Arcadia Biosciences Reports 11% Revenue Growth but Faces $4.458 Million Net Loss in Q2 2025

Arcadia Biosciences, Inc. reported a total revenue of $1.455 million for the second quarter of 2025, reflecting an increase of 11% compared to $1.306 million in the same period of 2024. For the first half of 2025, revenues reached $2.655 million, up 16% from $2.293 million in the prior year. The growth in revenue was primarily driven by a 24% increase in sales of Zola coconut water, attributed to expanded distribution channels. However, the company experienced a net loss of $4.458 million in the second quarter, a significant decline from a net income of $1.061 million in the same quarter of the previous year.

Operating expenses for the second quarter totaled $1.956 million, compared to a negative operating income of $674,000 in the prior year, indicating a substantial increase in costs. The cost of revenues rose by 30% to $824,000, primarily due to increased product and freight costs associated with Zola coconut water. Additionally, the company recognized a credit loss of $4.489 million related to a reserve for the Above Food note receivable, which significantly impacted the overall financial performance.

In terms of strategic developments, Arcadia completed the sale of its GoodWheat brand to Above Food Corp. for $3.7 million in May 2024, which has since been classified as a discontinued operation. The company also sold its non-GMO Resistant Starch durum wheat trait to Corteva Agriscience for $4 million, further streamlining its focus on coconut water products. Additionally, Arcadia entered into a License Termination and Patent Non-Assert Agreement with Bioseed Research India, eliminating a $1 million contingent liability from its balance sheet.

As of June 30, 2025, Arcadia's total assets were reported at $7.788 million, a decrease from $13.517 million at the end of 2024. Current assets also fell to $7.579 million from $9.242 million, while current liabilities decreased to $1.839 million from $2.563 million. The company’s cash and cash equivalents were notably reduced to $1.376 million, raising concerns about its liquidity and ability to meet operational needs in the coming year. The management indicated that existing cash resources may not be sufficient to cover anticipated cash requirements for at least the next 12 months, highlighting the need for additional funding through equity or debt financing.

Looking ahead, Arcadia's management expressed uncertainty regarding its financial outlook, particularly due to the default on the Above Food promissory note and the potential for further dilution of shareholder equity if additional funding is pursued. The company is actively exploring options to raise capital and mitigate the impact of its current financial challenges, while also monitoring the evolving tariff landscape that could affect its operations.