Financial Data and Key Metrics Changes - In Q1 2025, the company achieved an 18% year-over-year increase in net sales to $11.7 million, up from $9.9 million in the same period last year, marking the fifth consecutive quarter of double-digit sales growth [5][13] - The gross margin for Q1 2025 was 41.9%, a 1.9 percentage point improvement compared to Q1 2024, despite commodity price pressures [6][14] - The net loss narrowed to $200,000 in Q1 2025 from a $1 million loss in Q1 2024, and adjusted EBITDA was positive at $400,000 compared to a negative $800,000 in the prior year [11][16] Business Line Data and Key Metrics Changes - The wholesale channel led growth with a 35% year-over-year increase, now accounting for nearly half of total revenue [7][13] - E-commerce sales grew by 6% year-over-year, contributing 53% of total net sales, driven by strong performance on Amazon [6][14] - Direct-to-consumer sales saw over 75% coming from repeat customers and subscribers, indicating strong customer loyalty [7] Market Data and Key Metrics Changes - The company experienced distribution gains in grocery and club stores, which contributed to the significant growth in the wholesale channel [8][13] - Improved inventory management and targeted marketing execution on Amazon drove platform demand for layered superfood products [6][14] Company Strategy and Development Direction - The company aims to maintain annual gross margins in the upper 30s while prioritizing volume growth to build a larger, more profitable business [10] - The strategic focus remains on driving growth through Amazon and expanding wholesale distribution, with a target of a 50-50 split between wholesale and e-commerce by 2025 [31] - The company is committed to operational efficiencies and strategic sourcing to mitigate the impact of commodity price inflation and tariffs [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about potential commodity price corrections in 2025 that could enhance profitability [10] - The company reaffirmed its full-year guidance, expecting net sales between $52 million and $54 million, representing 20% to 25% growth versus the prior year [19][18] - Management remains confident in the company's ability to deliver long-term value for shareholders despite current industry headwinds [20] Other Important Information - The company ended the quarter with $7.2 million in cash and no debt, indicating a strong balance sheet [17] - The company invested in building inventory safety stock to minimize out-of-stock issues and capture future growth opportunities [17] Q&A Session Summary Question: Clarification on tariffs and their impact on trade spend - Management indicated that the current 10% tariff is manageable, but future tariffs could have a more significant impact, which they believe they can accommodate within their financial guidance [25][26] Question: Details on wholesale strength and promotional spend - Management highlighted strong growth in coffee and instant latte products, with improved velocities and distribution gains contributing to wholesale growth [32][36] Question: Performance of the new liquid creamer product - Management noted that velocities are coming in as expected, with some challenges due to inventory transitions, but overall confidence remains high for future performance [39][40] Question: Marketplace strategy and its impact on core product innovation - Management clarified that the marketplace is a supportive component of the DTC platform, aimed at enhancing customer engagement rather than generating significant revenue [50][51] Question: Impact of Palisade fires on sales - Management reported no noticeable negative impact on sales from the Palisade fires, although they provided support to first responders [55]

Financial Data and Key Metrics Changes - In Q1 2025, the company achieved an 18% year-over-year increase in net sales to $11.7 million, up from $9.9 million in the same period last year, marking the fifth consecutive quarter of double-digit sales growth [4][12] - The gross margin for Q1 2025 was 41.9%, a 1.9 percentage point improvement compared to Q1 2024, despite commodity price pressures [5][13] - The net loss narrowed to $200,000 in Q1 2025 from a $1 million loss in Q1 2024, and adjusted EBITDA was positive at $400,000 compared to a negative $800,000 in the prior year [10][14] Business Line Data and Key Metrics Changes - The wholesale channel led growth with a 35% year-over-year increase, now accounting for nearly half of total net sales [6][12] - E-commerce sales grew by 6% year-over-year, contributing 53% of total net sales, driven by strong performance on Amazon [5][13] - Direct-to-consumer sales saw over 75% coming from repeat customers and subscribers, indicating strong customer loyalty [6] Market Data and Key Metrics Changes - The company reported significant distribution gains in grocery and club stores, contributing to the wholesale growth [6][12] - The company is optimistic about resolving supply chain constraints and expects to drive accelerated growth in coconut milk products in the second half of 2025 [7][10] Company Strategy and Development Direction - The company aims to maintain annual gross margins in the upper 