8-K: Edible Garden Q3 Revenue Up 9% Amid Strategic CPG Shift

Edible Garden AG Incorporated reported a 9% revenue increase to $2.8 million for Q3 2025, driven by strong non-perishable CPG sales and strategic expansion, despite a widened net loss.

Summary

• Revenue for the third quarter ended September 30, 2025, increased 9% to $2.8 million, up from $2.6 million in Q3 2024.
• Non-perishable unit sales surged approximately 49.3% year-over-year, led by Kick. Sports Nutrition, Pickle Party, Pulp, and Vitamin Whey.
• Private Label product sales through major big box retailers climbed 15.1% year-over-year.
• Same store sales for Hydroponic Basil increased 28.6%, Potted Herbs rose 22.6%, and Wheatgrass jumped 59.2%.
• International vitamin and supplements revenue nearly doubled, rising 90.2% year-over-year.
• Gross profit decreased to $0.3 million from $0.7 million in the prior-year quarter, impacted by higher labor, freight, raw material, and inflationary costs.
• Selling, general and administrative expenses increased to $3.8 million from $2.2 million, primarily due to higher depreciation from Natural Shrimp asset acquisition and associated legal, audit, and accounting expenses.
• Net loss widened to $4.0 million, compared to a net loss of $2.1 million in Q3 2024.
• The company refinanced its outstanding debt, securing a lower interest rate and more favorable terms, expected to reduce annual interest expense and financing cash outflows.
• The strategic exit from floral and lettuce categories is complete, focusing on a repositioned portfolio.

Sentiment

Score: 4

Explanation: While the company shows positive revenue growth in key strategic areas and an optimistic outlook on its transformation, the significant widening of the net loss and decrease in gross profit indicate substantial financial challenges. The strategic shift is promising, but current financial performance is deteriorating.

Positives

• Revenue increased 9% to $2.8 million in Q3 2025, demonstrating growth despite the quarter traditionally being the slowest.
• Non-perishable unit sales grew significantly by 49.3% year-over-year, indicating successful expansion into shelf-stable CPG categories.
• Private Label products saw a 15.1% year-over-year increase in sales through major retailers.
• Strong same-store sales growth for key fresh produce items: Hydroponic Basil up 28.6%, Potted Herbs up 22.6%, and Wheatgrass up 59.2%.
• International vitamin and supplements revenue nearly doubled, rising 90.2% year-over-year, highlighting successful global market penetration.
• Expanded retail footprint with new distribution at Kroger (fresh herbs), The Fresh Market (Edible Garden-branded herbs), Petes Fresh Market, and Angelo Caputos Fresh Markets.
• International expansion through partners like PriceSmart and Amazon.
• Refinanced outstanding debt to secure a lower interest rate and more favorable terms, expected to reduce annual interest expense and improve financial flexibility.
• Acquisition of NaturalShrimps assets is expected to enhance vertical integration and add sustainable aquaculture capabilities, aligning with the company's mission.

Negatives

• Net loss widened significantly to $4.0 million in Q3 2025, compared to a net loss of $2.1 million in Q3 2024.
• Gross profit decreased to $0.3 million from $0.7 million year-over-year, attributed to higher labor, freight, raw material costs, and inflationary pressures in the nutraceutical supply chain.
• Selling, general and administrative expenses increased substantially to $3.8 million from $2.2 million, primarily due to higher depreciation from the Natural Shrimp asset acquisition and increased legal, audit, and accounting expenses.

Risks

• The company's ability to improve its financial performance and achieve its growth objectives is subject to market and other conditions.
• Risks, uncertainties, and assumptions are detailed in the company's filings with the Securities and Exchange Commission, including the annual report on Form 10-K for the year ended December 31, 2024, and subsequent quarterly reports on Form 10-Q.

