Financial Data and Key Metrics Changes - In Q4 2025, total revenue was $49.7 million, down from $54.6 million in Q4 2024, a decrease of $4.9 million [15] - For the full year 2025, revenues totaled $212.5 million, an increase of $4 million or 2% compared to $208.4 million in 2024 [15] - Same-store sales dropped by 11.6% in Q4 2025, reflecting a downturn in customer traffic due to external pressures [15][20] - Adjusted net loss for Q4 2025 was $5 million or $0.09 per diluted share, compared to adjusted net income of $1.4 million or $0.04 per share in Q4 2024 [21] - Restaurant level adjusted EBITDA for Q4 2025 was $3.9 million or 7.9% of total revenue, down from $9.3 million or 17% in Q4 2024 [22] Business Line Data and Key Metrics Changes - The company opened 15 new restaurants in 2025, including six in South Korea, bringing the total to 57 [6] - In Q1 2026, two additional restaurants were opened in Tucson, Arizona, and Denton, Texas [6] - A joint venture with Chubby Cattle International was established for five non-performing restaurants, with a projected write-down of $4.5 million [7] Market Data and Key Metrics Changes - The company reported a significant increase in gift card sales through Costco, totaling approximately $29 million in 2025, a 150% increase from the previous year [8] - The CPG (Consumer Packaged Goods) business has expanded to over 800 locations in various supermarkets, with plans to reach 1,500 to 2,000 locations by the end of 2026 [12] Company Strategy and Development Direction - The company is focusing on improving operations and margins at existing restaurants while slowing down new restaurant openings [25] - A new division for CPG products was created, starting with fresh, frozen, ready-to-cook Korean branded meats, leveraging the restaurant's brand recognition [9] - The company plans to explore investments and partnerships in the CPG space to enhance growth and shareholder value [13] Management's Comments on Operating Environment and Future Outlook - Management noted that the restaurant industry faced challenges due to immigration enforcement and rising fuel prices, impacting customer traffic and discretionary spending [5] - The company anticipates full-year revenues of $215 to $225 million in 2026, with restaurant level adjusted EBITDA margins targeted in the 15% to 15.5% range [26] - Management expressed confidence in the CPG business due to strong consumer interest and cultural trends favoring Korean food [40] Other Important Information - The company has approximately $2.8 million in cash and cash equivalents as of December 31, 2025, with a majority of its $20 million revolving credit facility available [24] - The balance sheet reflects $173 million in lease liabilities, offset by $146 million in operating lease assets [25] Q&A Session Summary Question: Can you provide more details on the revenue guidance for 2026? - The retail side is expected to reach a $20 million run rate by the end of the year, with core restaurant revenues in the $205 million range [30] Question: What are the expectations for new store openings? - There are currently five stores under construction, with potential for one or two additional openings towards the end of the year or early 2027 [32] Question: What are the anticipated upfront investments in the retail business? - The company does not expect significant infrastructure costs, leveraging existing restaurant infrastructure, with capital primarily for inventory [35] Question: What gives confidence in the long-term expectations for the retail business? - Management noted strong interest from buyers and high velocity of product sales in supermarkets, indicating a positive market reception [40]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue was $49.7 million, down from $54.6 million in Q4 2024, a decrease of $4.9 million [14] - For the full year 2025, revenues totaled $212.5 million, an increase of $4 million or 2% from $208.4 million in 2024 [15] - Same-store sales dropped by 11.6% in Q4 2025, contributing to a decrease in customer traffic [5][14] - Adjusted EBITDA for Q4 2025 was negative $2.7 million, compared to $2.1 million in Q4 2024 [22] - The company reported a net loss before income taxes of $12.5 million in Q4 2025, compared to a net loss of $1.2 million in Q4 2024 [20] Business Line Data and Key Metrics Changes - The company opened 15 new restaurants in 2025, including 6 in South Korea, bringing the total to 57 [6] - The company entered a joint venture with Chubby Cattle International for 5 non-performing restaurants, which will be operated under the Chubby Cattle brand [6] - Adjusted net income for Q4 2025 was a loss of $5 million, compared to adjusted net income of $1.4 million in Q4 2024 [21] Market Data and Key Metrics Changes - The company sold approximately $29 million in gift cards to Costco in 2025, a 150% increase from the previous year [8] - The CPG (Consumer Packaged Goods) business has expanded to over 800 locations in various supermarkets, with plans to reach 1,500-2,000 locations by the end of 2026 [12] Company Strategy and Development Direction - The company is focusing on improving operations and margins at existing restaurants while slowing down new restaurant openings [24] - The CPG business is expected to be a significant growth driver, with projected annual revenue exceeding $100 million within three years [12] - The company is leveraging its restaurant infrastructure for the CPG business, minimizing upfront investments [33] Management's Comments on Operating Environment and Future Outlook - Management noted that the restaurant industry is facing challenges due to immigration enforcement and rising fuel prices, impacting customer traffic and discretionary spending [5] - The company anticipates full-year revenues of $215 million to $225 million in 2026, with restaurant-level adjusted EBITDA margins targeted at 15% to 15.5% [25] - Management expressed confidence in the CPG business due to strong consumer interest and cultural trends favoring Korean food [38] Other Important Information - The company has approximately $2.8 million in cash and cash equivalents as of December 31, 2025, with a majority of its $20 million