30s while prioritizing volume growth to build a larger, more profitable business [9] - The strategy focuses on robust growth on Amazon and expanding wholesale distribution, with a target of a 50-50 split between wholesale and e-commerce by 2025 [30] - The company is committed to operational efficiencies and strategic sourcing to mitigate rising commodity costs and tariffs [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about potential commodity price corrections in 2025 that could enhance profitability [9] - The company remains confident in its 2025 outlook and ability to deliver long-term value for shareholders despite current industry headwinds [19][20] - Management highlighted the importance of maintaining strong supplier relationships and operational efficiencies to navigate inflationary pressures [8][14] Other Important Information - The company ended the quarter with $7.2 million in cash and no debt, indicating a strong balance sheet [15] - The company is investing in building inventory safety stock to minimize out-of-stock issues and capture future growth opportunities [15][17] - Full-year guidance expects net sales between $52 million and $54 million, representing 20% to 25% growth versus the prior year [18] Q&A Session Summary Question: Clarification on tariffs and their impact - Management indicated that the current 10% tariff is manageable, but future tariffs could have a more significant impact, which they believe they can accommodate within their financial guidance [24][25] Question: Details on wholesale strength and promotional spend - Management noted that wholesale growth is driven by distribution gains and improved velocities, particularly in coffee and instant latte products, with promotional spending being efficient despite exceeding expectations [30][36] Question: Performance of the new liquid creamer product - Management reported that velocities for the new liquid creamer are in line with expectations, although the transition has been challenging due to timing issues with major accounts [39][40] Question: Marketplace strategy and its impact - The marketplace is a non-strategic component aimed at enhancing the DTC platform by offering lifestyle products, which helps drive traffic and retention without significant financial expectations [48][49] Question: Impact of Palisade fires on sales - Management stated that while there was displacement in Southern California, there was no noticeable negative impact on sales, and they provided support to first responders as a goodwill gesture [52][53]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to_________ Commission File Number: 001-39537 Laird Superfood, Inc. (Exact name of registrant as specified in its charter) Nevada 81 ...

[First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) This section highlights Laird Superfood's strong Q1 2025 performance, including double-digit sales growth, improved profitability, and positive Adjusted EBITDA [CEO Commentary and Performance Summary](index=1&type=section&id=CEO%20Commentary%20and%20Performance%20Summary) In Q1 2025, Laird Superfood achieved its fifth consecutive quarter of double-digit year-over-year sales growth, with net sales increasing by 18% to $11.7 million, driven by strategic expansion and improved operational leverage - The company reported its **fifth consecutive quarter of double-digit year-over-year sales growth**, driven by expansion into brick-and-mortar stores and Amazon[3](index=3&type=chunk) - Successfully resolved inventory and supply chain constraints that impacted the business at the end of 2024, building a more flexible supply chain in the process[3](index=3&type=chunk) Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | Q4 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Sales ($M) | $11.7M | $9.9M | +18% YoY | $11.6M | | Gross Margin (%) | 41.9% | 40.0% | +1.9 p.p. YoY | 38.6% | | Net Loss ($M) | ($0.2M) | ($1.0M) | +$0.8M YoY | ($0.4M) | | Net Loss per Share ($) | ($0.02) | ($0.11) | +$0.09 YoY | ($0.04) | | Adjusted EBITDA ($M) | $0.4M | ($0.7M) | +$1.1M YoY | $0.2M | - Wholesale sales grew **35% year-over-year**, contributing **47%** of total net sales, while E-commerce sales increased **6%**, contributing **53%** of total net sales[5](index=5&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) This section provides a detailed breakdown of Q1 2025 financial results, including revenue by product and channel, balance sheet positions, and cash flow activities [Revenue Disaggregation](index=2&type=section&id=Revenue%20Disaggregation) In Q1 2025, total net sales reached $11.65 million, with coffee creamers as the largest product category and wholesale sales significantly growing to 47% of net sales Revenue by Product Category (Three Months Ended March 31) | Product Category | 2025 Gross Sales ($) | % of Total | 2024 Gross Sales ($) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Coffee creamers | $6,712,651 | 58% | $5,570,321 | 56% | | Coffee, tea, and hot chocolate | $3,220,892 | 28% | $2,175,265 | 22% | | Hydration and beverage enhancing | $2,106,179 | 18% | $2,025,272 | 20% | | Snacks and other food items | $1,430,729 | 12% | $1,304,060 | 13% | Revenue by Sales Channel (Three Months Ended March 31) | Sales Channel | 2025 Net Sales ($) | % of Total | 2024 Net Sales ($) | % of Total | | :--- | :--- | :--- | :--- | :--- | | E-commerce | $6,213,116 | 53% | $5,868,337 | 59% | | Wholesale | $5,441,043 | 47% | $4,040,601 | 41% | | **Total Sales, net** | **$11,654,159** | **100%** | **$9,908,938** | **100%** | [Balance Sheet and Cash Flow Highlights](index=3&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Highlights) As of March 31, 2025, the company held $7.2 million in cash and equivalents with no outstanding debt, while cash used in operating activities increased to $1.3 million due to strategic inventory investment - The company had **$7.2 million** of cash, cash equivalents, and restricted cash as of March 31, 2025, with **no outstanding debt**[7](index=7&type=chunk) - Cash used in operating activities increased to **$1.3 million** in Q1 2025 from **$0.4 million** in Q1 2024, driven by a **strategic investment in working capital** to meet high demand and address previous out-of-stock issues[8](index=8&type=chunk) [2025 Outlook](index=3&type=section&id=2025%20Outlook) This section outlines Laird Superfood's reaffirmed full-year 2025 guidance, including projected sales growth, gross margin, and Adjusted EBITDA targets [Full Year 2025 Guidance](index=3&type=section&id=Full%20Year%202025%20Guidance) Management has reaffirmed its full-year 2025 guidance, projecting strong growth with net sales increasing between 20% and 25%, gross margin in the upper 30s, and breakeven adjusted EBITDA - Re-affirms Net Sales growth guidance in the **20% to 25%** range for the full year 2025[11](index=11&type=chunk) - Expects Gross Margin to hold in the **upper 30s** for the full year[11](index=11&type=chunk) - Targets **breakeven adjusted EBITDA** for the full year[11](index=11&type=chunk) - Anticipates using **$1 to $2 million** in cash for the full year to invest in inventory, supporting top-line growth and minimizing out-of-stocks[11](index=11&type=chunk) [Consolidated Financial Statements (Unaudited)](index=5&type=section&id=LAIRD%20SUPERFOOD%2C%20INC.%20CONSOLIDATED%20STATEMENTS) This section presents the unaudited consolidated financial statements for Q1 2025, including statements of operations, cash flows, and balance sheets [Consolidated Statements of Operations](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the first quarter of 2025, Laird Superfood reported increased net sales and gross profit, significantly reducing its operating and net losses year-over-year Q1 2025 vs Q1 2024 Statement of Operations Summary | Metric | Three Months Ended March 31, 2025 ($) | Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | Sales, net | $11,654,159 | $9,908,938 | | Gross profit | $4,881,540 | $3,964,101 | | Total operating expenses | $5,099,559 | $5,052,663 | | Operating loss | ($218,019) | ($1,088,562) | | Net loss | ($156,182) | ($1,016,522) | | Net loss per share | ($0.02) | ($0.11) | [Consolidated Statements of Cash Flows](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For Q1 2025, net cash used in operating activities increased to $1.27 million, primarily due to a $3.64 million strategic investment in inventory, with cash and equivalents ending at $7.16 million - Net cash used in operating activities was **$1,274,744** for Q1 2025, compared to **$422,311** in Q1 2024[18](index=18&type=chunk) - The primary driver for the increased cash use was a **$3,638,003 increase in inventory**, reflecting a strategic build-up to support sales growth[18](index=18&type=chunk) - The ending balance of cash, cash equivalents, and restricted cash was **$7,163,362** as of March 31, 2025[18](index=18&type=chunk) [Consolidated Balance Sheets](index=7&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, Laird Superfood's total assets increased to $21.5 million, driven by a rise in inventory, while total liabilities also increased, and stockholders' equity remained stable Balance Sheet Summary | Metric | March 31, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Total Current Assets | $20,213,541 | $17,966,628 | | Inventory | $9,511,964 | $5,975,676 | | Total Assets | $21,493,031 | $19,259,001 | | Total Current Liabilities | $8,044,597 | $5,921,671 | | Total Liabilities | $8,162,258 | $6,062,135 | | Total Stockholders' Equity | $13,330,773 | $13,196,866 | [Non-GAAP Financial Measures](index=8&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) This section provides a reconciliation of the company's GAAP net loss to its non-GAAP Adjusted EBITDA for Q1 2025 [Reconciliation of Net Loss to Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) For Q1 2025, the company reported a Net Loss of $156,182, which adjusted to a positive Adjusted EBITDA of $356,912, a significant turnaround from the prior year's negative Adjusted EBITDA - Adjusted EBITDA is defined as net income (loss) adjusted for interest, taxes, depreciation, amortization, stock-based compensation, and certain non-recurring items[22](index=22&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (Three Months Ended March 31) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net loss | $(156,182) | $(1,016,522) | | Stock-based compensation | $508,410 | $279,565 | | Depreciation and amortization | $66,521 | $71,435 | | Other adjustments | $(61,837) | $(72,040) | | **Adjusted EBITDA** | **$356,912** | **$(748,757)** | Adjusted EBITDA per Diluted Share | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Adjusted EBITDA per share, diluted | $0.03 | $(0.08) |

