[Q2 2025 Performance and Strategic Update](index=1&type=section&id=Q2%202025%20Performance%20and%20Strategic%20Update) [Highlights and Strategy](index=1&type=section&id=Highlights%20and%20Strategy) Edible Garden reported strong Q2 2025 performance, driven by a strategic shift to higher-margin products and e-commerce expansion - The company is executing a portfolio transformation by exiting underperforming, low-margin product lines to focus on **higher-margin, CEA-informed, shelf-stable products**[2](index=2&type=chunk)[3](index=3&type=chunk)[7](index=7&type=chunk) Q2 2025 Key Segment Performance (YoY Growth) | Segment/Product | YoY Growth Rate | | :--- | :--- | | International Vitamin and Supplements Revenue | 66.5% | | Private Label Products | 19.1% | | Non-perishable Unit Sales | ~17% | | Hydroponic Basil | 7.1% | | Potted Herbs | 6.4% | | Wheatgrass | 4.1% | - Acquired the NaturalShrimp aquaculture facility, now Edible Garden Prairie Hills, to enhance R&D, add water treatment patents, and improve distribution efficiency[4](index=4&type=chunk) - Expanded digital footprint by launching the Kick Sports Nutrition line on Amazon, contributing to a **surge in e-commerce sales**[4](index=4&type=chunk) [Q2 2025 Financial Results](index=2&type=section&id=Q2%202025%20Financial%20Results) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) Q2 2025 revenue decreased to $3.1 million due to strategic exits, leading to lower gross profit and an increased net loss of $4.0 million Q2 2025 Financial Summary (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $3.1 | $4.3 | ($1.2) | | Gross Profit | $0.63 | $1.56 | ($0.93) | | SG&A Expenses | $4.2 | $2.7 | $1.5 | | Net Loss | ($4.0) | ($1.9) | ($2.1) | - The decrease in revenue was primarily due to the strategic exit from floral and lettuce categories, accounting for **$741,000 of the decline**[7](index=7&type=chunk) - The increase in SG&A expenses was mainly driven by legal costs for the NaturalShrimp acquisition, Narayan transaction expenses, and franchise tax charges[9](index=9&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$21.8 million** by June 30, 2025, driven by property and equipment, while total liabilities decreased to **$5.2 million** Selected Balance Sheet Data (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash | $2,821 | $3,530 | | Total Current Assets | $5,889 | $7,377 | | Total Assets | $21,814 | $11,915 | | Total Current Liabilities | $3,954 | $6,210 | | Total Liabilities | $5,222 | $7,821 | | Total Stockholders' Equity (Deficit) | $1,592 | $4,094 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, revenue was **$3.1 million**, resulting in a **$3.6 million** operating loss and a **$13.9 million** net loss to common stockholders Statement of Operations Highlights - Three Months Ended June 30 (in thousands, except per-share data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | $3,146 | $4,268 | | Gross Profit | $634 | $1,566 | | Loss from Operations | $(3,593) | $(1,182) | | Net Loss | $(4,043) | $(1,932) | | Net Loss Attributable to Common Stockholders | $(13,876) | $(1,932) | | Net Loss per Common Share | $(6.58) | $(30.02) | [Corporate Information](index=2&type=section&id=Corporate%20Information) [Company Profile](index=2&type=section&id=Company%20Profile) Edible Garden leads in controlled environment agriculture (CEA), delivering organic produce to over 5,000 locations using proprietary technology and a diverse product portfolio - The company is a leader in controlled environment agriculture (CEA) with products available in over **5,000 retail locations** across the U.S., Caribbean, and South America[15](index=15&type=chunk) - Owns proprietary GreenThumb 2.0 software and holds multiple U.S. patents related to greenhouse optimization, in-store displays, and advanced aquaculture technologies[16](index=16&type=chunk) - Develops and markets a growing line of nutrition and specialty food products, including Vitamin Way®, Kick. Sports Nutrition, Pulp® sauces, and Pickle Party™ fermented foods[17](index=17&type=chunk) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) A conference call was scheduled for 8:00 A.M. Eastern Time to discuss Q2 2025 financial results and corporate developments - A conference call was scheduled for **8:00 A.M. Eastern Time** to discuss the quarterly financial results[12](index=12&type=chunk) - Details for accessing the live webcast and a telephone replay, available through **August 28, 2025**, were provided[13](index=13&type=chunk)[14](index=14&type=chunk)

