Edible Garden AG 2025 Q2 Earnings Deepening Losses Amid Revenue Decline

Edible Garden AG (EDBL) reported its fiscal 2025 Q2 earnings on Aug 14, 2025. The results fell short of expectations, with revenue and net losses both worsening compared to the prior year. The company also provided a cautious outlook for future performance, citing ongoing strategic shifts and operational challenges.

Edible Garden AG's Q2 2025 earnings reveal a continuation of financial struggles, with the company posting a wider net loss despite some improvements in per-share losses. The results did not meet expectations, and the company did not provide a clear guidance adjustment.

Revenue
The total revenue for Edible Garden AG in Q2 2025 declined by 26.3% to $3.15 million, compared to $4.27 million in Q2 2024. This significant drop is attributed to the company’s strategic decision to exit underperforming categories like lettuce and floral. Management has stated that this move is part of a broader initiative to focus on higher-margin and innovation-driven segments.

Earnings/Net Income
Edible Garden AG narrowed its per-share loss to $6.58 in Q2 2025, an 78.1% improvement from the $30.02 per share loss in the prior year. However, the company's net loss actually widened to $-4.04 million, a 109.3% increase from the $-1.93 million loss in Q2 2024. This widening net loss indicates that while per-share losses have improved, the total financial burden has grown. The EPS improvement is positive but insufficient to offset the overall deteriorating net income trend.

Price Action
The stock price of Edible Garden AG has experienced a significant downturn. It fell by 7.59% during the latest trading day, 4.78% during the most recent full trading week, and has plummeted 15.77% month-to-date. These figures highlight growing investor concerns over the company's financial outlook and market performance.

Post-Earnings Price Action Review
A strategy of purchasing Edible Garden AG shares after a revenue increase quarter-over-quarter on the earnings release date and holding for 30 days has historically performed poorly. Over the past three years, this approach yielded a return of -99.99%, significantly underperforming the benchmark by 146.46%. The strategy’s Sharpe ratio of -0.48 underscores its high risk, while the maximum drawdown of 0.00% reflects a complete loss of invested capital, indicating a strategy with no meaningful recovery potential.

CEO Commentary
James E. Kras, CEO of Edible Garden AG, highlighted the company’s disciplined strategic approach, emphasizing its shift toward higher-margin, innovation-driven categories while exiting underperforming ones like lettuce and floral. He noted that private label sales grew 19.1% year-over-year, driven by strong retail partnerships and sustainable CEA herb products. Core produce categories, including hydroponic basil, also posted growth. Kras emphasized progress in innovation, brand expansion, and operational sustainability, with the acquisition of NaturalShrimp’s Iowa facility enhancing R&D, aquaponics, and distribution capabilities. He expressed optimism about the company’s positioning in the better-for-you food and beverage market, citing rising global demand and a diversified revenue stream. Kras also stressed long-term resilience, innovation, and scalability as key growth drivers.

Guidance
Edible Garden AG reported Q2 2025 revenue of $3.1 million, a decrease from $4.3 million in the same period last year. The decline is attributed to the exit of low-margin categories. The company expects to replace lost revenue through growth in private label and high-margin categories like Kick Sports Nutrition. Kras expressed confidence in a strong Q4, citing increased preorders, new retail partnerships, and the seasonal demand for vitamins and supplements. He also highlighted anticipated margin expansion and cash generation through inventory optimization and production efficiency. The company expects to leverage its enhanced infrastructure, including the Prairie Hills facility, to drive long-term value creation and expand into international markets.

Additional News
Recent non-earnings related activity in the broader market includes significant political developments in Nigeria, including the suspension of a state education board chair and political tensions surrounding by-elections. Additionally, a notable agricultural initiative was launched in Bauchi State, where a foundation began distributing 6,000 free bags of fertilizers to farmers. In Lagos, the government sealed a restaurant for improper wastewater disposal. These updates highlight the dynamic business and political environment in which Edible Garden AG operates.