Barfresh Food Group Reports 11% Revenue Growth in Q2 2025 Despite Net Loss

Barfresh Food Group Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 11% to $1.625 million, compared to $1.464 million in the same period of 2024. For the first half of 2025, revenue rose by 6% to $4.555 million, up from $4.293 million in the prior year. Despite the revenue growth, the company experienced a net loss of $880,000 for the three months ended June 30, 2025, a slight improvement from a net loss of $1.011 million in the same quarter of 2024. The six-month net loss also increased to $1.641 million from $1.460 million year-over-year.

The company’s cost of revenue increased by 17% to $1.119 million for the second quarter, driven by trial costs associated with new manufacturing processes and elevated supply costs. Gross profit for the quarter was $506,000, reflecting a gross margin of 31.1%, down from 34.8% in the previous year. The decline in gross margin was attributed to a less favorable product mix and costs related to the development of new manufacturing capabilities. Barfresh's operating expenses decreased by 9% to $1.374 million, primarily due to reduced general and administrative costs.

In terms of operational developments, Barfresh has been working to expand its manufacturing capacity, particularly after facing challenges with a previous contract manufacturer. The company has initiated relationships with new manufacturers and expects to see increased production capacity in the latter half of 2025. Additionally, Barfresh has introduced a new product line, the Pop & Go, which has contributed to increased sales and marketing expenses, reflecting a strategic push to enhance its distribution network.

As of June 30, 2025, Barfresh reported total assets of $3.767 million, an increase from $3.318 million at the end of 2024. The company’s working capital improved significantly to $2.101 million, compared to $606,000 at the end of the previous fiscal year, largely due to a $3 million capital raise through the sale of common stock in February 2025. The company’s cash position also strengthened, with cash balances rising to $712,000 from $235,000 at the end of 2024.

Looking ahead, Barfresh anticipates that its gross margin will normalize as new co-manufacturers ramp up production and operational efficiencies improve. However, the company continues to face challenges related to its supply chain and ongoing legal disputes with a former contract manufacturer, which may impact its financial performance in the near term. Management remains focused on mitigating these issues while pursuing growth opportunities in the beverage market.