Provide insight into the acceleration of industry consolidation and the remaining opportunities for Edible Garden.

Jim Kras attributed consolidation to competitors focusing on technology over customer relationships and distribution. Edible Garden's investment in its distribution platform, customer experience, and efficient operations (like retrofitting greenhouses instead of greenfield projects) has positioned it to gain market share as competitors falter. He noted that retailers are seeking reliable partners, leading to increased inbound interest. “our competitors put a lot of money into technology, a lot of money in trying to talk more about yield per square foot than really going out securing the relationships in parallel, making investments like we have in the customer -- the customer experience.”

Inquire about the timeline for the Prairie Hills facility, insights into prototype production, and remaining steps.

Jim Kras confirmed the timeline is on track for the first bottle to come off the line in late 2027. He highlighted 100% presold commitments for the facility, a blend of own brands and private label. Prototype production at Tetra Pak's Denton, Texas facility was successful, with Dr. Chuck Sizer (a Tetra Pak patent developer) on their team. They plan to start with a co-manufacturer in Q4 this year to bring products to market sooner. “we're still on track, and we're looking at the tail end of 2027 to see the first bottle come off the line. We have, once again, having the reputation that we have for our service levels, our execution., We've got presold commitments for 100% of the facility, which is just unheard of”

Discuss the level of interest from potential customers for the Prairie Hills facility and how discussions are progressing.

Jim Kras stated that interest has been phenomenal, driven by retailers seeking innovative solutions and private label RTD options, which are currently underserved due to capacity shortages. He noted that retailers are approaching Edible Garden, and they have commitments for "pretty much on the whole factory." “retailers were coming to us and saying, hey, you guys are an innovative group. You're in a really challenging category. You've done a great job servicing our business. We want more of what you're doing.”

EDBL

Edible Garden (EDBL) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Staples· Aug 14, 2026

Source: earnings call transcript

Executive summary

Edible Garden Q2 FY26 — Strong Revenue Growth and Prairie Hills Progress

Edible Garden delivered solid Q2 FY26 results, marked by double-digit revenue growth and significant SG&A reduction, driven by strong performance in cut herbs and expanded retail partnerships. The company is making substantial progress on its Prairie Hills RTD manufacturing facility, which is expected to fundamentally change its scale and profile, leveraging existing retail relationships for future growth in clean label nutrition.

Highlights

Revenue grew 12.8% year-over-year to $3.6 million.
Total sales increased by more than 31%.
Cut herb sales increased more than 42%.
SG&A declined approximately $0.9 million or 21.5% to $3.1 million.
Operating cash flow was positive for the second consecutive quarter, providing $0.9 million for the 6 months ended June 30, 2026.

Concerns

Gross profit was approximately $0.6 million, essentially flat with the prior year period, due to elevated cost of goods sold.
Unrestricted cash available for operations was approximately $0.7 million at June 30, 2026, down from $1.1 million at year-end.

Guidance & targets

Category	Target	Timeline	Confidence
Prairie Hills RTD facility commercial production	first bottle come off the line high materiality	tail end of 2027 · FY27	High
Prairie Hills RTD facility capacity utilization	100% presold commitments high materiality	at full production	High
RTD co-manufacturing launch	starting with a co-manufacturer medium materiality	Q4 FY26	High
Kick brand launch	launching medium materiality	Q4 FY26	High

Product announcements

Product	Type	Timeline	Details
Kick	launch	Q4 this year

Deals & partnerships

major Midwest retailer extended a multiyear private label contract multiyear

Extended a multiyear private label contract with a major Midwest retailer.

Target awarded fresh-cut herb distribution through a key Target Midwest distribution center

Awarded fresh-cut herb distribution through a key Target Midwest distribution center, leveraging Midwest production and distribution infrastructure.

Capital programs

Prairie Hills RTD Manufacturing Facility underway

Spent to date: $13.5 million

Funding: new financing

Benefit:more than 100 million beverage units annually

The facility is being developed as a flexible, high-capacity platform for shelf-stable, clean label nutritional beverages utilizing advanced Tetra Pak processing and packaging technologies. Initial investment of $13.5 million was financed this quarter.

Risks & headwinds

Elevated Cost of Goods Sold Q2 FY26

Gross profit for the quarter was approximately $0.6 million, essentially flat with the prior year period. While we continue to generate top line growth, cost of goods sold remained elevated.

