Edible Garden (EDBL) Q1 2026 earnings summary

Executive summary

• Revenue grew 22.9% year-over-year to $3.3 million for Q1 2026, driven by broad-based growth in cut herbs, vitamins, supplements, and condiments, with international sales up 50% and retail expansion to over 6,000 locations including Target and Safeway.

• Strategic focus is shifting toward higher margin, shelf-stable, and ready-to-drink (RTD) nutrition products, leveraging vertically integrated infrastructure and partnerships with Tetra Pak and McCormick.

• Net loss widened to $3.7 million from $3.3 million year-over-year, primarily due to higher cost of goods sold and $2.5 million in accelerated depreciation tied to the RTD pivot.

• The company faces substantial doubt about its ability to continue as a going concern, with cash expected to fund operations only into Q3 2026 without additional capital.

• Distribution agreements expanded with major retailers such as Target, Safeway, Kroger, Weis Markets, Busch's Fresh Food Market, and The Fresh Market.

Financial highlights

• Revenue for Q1 2026 was $3.3 million, up from $2.7 million in Q1 2025, a 22.9% increase.

• Operating expenses rose to $10 million from $5.6 million, mainly due to increased cost of goods sold and $2.5 million in accelerated depreciation.

• Net loss was $3.7 million, compared to $3.3 million in the prior year, with net loss per share improving to $(5.25) from $(24.74) due to higher share count.

• Cash at quarter-end was $2 million, the first sequential increase in five quarters, with $2.7 million in total debt outstanding.

• Income tax benefit of $3.4 million was recorded, primarily from the sale of tax benefits and valuation allowance release.

Outlook and guidance

• Priorities for 2026 include scaling revenue, improving cost structure, advancing the RTD platform, and maintaining disciplined capital management.

• Expectation of margin improvement as higher margin categories scale and cost efficiencies are realized.

• RTD products expected to become a larger part of the business, with prototypes launching mid-year, manufacturing ramping up in Q3, and Phase 1 production at the new facility anticipated to begin in 2027, contingent on agreements and capital.

• The company expects continued operating losses and negative cash flows in the near term due to increased capital and operational expenses, requiring additional capital to fund operations beyond Q3 2026.

• RTD market projected to grow from $842.5 billion in 2025 to $1.26 trillion by 2033.