Barfresh Food Group (BRFH) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of $14.2 million for FY2025, a 33% year-over-year increase, and $5.4 million in Q4, up 94% year-over-year, driven by the Arps Dairy acquisition and expanded school channel presence.

• Transitioned approximately 90% of revenue mix to in-house manufacturing, enabling fulfillment of larger orders and supporting future growth.

• Completed the acquisition of Arps Dairy, gaining control of manufacturing and enhancing operational efficiency.

• Secured $7.5 million in senior convertible note financing and a $2.4 million government grant for facility upgrades.

• Won a 7-year contract with the fifth largest school district in the U.S., strengthening K-12 channel presence.

Financial highlights

• Q4 2025 revenue: $5.4 million (record quarterly revenue); FY2025 revenue: $14.2 million (record annual revenue).

• Gross margin Q4 2025: 3% (vs. 26% Q4 2024); adjusted gross margin Q4 2025: 4% (vs. 30% Q4 2024).

• FY2025 adjusted gross margin: 22% (vs. 37% FY2024), impacted by startup costs and lower-margin dairy operations.

• Q4 2025 net loss: $763,000 (improved from $852,000 Q4 2024); FY2025 net loss: $2.7 million (improved from $2.8 million FY2024).

• Adjusted EBITDA loss FY2025: $2.1 million (vs. $1.3 million loss FY2024); Q4 2025 adjusted EBITDA loss: $1.1 million.

Outlook and guidance

• FY2026 revenue guidance: $28–$32 million; adjusted EBITDA guidance: $3.2–$3.8 million.

• Q1 FY2026 revenue expected at $5–$5.2 million; adjusted EBITDA break-even.

• Margin recovery expected to accelerate in H2 2026 as facility enhancements are completed.

• Facility expansion to support over $200 million in annual revenue capacity upon completion.

• Expects quarterly improvement in revenue and profitability as facility enhancements are completed.