Replenish Nutrients Holding (ERTH) Q1 2026 earnings summary

Executive summary

• Achieved strong 29% gross profit margin before other direct costs on granulated fertilizer in Q1 2026, validating long-term margin targets as commercial ramp-up continues.

• Transitioned from blended to granulated fertilizer production at Beiseker, with full 2,000 metric tonnes/month capacity expected by Q3 2026.

• Record year-to-date production and sales of granulated fertilizer, with Q2 volumes already surpassing Q1.

• Pellet facility at Beiseker Hutterite colony to begin production in Q3 2026, targeting 1,000 metric tonnes/month.

• Licensing deals with Farmers Union and MJ Ag progressing, with initial production expected by Q3 2026 and full ramp-up by year-end.

Financial highlights

• Q1 2026 revenue: $417,287, up slightly from $401,570 in Q1 2025, driven by higher granulated fertilizer sales and pricing.

• Gross profit: $(236,391), down from $74,811 in Q1 2025, reflecting transition costs and lower blended fertilizer margins.

• Gross profit margin: -57% in Q1 2026 vs. 19% in Q1 2025.

• Net loss: $(1,827,654), increased from $(1,215,151) year-over-year, due to lower margins, higher finance costs, and non-cash unrealized loss on financial assets.

• Cash used in operating activities: $(853,830), compared to $148,002 generated in Q1 2025.

Outlook and guidance

• Granulated and pellet fertilizer gross profit margins expected to remain between 25%-35% before other direct costs at full scale.

• Blended fertilizer margins forecasted at 10%-15% before other direct costs.

• Beiseker facility to reach full production capacity by Q3 2026; pellet facility and licensing partners to begin production in Q3 2026.

• Anticipates continued growth in sales volumes and margins through 2026, supported by increased demand due to geopolitical disruptions in international fertilizer supply.