Barfresh Food Group (BRFH) investor relations material

Executive summary

• Q2 2026 revenue rose 190% year-over-year to $4.7 million, primarily due to the Arps Dairy acquisition, which contributed $3.2 million in revenue, including $2.9 million from milk sales.

• Net loss widened to $1.9 million from $880,000 year-over-year, impacted by startup and inefficiency costs at the acquired facility and higher interest expense from acquisition-related debt.

• Adjusted EBITDA loss increased to $1.2 million from $600,000 in the prior year quarter.

• Transitioned from reliance on third-party co-manufacturers to in-house production, focusing on stabilizing operations and regaining lost customers.

• Management expects to reach Adjusted EBITDA breakeven in the second half of 2026 as production efficiencies improve.

Financial highlights

• Q2 2026 revenue was $4.7 million, up from $1.6 million in Q2 2025; six-month revenue reached $10.3 million.

• Gross loss of $150,000 (-3.2% margin) versus gross profit of $506,000 (31.1% margin) in Q2 2025, due to startup costs and lower productivity.

• Net loss widened to $1.9 million from $880,000 year-over-year; six-month net loss was $2.52 million.

• Interest expense increased to $344,000 in Q2 2026 (from $12,000 in Q2 2025), reflecting new debt.

• Cash and accounts receivable totaled $1.4 million as of June 30, 2026; inventory was $2.2 million.

Outlook and guidance

• FY 2026 revenue guidance revised to $23–$26 million, representing 62%–83% growth over FY 2025.

• FY 2026 adjusted EBITDA expected between -$1 million and -$2 million, with breakeven targeted in the back half of the year.

• Sequential revenue improvement expected in Q3 and Q4 2026 as new school contracts ramp up and production efficiency improves.

• Management expects improved liquidity and operational performance as new facility construction completes and production ramps up.

• Ongoing supply chain and construction risks could impact ability to meet growth projections.