Borealis Foods Reports Q3 2025 Revenue Decline to $7.1 Million, Improves Gross Profit Margins

Borealis Foods Inc. reported its financial results for the third quarter of 2025, revealing a net revenue of $7.1 million, a decrease from $7.7 million in the same period last year. For the nine months ending September 30, 2025, the company achieved net revenue of $21.1 million, slightly up from $20.9 million in 2024. The gross profit for the quarter was $1.04 million, representing 15% of net revenue, while the nine-month gross profit increased to $2.46 million, or 12% of net revenue, compared to 9% in the prior year. Despite the revenue decline, the company noted improvements in gross profit margins due to a favorable product mix and pricing strategies.

In terms of operational efficiency, Borealis Foods significantly reduced its sales, general, and administrative expenses by 40% year-over-year, totaling $10.7 million for the nine months ended September 30, 2025, down from $17.7 million in 2024. This reduction was attributed to the conclusion of one-time transaction-related costs and a disciplined approach to discretionary spending. The company reported a loss from operations of $8.2 million for the nine-month period, an improvement from a loss of $15.8 million in the previous year. The net loss for the same period was $12.6 million, compared to $19.6 million in 2024.

Borealis Foods has been actively pursuing strategic initiatives to enhance its market position, including a focus on institutional sales channels and branded products, which are expected to provide more stable demand and improved pricing power. The company has also been aligning its inventory and production levels with committed demand from institutional customers, which is anticipated to enhance working capital efficiency. As of September 30, 2025, the company had cash reserves of approximately $0.13 million and a significant negative working capital of $54.6 million, raising concerns about its ability to continue as a going concern.

The company’s balance sheet reflects total assets of $56.3 million and total liabilities of $69.2 million, resulting in a shareholders' deficit of $12.9 million. Borealis Foods has not raised external capital in 2025 but is exploring various financing options, including debt and equity issuances, to support ongoing operations. The management has indicated that while recent operational improvements are promising, the company remains under liquidity constraints and will need additional capital to meet its funding requirements through the fiscal year.

Looking ahead, Borealis Foods anticipates that increased contributions from high-volume institutional channels, combined with continued cost control measures, will enhance cash conversion and support improved working capital efficiency in the fourth quarter of 2025. However, the company acknowledges that its ability to execute its strategic plan and secure additional financing is critical to its future operations and financial stability.