revolving credit facility available [23] - The company expects a reduction in G&A expenses due to decreased new restaurant openings in 2026 [19] Q&A Session Summary Question: Can you provide more details on the revenue guidance for 2026? - The company expects retail contributions to reach a $20 million run rate by the end of 2026, with core restaurant revenues in the $205 million range [29] Question: What are the expectations for new store openings? - The company has five new stores under construction and may open one or two more by the end of 2026 [30] Question: What are the anticipated upfront investments in the retail business? - The company does not expect significant infrastructure costs as it will leverage existing restaurant infrastructure, focusing on inventory costs [33]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 increased by 9% year-over-year to $2.8 million, up from $2.6 million in Q3 2024, driven by strong performance in the shelf-stable product portfolio [14][7] - Gross profit totaled approximately $0.3 million, down from $0.7 million in the prior year, reflecting higher labor, freight, and raw material costs [14] - Net loss increased to $4 million from a net loss of $2.1 million in Q3 2024 [15] Business Line Data and Key Metrics Changes - The shelf-stable product portfolio grew by 54% year-over-year in Q3 2025, with notable growth in brands such as KICK Sports Nutrition, Vitamin Way, Pulp, and Pickle Party [14][7] - Core herb portfolio saw growth with Hydrobasil up 21% and Wheatgrass up 59% year-over-year [14] Market Data and Key Metrics Changes - The functional food and beverage market is projected to grow from approximately $400 billion to $610 billion by 2030, indicating a significant opportunity for the company [9] - In the U.S., sales of natural, organic, and functional products are expected to reach $386 billion by 2028, reinforcing the company's strategic alignment with market trends [9] Company Strategy and Development Direction - The company is evolving towards a consumer packaged goods (CPG) model, focusing on non-perishable product expansion and higher-value branded portfolio [7] - Plans to pursue new categories including nutraceuticals, sustainable proteins, and functional foods, guided by a zero-waste approach [12][13] - The company aims to strengthen retail partnerships and advance product innovation to build long-term shareholder value [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for continued growth, particularly in the fourth quarter, which is traditionally a strong season [13] - The company is well-positioned to capitalize on the growing demand for clean-label, better-for-you products, with major retailers showing interest in private label collaborations [28][29] Other Important Information - The company has completed its strategic exit from the floral and lettuce categories, which is reflected in the current quarter's performance [14] - The company refinanced its outstanding debt, securing lower interest rates and more favorable terms, which is expected to reduce annual interest expenses [15] Q&A Session Summary Question: Can you talk about the build-out of the Natural Shrimp facility and its intended utilization? - Management highlighted the facility's impressive location and plans for R&D on next-generation products, with significant opportunities from major retailers [22][24] Question: Are grocery stores the largest opportunity moving into 2026? - Management confirmed that grocery chains like ShopRite, Kroger, and Fresh Market represent significant opportunities, driven by demand for clean-label products [27][28] Question: How are margins affected by private label products? - Management indicated that while private label may have lower margins, there are opportunities for volume contracts and deeper relationships with major retailers [31][32] Question: What is the outlook for KICK Sports Nutrition? - Management noted that KICK is gaining traction and is well-positioned to meet the growing consumer interest in plant-forward performance nutrition [10][30]

Core Insights - Edible Garden AG Incorporated reported a 9% year-over-year revenue growth for Q3 2025, reaching $2.8 million, driven by a strategic shift towards a consumer packaged goods (CPG) model and expansion into shelf-stable product categories [2][6][4] - The company experienced significant growth in non-perishable unit sales, which increased approximately 49.3% year-over-year, alongside a 90.2% rise in international vitamin and supplements revenue [5][6] - The company is optimistic about future growth, believing that the most challenging phase of its transformation is behind, positioning itself for long-term sustainable profitability [4][6] Financial Performance - Revenue for Q3 2025 was $2.8 million, up from $2.6 million in Q3 2024, primarily due to strong performance in shelf-stable products [6] - Gross profit decreased to approximately $0.3 million from $0.7 million in the prior-year quarter, attributed to higher costs and inflationary pressures [7] - Selling, general and administrative expenses rose to $3.8 million from $2.2 million year-over-year, mainly due to increased depreciation and associated costs from recent asset acquisitions [8] Strategic Developments - The company expanded its distribution network, including partnerships with Kroger and The Fresh Market, and increased its international presence through collaborations with PriceSmart and Amazon [4] - The acquisition of NaturalShrimp's assets is expected to enhance vertical integration and sustainable aquaculture capabilities, aligning with the company's mission [4] - Edible Garden's CPG-focused strategy allows for expansion beyond fresh produce into branded shelf-stable offerings, catering to the growing demand for clean-label and functional foods [4][5] Product Performance - Hydroponic Basil sales increased by 28.6%, Potted Herbs by 22.6%, and Wheatgrass by 59.2% year-over-year, indicating strong consumer demand in these categories [5] - The company's portfolio includes brands like Kick. Sports Nutrition, Pickle Party™, Pulp®, and Vitamin Whey®, which are driving momentum and expected to contribute to margin improvement [4][5]