Financial Data and Key Metrics Changes - Revenue for Q4 2025 was approximately $4.1 million, up from $3.9 million in the prior year, indicating strong performance across the business [11] - Full year revenue was approximately $12.8 million, down from $13.9 million in 2024, primarily due to the strategic exit from low-margin floral and lettuce segments [15] - Gross profit for Q4 was approximately a $1.2 million loss compared to flat in 2024, reflecting deliberate investments to secure shelf space for 2026 [13] - Full year gross profit was approximately a loss of $0.2 million compared to a gain of $2.3 million in 2024, with a focus on recovering gross margins in 2026 [15] Business Line Data and Key Metrics Changes - Strong performance in cut herbs and the vitamin and supplement portfolio, with double-digit growth driven by new retail placements [7] - Significant growth in the condiment platform, supported by new customer wins such as Wakefern and Safeway [7] - The nutraceutical business showed strong growth in the double-digit range year-over-year, expected to be a larger component of revenue growth going into 2026 [24] Market Data and Key Metrics Changes - The global ready-to-drink (RTD) category is estimated at approximately $842.5 billion in 2025 and projected to reach roughly $1.26 trillion by 2033, representing a significant market opportunity [9] - The company is expanding its retail footprint to nearly 6,000 store locations, reflecting growing demand for its products and strong retail relationships [6] Company Strategy and Development Direction - The company is evolving from a core controlled environment agricultural platform to a broader innovation-driven consumer packaged goods business, focusing on higher growth and higher margin opportunities [6] - Key next steps include expanding into the RTD category, leveraging existing infrastructure and retail relationships to meet growing demand [8] - The company aims to scale its presence in higher margin RTD shelf-stable categories while continuing to diversify its consumer packaged goods business beyond fresh produce [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver predictable and scalable results as it transitions to a more vertically integrated, innovation-driven model [10] - The company is focused on managing costs while investing in infrastructure to support a higher margin, more scalable business model [16] - Management is optimistic about the growth trajectory, citing strong demand for fresh goods and the potential of the RTD market [42] Other Important Information - The company made deliberate investments in onboarding new retail customers during a seasonally compressed period, expecting cost structures to normalize as programs mature [12] - Selling, general, and administrative expenses increased to approximately $15.3 million in 2025, driven by the Natural Shrimp acquisition and other capital market activities [16] Q&A Session Summary Question: How should margins be viewed as the business transitions from fresh to CPG products? - Management expects more robust margins in the RTD and consumer packaged goods segments due to their shelf-stable nature, which reduces shrink issues associated with fresh products [20][22] Question: What is the expected revenue breakdown for CPG versus fresh through 2026? - The core controlled environment agriculture (CEA) business is expected to return to steady growth in the high single digits, while the RTD business presents significant revenue opportunities with margins in the 20%-30% range [24] Question: What products will be offered in the RTD category? - The company plans to focus on protein segment products, including private label offerings for major retailers, leveraging existing relationships to drive sales [26][30] Question: What are the CapEx requirements and timeline for the Midwest facility? - While specific numbers were not disclosed, management indicated that significant capital expenditures will be needed for equipment and facility retrofitting, with plans to be in the marketplace by late 2027 [35]

Core Insights - The company estimates a more than 25% year-over-year increase in preliminary herb sales during the Easter holiday period [1] - Strong performance was recorded across core herb categories, with the Poultry Mix playing a significant role in growth [2] - The CEO emphasized the alignment with evolving consumer preferences for fresh, organic, and sustainable ingredients [3] Sales Performance - Hydroponic herbs increased an estimated 31%, driven by promotional support and expanded retailer placement [5] - Cut herbs rose an estimated 22%, reflecting consistent consumer preference for fresh, high-integrity ingredients [5] - Potted herbs grew an estimated 18%, supported by targeted merchandising and the availability of the Poultry Mix [5] Company Overview - Edible Garden AG Incorporated is a leader in controlled environment agriculture (CEA) and operates over 5,000 retail locations [4] - The company utilizes patented technologies such as GreenThumb software and Self-Watering displays to enhance product quality and sustainability [4] - Edible Garden is recognized as a FoodTech 500 company and is a member of Walmart's Project Gigaton sustainability initiative [4]