Core Viewpoint - Edible Garden AG Incorporated is focusing on optimizing its product portfolio by exiting low-margin product lines and investing in higher-margin, innovative consumer packaged goods, particularly in the controlled environment agriculture (CEA) sector, to meet growing consumer demand for quality and sustainability [2][4]. Financial Performance - For the three months ended June 30, 2025, the company reported revenue of $3.1 million, a decrease from $4.3 million in the same period in 2024, primarily due to the exit from low-margin floral and lettuce categories [7]. - Gross profit for the quarter was $634,000, down from $1.56 million in Q2 2024, reflecting changes in product mix and increased costs [8]. - Selling, general and administrative expenses rose to $4.2 million from $2.7 million year-over-year, driven by legal costs related to acquisitions [9]. - The net loss for the quarter was $4.0 million, compared to a net loss of $1.9 million in Q2 2024, attributed to higher expenses and reduced revenue from exited categories [10]. Strategic Initiatives - The company has exited underperforming product lines and is investing in CEA-informed, better-for-you shelf-stable products, which are expected to enhance profitability and market leadership [4][5]. - Private label products sold through major retailers increased by 19.1% year-over-year, with notable growth in hydroponic basil (up 7.1%), potted herbs (up 6.4%), and wheatgrass (up 4.1%) [5]. - International revenue from vitamins and supplements surged by 66.5% due to new distribution partnerships [5]. Market Trends - The global functional food and beverage market is projected to grow from $400 billion to $610 billion by 2030, with U.S. sales of natural, organic, and functional products expected to reach $386 billion by 2028, growing at approximately 5% annually [4]. Operational Developments - The acquisition of the NaturalShrimp aquaculture facility in Iowa is expected to enhance research and development in aquaponics and improve distribution efficiency [4]. - The company is advancing its strategic priorities in innovation and operational sustainability, with a focus on expanding its digital marketing reach and e-commerce sales [4].

Core Viewpoint - Edible Garden AG Incorporated, a leader in controlled environment agriculture, will host a conference call on August 14, 2025, to discuss its financial results for the second quarter of 2025 and provide a business update [1]. Company Overview - Edible Garden is recognized for its sustainable produce and products, operating under a Zero-Waste Inspired farming model [4]. - The company has over 5,000 retail locations across the U.S., Caribbean, and South America, emphasizing its role in the CEA and sustainability technology movement [4]. - It operates advanced vertically integrated greenhouses and processing facilities in Michigan, Iowa, and New Jersey, and collaborates with contract growers near major U.S. markets [4]. Technology and Innovations - Edible Garden's proprietary GreenThumb 2.0 software optimizes greenhouse conditions and aims to reduce food miles, protected by multiple U.S. patents [5]. - The patented Self-Watering display is designed to extend plant shelf life and enhance in-store presentation [5]. - The company holds patents in advanced aquaculture technologies, including a closed-loop shrimp farming system and a modular recirculating aquaculture setup [5]. Recognition and Product Offerings - Edible Garden has been recognized as a FoodTech 500 firm and is a member of Walmart's Project Gigaton sustainability initiative [6]. - The company markets a range of nutrition and specialty food products, including plant and whey protein powders, and a line of sustainable condiments [6].

