Edible Garden Reports Q3 2025 Revenue Increase but Wider Net Loss

Edible Garden AG Incorporated reported its financial results for the third quarter of 2025, revealing a revenue of $2.8 million, a 9% increase from $2.6 million in the same period last year. However, the company experienced a net loss of $4.0 million, compared to a net loss of $2.1 million in the prior year. For the nine months ending September 30, 2025, total revenue was $8.7 million, down 13% from $10.0 million in the same period of 2024, primarily due to the company's strategic exit from the floral and lettuce categories, which accounted for a significant portion of the decline.

The cost of goods sold (COGS) for the third quarter increased to $2.5 million, up 37% from $1.9 million a year earlier, leading to a gross profit margin decrease from 27% to 10%. This rise in COGS was attributed to higher greenhouse labor and freight costs, as well as increased raw material purchases related to nutraceutical products. Selling, general, and administrative expenses surged by 73% to $3.8 million, driven by higher depreciation expenses linked to the acquisition of assets from NaturalShrimp, along with increased legal and accounting costs.

Operationally, Edible Garden's total assets rose to $20.1 million as of September 30, 2025, compared to $11.9 million at the end of 2024. The company’s cash reserves decreased significantly to $0.8 million from $3.5 million, reflecting ongoing operational cash burn. The company reported a working capital deficit of $1.2 million, a decline from a surplus of $1.2 million at the end of 2024. The total liabilities stood at $7.2 million, down slightly from $7.8 million at the end of the previous fiscal year.

Strategically, Edible Garden has been active in financing its operations through various means, including a secured promissory note with Avondale Capital for $1.75 million and the issuance of Series B Preferred Stock for $3 million. The company also entered into an inducement letter agreement in October 2025, which is expected to generate approximately $4.2 million in gross proceeds. Despite these efforts, the company faces substantial doubt regarding its ability to continue as a going concern, as it has incurred significant losses and may need to raise additional capital to sustain operations.

Looking ahead, Edible Garden is focused on mitigating inflationary pressures on costs and is exploring price adjustments and supplier negotiations. The company aims to stabilize its financial position while continuing to expand its product offerings and market presence. However, the ongoing challenges in generating sufficient cash flow from operations and the need for additional financing remain critical factors influencing its future performance.