Else Nutrition (BABY) Q4 2025 earnings summary

Executive summary

• Fiscal year 2025 marked a transformation with operational improvements, cost reductions, and a strengthened financial foundation, despite challenges like funding constraints and out-of-stock periods.

• Transitioned to a direct retail model in Canada and streamlined logistics in the U.S., resuming sales in major retail channels in Q1 2026.

• Advanced regulatory progress for plant-based infant formula, with U.S. FDA signaling support for new approval pathways and updated guidance.

Financial highlights

• Revenue for 2025 was CAD $6.0 million, down from $8.0 million in 2024.

• Operating expenses dropped 51% year-over-year to $6.7 million, with sales and marketing expenses reduced by over 60%.

• Achieved a positive gross profit of $320 thousand in 2025, compared to a gross loss of $1.2 million in 2024.

• Cost of goods sold declined by 38%, or 46% excluding one-time write-offs of $750,000.

• Cash balance at year-end 2025 was $171 thousand.

Outlook and guidance

• Expecting continued improvement in gross profit margin, targeting an annual GPM of 30% or higher in 2026.

• Confident in achieving profitability within the next 12 months and cash-flow breakeven between late 2026 and early 2027.

• Focused on optimizing cost structure, manufacturing efficiencies, commercial expansion, and regulatory milestones.