Sow Good Reports Third Quarter 2025 Results

Core Insights - Sow Good Inc. reported a net loss of $10.9 million for Q3 2025, a significant increase from a net loss of $3.4 million in Q3 2024, primarily due to noncash inventory reserve charges and decreased sales [6][20][28] - The company is focusing on operational efficiency and cost reduction, achieving over $5 million in annualized savings through facility vacating and payroll optimization [2][5] - Sow Good secured its first private-label partnership with a national retailer for its new Caramel Crunch product, set to launch in the first half of 2026, indicating a shift towards clean-label products [3][4] Financial Performance - Revenue for Q3 2025 was $1.6 million, down from $3.6 million in Q3 2024, reflecting a change in sales mix and lower average selling prices due to discontinued SKUs [6][20] - Gross loss for Q3 2025 was $8.9 million, with a gross margin of (576)%, compared to a gross profit of $0.6 million and a margin of 16% in the prior year [6][20] - Operating expenses decreased slightly to $3.7 million in Q3 2025 from $3.8 million in Q3 2024, attributed to lower payroll costs [6][20] Strategic Initiatives - The company is engaged in discussions with other national retailers for additional private-label opportunities, indicating confidence in its manufacturing capabilities [4][5] - Sow Good is advancing strategic initiatives to strengthen its balance sheet and diversify funding sources, aiming for a return to profitability [5][6] - The launch of new SKUs and expansion of influencer marketing partnerships are part of the company's strategy to enhance brand visibility and market reach [3][4]