BioHarvest Sciences' Q3 2025: Contradictions Emerge on BloodFlow Hydration Launch, CDMO Revenue Projections, and Pipeline

Date of Call: November 13, 2025

Financials Results

• Revenue: $9.1M, up 39% YOY (vs $6.5M in Q3 2024)
• EPS: -$0.14 per basic and diluted share, improved vs -$0.16 in Q3 2024
• Gross Margin: 61%, compared to 57% in the prior year (up 400 bps YOY)

Guidance:

• Q4 2025 revenue expected $9.0M–$9.5M.
• Q4 2025 adjusted EBITDA expected between -$0.6M and $0 (essentially breakeven).
• Management expects adjusted EBITDA breakeven imminently; if not in Q4, likely in early 2026.
• Company fully funded after $19.9M institutional raise (~$30.8M combined recent proceeds) to support growth.
• Plan to triple manufacturing capacity and bring a second modular facility online (target operational by Q2 2027).

Business Commentary:

• Revenue and Product Growth:
• BioHarvest Sciences Inc. reported revenue growth of 39% year-over-year to $9.1 million in Q3 2025.

• The growth was fueled by sustained momentum in the core VINIA capsules, the expanding success of the VINIA Inside product portfolio, and an increasingly significant contribution from the CDMO customer base.

• CDMO Revenue Expansion:

• CDMO revenue grew 722% year-over-year to $0.7 million.

• This substantial increase was driven by milestone-based project revenues and new deals, such as the partnership with Saffron Tech and the ongoing advancement of the CDMO prospective customer pipeline.

• Direct-to-Consumer Product Performance:

• Direct-to-consumer product revenues increased 30% compared to the previous year.

• The growth was attributed to the successful launch of new products like the VINIA 2X Formula Chews and the strong double-digit growth in tea and coffee businesses.

• Adjusted EBITDA and Financial Health:

• BioHarvest achieved an adjusted EBITDA loss of $0.4 million, narrowing from a loss of $1.7 million in the same year ago quarter.
• This improvement in adjusted EBITDA is due to increased manufacturing scale, improved manufacturing yields, and disciplined cost control measures across the business.

Sentiment Analysis:

Overall Tone: Positive

• Revenue grew 39% YOY to $9.1M and gross profit rose 50% to $5.6M (61% margin). Adjusted EBITDA loss improved to $0.4M from $1.7M prior-year. Company closed $19.9M institutional raise and says it is fully funded to scale product and CDMO businesses and reach breakeven in the coming quarters.

Q&A:

• Question from Matthew Hewitt (Craig-Hallum Capital Group LLC, Research Division): What should we expect from the ramp of the new VINIA BloodFlow Hydration product after the Dec 3 broad launch?
  Response: VIP rollout began Nov 10 to existing customers with strong early response; broad launch Dec 3 with heavy marketing and Health Pros support; expect quarter-on-quarter ramp with Amazon sales likely starting in January and continued acceleration into Q1.

• Question from Matthew Hewitt (Craig-Hallum Capital Group LLC, Research Division): After running Stage 1 and Stage 2 in parallel for the Saffron Tech partnership, what comes next and could product be sellable in fiscal '26?
  Response: Running parallel tracks leveraging Saffron Tech's existing tissue culture to accelerate transfer into liquid media and bioreactors; if mirroring/magnification succeed, management expects a relatively quick path to large-scale production and commercialization through BioHarvest and the 25% JV.

• Question from Nicholas Sherwood (Maxim Group LLC, Research Division): How many pre-existing CDMO contracts are nearing Stage 2 and updates on the cosmetics and Tate & Lyle agreements?
  Response: Progressing toward Stage 2 across multiple deals: active tissue-culture work at several global plants; Tate & Lyle has one plant accessed and a second being sourced to improve the chance of advancing to Stage 2.

• Question from Nicholas Sherwood (Maxim Group LLC, Research Division): Has interest increased after the exosome announcement and how has that technology developed?
  Response: CDMO pipeline has intensified; exosomes seen as a medium-term value-add—engineering work underway to integrate ultrafiltration downstream (next ~12 months) for the new facility, strengthening the CDMO value proposition and deal flow; another deal expected before year-end.

• Question from Nicholas Sherwood (Maxim Group LLC, Research Division): Any early success metrics from the Health Pros program—click-through or recruitment trends?
  Response: Phase 1 onboarded 75 Health Pros; company built an end-to-end affiliate/onboarding system; early Health Pros show strong click-throughs and conversion with materially lower customer acquisition cost; targeting 300 Health Pros by year-end.

• Question from Susan Anderson (Canaccord Genuity Corp., Research Division): How do you view the CDMO business longer term as a percent of revenue and its margin vs product revenue?
  Response: Management expects CDMO to become the dominant revenue stream in 5–7 years (~75% CDMO vs 25% products), modeling a ~40% deal success rate; royalty-based manufacturing margins expected north of 70% (sometimes ~80%), while product gross margins are ~60% today and targeted toward ~65% with scale.

