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CALL PARTICIPANTS
- Chief Executive Officer – Jim Kras
- Interim Chief Financial Officer – Kostas Dafoulas
TAKEAWAYS
- Revenue — $3.6 million, a 12.8% increase compared with the prior year period, driven primarily by strength in the cut herb portfolio.
- Total Sales Growth — 31.2%, reflecting broad demand across condiments, vitamins, and herb categories.
- Cut Herb Sales — Growing 42% year over year, following expansion with major retailers including Kroger, Target, and Weis Markets.
- Condiment Sales — Increased 594.7% year over year, due to new product placements with Safeway, Wakefern, and Woodman’s Markets.
- International Vitamin Sales — Increased 50% year over year, supported by incremental product offerings and higher promotional activity.
- Potted Herb Sales — Growing 11.3% year over year, reflecting new business with Busch’s Fresh Food Market and Pete’s Market.
- Selling, General and Administrative (SG&A) Expenses — $3.1 million, a decrease of 21.5% or $900,000, due to organizational focus on managing expenses and improving operating efficiency.
- Net Loss — $3.3 million, an improvement from the $4 million net loss reported in the second quarter of 2025.
- Operating Cash Flow — Positive $900,000 for the first six months of 2026, compared with $6.8 million in cash used in the prior year period.
- Total Debt — $14.2 million, up from $1.9 million at year-end 2025, reflecting $13.5 million in new financing for the Iowa manufacturing facility.
- Cash Position — $10.7 million in total cash, with $10 million held in a restricted account for the Prairie Hills facility and $700,000 available for operations.
- Prairie Hills Manufacturing Capacity — 100 million beverage units annually, intended to support both branded and private label ready-to-drink (RTD) opportunities.
- Prairie Hills Timeline — Management expects the first production bottle to come off the line in the tail end of 2027.
- Facility Commitments — 100% of the upcoming Prairie Hills facility capacity is currently pre-sold to customers.
- Retail Footprint — 6,000 retail locations, representing the established commercial infrastructure available for future product launches.
- Cut Herb Portfolio Revenue — Increased approximately $500,000 or 50.5% year over year.
- Gross Profit — $600,000, remaining flat with the prior year period due to elevated cost of goods sold.
- Total Assets — $27.7 million as of June 30, 2026, an increase from $20.6 million at the end of 2025.
- Accounts Receivable — $979,000, representing a decrease from $1.9 million at the end of 2025.
- Inventory — $1.2 million, down from $1.9 million at the end of 2025.
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RISKS
- Dafoulas stated, “while we continue to generate top line growth, cost of goods sold remained elevated and improving profitability of that growth remains an important focus for us,” indicating that margin improvement remains a challenge.
- Kras noted that there is “quite a bit of consolidation in CEA right now” with major competitors going out of business, which creates potential instability in the broader market.
SUMMARY
Edible Garden AG Incorporated (EDBL +0.00%) reported revenue growth driven by double-digit expansion in the cut herb segment and new retail distribution agreements with national partners. Management highlighted the ongoing transition toward the Farm-to-Formula strategy, focusing on the development of the Prairie Hills manufacturing hub in Iowa for shelf-stable nutritional beverages. The company achieved positive operating cash flow for the first half of the year and significantly reduced general and administrative expenses. Strategic objectives include maximizing volume within existing greenhouses while preparing for the commercial launch of the ready-to-drink beverage platform to meet pent-up demand in the sports nutrition and wellness categories.
- CEO Kras stated that “instability in the business” among competitors led Target to award the company additional fresh-cut herb distribution at a key Midwest center.
- Management reported that 100% of the Prairie Hills facility’s capacity has already been pre-sold, reflecting high demand for private label and branded protein beverages.
- The company plans to utilize a co-manufacturer starting in the fourth quarter of 2026 to bring products to market and generate revenue before the Prairie Hills facility is completed.
- CEO Kras indicated the company does not intend to construct additional greenhouses, focusing instead on driving more volume through its two existing facilities.
- The company is transitioning Metro New York distribution from direct store delivery to retail distribution centers to reduce transportation costs and improve operating leverage.
- CEO Kras noted that “my team does such a great job of execution, and it’s always been the key for us” when discussing the company’s ability to maintain high fill rates for retail partners.
INDUSTRY GLOSSARY
- CEA: Controlled Environment Agriculture; a technology-based approach toward food production where crops are grown within a protected environment to optimize growth and food safety.
- Farm-to-Formula: A strategic initiative focusing on transitioning from fresh produce cultivation to manufacturing shelf-stable nutritional beverages.
- RTD: Ready-to-drink; beverages sold in a prepared form, ready for immediate consumption.
- Tetra Pak: A specific processing and packaging technology used for shelf-stable liquids that eliminates the need for refrigeration.
- GreenThumb: Patented supply chain management and greenhouse orchestration software used to optimize growing conditions.
- Pulp: A company brand of fermented gourmet sauces and chili-based products.
- Kick. Sports Nutrition: A premium performance beverage line developed for health-conscious athletes.
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