Core Insights - Laird Superfood has launched a new Vanilla Instant Latte featuring real vanilla bean powder, differentiating it from competitors that typically use artificial flavors [1][2] - The product is designed to provide a convenient coffee shop experience at home, requiring only hot water for preparation [3] - The Vanilla Instant Latte includes a Performance Mushroom Blend for energy benefits and Aquamin™, a multi-mineral sea algae complex, which offers over 72 trace minerals including calcium [3] Product Details - The Vanilla Instant Latte is available in an eight-ounce bag on LairdSuperfood.com, with plans for distribution through Amazon and other retailers [5] - The product aims to cater to health-conscious consumers by avoiding sugary syrups and artificial ingredients, focusing instead on authentic flavors [4] Company Background - Laird Superfood was founded in 2015 by Laird Hamilton and Gabby Reece, focusing on minimally processed superfood products that support active lifestyles [6] - The brand has expanded its product line from superfood creamers to include instant lattes, coffees, bars, and prebiotic daily greens [6]

Core Insights - Laird Superfood has launched an online shopping platform called The Market Place, aimed at promoting exceptional health and high performance through a curated selection of wellness products [1][3] - The Market Place will feature a limited number of product collections from various brands, emphasizing quality and accessibility for consumers seeking a healthy lifestyle [2][3] Company Overview - Laird Superfood, founded in 2015 by Laird Hamilton and Gabby Reece, focuses on clean, plant-based superfood products that enhance energy, endurance, and overall well-being [4] - The brand has expanded its product offerings from superfood creamers to include instant lattes, coffees, bars, and prebiotic daily greens, all made with simple, minimally processed ingredients [4] Product Offering - The Market Place will offer a selection of wellness products, including premium river boards, sustainable activewear, and recovery tools, with a focus on limited supply and best prices [2][3] - The platform aims to provide customers with access to effective wellness superfoods, tools, and accessories that align with healthy values and an elevated lifestyle [3]

Core Insights - Laird Superfood is participating in the 37th Annual Roth 2025 Conference on March 17-18, 2025, where the leadership team will discuss innovation, product launches, and growth initiatives [1][2] Company Overview - Laird Superfood, founded in 2015 by Laird Hamilton and Gabby Reece, focuses on clean, plant-based superfood products aimed at enhancing performance and wellness [3] - The brand offers a variety of products including superfood creamers, instant lattes, coffees, bars, and prebiotic daily greens, emphasizing minimally processed ingredients [3] Strategic Focus - The company aims to meet the growing consumer demand for clean, minimally processed products by delivering innovative superfood solutions [2][3] - Laird Superfood's growth strategy includes expanding market presence and driving shareholder value through strategic initiatives [2][3]

Financial Data and Key Metrics Changes - For the full year 2024, the company achieved a 27% top-line growth, with net sales reaching $43.3 million, up from $34.2 million in 2023 [6][24] - In Q4 alone, net sales grew to $11.6 million, a 26% increase over Q4 2023 [7][22] - Gross margins for the full year were maintained at nearly 41%, an 11-point increase from 30.1% in 2023 [8][27] - The net loss for Q4 was $0.4 million, compared to net income of $0.1 million in the prior year period, while the full year net loss improved to $1.8 million from $10.2 million [29][30] Business Line Data and Key Metrics Changes - E-commerce sales increased by 32% year-over-year, contributing 59% of total net sales for the full year [10][24] - Wholesale sales grew by 19% year-over-year, accounting for 41% of total net sales [12][26] - In Q4, the wholesale channel led growth with a 52% increase year-over-year [22] Market Data and Key Metrics Changes - The company secured new distribution with major retailers like Kroger and Safeway Albertsons, contributing to a 35% growth in retail sales across the MULO universe [12][13] - The Amazon platform accounted for over 40% of the e-commerce channel, with expectations for continued growth [11] Company Strategy and Development Direction - The company focuses on rapid growth in e-commerce and expanding wholesale distribution as key strategic pillars [9] - The transition to a variable cost manufacturing model and disciplined trade spend management have been crucial for maintaining high gross margins [8][15] - The company aims to achieve gross margins in the upper 30s while prioritizing volume growth over short-term margin points [16][32] Management's Comments on Operating