Edible Garden (EDBL) Q2 2026 earnings summary

Executive summary

• Revenue grew 12.8% year-over-year to $3.6 million for Q2 2026, with total sales up over 31% and strong gains in cut herb sales, driven by expanded programs with major retailers like Kroger, Target, and Weis.

• Net loss narrowed to $3.3 million for Q2 2026 from $4.0 million in Q2 2025, and to $6.9 million for the six months ended June 30, 2026 from $7.4 million in the prior year period.

• Strategic initiatives included expanding distribution with Target, advancing the Farm-to-Formula RTD beverage strategy, and improving operating efficiency by transitioning more volume to retail distribution centers and leveraging logistics hubs.

• The company is transitioning its Iowa facility to a ready-to-drink (RTD) and clean nutrition manufacturing hub, with significant progress on prototype production at Tetra Pak's development center and ongoing construction of the Prairie Hills RTD manufacturing facility.

• A 1-for-45 reverse stock split was implemented in July 2026 to regain Nasdaq compliance.

Financial highlights

• Q2 2026 revenue: $3.6 million (up 12.8% YoY); six months revenue: $6.9 million (up 17.5% YoY).

• Gross profit for the quarter was approximately $0.6 million, flat year-over-year, as cost of goods sold remained elevated.

• SG&A expenses declined by $0.9 million (21.5%) to $3.1 million, reflecting improved expense management.

• Net loss improved to $3.3 million from $4 million in the prior year quarter.

• Operating cash flow was positive for the second consecutive quarter, with $0.9 million net cash provided in the first half of 2026.

Outlook and guidance

• Prairie Hills RTD facility remains on track, with first production expected at the end of 2027 and pre-sold commitments for 100% of capacity.

• Management expects continued operating losses and negative cash flows in the near term as capital and operational expenses rise with the RTD facility buildout.

• The company may need to raise additional capital through equity or debt to fund operations beyond Q3 2026.

• A new supply agreement with Meijer Distribution, Inc. for 2027-2028 is expected to support future revenue.

• Anticipates further revenue growth and cost efficiencies as scale increases, with strategic staffing investments primarily for the new facility.