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Laird Superfood (LSF) Q2 Sales Jump 20%
The Motley Fool· 2025-08-07 04:30
Core Viewpoint - Laird Superfood reported strong double-digit GAAP revenue growth for the fifth consecutive quarter, with a 20% increase in revenue to $12.0 million, although it fell slightly short of analyst expectations [1][2] Financial Performance - GAAP revenue grew 20% year-over-year to $12.0 million, slightly below the estimated $12.14 million [1][2] - GAAP loss per share improved to ($0.03), better than the expected ($0.06) [1][2] - Adjusted EBITDA (non-GAAP) turned positive at $0.1 million, compared to a loss last year [8] - Gross margin decreased to 39.9%, down from 41.8% in Q2 2024 and 41.9% in Q1 2025 [7][8] Sales Channels and Growth - Wholesale channel sales surged 47% year-over-year to $5.75 million, now representing 48% of total net sales [5] - E-commerce sales increased by 2% year-over-year to $6.24 million, accounting for 52% of the sales mix [5] - Coffee creamers and coffee, tea, and hot chocolate constituted 86% of total sales, both categories growing approximately 44% year-over-year [6] Product and Market Strategy - Laird Superfood focuses on functional foods and beverages, emphasizing health-related ingredients, including functional mushrooms and adaptogenic plants [3][11] - The company has adopted a dual-channel approach, enhancing both wholesale and online sales to support recurring revenue [4] - Recent product developments include a larger format liquid creamer and a new online marketplace for curated wellness products [10] Future Outlook - Management reaffirmed full-year net sales growth guidance of 20–25% and targeted gross margins to remain in the upper 30s range [13] - Profitability is expected to reach breakeven for adjusted EBITDA on a full-year basis, although a GAAP net loss is still anticipated [13] - The company plans to utilize approximately $2 million for inventory to support top-line growth, with normalization expected as inventory investments convert to sales [13]