Edible Garden Q2 Revenue Falls 28%, Expands in Private Label and International Supplements

Edible Garden reported Q2 2025 revenue of $3.1mln, down 28% YoY, with a net loss of $4mln. The company witnessed growth in private label sales (19.1%) and international vitamin and supplements revenue (66.5%). The acquisition of NaturalShrimp's aquaculture facility is expected to enhance R&D and distribution efficiency. Despite strategic growth areas, the company faces challenges with profitability metrics and revenue losses from exiting low-margin products.

Edible Garden AG Inc. (EDBL) reported its second quarter 2025 financial results, revealing a significant decline in revenue and a net loss. The company's revenue decreased to $3.1 million from $4.3 million in Q2 2024, a 28% year-over-year (YoY) drop. Despite this, the company highlighted growth in private label sales and international vitamin and supplements revenue. Edible Garden also announced the acquisition of NaturalShrimp's aquaculture facility, which is expected to enhance research and development (R&D) and distribution efficiency [1].

Key financial highlights from the quarter include:
- Revenue: $3.1 million, down from $4.3 million in Q2 2024.
- Net Loss: $4 million, compared to a net loss of $1.9 million in Q2 2024.
- Gross Profit: $634,000, down from $1.6 million in Q2 2024.
- SG&A Expenses: Increased to $4.2 million from $2.7 million.

The company attributed the revenue decline to strategic exits from low-margin categories, such as lettuce and floral, which impacted revenue by $740,000. Edible Garden has been focusing on higher-margin, innovation-driven products, including the launch of the Kick Sports Nutrition line and USDA organic hydroponic basil [1].

Private label products sold through major big box retailers delivered a standout second quarter performance, climbing 19.1% year over year. International vitamin and supplements revenue grew by 66.5%. These results underscore the company's ability to capture share in higher-margin demand-driven categories [1].

Looking ahead, Edible Garden remains optimistic about its growth prospects. The company is focusing on expanding its Kick Sports Nutrition line and exploring new product development within the functional food sector. With projections indicating strong Q4 performance, Edible Garden aims to capitalize on the growing demand for sustainable, health-focused products [1].

However, the company faces challenges with profitability metrics and revenue losses from exiting low-margin products. Market saturation, supply chain issues, and economic conditions may also impact demand for premium products. The acquisition of NaturalShrimp's aquaculture facility is expected to mitigate some of these risks by enhancing R&D and distribution efficiency [1].

Edible Garden's Q2 2025 results reflect the challenges and opportunities of its strategic transformation. As the company navigates these changes, its focus on innovation and high-margin products will be crucial in achieving long-term growth.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-edible-gardens-q2-2025-revenue-falls-amid-strategic-shifts-93CH-4192322