Agrify Corporation Reports $2.04 Million Revenue in Q2 2025, Despite $7.36 Million Net Loss

Agrify Corporation reported its financial results for the second quarter of 2025, revealing a total revenue of $2.04 million, a significant increase from zero revenue in the same period last year. For the first half of 2025, the company generated $2.58 million in revenue, compared to no revenue in the first half of 2024. The revenue growth is attributed to the acquisition of the Señorita brand of hemp-derived THC beverages in December 2024 and the acquisition of MC Brands in May 2025. The company also reported a gross profit of $682,000 for the second quarter and $772,000 for the first half of 2025.

Despite the revenue increase, Agrify experienced a net loss of $7.36 million for the second quarter of 2025, compared to a loss of $2.97 million in the same quarter of 2024. The loss for the first half of 2025 was $8.99 million, a stark contrast to a net income of $1.26 million in the first half of 2024. The increase in losses is primarily due to a substantial rise in selling, general, and administrative expenses, which surged to $7.48 million in the second quarter, up from $677,000 in the prior year. This increase reflects the company's investment in marketing and operational support for its hemp-derived product lines.

Agrify's operational changes included the discontinuation of its Extraction Business, which was officially wound down by March 30, 2025. The company has since focused on its hemp-derived products, including beverages and edibles. The transition has resulted in a reclassification of previous operations as discontinued, impacting the financial results. The company also reported a loss of $2.04 million from discontinued operations in the second quarter, which includes the final financial impacts of the Extraction Business.

As of June 30, 2025, Agrify's total assets increased to $69.47 million, up from $54.02 million at the end of 2024. The company reported cash and cash equivalents of $40.96 million, a notable increase from $31.17 million at the end of the previous year. The increase in cash is largely due to financing activities, which provided $30 million from the issuance of convertible notes in May 2025. The company’s total liabilities also rose to $48.51 million, primarily due to the increase in related party debt.

Looking ahead, Agrify aims to expand its market presence in the hemp-derived beverage sector while managing its operational costs. The company is focused on leveraging its recent acquisitions to drive growth and improve profitability. However, the ongoing challenges related to the transition from its previous business model and the need for effective cost management remain critical to its future performance.