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.

• The company is transitioning its Iowa facility to a ready-to-drink (RTD) and clean nutrition manufacturing hub, expanding beyond fresh produce into higher-margin, shelf-stable beverage and nutrition categories.

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

Financial highlights

• Revenue for Q2 2026 increased 12.8% year-over-year to $3.6 million, with six months revenue at $6.9 million, up 17.5% year-over-year.

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

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

• Net loss improved to $3.3 million from $4 million in Q2 2025.

• 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 facility development is expected to provide annual RTD beverage production capacity exceeding 100 million units, with 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 improved profitability as scale increases and cost structure remains relatively static.