Sow Good (SOWG) Q1 2026 earnings summary

Executive summary

• Completed sale of manufacturing assets and shifted to a commission-based, asset-light distribution model in December 2025, with Trea Grove LLC as exclusive distributor through July 2026.

• Raised $6 million via two tranches of convertible preferred stock, used to pay down debt and fund operations.

• Leadership transition: Claudia Goldfarb stepped down as CEO, David Lazar appointed CEO and Chairman, followed by further executive and board changes in March 2026.

• Announced proposed acquisition of Nachu Graphite Project in Tanzania and secured a $20 million credit facility for expansion into critical minerals.

Financial highlights

• Net loss from continuing operations was $1.93 million for Q1 2026, compared to $1.95 million in Q1 2025.

• Net loss from discontinued operations was $0.56 million, down from $0.80 million year-over-year.

• Total net loss for Q1 2026 was $2.49 million, a 10% improvement from $2.75 million in Q1 2025.

• Commission revenue from the new distribution model was $18,000 in Q1 2026; prior year revenue was reclassified to discontinued operations.

• Cash and cash equivalents were $2.32 million as of March 31, 2026, up from $1.47 million at year-end 2025.

Outlook and guidance

• Management expects the asset-light model to reduce ongoing operating and capital expenditures but acknowledges that additional capital will be needed to sustain operations and fund strategic initiatives.

• The company is pursuing the Nachu Graphite Project and broader expansion into the critical minerals sector, contingent on financing and regulatory approvals.