Laird Superfood(LSF) - 2025 Q1 - Quarterly Results

First Quarter 2025 Financial Highlights 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 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 $11.7 million, driven by strategic expansion and improved operational leverage - The company reported its fifth consecutive quarter of double-digit year-over-year sales growth, driven by expansion into brick-and-mortar stores and Amazon[3] - Successfully resolved inventory and supply chain constraints that impacted the business at the end of 2024, building a more flexible supply chain in the process[3] Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | Q4 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Sales ($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] Detailed Financial Results 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 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 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] - 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] 2025 Outlook 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 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] - Expects Gross Margin to hold in the upper 30s for the full year[11] - Targets breakeven adjusted EBITDA for the full year[11] - Anticipates using $1 to $2 million in cash for the full year to invest in inventory, supporting top-line growth and minimizing out-of-stocks[11] Consolidated Financial Statements (Unaudited) This section presents the unaudited consolidated financial statements for Q1 2025, including statements of operations, cash flows, and balance sheets Consolidated Statements of Operations For the first quarter of 2025, Laird Superfood reported increased net sales and gross profit, significantly reducing its operating and net losses year-over-year Q1 2025 vs Q1 2024 Statement of Operations Summary | Metric | Three Months Ended March 31, 2025 ($) | 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 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] - 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] - The ending balance of cash, cash equivalents, and restricted cash was $7,163,362 as of March 31, 2025[18] Consolidated Balance Sheets 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 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 For Q1 2025, the company reported a Net Loss of $156,182, which adjusted to a positive Adjusted EBITDA of $356,912, a significant turnaround from the prior year's negative Adjusted EBITDA - Adjusted EBITDA is defined as net income (loss) adjusted for interest, taxes, depreciation, amortization, stock-based compensation, and certain non-recurring items[22] Reconciliation of Net Loss to Adjusted EBITDA (Three Months Ended March 31) | Metric | 2025 ($) | 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) |