Agrify Corporation Reports $538,000 Revenue in Q1 2025, Shifts Focus to Hemp-Derived Beverages

Agrify Corporation reported its financial results for the first quarter of 2025, revealing a revenue of $538,000, a significant increase from zero revenue in the same period last year. This growth is attributed to the company's acquisition of the Señorita brand of hemp-derived THC beverages in December 2024. The cost of goods sold for the quarter was $448,000, resulting in a gross profit of $90,000. However, the company incurred a net loss of $1.6 million, compared to a net income of $4.2 million in the first quarter of 2024, primarily due to increased selling, general, and administrative expenses, which rose to $3.8 million from $1.6 million year-over-year.

The financial performance reflects a strategic shift for Agrify, which has exited its cultivation and extraction businesses, categorizing these operations as discontinued. The company recorded a gain of approximately $3.6 million from the disposal of its extraction business, which partially offset losses from discontinued operations. The total liabilities decreased to $18.8 million as of March 31, 2025, down from $25.9 million at the end of 2024, while total assets also fell to $45.6 million from $54 million, reflecting the reclassification of assets related to discontinued operations.

Operationally, Agrify's focus has shifted towards its hemp-derived beverage segment, with plans for geographic expansion and product line growth. The Señorita brand is currently available in ten U.S. states and Canada, with future plans to introduce a new flavor, Ranch Water, in 2025. The company has also seen a reduction in its workforce, with nine employees laid off following the discontinuation of the extraction business. As of March 31, 2025, Agrify had a total of 1,952,014 shares outstanding, reflecting a reverse stock split executed in October 2024.

Looking ahead, Agrify's management expressed optimism about the potential for growth in the hemp beverage market, driven by increasing consumer demand for alternative adult beverages. However, the company acknowledged the challenges of generating cash flow from operations and the need for additional financing to support its growth strategies. The company’s liquidity position remains a concern, with cash and cash equivalents totaling $24.4 million as of the end of the quarter, down from $31.2 million at the end of 2024. Agrify's future performance will depend on its ability to effectively execute its business strategy and navigate the evolving market conditions.