• Question from Susan Anderson (Canaccord Genuity Corp., Research Division): Any feedback from VIP early adopters of VINIA BloodFlow Hydration and learnings for the launch?
  Response: Initial VIP email sold a significant portion of the first 1,000 variety packs; landing-page conversion strong and taste feedback very positive; repeat purchase rates and efficacy will determine long-term success.

• Question from Susan Anderson (Canaccord Genuity Corp., Research Division): When will you reach Phase 2 of the Health Pro program and the 300 Health Pros target?
  Response: Company set an explicit mission of 300 Health Pros by Dec 31 and is actively converting a 200+ gym network and other channels to hit that target, with plans to scale to 500, 700 and ultimately 1,000 thereafter.

Contradiction Point 1

Launch Timing and Strategy for BloodFlow Hydration

It involves differing statements regarding the launch timeline and strategy for the BloodFlow Hydration product, which could impact investor expectations and market positioning.

What should we expect from the new hydration product's ramp as it launches broadly on December 3? - Matthew Hewitt(Craig-Hallum Capital Group LLC, Research Division)

2025Q3: The hydration product launch will happen in stages. Initially, it's available to existing customers, then Amazon, and gyms. The focus will be on driving customer acquisition through marketing assets. - Ilan Sobel(CEO)

How is the 2x chew launch progressing, and what is the anticipated ramp for the hydration launch? - Matthew Gregory Hewitt(Craig-Hallum Capital Group)

2025Q2: The hydration product launch is unique, focusing on blood flow hydration. It is Informed Sports certified and will launch in October, targeting athletes and institutional wellness programs. - Ilan Sobel(CEO)

Contradiction Point 2

CDMO Business Revenue Projections

It involves a contradiction in the company's expectations regarding the revenue mix between CDMO and product sales, which is critical for investor understanding of the company's growth strategy.

What percentage of total revenue will be from the CDMO business versus product revenue? - Susan Anderson (Canaccord Genuity Corp., Research Division)

2025Q3: In 5 to 7 years, the CDMO business is expected to account for 75% of revenue, with product revenue at 25%. - Ilan Sobel(CEO)

Can you update us on your CDMO contracts, especially the Tate & Lyle agreement, and how it has generated interest in additional contracts? - Anthony Vendetti (Maxim Group)

2024Q4: We believe that we can maintain these fairly high gross margins and demonstrate sustainable growth from our CDMO business, where we can generate revenue with no meaningful direct costs. - Ilan Sobel(CEO)

Contradiction Point 3

Pipeline and Deal Flow

It involves the company's pipeline of potential partners and deal flow, which are crucial for future growth and revenue expectations.

Can you discuss the interest in potential partnerships following the exosome announcement? - Nicholas Sherwood (Maxim Group LLC, Research Division)

2025Q3: The pipeline is rich with pharmaceutical, nutraceutical, and cosmetic customers interested in plant-derived life-changing compounds. The exosome opportunity is medium-term significant, currently in development work to design downstream processes. This adds value to CDMO offerings, enhancing deal closure rates and potentially impacting pricing. - Ilan Sobel(CEO)

Can you provide more details on the pharma CDMO contract entering Phase 2? - Matt Hewitt (Craig-Hallum Capital Group)

2025Q1: We are also working on new potential opportunities with a number of pharma companies. We also have the existing CDMO contracts, which we estimate in the range of $25 million to $30 million over 5 years. - Ilan Sobel(CEO)

Contradiction Point 4

HeatMap API and Strategic Focus

It involves the company's strategic focus on its HeatMap API and how it aligns with other product initiatives, impacting investor perception of the company's priorities and growth areas.

How many other existing CDMO contracts are nearing Stage 2? - Nicholas Sherwood (Maxim Group LLC, Research Division)

2025Q3: Our exclusive partnership with our partner in Israel enables us to also access the HeatMap API so that we can identify and source the best plant material for our CDMO clients. It also provides us an opportunity to develop our own internal HeatMap API, which complements our CDMO pipeline. - Ilan Sobel(CEO)

How quickly can the olive cell product scale up and what's its potential impact? - Hunter Diamond (Diamond Equity Research)

2025Q1: HeatMap is really a tool that we're using to prioritize our R&D. It doesn't actually impact our CDMO. It impacts us on the product side. - Ilan Sobel(CEO)

Contradiction Point 5

CDMO Pipeline and Deal Flow

It involves a contradiction in the company's description of the CDMO pipeline and deal flow, which is crucial for understanding the company's growth potential.

How many existing CDMO contracts are nearing Stage 2? - Nicholas Sherwood (Maxim Group LLC, Research Division)

2025Q3: Progress is being made in accessing plants for different projects. For the cosmetic fragrance space, plants are being cultured globally. Tate & Lyle is in progress with one plant, with plans to source a second. - Ilan Sobel(CEO)

Can you update us on your CDMO contracts, especially the Tate & Lyle agreement? How has it impacted interest in other contracts? - Anthony Vendetti (Maxim Group)

2024Q4: The current pipeline is intense, with multiple new contracts in the pipeline for announcement soon. - Ilan Sobel(CEO)