Core Insights - Edible Garden AG Incorporated has launched a USDA Certified Organic Hydroponic Basil Plant, marking a significant innovation in the controlled environment agriculture (CEA) sector [2][4] - The product combines hydroponic cultivation with USDA Organic certification, aiming to reduce food waste and enhance freshness while appealing to health-conscious consumers [4] Company Overview - Edible Garden is a leader in CEA, offering locally grown, organic, and sustainable produce, and operates over 5,000 stores across the US, Caribbean, and South America [5] - The company utilizes patented technologies such as GreenThumb software and Self-Watering displays to optimize growth and enhance product shelf life [5] - Edible Garden has acquired patents related to advanced aquaculture technologies, further diversifying its product offerings [5] Product Features - The new hydroponic basil is designed to use up to 90% less water than conventional farming methods and is cultivated locally year-round, which reduces food miles [4] - The product's packaging is visually appealing, aimed at improving in-store visibility and supporting premium placement in retail environments [4] - The basil is marketed as a sustainable choice that aligns with modern consumer values regarding health and environmental awareness [4]

Core Insights - Edible Garden AG Incorporated has launched a USDA Certified Organic Hydroponic Basil Plant, marking a significant innovation in the herb category by merging hydroponics with organic certification [2][3] - The product is designed to be climate-resilient and resource-efficient, using up to 90% less water than conventional farming, and is cultivated locally year-round to reduce food miles [3] Company Overview - Edible Garden is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce, and operates over 5,000 stores across the US, Caribbean, and South America [4] - The company utilizes patented technologies such as GreenThumb software and Self-Watering displays to enhance plant shelf life and optimize growing conditions [4] - Edible Garden has acquired multiple patents related to advanced aquaculture technologies, further diversifying its product offerings [4] Product Features - The new hydroponic basil is presented in vibrant, modern packaging that enhances visibility in stores and supports premium placement [3] - The product aligns with consumer values focused on sustainability, clean labels, and product transparency, catering to health-conscious and environmentally aware consumers [3]

Core Insights - Edible Garden AG Incorporated has announced the opening of a new 6.2-acre facility in Webster City, Iowa, named Edible Garden-Prairie Hills, aimed at expanding its production and research capabilities in controlled environment agriculture [1][2][3] Company Expansion - The new facility will enhance Edible Garden's production of herbs and nutraceuticals, support aquaculture research and development, and improve distribution efficiency across the Midwest [2][3] - This strategic expansion is part of the company's commitment to sustainable practices and its Zero-Waste Inspired® farming model [3] Technological Advancements - The facility is equipped with advanced aquaculture infrastructure and laboratories, allowing for the development of clean-label nutraceuticals and the application of patented water treatment technologies [2][4] - Edible Garden has acquired three patents from NaturalShrimp Farms Inc. related to advanced aquaculture technologies, which will be utilized in the new facility [4] Market Positioning - The company serves over 5,000 retail locations across the U.S., Caribbean, and South America, positioning itself as a leader in sustainable produce and products [4] - Edible Garden is recognized as a FoodTech 500 company and is a participant in Walmart's Project Gigaton sustainability initiative [4]

Core Insights - Edible Garden AG Incorporated has launched its Pickle Party™ line of fresh condiments at Uncle Giuseppe's Marketplace, coinciding with the peak summer season for consumer demand for flavorful condiments [1][3] - The Pickle Party™ line is the world's first functional pickle line, featuring raw, refrigerated, fermented, Kosher, and Non-GMO products made through traditional fermentation methods [2][3] - The company has also expanded its herb distribution with a new partnership at Scotty's Marketplace, offering hydroponic basil and various potted herbs [3] Company Overview - Edible Garden is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce, with products available in over 5,000 stores across the US, Caribbean, and South America [4] - The company operates vertically integrated greenhouses and processing facilities in New Jersey and Michigan, utilizing patented technologies like GreenThumb software and Self-Watering displays to optimize production and reduce environmental impact [4] - Edible Garden has been recognized as a FoodTech 500 company and is a participant in Walmart's Project Gigaton sustainability initiative [4]

