Edible Garden AG 2025 Q2 Earnings Net Loss Widens Despite EPS Improvement

Edible Garden AG (EDBL) reported its fiscal 2025 Q2 earnings on August 15, 2025. The results reflected continued financial challenges despite a significant improvement in the company’s per-share loss.

Despite the 26.3% year-over-year revenue decline to $3.15 million, the company narrowed its per-share loss to $6.58 from $30.02 in the prior year, representing a 78.1% improvement. However, the net loss expanded to $4.04 million in Q2 2025 compared to $1.93 million in Q2 2024, signaling ongoing financial pressures.

Revenue
The company’s total revenue declined by 26.3% to $3.15 million in 2025 Q2 from $4.27 million in 2024 Q2. The Herbs, Produce & Floral segment accounted for the bulk of the revenue at $2.89 million. Meanwhile, the Vitamins and Supplements segment contributed $260,000 to the total.

Earnings/Net Income
Edible Garden AG reported a net loss of $4.04 million in Q2 2025, an increase of 109.3% compared to a loss of $1.93 million in the same period last year. On a per-share basis, the loss improved to $6.58 from $30.02 in 2024 Q2, though the overall financial performance remained weak, with losses extending to five consecutive years in the fiscal quarter.

Price Action
The stock price of Edible Garden AG has experienced a sharp decline in recent trading periods, dropping 7.59% during the latest trading day, 4.78% during the most recent full trading week, and 15.77% month-to-date, reflecting investor concern over the company’s performance.

Post-Earnings Price Action Review
A strategy of buying Edible Garden AG shares after a revenue increase quarter-over-quarter on the earnings release date and holding for 30 days has proven disastrous, with a return of -99.97% over the past three years. The strategy underperformed the benchmark by 147.27%, and with a maximum drawdown of 0.00% and a Sharpe ratio of -0.47, it highlights the high risk and poor returns associated with the stock during this period.

CEO Commentary
CEO James E. Kras highlighted strong growth in the private label segment, with 19.1% year-over-year revenue growth driven by retail partnerships and sustainably grown products. Core produce categories like hydroponic basil, potted herbs, and wheatgrass showed 7.1%, 6.4%, and 4.1% quarter-over-quarter growth, respectively. Kras also emphasized the strategic acquisition of NaturalShrimp’s Iowa facility, rebranded as Edible Garden Prairie Hills, which is expected to enhance R&D, sustainability, and distribution capabilities. The strategic exit from low-margin categories like lettuce and floral is seen as a key step toward long-term resilience and profitability. Kras expressed optimism about Q4, noting increased preorders and readiness for seasonal demand. The launch of Kick Sports Nutrition on Amazon and expanding international partnerships are also positioned as key drivers for growth in higher-margin, wellness-focused categories.

Guidance
CEO James E. Kras expressed confidence in replacing lost revenue from exited categories with growth in higher-margin segments, including private label, sports nutrition, and international expansion. Kostas Dafoulas noted optimism for the back half of 2025, particularly with Kick Sports Nutrition and new retail partnerships. While no specific revenue targets were provided, the company expects to leverage its better-for-you portfolio, innovation in shelf-stable products, and strategic acquisitions to drive long-term value creation. The CEO expects Q4 to be a strong growth quarter, supported by holiday demand, expanded private label contracts, and international expansion.

Additional News
On the same date as Edible Garden AG’s earnings report, Punch Newspapers reported several significant news developments in Nigeria. These included the EFCC’s arrest of a Kaduna estate agent for land fraud, Roche and NHIA slashing cancer drug costs for UPTH insured patients, and ongoing political tensions in Anambra over alleged rigging in by-elections. The Nigerian inflation rate also declined to 21.88% in July, according to the NBS, offering a mixed signal for the economy. In entertainment, veteran Nollywood actor Chief Kanran passed away at the age of 70. These reports highlight a range of developments across Nigeria’s economic, political, and social spheres.