Barfresh Announces Third Quarter 2025 Results

Core Insights - Barfresh Food Group Inc. reported record quarterly revenue of $4.2 million for Q3 2025, marking a 16% increase year-over-year, driven by improved production consistency and successful product launches [1][3] - The company achieved a positive adjusted EBITDA of approximately $153,000 for Q3 2025, a significant improvement from a loss of $124,000 in the same period last year [7] - Barfresh reiterated its fiscal 2025 revenue guidance of $14.5 million to $15.5 million and provided preliminary guidance for fiscal 2026 of $30 million to $35 million, indicating potential growth of up to 126% [2][19][20] Financial Performance - Revenue for the first nine months of 2025 increased by 11% to $8.8 million compared to $7.9 million in the same period of 2024, attributed to improved sales of Twist & Go smoothies and the inclusion of Pop & Go sales [9] - Gross margin for Q3 2025 was 37%, up from 35% in Q3 2024, reflecting better operational efficiency and a favorable product mix [4] - The net loss for Q3 2025 improved to $290,000 from a loss of $513,000 in Q3 2024, driven by increased revenue and gross margin [5][15] Operational Developments - The acquisition of Arps Dairy was completed in early October 2025, enhancing Barfresh's manufacturing capabilities and expected to drive both top and bottom-line growth [2][18] - The company is transitioning more Barfresh products from co-manufacturers to Arps Dairy, which is anticipated to resolve previous manufacturing challenges by the end of Q4 2025 [2][17] - As of September 30, 2025, Barfresh had approximately $4.4 million in cash and accounts receivable, and $1.1 million in inventory, indicating a solid balance sheet post-acquisition [17] Future Outlook - The company expects continued growth in fiscal 2026, driven by the full-year contribution from Arps Dairy, market penetration in the education sector, and expansion of the Pop & Go product line [20] - The preliminary fiscal 2026 revenue guidance reflects a significant acceleration in growth potential, underscoring the combined company's capabilities following the acquisition [19][20]