Barfresh Food Group (BRFH) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of $14.2 million for FY2025, up 33% year-over-year, 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 strategic acquisition of Arps Dairy, gaining control of manufacturing and resolving prior supply constraints.

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

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

Financial highlights

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

• Q4 gross margin: 3% (vs. 26% prior year); adjusted gross margin: 4% (vs. 30%).

• FY2025 adjusted gross margin: 22% (vs. 37% prior year), impacted by startup costs and lower-margin milk processing.

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

• Q4 adjusted EBITDA loss: $1.1 million (vs. $563,000 prior year); FY2025 adjusted EBITDA loss: $2.1 million (vs. $1.3 million prior year).

Outlook and guidance

• FY2026 revenue guidance: $28–$32 million, reflecting 97%–125% year-over-year growth.

• FY2026 adjusted EBITDA guidance: $3.2–$3.8 million.

• Q1 2026 revenue expected at $5–$5.2 million, with adjusted EBITDA break-even.

• Margin recovery and profitability expected to accelerate as facility enhancements are completed.

• Quarterly improvement in revenue and profitability anticipated as facility upgrades progress.