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Sow Good Reports Second Quarter 2025 Results
Globenewswireยท 2025-08-14 12:00
Core Viewpoint - Sow Good Inc. is experiencing a significant turning point in its operations, with stabilization following earlier disruptions and an increase in brand demand, despite facing temporary production delays and labor shortages [2][3]. Financial Performance - Revenue for Q2 2025 was $1.9 million, a decrease from $15.6 million in Q2 2024, attributed to softer demand and competitive pressures [5]. - Gross loss in Q2 2025 was $0.1 million, compared to a gross profit of $9.0 million in the same quarter of 2024, resulting in a gross margin of -7% versus 58% in the prior year [5]. - Operating expenses decreased to $3.9 million in Q2 2025 from $4.1 million in Q2 2024, mainly due to lower bonus compensation [5]. - Net loss for Q2 2025 was $4.2 million, or $(0.36) per share, compared to a net income of $3.3 million, or $0.29 per share, in Q2 2024 [5]. - Adjusted EBITDA for Q2 2025 was $(2.7) million, down from $6.2 million in Q2 2024 [5][24]. Operational Highlights - The company has fulfilled all Halloween shipments and strengthened partnerships with retailers such as Five Below and Albertsons, increasing SKU counts and order volumes [3]. - Performance at Ace Hardware and Orgill remains strong, with new product innovations gaining traction, particularly in freeze-dried yogurt snacks and caramel offerings [3]. - Sow Good has launched operations in the UAE, with results exceeding expectations, indicating a strong global appetite for its products [3]. Strategic Focus - The company aims to focus on disciplined execution, cost optimization, and innovation to reaccelerate growth, supported by a stable supply chain and increasing retail demand [4]. - Strategic conversations are ongoing to unlock additional shelf space and private label programs, which could contribute to category growth [3]. Cash Position - Cash and cash equivalents were $1.0 million as of June 30, 2025, down from $1.6 million at March 31, 2025, and $3.7 million at December 31, 2024 [5].