Edible Garden Reports 26% Revenue Decline and $4M Net Loss in Q2 2025

Edible Garden AG Incorporated reported a significant decline in financial performance for the second quarter of 2025, with revenues totaling $3.1 million, down 26% from $4.3 million in the same period last year. The decrease is primarily attributed to the company's strategic exit from the floral and lettuce categories, which accounted for a $741,000 reduction in revenue. Excluding these categories, revenue from the core herb portfolio decreased by 7%, while sales from the vitamin and supplement segment fell to $260,000, reflecting a transition to new product lines.

The company's cost of goods sold (COGS) also decreased to $2.5 million from $2.7 million year-over-year, resulting in a gross profit margin that fell to 20% from 37%. This decline in profitability was driven by inflationary pressures and increased labor costs. Selling, general, and administrative expenses surged by 54% to $4.2 million, largely due to legal fees associated with the acquisition of NaturalShrimp and other transaction-related costs. Consequently, Edible Garden reported a net loss of $4.0 million for the quarter, compared to a loss of $1.9 million in the prior year.

In terms of operational developments, Edible Garden completed the acquisition of certain sustainable aquaculture assets from NaturalShrimp for $12 million in May 2025, funded through the issuance of Series B Preferred Stock. The company also entered into a lease agreement for the property associated with these assets. As of June 30, 2025, Edible Garden had 2,828,661 shares of common stock outstanding, reflecting a significant increase from 1,065,402 shares at the end of 2024, primarily due to stock issuances related to warrant exercises and public offerings.

The company continues to face challenges regarding liquidity, with cash reserves of $2.8 million as of June 30, 2025, down from $3.5 million at the end of 2024. Edible Garden has incurred substantial losses since its inception, raising concerns about its ability to continue as a going concern. The management indicated that additional financing will be necessary to support ongoing operations, and there is no assurance that such financing will be available on favorable terms.

Looking ahead, Edible Garden's management remains focused on mitigating cost pressures and enhancing revenue through strategic product transitions and operational efficiencies. However, the company acknowledges the uncertainty surrounding its financial future, particularly in light of its recent performance and the need for further capital to sustain operations.