Company Overview - Edible Garden AG Incorporated is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce and products [4] - The company operates state-of-the-art vertically integrated greenhouses and processing facilities in Belvidere, New Jersey, and Grand Rapids, Michigan, and has a network of contract growers strategically located near major markets in the U.S. [4] - Edible Garden's proprietary technologies include the GreenThumb software and Self-Watering in-store displays, aimed at optimizing growth and enhancing the in-store experience [4] Leadership Appointment - Sohail Ahmad has been appointed as Vice President of Finance, effective immediately, bringing over 20 years of experience in the food and consumer goods sectors [1][2] - Ahmad's previous roles include Chief Financial Officer at HOS Global Foods, a $300 million enterprise, and Global CFO at Guestworldwide, a $1.7 billion division of Sysco Corporation [2] - The CEO of Edible Garden, Jim Kras, emphasized Ahmad's strategic mindset and ability to lead transformation, which aligns with the company's growth trajectory and focus on operational efficiency [3] Product Lines and Market Position - Edible Garden offers a growing lineup of products, including Kick. Sports Nutrition, Vitamin Whey®, and Pulp, catering to health-conscious consumers [3] - The company has been recognized as a FoodTech 500 company and is a member of Walmart's Project Gigaton sustainability initiative [4] - Edible Garden is also involved in developing plant and whey protein powders, as well as fresh condiments, enhancing its product diversity [4]

Core Insights - Edible Garden AG Incorporated's new Kick. Sports Nutrition line has been awarded the 2025 Sports Nutrition Product of the Year by the Mindful Awards, highlighting the company's commitment to clean-label and sustainable products [1][4] - The global sports nutrition market is projected to grow from $54.8 billion in 2023 to $103.3 billion by 2032, indicating a significant opportunity for Edible Garden to expand its market presence [4] Company Overview - Edible Garden is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce, with a presence in over 5,000 stores across the US, Caribbean, and South America [8] - The company operates state-of-the-art vertically integrated greenhouses and processing facilities in New Jersey and Michigan, utilizing patented technologies to optimize growing and reduce food miles [8] Product Launch and Strategy - The Kick. Sports Nutrition line includes plant-based and whey protein powders, with plans for expansion into pre-workout, post-workout, and hydration formulations [3] - The product was launched in April at a major Midwest retailer and subsequently on Amazon, reflecting a strong omnichannel strategy that combines physical retail with e-commerce [3][4] Market Positioning - Edible Garden's approach aims to meet the increasing demand for natural and effective health solutions among performance-minded consumers, leveraging convenience and clean ingredients [4] - The company has been recognized as a FoodTech 500 company and is a member of Walmart's Project Gigaton sustainability initiative, reinforcing its commitment to innovation and sustainability [8]

Core Insights - Edible Garden AG Incorporated is expanding its retail presence in the Northeast U.S. to meet the rising demand for sustainable products, including hydro basil, fresh herbs, and its Pickle Party line [1][2][3] Group 1: Expansion and Product Offerings - The company has added new retail partners in New York and New Jersey, including Waverly Gourmet Market, Key Food, Netcost Market, and Marrazzo's Market, to offer its sustainably grown products [2] - The Pickle Party line features the world's first functional pickles, which are fresh, fermented, Kosher, and Non-GMO, aimed at supporting gut health [2][4] - The expansion enhances Edible Garden's footprint in key Northeast markets, aligning with its mission to provide fresh, locally grown, and environmentally responsible products [2][3] Group 2: Company Mission and Market Position - The CEO of Edible Garden emphasized the company's commitment to cultivating a movement towards fresher, smarter food choices, highlighting the rising demand for clean-label, responsibly sourced food [3] - Edible Garden operates over 5,000 stores across the U.S., Caribbean, and South America, and is recognized as a leader in controlled environment agriculture (CEA) [4] - The company utilizes patented technologies such as GreenThumb software and Self-Watering displays to optimize growing conditions and enhance product shelf life [4]