Barfresh(US:BRFH)2025-05-01 21:32Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $2.9 million, an increase from $2.8 million in Q1 2024, primarily driven by expanded bottle capacity at existing manufacturers [11] - Gross margin for Q1 2025 was 31%, down from 41% in Q1 2024, attributed to temporary production inefficiencies and higher supply chain expenses [11][12] - Adjusted EBITDA for Q1 2025 was a loss of approximately $506,000, compared to a gain of approximately $53,000 in the same period last year [15] Business Line Data and Key Metrics Changes - The company launched a new product, Pop and Go 100% Juice Freeze Pops, which is gaining traction in the education channel, although it contributed modest revenue in Q1 [8] - The sales network now covers 95% of the U.S., with only 5% market penetration, indicating significant growth potential [9] Market Data and Key Metrics Changes - The bidding process for the 2025-2026 school year has started, with expectations of repeat orders from existing customers and new additions to the pipeline [20][21] Company Strategy and Development Direction - The company is focused on expanding manufacturing capacity and introducing new products to enhance revenue, particularly in the education channel [5][10] - Full manufacturing capacity is expected to be achieved by the end of Q2 2025, aligning with the back-to-school demand in Q3 [7] Management's Comments on Operating Environment and Future Outlook - Management reiterated full-year revenue guidance of 35% to 55% growth, with expectations for margin improvement in the second half of 2025 as new co-manufacturers come online [5][17] - The company anticipates achieving positive adjusted EBITDA in the second half of the year [7][10] Other Important Information - As of March 31, 2025, the company had approximately $3.4 million in cash and accounts receivable, and $1.1 million in inventory [16] - The company secured $3 million in growth financing in February 2025 to support scaling production capacity [16] Q&A Session Summary Question: Will the co-manufacturing partners be operational by the end of Q2 2025? - Management confirmed that they expect the co-manufacturing partners to be operational by the end of Q2, with initial production runs already taking place [18] Question: Has the bidding process for the 2025-2026 school year started? - Yes, the bidding process has started, and management is providing guidance based on existing customer expectations and pipeline opportunities [19][20] Question: Do you have sufficient inventory to meet demand for the upcoming school year? - Management confirmed that they currently have the necessary inventory to meet demand for the 2025-2026 school year [23] Question: Is the company adequately staffed for logistics and operations? - Management believes they have the right amount of staff for current needs and do not anticipate needing additional personnel [24]