Future Outlook

The company anticipates that the fourth quarter, historically its strongest period, will further demonstrate the positive impact of its strategic transformation. The expanding portfolio of shelf-stable products is expected to contribute to margin improvement, broader geographic reach, and more consistent, year-round sales across both fresh and shelf-stable categories. Management believes the most challenging phase of this transformation is complete and is on track to achieve long-term, sustainable profitability. The acquisition of NaturalShrimps assets is expected to enhance vertical integration and add sustainable aquaculture capabilities, positioning Edible Garden as a next-generation sustainable food company with multiple high-growth revenue streams.

Management Comments

• "Over the past several quarters, we’ve been executing a strategic transformation of Edible Garden into a diversified, innovation-driven consumer packaged goods company, and we’re now seeing clear results."
• "The third quarter marked a key milestone as we experienced revenue growth, expanded our product distribution to Kroger to include fresh potted and cut herbs, added major retail customers including The Fresh Market, and expanded internationally through partners such as PriceSmart and Amazon."
• "Our CPGfocused strategy enables us to expand beyond fresh produce into shelf-stable, branded offerings that align with growing demand for clean-label, functional, and better-for-you foods."
• "Our expanding portfolio featuring Kick. Sports Nutrition, Pickle Party, Pulp, and Vitamin Whey is driving continued momentum and is expected to contribute to margin improvement, while supporting broader geographic reach and more consistent, year-round sales across both fresh and shelf-stable categories."
• "Looking ahead, we believe the most challenging phase of this transformation is behind us. We’ve built a more resilient organization—one that is better-positioned to capture growth across both fresh and non-perishable categories—and we are on our way toward achieving our goal of long-term, sustainable profitability."

Industry Context

The company's strategic shift towards a diversified, innovation-driven consumer packaged goods (CPG) model aligns with broader industry trends emphasizing clean-label, functional, and better-for-you foods. Its focus on Controlled Environment Agriculture (CEA) and sustainable practices positions it within the growing AgriFoodTech sector, catering to increasing consumer demand for locally grown, organic, and environmentally conscious products. The expansion into shelf-stable categories also reflects a move to diversify revenue streams beyond traditional fresh produce, a common strategy for food companies seeking more consistent, year-round sales and broader market penetration.

Comparison to Industry Standards

• The filing does not provide specific comparisons to comparable companies, projects, or industry benchmarks to assess results in the context of global standards.

Stakeholder Impact

• Shareholders: Face mixed results with revenue growth in strategic areas but a significantly widened net loss, indicating potential short-term volatility but a long-term strategic pivot.
• Customers: Benefit from expanded product offerings, including new shelf-stable CPG lines and broader availability of fresh herbs through new retail partnerships.
• Employees: The company's growth and expansion into new categories and markets may lead to increased opportunities and stability.
• Creditors: The refinancing of outstanding debt to more favorable terms is positive, potentially reducing interest burden and improving the company's ability to meet obligations.

Next Steps

• Host a conference call on November 14, 2025, at 8:00 A.M. ET to discuss financial results and corporate progress.
• File the complete Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
• Continue executing the strategic transformation into a diversified CPG company.
• Further expand product distribution and market penetration for both fresh and shelf-stable categories.
• Integrate NaturalShrimps assets to enhance vertical integration and aquaculture capabilities.
• Invest in health-focused product development under the Zero-Waste Inspired mission.

Key Dates

Recommendation

The company is undergoing a significant strategic transformation, showing promising revenue growth in new CPG segments and expanded distribution. However, the substantial increase in net loss and decrease in gross profit indicate that the strategy has not yet translated into improved profitability. While the long-term vision is compelling, the current financial deterioration warrants a 'hold' recommendation until there is clearer evidence of the strategic shift positively impacting the bottom line and achieving sustainable profitability.

Keywords

Controlled Environment Agriculture, CEA, CPG, Consumer Packaged Goods, Organic Produce, Hydroponics, Shelf-Stable Products, Sustainable Farming, Aquaculture, Financial Results, Revenue Growth, Net Loss, Edible Garden