Edible Garden AG reported third‑quarter 2025 results for the quarter ended September 30, 2025, showing revenue of $2.8 million—a 9% year‑over‑year increase from $2.6 million in Q3 2024. Gross profit fell to $0.3 million from $0.7 million, while the net loss widened to $4.0 million from $2.1 million, reflecting higher labor, freight, and raw‑material costs as the company expands its shelf‑stable product line.
Revenue growth was driven by stronger performance in the core herbs segment and the launch of several shelf‑stable consumer‑packaged‑goods products, including Hydrobasil, Wheatgrass, KICK Sports Nutrition, Vitamin Way, Pulp, and Pickle Party. New retail partnerships with Kroger and The Fresh Market, as well as international expansion through PriceSmart and Amazon, added additional sales momentum.
Gross‑profit margin contracted to 10% from 27% YoY, largely due to inflationary pressures in the nutraceutical supply chain and increased operating expenses from the acquisition of NaturalShrimp assets—depreciation, legal, audit, and accounting costs. Operating expenses rose to $3.8 million from $2.2 million, underscoring the company’s investment in scaling its controlled‑environment agriculture technology and CPG portfolio.
Cash reserves fell sharply to $0.8 million from $3.5 million at the end of 2024, prompting a “substantial doubt” going‑concern warning in the filing. The company’s recent debt refinancing lowered interest expense, improving financial flexibility, but the liquidity squeeze remains a critical risk.
CEO Jim Kras emphasized that the company is “in the most challenging phase of its transformation” and that the focus is on achieving long‑term, sustainable profitability. He highlighted the momentum from new product launches, expanded retail partnerships, and the strategic shift toward a CEA‑informed CPG model as key drivers of future growth.
Analysts had expected an earnings per share of –$0.51 for Q3 2025; the company’s net loss of $4.0 million represents a larger loss than anticipated, while the 9% revenue increase beats the consensus view of modest growth. The widening loss and liquidity concerns have tempered investor sentiment, with the market focusing on the company’s ability to navigate cost inflation and achieve profitability.
The results underscore a classic trade‑off: revenue growth is being pursued at the expense of short‑term profitability, and the company’s cash position and going‑concern warning signal that additional capital or a sharper cost‑control program will be required to sustain its expansion strategy.
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