- **Positive Q3 EBITDA**: First positive quarter ($244K) despite $5.5M-$7M revenue hit from China tariffs.
- **Long-Term Sorghum Growth**: 10%-12% market share target for Double Team, with potential $70M-$78M in traded sales by FY2033.
- **International Expansion**: Partnering with seed companies for low-capital trait introgression, with ADAMA advancing herbicide registrations.
- **Strategic Review**: Ongoing evaluation of alternatives to enhance shareholder value amid macro uncertainty.

**【CEO Summary Section】**
- **Strategic Restructuring**: Exited Australian operations, secured $25M working capital facility, and implemented cost-saving initiatives, leading to improved gross margins and reduced operating expenses.
- **Q3 Performance**: Achieved first positive adjusted EBITDA ($244K) in many years, despite $5.5M-$7M revenue impact from China tariffs. Double Team market share target remains 10%-12% for FY25.
- **Tariff Impact**: China's retaliatory tariffs caused US sorghum exports to drop, leading to oversupply and lower farm gate prices. However, long-term optimism persists due to sorghum's health benefits and adoption of high-margin traits.
- **Product Pipeline**: Launched Prussic Acid Free sorghum (sold out) and planning DT2 Grain Sorghum launch in FY28. International expansion via partnerships (e.g., ADAMA) is progressing, though registration and trait introgression take 1.5-2.5 years.
- **Strategic Review**: Board evaluating alternatives to enhance shareholder value, with focus on operational efficiency and trait commercialization.

**【CFO Financial Commentary】**
- **Q3 Financials**: Revenue $9.5M (flat vs FY24), gross margin 37.7% (vs 24.6%), driven by operational efficiencies. Americas sorghum revenue $7.1M (up 1.4%), Double Team $3.3M (down 3%).
- **Revised FY25 Guidance**: Revenue $29M-$31M (vs $34.5M-$38M), adj. EBITDA -$8.5M to -$7M. Key impacts: $4M lower Double Team sales, $1M lower conventional sorghum in Mexico, and $750K in other line items.
- **Cost Management**: Operating expenses $4.3M (down 22% YoY), with $16.5M annualized adjusted expenses. Working capital improved ($16.9M inventory vs $22.6M last year), with $1.6M borrowing base availability.
- **Liquidity**: $1M spent on VA process, with focus on curtailed spending and strategic review support from Rabobank and Mountain Ridge.

**【Q&A Key Highlights】**
- **Tariff Developments**: CEO expects China to resume sorghum imports post-90-day pause, but timing uncertain. Farmers' planting decisions hinge on near-term price corrections.
- **Strategic Review Update**: Process ongoing, with interest from parties focused on sorghum's long-term potential. No notable changes due to market uncertainty.
- **International Expansion**: Partnering with established seed companies for low-capital trait introgression. ADAMA advancing herbicide registrations globally.
- **SAF/Camelina Update**: VBO demonstrating herbicide-resistant camelina technology, with focus on ultra-low carbon fuels. Trials ongoing, but commercialization gradual.

S&W Seed Company (SANW) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

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SANW(Delisted)

SANW fundamentals

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