MustGrow Biologics (MGRO) investor relations material

Executive summary

• Q3 2025 was a seasonally light quarter with sales of $0.8 million, a record compared to no revenue in Q3 2024, due to the agricultural cycle in Canada.

• All Q3 revenue was generated by the Nexus BioAg division; Terra Sate sales were zero due to inventory shortages from higher-than-expected demand.

• Gross profit reached $180,555, reflecting a 22.9% margin, up from 20.9% in Q2 2025.

• Management anticipates Q4 2025 to be the strongest quarter, with a positive outlook for Q1 2026 as farmers prepare for the next growing season.

• Product pipeline progress includes strong field trial results for Terra Sate and Terra MG, with ongoing registration efforts in the US, Canada, and the EU.

Financial highlights

• Gross margin improved to 22.9% in Q3, up from 20.9% in Q2 and 15.9% in the first half of the year, driven by a higher-margin product mix.

• Net loss for Q3 was $2.4 million, down from $2.7 million in the first half; year-to-date net loss is $5.2 million.

• Year-to-date sales revenue reached $7.4 million, with a gross profit of $1.3 million and a gross margin of 17.7%.

• Cash and equivalents totaled $3.3 million as of September 30, 2025; inventory stood at $1.9 million.

• Inventory shortages in Q3 resulted in an estimated $1–1.5 million in unfilled sales.

Outlook and guidance

• Q4 2025 is expected to be the strongest quarter, with significant demand for Terra Sate and a robust sales pipeline for 2026.

• Management targets cash flow break-even in 2026, with required sales of $20–30 million depending on product mix.

• Inventory for Terra Sate is targeted at 5,000–10,000 bags for the 2026 season.

• Expansion into new markets (Latin America, EU, and potentially Asia) is under discussion, with a focus on partnerships and licensing.

• Focus remains on growing revenue through NexusBioAg in Canada and TerraSante biofertility sales in the U.S.