Laird Superfood(LSF) - 2025 Q3 - Quarterly Results

Financial Performance - Net Sales for Q3 2025 reached $12.9 million, a 10% increase from $11.8 million in Q3 2024, with Laird Superfood branded products up 14%[6] - For the first nine months of 2025, Net Sales totaled $36.5 million, a 15% increase from $31.7 million in the same period of 2024[6] - Net sales for the three months ended September 30, 2025, were $12,895,662, representing an increase from $11,776,346 in the same period of 2024, a growth of approximately 9.5%[21] Profitability - Gross Margin for Q3 2025 was 36.5%, down from 43.0% in Q3 2024, primarily due to increased commodity cost inflation and the absence of a prior supplier settlement benefit[6] - Gross profit for the three months ended September 30, 2025, was $4,702,182, compared to $5,064,132 in the same period of 2024, indicating a decrease of about 7.1%[21] - The net loss for the three months ended September 30, 2025, was $975,066, compared to a net loss of $166,120 for the same period in 2024, reflecting a significant increase in losses[21] - Adjusted EBITDA for Q3 2025 was $0.2 million, or $0.01 per diluted share, compared to a loss of $11.4 thousand in Q3 2024[6] - Adjusted EBITDA for the three months ended September 30, 2025, was $165,108, compared to a loss of $11,440 in the same period of 2024, showing a recovery in operational performance[29] Sales Channels - Wholesale sales increased by 39% year-over-year, contributing 53% of total Net Sales, driven by distribution gains[6] - E-commerce sales decreased by 11% year-over-year, contributing 47% of total Net Sales, impacted by softer new-customer sales on the DTC platform[6] Cash Flow and Liquidity - Cash used in operating activities was $2.9 million for the nine months ended September 30, 2025, compared to cash provided of $0.5 million in the same period in 2024[11] - As of September 30, 2025, the company had $5.3 million in cash and no outstanding debt[10] - Cash and cash equivalents at the end of the period were $5,282,232, down from $8,514,152 at the beginning of the period, a decrease of approximately 38.5%[23] Inventory and Assets - Inventory as of September 30, 2025, increased to $9,978,913 from $5,975,676 as of December 31, 2024, representing a rise of about 67.5%[25] - Total assets decreased to $18,857,737 as of September 30, 2025, from $19,259,001 as of December 31, 2024, a decline of approximately 2.1%[25] Stock-Based Compensation - The company reported a significant increase in stock-based compensation, which amounted to $1,436,436 for the nine months ended September 30, 2025, compared to $1,073,698 for the same period in 2024, an increase of about 33.8%[23] Shareholder Information - The weighted-average shares of common stock outstanding used in computing net loss per share increased to 10,664,585 for the three months ended September 30, 2025, from 10,256,802 in the same period of 2024[29] Future Outlook - Management expects full-year 2025 Net Sales growth of approximately 15%, with Gross Margin anticipated to be in the upper 30% range[12][13]