Edible Garden Reports $3.34M Revenue in Q1 2026, Faces Increased Losses and Operating Expenses

Edible Garden AG Incorporated reported a revenue of $3.34 million for the first quarter of 2026, marking a 22.9% increase from $2.72 million in the same period of 2025. This growth was primarily driven by a significant rise in sales of cut herbs, which contributed an additional $550,000, reflecting a 46% increase. However, the company also faced a substantial increase in operating expenses, which rose to $10.02 million from $5.64 million year-over-year, largely due to higher costs of goods sold and increased depreciation expenses associated with a strategic pivot towards ready-to-drink (RTD) nutrition manufacturing.

The net loss for the quarter was $3.67 million, slightly higher than the $3.32 million loss reported in the prior year. The increase in losses was attributed to the rise in operating expenses, despite the revenue growth. Notably, the company benefited from a $3.35 million income tax benefit, resulting from the sale of state tax benefits, which helped mitigate the overall loss. The loss per share for the quarter was reported at $5.25, compared to $24.74 in the previous year, reflecting the impact of a reverse stock split that took place in early February 2026.

In terms of strategic developments, Edible Garden is transitioning its Prairie Hills facility in Webster City, Iowa, into a dedicated RTD clean nutrition manufacturing hub. This initiative is part of the company's broader "Farm-to-Formula" strategy, which aims to leverage its controlled environment agriculture capabilities to produce higher-margin, shelf-stable beverages. The company has entered into agreements with Tetra Pak for engineering services and equipment procurement, with production expected to commence in 2027, contingent on various approvals and capital availability.

Operationally, Edible Garden's total assets decreased to $17.48 million as of March 31, 2026, down from $20.60 million at the end of 2025. The company reported a cash balance of $1.95 million, an increase from $1.11 million at the end of the previous year. The total debt also rose to $2.70 million from $1.88 million, reflecting ongoing financing activities. The company continues to face challenges related to liquidity, with management expressing substantial doubt about its ability to continue as a going concern without additional capital.

Looking ahead, Edible Garden's management is focused on securing further financing to support its operations and strategic initiatives. The company is exploring various options, including public and private financing, to ensure it can meet its operational needs and continue its growth trajectory. However, the ability to raise capital remains uncertain, and the company acknowledges that it may need to scale back operations if sufficient funding is not secured.