched in Q4, is expected to contribute significantly to revenue in 2025, targeting a larger market opportunity than previous offerings [10][12] Market Data and Key Metrics Changes - The company has achieved 95% coverage across the U.S. market, with only 5% market penetration, indicating significant growth potential [12] - The company is currently in the bid season for new customers, which may enhance revenue from the new product line [32] Company Strategy and Development Direction - The company made strategic investments and operational enhancements in 2024, positioning itself for sustained growth and expecting revenue growth of 35% to 55% in 2025 [8][26] - The onboarding of new co-manufacturers is expected to be completed by the end of Q2 2025, which will enhance manufacturing capacity in time for the back-to-school demand [10][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving significant revenue growth and margin expansion in 2025, despite temporary cost pressures in Q4 2024 [14][26] - The company anticipates that operational investments will lead to meaningful margin improvement as manufacturing capabilities come online [14][26] Other Important Information - The company raised $3 million through the sale of common stock and secured a $1.5 million line of credit to support its growth strategy [11][23] - The company is addressing liquidity requirements by compensating directors and employees with equity and obtaining non-recourse financing [23] Q&A Session Summary Question: Expectations for the new Pop & Go Freeze Pops product line - Management indicated that it is early days for the product, which launched late in Q4, but feedback has been positive and bids are in process [31] Question: Customer relationships during production issues - Management acknowledged that production issues tested customer relationships, but customers remain supportive and are eager for the product [35] Question: Concerns about budgetary constraints from the Department of Education - Management reported no direct negative feedback from customers regarding budget cuts, and some cuts may even benefit the company's products in the long run [39]

Company Performance - Barfresh Food Group Inc. reported a quarterly loss of $0.06 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.01, representing an earnings surprise of -500% [1] - The company posted revenues of $2.79 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 32%, compared to year-ago revenues of $1.92 million [2] - Over the last four quarters, Barfresh has surpassed consensus EPS estimates only once and has topped consensus revenue estimates two times [2] Stock Movement and Outlook - Barfresh Food Group shares have increased by approximately 12.9% since the beginning of the year, contrasting with the S&P 500's decline of -2.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $4.14 million, and for the current fiscal year, it is -$0.04 on revenues of $18.11 million [7] - The estimate revisions trend for Barfresh is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Beverages - Soft drinks industry, to which Barfresh belongs, is currently in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $2.8 million, up from $1.9 million in Q4 2023. Full-year revenue for 2024 reached a record $10.7 million, compared to $8.1 million in 2023 [18] - Gross margin for Q4 2024 was 26%, down from 33% in Q4 2023. Full-year gross margin for 2024 was 34%, compared to 35% in 2023 [19] - Net loss for Q4 2024 was $852,000, compared to a net loss of $701,000 in Q4 2023. Full-year net loss for 2024 was comparable to 2023 at $2.8 million [23] Business Line Data and Key Metrics Changes - The increase in revenue was primarily due to expanded bottle production capacity and improvements in smoothie carton and bulk sales [18] - The new product, Pop and Go 100% juice freeze pops, was launched in Q4 2024, targeting a larger market opportunity compared to previous offerings [12] Market Data and Key Metrics Changes - The company has achieved 95% coverage across the U.S. education channel but is only at 5% market penetration, indicating significant growth potential [14] Company Strategy and Development Direction - The company made strategic investments and operational enhancements in 2024, positioning itself for sustained growth and expecting revenue growth of 35% to 55% in 2025 [9][10] - The onboarding of new co-manufacturers is expected to be completed by Q2 2025, which will enhance manufacturing capacity in time for the back-to-school demand [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving meaningful margin improvement as operational investments yield results, with expectations for significant revenue growth in 2025 [15][16] - The company is optimistic about the potential positive effects of changes in educational funding on its products [42] Other Important Information - The company raised $3 million through the sale of common stock and secured a $1.5 million line of credit to support its growth strategy [13][27] - Adjusted EBITDA loss for Q4 2024 was approximately $561,000, compared to a loss of $427,000 in Q4 2023, while the full-year adjusted EBITDA loss improved to $1.3 million from $1.7 million [24] Q&A Session Summary Question: Expectations for the new Pop and Go freeze pops - Management indicated that it is early days for the product, which was launched late in Q4, but feedback has been positive and bids are in process [34][35] Question: Customer relationships during production issues - Management acknowledged that production issues tested customer relationships but noted that customers are eager for the product and are waiting for supply to stabilize [37][38] Question: Customer concerns regarding funding cuts - Management reported no direct negative feedback from customers regarding budgetary constraints, suggesting that some funding cuts could potentially benefit their products in schools [41][42]

Revenue Performance - Revenue increased to $10,717,000 in 2024, up by $2,590,000 or 32% from $8,127,000 in 2023, driven by higher sales of Twist & Go smoothies and bulk products [120]. Cost and Expenses - Cost of revenue rose to $7,049,000 in 2024, an increase of $1,806,000 or 34% compared to $5,243,000 in 2023, primarily due to production line relocation costs [121]. - Selling, marketing, and distribution expenses increased by $525,000 (20%) to $3,139,000 in 2024 from $2,614,000 in 2023 [123]. - General and administrative expenses rose by $357,000 (13%) to $3,043,000 in 2024, with stock-based compensation increasing by $241,000 (44%) [127][129]. - Interest expense increased to $52,000 in 2024 from $8,000 in 2023, attributed to a new receivables-based line of credit [132]. Profitability - Gross profit for 2024 was $3,668,000 (34% margin), compared to $2,884,000 (36% margin) in 2023; excluding relocation costs, gross profit was $3,951,000 (37% margin) [122]. - Net losses were approximately $2,825,000 in 2024, slightly higher than the $2,824,000 loss in 2023 [133]. Working Capital and Financing - Working capital decreased to $606,000 as of December 31, 2024, down from $2,345,000 at the end of 2023, primarily due to losses incurred [136]. - The company executed a $2,000,000 convertible debt offering, with $1,390,000 issued and converted into approximately 820,000 shares of common stock [134]. Operational Efficiency - The introduction of carton packaging in 2023 has not fully mitigated supply loss, but expanded manufacturing capacity is expected to improve efficiency in 2025 [137].

Revenue Growth - Company achieved record fiscal year revenue of $10.7 million for 2024, up from $8.1 million in 2023, representing a 32% increase [6] - Fourth quarter revenue was $2.8 million, compared to $1.9 million in Q4 2023, marking a 47% year-over-year growth [3] - Company expects record revenue for fiscal year 2025 in the range of $14.5 million to $16.6 million, indicating a potential growth of 35% to 55% [16] Profitability and Margins - Gross margin for fiscal year 2024 was 34%, slightly down from 35% in 2023, while adjusted gross margin improved to 37% from 35% [6] - Adjusted EBITDA loss for the full year 2024 improved to $1.3 million from a loss of $1.7 million in 2023 [8] - Selling, marketing, and distribution expenses for 2024 were $3.1 million, or 29% of revenue, down from 32% in 2023 [7] Losses - Net loss for the fourth quarter of 2024 was $852,000, compared to a loss of $701,000 in Q4 2023 [4] Future Outlook - Company anticipates consistent revenue and margins in Q1 2025, with significant growth expected in the latter half of the year [15] - Company is focused on expanding its product portfolio and customer base, particularly in the education market [2] Financing and Investment - Company raised $3 million in growth financing to enhance production capacity and support market expansion [14]