Functional Brands 2025 Q3 Earnings Profitability Surges 189.9% on 21.4% Revenue Growth

Functional Brands (MEHA) reported fiscal 2025 Q3 earnings on Dec 15, 2025, marking a significant turnaround in profitability and revenue growth. The company’s results exceeded expectations, driven by robust performance in its core segments and strategic operational improvements.

Revenue

Functional Brands’ total revenue surged 21.4% year-over-year to $1.69 million in 2025 Q3, up from $1.40 million in 2024 Q3. Nutraceutical (supplements) accounted for the lion’s share of the revenue, contributing $1.67 million, while hemp-derived products added $20,906. This segmental breakdown underscores the company’s focus on high-margin wellness offerings and diversification into emerging markets.

Earnings/Net Income

The company returned to profitability with an EPS of $0.04, reversing a $0.04 loss per share in the prior-year period. Net income jumped 189.9% to $259,001 in 2025 Q3, a stark contrast to the $288,081 net loss in 2024 Q3. This remarkable turnaround highlights effective cost management and revenue growth. The company’s gross profit margin also improved by 310 basis points to 57.8%, reflecting stronger vendor terms and operational efficiency. This marks a significant turnaround from the previous year’s loss.

Price Action

Functional Brands’ stock price faced sharp declines in the latest trading period, plummeting 27.55% in a single day, 31.62% over the past week, and 51.72% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Functional Brands (MEHA) shares after its revenue drop quarter-over-quarter on the financial report release date and holding for 30 days showed favorable performance over the past three years. The initial 30-day holding period allowed for a recovery in the stock price, which then experienced a steady rise until the end of the third year. This result suggests that the strategy capitalized on the rebound following the earnings release and the subsequent positive market response.

CEO Commentary

Eric Gripentrog, CEO of Functional Brands Inc., highlighted the company’s progress in Q3: “We are pleased with our third-quarter results as we delivered strong growth on the top and bottom line, reflecting early progress on our key initiatives. The past few months have been transformational for Functional Brands, marked by several milestone achievements that position us strongly for accelerated growth.”

Guidance

The company did not provide explicit forward-looking guidance but emphasized its commitment to expanding its e-commerce reach through partnerships and regulatory compliance, which are expected to drive long-term profitability.

Additional News

1. Delhi High Court Ruling: Bata India secured a trademark infringement win, with the court ruling against the use of “POWER FLEX” by a competitor, reinforcing brand equity in the footwear sector.

2. Minghui Pharmaceutical FDA Clearance: Minghui received FDA approval to initiate global Phase III trials for MHB018A, a subcutaneous IGF-1R antibody for thyroid eye disease, marking a pivotal step in its biopharma pipeline.

3. Posifa Technologies Product Launches: Posifa Technologies expanded its sensor portfolio with new ultra-low-flow liquid flow sensors and mass air flow sensors, targeting medical and industrial markets.

Revenue Breakdown

Functional Brands’ Q3 2025 revenue of $1.69 million reflects a 21.4% year-over-year increase, driven by its nutraceutical segment. The company’s strategic focus on high-margin products and operational efficiency has positioned it for sustained growth.

Earnings Turnaround

Net income surged to $259,001 in Q3 2025, a 189.9% improvement from the prior-year period. This profitability rebound underscores the effectiveness of cost controls and revenue diversification.

Strategic Milestones

The company completed a direct listing on Nasdaq, aligned with FIGO transparency standards for its prenatal supplement, and partnered with Market Performance Group to expand e-commerce reach. These initiatives align with its mission to “Make Everyone Healthy Again.”

Market Response

Despite recent stock price declines, historical data suggests a positive post-earnings rebound strategy could yield long-term gains. Investors are advised to monitor regulatory compliance advancements and e-commerce expansion for future catalysts.