Sow Good (SOWG) Q2 2026 earnings summary

Executive summary

• Completed sale of manufacturing assets and transitioned to a commission-based, asset-light distribution model in December 2025, with Trea Grove LLC as exclusive distributor, earning 10% of gross receipts from product sales.

• Entered into a share purchase agreement in April 2026 to acquire Tanzanian subsidiaries holding the Nachu Graphite Project, aiming to expand into the critical minerals and battery anode materials sector; transaction pending regulatory and financing approvals.

• Leadership changes included new CEO and CFO appointments and a reconstituted Board in March 2026.

Financial highlights

• Net loss from continuing operations was $3.9 million for Q2 2026, up from $1.3 million in Q2 2025; net loss for the six months ended June 30, 2026 was $6.4 million, down from $6.8 million in the prior year period.

• No revenue from continuing operations in Q2 2026; $18,000 commission revenue from discontinued operations for the six months ended June 30, 2026, reflecting the new distribution model.

• Operating expenses increased sharply due to higher legal and professional fees related to restructuring, preferred stock issuance, and strategic initiatives.

• Cash and cash equivalents were $8,492 at June 30, 2026, down from $1.47 million at December 31, 2025.

• Working capital deficit widened to $5.2 million at June 30, 2026 from $2.8 million at year-end 2025.

Outlook and guidance

• Management expects continued low revenue under the commission-based model and is seeking additional capital to fund operations and strategic expansion.

• The company’s ability to continue as a going concern is uncertain without new financing.

• Focus remains on closing the Nachu Graphite Project acquisition and developing the asset.