Arcadia Biosciences RKDA Soars 98.52% Amid Q2 Earnings Loss, Merger Uncertainty

Arcadia Biosciences (RKDA) surged 31.36% in intraday trading, hitting a peak not seen since October 2025, with shares climbing 98.52% during the session. This sharp rebound follows a turbulent earnings report in Q2 2025, where the company recorded a $4.5 million net loss, largely attributed to a credit loss tied to its former partner Above Food. Despite this financial setback, Arcadia’s core Zola coconut water business reported robust revenue growth and stable margins, offering a counterbalance to its challenges.

The $4.5 million credit loss, stemming from an unpaid note receivable from Above Food after the 2024 GoodWheat asset divestiture, overshadowed operational gains. Arcadia received 2.7 million shares of ABVE stock as partial repayment but confirmed 800,000 additional shares and a $2 million principal remain outstanding. This loss, equivalent to 66% of the company’s current market cap, raises concerns about asset recovery and liquidity management, particularly as the firm prepares for its pending merger with Roosevelt Resources.

Zola’s performance, however, provided a silver lining. The coconut water brand drove 24% year-over-year revenue growth in Q2 2025, with margins exceeding 30% for ten consecutive quarters. This resilience underscores Arcadia’s strategic pivot to consumer wellness, though the business now accounts for 100% of the company’s revenue, heightening reliance on a single product line. Meanwhile, Arcadia eliminated $1 million in contingent liabilities in Q2 2025, part of broader efforts to streamline its balance sheet ahead of the merger.

The Roosevelt Resources merger, expected to reshape Arcadia’s business model, remains a key uncertainty. While the deal could unlock new revenue streams, integration risks and lack of detailed pro forma financials have left investors with limited visibility. Compounding concerns, Arcadia skipped its Q2 2025 earnings call to focus on merger-related disclosures, drawing scrutiny over transparency. Investors are now tasked with weighing Zola’s growth potential against the company’s financial vulnerabilities and the unresolved risks of its strategic overhaul.