Edible Garden Reports 2025 Results — Accelerates Planned Expansion into Higher-Margin Ready-to-Drink (RTD) and Shelf-Stable CPG Platform

Core Insights - Edible Garden AG Incorporated is strategically evolving from its core controlled environment agriculture (CEA) platform into a broader consumer packaged goods (CPG) business, focusing on higher-margin opportunities [5][7][20] - The company is expanding its distribution network and product offerings, particularly in the ready-to-drink (RTD) category, which is projected to grow significantly in the coming years [7][20] Financial & Operating Highlights - For the three months ended December 31, 2025, revenue was approximately $4.1 million, a slight increase from $3.9 million in the same period in 2024, supported by new account launches [9] - The cost of goods sold for the same period was approximately $5.3 million, up from $3.8 million in 2024, primarily due to onboarding new customers during a peak season [10] - Gross profit for the quarter was approximately $(1.2) million, compared to $0.0 million in 2024, reflecting a gross margin of approximately -29% [11] - Selling, general and administrative expenses increased to approximately $4.6 million for the quarter, up from $2.6 million in 2024, driven by investments in personnel and infrastructure [12] Year-End Financial Overview - For the year ended December 31, 2025, revenue was approximately $12.8 million, down from $13.9 million in 2024, due to a strategic shift away from lower-margin products [13] - The cost of goods sold for the year was $13.0 million, an increase of 12.7% from $11.5 million in 2024, driven by elevated procurement and logistics costs [14] - Gross profit for the year was $(0.2) million, a decrease of $2.5 million from $2.3 million in 2024, with a gross margin decline to (1.6%) from 16.7% [15] - Selling, general and administrative expenses rose by 34.6% to $15.6 million for the year, compared to $11.6 million in 2024, with significant contributions from depreciation, rent, and professional fees [16] Strategic Initiatives - The company is focusing on expanding into the RTD category, leveraging its sustainable manufacturing infrastructure and established retail relationships [7][20] - A strategic partnership with Tetra Pak is planned to enhance processing capabilities for RTD products, aiming to meet growing consumer demand for clean-label nutrition [7] - The global RTD market is valued at approximately $842.5 billion in 2025 and is projected to reach roughly $1.26 trillion by 2033, presenting a significant growth opportunity for the company [7]