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]