Flow Beverage (FLOW) investor relations material

Executive summary

• Q2 2025 consolidated net revenue was $10 million, with Flow brand at $3.6 million and Planet A at $6.4 million, reflecting a 28% increase in Planet A due to new contracts and higher volumes.

• Trailing 12-month revenue reached $47 million, returning to fiscal 2022 levels after exiting unprofitable contracts and focusing on profitable growth.

• Gross margin for the trailing 12 months was $11.8 million, with Q2 2025 gross margin at 23%, down from 28% year-over-year due to lower utilization and a $0.2 million inventory write-off.

• Adjusted EBITDA loss improved to $3.0 million in Q2 2025 from $3.5 million year-over-year, and to $11.6 million for the trailing 12 months.

• Recent $14.3 million in funding, including loans and private placements, supports working capital, production scaling, and growth initiatives.

Financial highlights

• Q2 2025 net revenue was $10 million, with a 17% year-over-year decline due to a 49% drop in Flow brand sales, partially offset by Planet A co-pack growth.

• Gross margin for Q2 2025 was 23%, impacted by lower production volumes and increased overhead absorption.

• Adjusted EBITDA loss improved by $500,000 compared to Q2 2024.

• SG&A plus salaries and benefits reduced to $24.5 million in the trailing twelve months.

• Net loss for Q2 2025 was $10.5 million, compared to $7.0 million in Q2 2024.

Outlook and guidance

• Strong demand and new product launches, including Flow Sparkling Mineral Water, are expected, with Canadian launch in summer 2025 and US launch in early fiscal 2026.

• Commissioning of a fifth production line is targeted for Q4 2025 to support co-pack growth.

• Starbucks Canada to expand SKU set, listing the 750 ml OG in coming months.

• Focus on retail expansion, food service partnerships, and e-commerce optimization.

• Targeting adjusted EBITDA profitability and positive cash flows as long-term goals.