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    EDBL
    Earnings call· Jun 2026(Q2 FY26)

    Edible Garden AG Q2 FY26 earnings call EDBL

    Aug 14, 2026 Source

    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

    5

    • 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

    2

    • 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

    4
    CategoryTargetConfidence
    Prairie Hills RTD facility commercial production
    first bottle come off the line
    high materiality
    High
    Prairie Hills RTD facility capacity utilization
    100% presold commitments
    high materiality
    High
    RTD co-manufacturing launch
    starting with a co-manufacturer
    medium materiality
    High
    Kick brand launch
    launching
    medium materiality
    High

    Operational metrics

    16
    Revenue
    $3.6 million12.8% year-over-year
    Q2 FY26

    Revenue for the 3 months ended June 30, 2026.

    Total sales growth
    >31%year-over-year
    Q2 FY26

    Total sales increased by more than 31%.

    Cut herb sales growth
    >42%year-over-year
    Q2 FY26

    Cut herb sales increased more than 42%.

    Gross sales growth
    7.6%year-over-year
    Q2 FY26

    Total gross sales increasing 7.6% year-over-year.

    Gross profit
    $0.6 millionflat with the prior year period
    Q2 FY26

    Gross profit for the quarter was approximately $0.6 million, essentially flat with the prior year period due to elevated cost of goods sold.

    SG&A expenses
    $3.1 milliondeclined $0.9 million or 21.5% year-over-year
    Q2 FY26

    Selling, general and administrative expenses declined approximately $0.9 million or 21.5% to $3.1 million.

    Net loss
    $3.3 millionimproved from $4 million in Q2 2025
    Q2 FY26

    Net loss improved year-over-year to approximately $3.3 million from approximately $4 million in the second quarter of 2025.

    Total debt
    $14.2 millionincreased from $1.9 million at year-end
    June 30, 2026

    Total debt increased approximately $14.2 million from approximately $1.9 million at year-end.

    New financing for Prairie Hills
    $13.5 million
    Q2 FY26

    Reflecting $13.5 million of new financing this quarter related to our initial investment in the Prairie Hills manufacturing facility in Iowa.

    Cash and restricted cash
    $10.7 million
    June 30, 2026

    Cash and restricted cash together were approximately $10.7 million at June 30, 2026.

    Restricted cash for Iowa facility
    $10 million
    June 30, 2026

    Approximately $10 million of cash was held in a restricted account for the Iowa facility.

    Unrestricted cash
    $0.7 milliondown from $1.1 million at year-end
    June 30, 2026

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

    Total assets
    $27.7 millionup from $20.6 million at December 31, 2025
    June 30, 2026

    Total assets were approximately $27.7 million compared with approximately $20.6 million at December 31, 2025.

    Total liabilities
    $22.1 million
    June 30, 2026

    Total liabilities were approximately $22.1 million.

    Net cash provided by operating activities
    $0.9 millionpositive for second consecutive quarter, compared with cash used of $6.8 million in prior year period
    6 months ended June 30, 2026

    Operating cash flow was positive for the second consecutive quarter with net cash provided by operating activities of approximately $0.9 million for the 6 months ended June 30, 2026.

    Prairie Hills annual beverage unit capacity
    >100 million
    annually

    At full production, we expect the facility to have capacity to manufacture more than 100 million beverage units annually.

    Industry KPIs

    3
    MetricValueDetails
    Gross marginapproximately $0.6 millionUSD
    Organic net revenue growth12.8%%
    Retailer trade negotiation statusExtended multiyear private label contract; Awarded new Target distribution

    Product announcements

    1
    ProductTypeDetails
    Kicklaunch

    Deals & partnerships

    2
    major Midwest retailerextended a multiyear private label contractmultiyear

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

    Targetawarded 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

    1
    Prairie Hills RTD Manufacturing Facilityunderway
    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

    3
    Elevated Cost of Goods SoldQ2 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 OperationsJune 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

    5

    RTD co-manufacturing launch

    Q4 FY26
    CurrentPlanned
    TargetSuccessful 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

    Q&A highlights

    5

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.