Mitigation:Improving profitability of that growth remains an important focus for us.

Limited Unrestricted Cash for Operations June 30, 2026

Approximately $0.7 million of cash available for operations compared with approximately $1.1 million of unrestricted cash at year-end.

Mitigation:The company continues to focus on strengthening its capital position as it funds the business and invests in Prairie Hills.

Industry Consolidation in Controlled Environment Agriculture (CEA) current

Quite a bit of consolidation in CEA right now with major -- some of our major competitors basically going out of business.

Mitigation:Edible Garden is positioned to pick up market share due to its trusted supplier status, best-in-class fill rates, and focus on customer relationships, leading to increased inbound interest from retailers.

What to watch in Q3 FY26

RTD co-manufacturing launch

Q4 FY26

Current Planned

Target Successful launch and initial revenue recognition

Why it matters

This launch will provide early market entry and revenue generation for the RTD platform ahead of the Prairie Hills facility's full operation.

we are going to be starting with a co-manufacturer this year, at the end of Q4 to allow us to kind of continue to prove out the formulas to allow us to go to market quickly and see the revenue from that

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Q&A highlights

Contextualize the significance of the new Target distribution award and its impact.

Jim Kras explained that the new distribution through a key Target Midwest distribution center is very significant, as it's one of Target's largest. It was awarded due to Edible Garden's strong performance, best-in-class fill rates, and reliability amidst market consolidation where other CEA suppliers are struggling. It leverages their Midwest production and aligns with Target's Minnesota base.

“this is one of their largest, if not one of their largest, pretty close. They just opened up a new fresh distribution center since they've been growing this part of their business, Target. So -- but this has been the long-standing largest.”

asked by Nicholas Sherwood · answered by James Kras

2 min read 6 chapters

Detailed narrative

Strong Core Business Growth

Edible Garden reported a 12.8% year-over-year revenue increase to $3.6 million, with total sales up over 31%. This growth was broad-based, with cut herb sales surging over 42% and expansion across potted herbs, international vitamins, and condiments. The company deepened relationships with major retailers like Kroger, Target, Walmart, and Wakefern, and secured new distribution for fresh-cut herbs through a key Target Midwest distribution center, leveraging its regional infrastructure.

Operating Efficiency and Cost Management

The company is actively improving its underlying economics, transitioning Metro New York volume to retail distribution centers to reduce transportation costs and simplify its network. SG&A expenses significantly declined by 21.5% or $0.9 million to $3.1 million, reflecting a focus on managing expenses and improving operating efficiency. This contributed to a year-over-year improvement in net loss to $3.3 million from $4 million.

Prairie Hills RTD Manufacturing Platform Development

Edible Garden is making significant progress on its Farm-to-Formula strategy and the Prairie Hills ready-to-drink (RTD) manufacturing platform in Iowa. Prototype production was successfully completed at Tetra Pak's development center, validating proprietary clean label formulations under commercial conditions. The facility is designed for high-capacity, shelf-stable nutritional beverages, with an expected annual capacity of over 100 million units.

Strategic Vision for Prairie Hills

The Prairie Hills facility is envisioned as a flexible platform for various better-for-you categories, including sports nutrition, protein beverages, and meal replacements. It will support both Edible Garden's own brands and private label/co-manufacturing opportunities. The company has secured presold commitments for 100% of the facility's capacity, demonstrating strong market demand.

Commercial production is targeted for late 2027, with an interim co-manufacturing launch in Q4 this year.

Leveraging Existing Infrastructure

The company's existing commercial infrastructure, including relationships with over 6,000 retail locations, food safety, and supply chain capabilities, provides a strong foundation for the RTD expansion. This combination is expected to significantly expand the addressable market, diversify revenue, and improve earnings, transforming Edible Garden into a broader clean label food and nutrition platform.

Industry Consolidation and Market Opportunity

The Controlled Environment Agriculture (CEA) industry is experiencing consolidation, with some competitors exiting the market. Edible Garden, as a trusted supplier with strong execution and fill rates, is benefiting from this trend, receiving increased interest from retailers seeking reliable partners. This market dynamic, coupled with the underserved private label RTD market, presents substantial growth opportunities for the company.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.