[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]

Financial Performance - Total net sales for the year ended December 31, 2024, were $43,295,137, representing a 26.4% increase from $34,224,198 in 2023[267] - Gross profit for 2024 was $17,687,581, compared to $10,313,277 in 2023, indicating a significant improvement in profitability[267] - The operating loss decreased to $2,173,092 in 2024 from $10,698,986 in 2023, reflecting better cost management[267] - Net loss for the year ended December 31, 2024, was $1,820,161, a substantial reduction from the net loss of $10,163,117 in 2023[267] - The company reported a basic and diluted net loss per share of $0.18 for 2024, compared to $1.09 for 2023, showing improved performance on a per-share basis[267] - Net loss for the year ended December 31, 2024, was $1,820,161, a significant improvement from a net loss of $10,163,117 in 2023, representing an 82.1% reduction[273] - 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[273] Assets and Liabilities - Cash and cash equivalents increased to $8,514,152 as of December 31, 2024, up from $7,706,806 in 2023[264] - Total assets grew to $19,259,001 in 2024, compared to $18,031,959 in 2023, indicating overall growth in the company's financial position[264] - Total liabilities increased to $6,062,135 in 2024 from $4,619,340 in 2023, primarily due to higher accounts payable and accrued expenses[264] - Stockholders' equity decreased slightly to $13,196,866 in 2024 from $13,412,619 in 2023, driven by the net loss incurred during the year[264] Expenses - Research and product development expenses decreased to $114,144 in 2024 from $219,723 in 2023, reflecting a 48% reduction[295] - Marketing and advertising costs were $6,735,672 in 2024, down from $7,886,031 in 2023, a decrease of approximately 14.6%[296] - Shipping and handling costs totaled $5,189,469 in 2024, a slight decrease from $5,223,257 in 2023, reflecting a 0.6% reduction[294] - The company reported cash paid for interest of $16,027 in 2024, compared to $13,994 in 2023, indicating a 14.5% increase[273] - The company recognized a total of $63,852 in cash paid for income taxes in 2024, up from $17,625 in 2023, representing a significant increase of 262.5%[273] - The total rent expense for the year ended December 31, 2024, was $479,617, down from $519,498 in 2023, indicating a decrease of approximately 8%[332] Inventory and Provisions - The company’s inventory provision for obsolescence was $599,902 in 2024, down from $1,273,171 in 2023, marking a decrease of 53%[273] - Inventory decreased to $5,975,676 in 2024 from $6,322,559 in 2023, a reduction of about 5.5%, with costs related to obsolete inventory recorded at $599,902 in 2024 compared to $1,273,171 in 2023[312] - As of December 31, 2024, the company had total inventory reserves of $425,792, a significant decrease from $1,029,657 in 2023, primarily due to improved inventory management[313] Stock and Compensation - The Company reported accrued expenses of $3,642,998 for the year ended December 31, 2024, compared to $2,586,343 in 2023, representing an increase of approximately 41%[326] - Total stock-based compensation for 2024 is $1,637,788, with an unrecognized compensation cost of $4,084,270 and a weighted average remaining vesting period of 3.42 years[357] - The total intrinsic value of options exercised in the year ended December 31, 2024, was $596,943, while no options were exercised in the year ended December 31, 2023[348] - The total fair value of outstanding RSUs as of December 31, 2024, was $8,790,124, based on the last market close price of $7.88[354] - The total vest date fair value of RSUs vested was $1,135,692 in the year ended December 31, 2024, compared to $158,349 in 2023[354] Revenue Sources - E-commerce sales represented 59% of total net sales in 2024, amounting to $25,642,366, while wholesale sales accounted for 41% at $17,652,771[367] - Coffee creamers generated $23,088,363 in sales, making up 53% of total sales in 2024, while hydration and beverage enhancing products contributed $9,207,964, or 21%[367] Tax and Deferred Assets - The effective tax rate for the Company was 3.4% for the year ended December 31, 2024, compared to 0.1% in 2023[335] - The Company recorded a total deferred tax asset of $26,264,674 as of December 31, 2024, with a full valuation allowance against these assets[337] Audit and Compliance - The company has been audited by Moss Adams LLP since 2018, ensuring compliance with PCAOB standards[262] Segment Performance - The CODM evaluates segment performance based on consolidated net income, which is crucial for resource allocation[373] - All expense categories in the consolidated statements of operations are significant, indicating no other major segment expenses require disclosure[373] - The CODM utilizes consolidated net income to compare operating performance against prior results and competitors[373] - Future operating and capital expenditures are allocated based on the insights derived from consolidated net income assessments[373] - Segment assets are reported as total assets on the consolidated balance sheets, reflecting the overall financial health of the company[373]

Company Overview - Laird Superfood is a clean plant-based food brand founded in 2015 by big wave surfer Laird Hamilton, aimed at improving performance through better morning routines [4] - The brand offers a range of superfood products including instant lattes, coffees, bars, and prebiotic daily greens, focusing on simple ingredients and minimally processed foods [4] Product Launch - The Laird Superfood Maca Instant Latte incorporates functional mushrooms to provide sustained energy without a crash, catering to consumers looking to enhance daily stamina [2][3] - Priced at $19, the Maca Instant Latte is available on LairdSuperfood.com and will soon be available on Amazon.com [3] Market Trends - Maca root, cultivated for over 2,000 years, is gaining popularity for its health benefits, although it has not yet been widely incorporated into mainstream products [1][2][3] - The product aims to restore vitality for consumers, reflecting a growing trend towards functional foods that enhance daily rituals [3]

Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in short-term investing, highlighting that while price momentum can be profitable, it requires solid fundamentals to maintain that momentum [1][2]. Group 1: Stock Performance - Laird Superfood, Inc. (LSF) has shown a significant price increase of 119.7% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also experienced a price increase of 53.4% over the last four weeks, suggesting that the upward trend is still intact [5]. - LSF is currently trading at 94.5% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - LSF holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. - The Zacks Rank system has a strong historical performance, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks with sufficient fundamental strength to maintain their upward trends [3]. - In addition to LSF, there are other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting further investment opportunities [8]. - The article encourages investors to explore various Zacks Premium Screens tailored to different investing styles to enhance stock-picking strategies [8].