Environment and Future Outlook - Management believes that recent commodity cost increases are opportunistic and expects a correction in some costs over 2025 [16][87] - The company anticipates continued growth in core business segments, reaffirming guidance for 20% to 25% net sales growth in 2025 [31][32] - Management expressed confidence in resolving supply chain issues and expects to recover from out-of-stock situations by the end of Q1 or early Q2 [19][46] Other Important Information - The company has entered 2025 with $8.5 million in cash and no debt, projecting sufficient cash to fund operations and growth [30] - The company is targeting adjusted EBITDA to breakeven on a full-year basis while investing in inventory to support growth [34] Q&A Session Summary Question: Impact of stock-outs on Q4 and timeline for resolution - Management acknowledged that stock-outs impacted Q4, estimating a loss of approximately $1 million in sales, but emphasized strong demand and plans to resolve supply issues [42][46] Question: Growth in coffee category and its drivers - Management confirmed strong growth in the coffee category, driven by functional coffee products and effective pricing strategies [50][52] Question: Gross margin expectations for early 2025 - Management intends to maintain gross margins in the high-30s, willing to trade off some margin points for market share and top-line growth [61] Question: Performance of new liquid product size - Management reported a successful transition to a larger liquid product size, with expectations for strong sales but noted it is too early to provide specific sales data [66][70] Question: Supply challenges for coconut milk powder - Management indicated that while there is sufficient overall supply for coconut milk powder, quality requirements necessitate careful supplier vetting, which has caused temporary supply issues [75][79]

Company Performance - Laird Superfood, Inc. reported a quarterly loss of $0.04 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.02, marking an earnings surprise of -100% [1] - The company posted revenues of $11.61 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.64%, but showing an increase from $9.21 million in the same quarter last year [2] - Over the last four quarters, Laird Superfood has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - Laird Superfood shares have declined approximately 13.3% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $12.5 million, and for the current fiscal year, it is -$0.08 on revenues of $52.7 million [7] Industry Outlook - The Zacks Industry Rank for Food - Miscellaneous, which includes Laird Superfood, is currently in the bottom 30% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Laird Superfood's stock performance [5]

Financial Performance - Record Net Sales of $43.3 million for Fiscal Year 2024, representing a growth of 27% year-over-year[1] - Fourth Quarter 2024 Net Sales of $11.6 million, a 26% increase compared to $9.2 million in the prior year period[3] - Net Loss improved to $1.8 million, or $0.18 per diluted share, compared to a Net Loss of $10.2 million, or $1.09 per diluted share, in the prior year[6] - Adjusted EBITDA improved to ($0.7) million, or ($0.07) per diluted share, compared to ($9.0) million, or ($0.96) per diluted share, in the prior year[6] - Management expects Net Sales growth in the 20% to 25% range for 2025, with Gross Margin anticipated to hold in the upper 30s[12] Sales Channels - E-commerce sales increased by 32% year-over-year, contributing 59% of total Net Sales, driven by growth in subscription revenue and repeat customer purchases[6] - Wholesale sales increased by 19% year-over-year, contributing 41% of total Net Sales, supported by velocity improvement in retail and distribution expansion[6] Cash Flow and Liquidity - Cash provided by operating activities was $0.9 million for Fiscal Year 2024, a significant improvement from cash used in operating activities of $10.8 million in 2023[8] - The company had $8.5 million in cash and no outstanding debt as of December 31, 2024[7] - Net cash from operating activities for 2024 was $865,502, compared to a net cash outflow of $10,765,881 in 2023, indicating a positive cash flow turnaround[19] Assets and Liabilities - Total assets increased to $19,259,001 as of December 31, 2024, up from $18,031,959 in 2023, reflecting a growth of 6.8%[21] - Total liabilities rose to $6,062,135 in 2024, compared to $4,619,340 in 2023, an increase of 31.1%[21] Inventory and Receivables - Inventory decreased to $5,975,676 in 2024 from $6,322,559 in 2023, a decline of 5.5%, indicating improved inventory management[21] - Accounts receivable increased to $1,762,911 in 2024 from $1,022,372 in 2023, representing a growth of 72.3%[21] Stock-Based Compensation and Interest - Stock-based compensation expenses increased to $1,637,788 in 2024 from $1,092,146 in 2023, a rise of 49.9%[25] - The company reported cash paid for interest of $16,027 in 2024, up from $13,994 in 2023, reflecting a 14.5% increase[19] Gross Margin - Gross Margin expanded to 40.9% from 30.1% in the prior year, an increase of 1,071 basis points, due to favorable product costs and reduced promotional spend[6]