Edible Garden (EDBL) investor relations material

Executive summary

• Revenue declined 26% year-over-year to $3.1M for Q2 2025, mainly due to strategic exit from low-margin floral and lettuce categories, while core herb and supplement revenues also decreased.

• Net loss widened to $4.0M for Q2 2025 from $1.9M in Q2 2024, driven by lower revenue and higher SG&A expenses, including legal and transaction costs.

• Focused on higher-margin, innovation-driven categories, with investments in shelf-stable products, private label, and global expansion.

• Acquisition of NaturalShrimp aquaculture facility (now Prairie Hills) expands R&D, IP, aquaponics capabilities, and distribution reach.

• Substantial doubt exists about the ability to continue as a going concern due to ongoing losses and limited liquidity.

Financial highlights

• Q2 2025 revenue was $3.1M, down from $4.3M in Q2 2024, mainly due to exiting floral and lettuce categories.

• Gross profit was $634K, down from $1.6M in Q2 2024, with gross margin falling to 20% from 37% year-over-year.

• SG&A expenses rose to $4.2M from $2.7M, driven by acquisition, legal, labor, and raw material costs.

• Net loss attributable to common stockholders for Q2 2025 was $13.9M, including a $9.8M deemed dividend on warrants.

• Ended the quarter with $2.8M in cash; total debt was $2.0M; stockholders' equity at $1.6M.

Outlook and guidance

• Anticipates strong Q4 performance, with significant preorders and new accounts expected to drive growth.

• Management expects continued significant net losses and negative cash flow in the near term, requiring additional capital.

• Confident in replacing lost revenue from exited categories with higher-margin products and private label expansion.

• Q4 expected to be a major loading quarter for vitamin supplements, aligning with seasonal demand.

• Uncertainty remains regarding the ability to raise funds on acceptable terms or at all.