S&W Announces Third Quarter Fiscal 2025 Financial Results

Core Insights - S&W Seed Company reported a year-over-year revenue growth of 2.0% for the third quarter of fiscal 2025, with total revenue reaching $9.6 million compared to $9.4 million in the same quarter of fiscal 2024 [4][11] - The company achieved a gross profit margin of 37.7% in the third quarter of fiscal 2025, significantly up from 24.6% in the same quarter of fiscal 2024, driven by improved product mix and lifecycle management [5][11] - Despite positive trends, the company revised its fiscal 2025 revenue expectations to a range of $29.0 to $31.0 million due to tariffs affecting exports to China and market uncertainties [10][11] Financial Performance - Total revenue for the third quarter of fiscal 2025 was $9.6 million, an increase of $0.2 million from the previous year, attributed to higher sales in non-dormant alfalfa and conventional grain sorghum [4][11] - Gross profit for the third quarter was $3.6 million, with a gross profit margin of 37.7%, reflecting a strong improvement in profitability compared to the previous year [5][11] - GAAP operating expenses decreased to $4.3 million in the third quarter of fiscal 2025 from $5.5 million in the same quarter of fiscal 2024, primarily due to reduced selling, general, and administrative expenses [6][11] Loss and Adjusted Metrics - The net loss from continuing operations for the third quarter of fiscal 2025 was $2.2 million, or $1.04 per share, a significant improvement from a net loss of $4.8 million, or $2.11 per share, in the same quarter of fiscal 2024 [7][11] - Adjusted EBITDA for the third quarter of fiscal 2025 was $0.2 million, compared to an adjusted EBITDA loss of $2.2 million in the same quarter of fiscal 2024, indicating a turnaround in operational performance [9][11] - The adjusted net loss for the third quarter of fiscal 2025 was $1.2 million, or $0.57 per share, compared to an adjusted net loss of $4.1 million, or $1.79 per share, in the same quarter of fiscal 2024 [8][11] Market Outlook - The company expressed optimism about the long-term demand for sorghum, particularly due to its nutritional benefits, including being high in protein and gluten-free [3] - S&W Seed Company is focusing on high-value, high-margin products such as Double Team and Prussic Acid Free sorghum, which have received strong endorsements from the domestic market [3] - The company anticipates that once market conditions stabilize, it will be well-positioned to regain market share and continue its growth trajectory [3]