Q3 2025 Laird Superfood Inc Earnings Call

Invitation portion of the call up an opportunity for questions and answers at the end if you would like to ask a question. Please press star one on your telephone keypad.

Jason Vieth: Year-to-date, e-commerce was relatively flat, and we remain optimistic about this channel's potential as we refine our digital marketing strategy and leverage our loyal, repeat customer base, which accounted for about 88% of DTC sales in the quarter. Gross profit for the quarter was $4.7 million, down 7% from the prior year, with gross margin contracting to 36.5% from 43% last year. This was fully expected and largely due to commodity cost inflation and channel mix shifts towards wholesale, but also due to the non-recurrence of a one-time supplier settlement benefit that we recorded in Q3 of last year, which impacted margins by about three points. Year-to-date, gross profit increased 9% to $14.4 million as we have managed to offset a good portion of the commodity and tariff impacts that have swept the national headlines.

I have to pass the conference over to our host Trevor Russo head of Investor Relations, We alerted superfood Trevor. Please go ahead.

Thank you and good afternoon welcome.

Welcome to <unk> third quarter, 2025 earnings conference call and webcast.

On today's call are Jason beat that typically each president and Chief Executive Officer.

Only handle our chief financial Officer.

By now everyone should have access to the company's earnings release, which was filed today after market close.

It is available on the Investor Relations section of where typically its website at www Dot <unk>.

Dot com.

Speaker #1: Good afternoon. Thank you for attending the Laird Superfood, Inc. Q3 2025 financial results call. My name is Matt, and I'll be your moderator for today's call.

Before we begin please note that during this call may make forward looking statements within the context of federal Securities laws.

These statements are based on management's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those described.

Speaker #1: All lines be muted during the presentation portion of the call for an opportunity for questions and answers at the end. If you would like to ask a question, please press star one on your telephone keypad.

Please refer to today's press release and other filings with the SEC for a detailed discussion of these risks uncertainties and with that I'll turn the call over to Jason.

Speaker #1: I now have to pass the conference over to our host, Trevor Rousseau, head of investor relations with Laird Superfood. Trevor, please go ahead.

Jason Vieth: Anya will provide more details on our financials in a moment, but overall, these results demonstrate the progress that we're making in scaling our business while navigating a dynamic market environment. Turning to business highlights, we're excited about the momentum in our wholesale expansion. We've continued to add distribution points at major retailers, and our velocities in core categories like shelf-stable creamers continue to outperform our expectations. This validates our focus on premium functional ingredients that resonate with consumers shifting away from sugar-laden and artificial options. On the innovation front, we're continuing to invest in product development to diversify our portfolio and drive repeat usage. We are excited to be launching our new protein coffee in the next month, and we have already begun shipping our new liquid creamer products. On liquid creamers, this marks an enormous improvement to our existing formulation.

Speaker #2: Thank you, and good afternoon. Welcome to Laird Superfood's Q3 2025 earnings conference call and webcast. On today's call are Jason Vieth, Laird Superfood's President and Chief Executive Officer, and Anya Hamill, our Chief Financial Officer.

Thank you Trevor and good afternoon, everyone.

Thank you for joining us today for our third quarter 2025 earnings call.

I am pleased to report another quarter of solid top line growth as we continue to execute on our strategy to build layered super food into a leading player in the premium plant based functional food space.

Speaker #2: By now, everyone should have access to the company's earnings release, which was filed the day after market closed. It is available on the investor relations section of Laird Superfood's website, at www.lairdsuperfood.com.

Net sales for the third quarter increased 10% year over year to $12 $9 million driven primarily by strong performance in our wholesale channel.

Speaker #2: Before we begin, please note that during this call, management may make forward-looking statements within the context of federal securities laws. These statements are based on management's current expectations and involve risk and uncertainties that could cause actual results to differ materially from those described.

For the first nine months of 2025, net sales were up 15% to $36 $5 million.

Our wholesale channel continues to be a standout with net sales up 39% in the quarter and 40% year to date.

Speaker #2: Please refer to today's press release and other filings with the SEC for a detailed discussion of these risks and uncertainties. And with that, I'll turn the call over to Jason.

This growth reflects our focused efforts on expanding distribution, particularly in grocery and club stores, where we've seen robust velocity gains and increased shelf space.

Speaker #3: Thank you, Trevor. And good afternoon, everyone. Thank you for joining us today for our Q3, 2025 earnings call. I'm pleased to report another quarter of solid top-line growth as we continue to execute on our strategy to build Laird Superfood into a leading player in the premium plant-based functional food space.

Jason Vieth: We've now replaced the coconut oil with organic coconut cream, increased the level of adaptogenic mushrooms, and replaced cane sugar with lower glycemic index coconut sugar. The resulting taste and texture are far superior to our previous products, and I would dare say the best-tasting and healthiest products on the market. We are relaunching these creamers as organic formulations, and packaging them in a post-consumer recycled plastic bottle that will be really attractive on the retailer shelves. Now, back to protein coffee, we have high expectations for this launch. This marks Laird Superfood's first foray into dairy products, a market which is somewhere around 10 times as large as the plant-based market that we have been participating in to date. The product that we are launching is Dynamite.

We're seeing strong consumer demand for our core products like coffee Creamers hydration, enhancers and functional beverages.

Shoppers increasingly seek out clean functional ingredients that align with healthier lifestyles.

Speaker #3: Net sales for the third quarter increased 10% year over year to $12.9 million, driven primarily by strong performance in our wholesale channel. For the first nine months of 2025, net sales were up 15% to $36.5 million.

The wholesale channel contributed 53% of net sales during Q3 and through the first three quarters of 2025 represented 49% of our total net sales.

This is well aligned to our strategic intent of transitioning layered super food to being a wholesale led company.

Speaker #3: Our wholesale channel continues to be a standout with net sales up 39% in the quarter and 40% year to date. This growth reflects our focused efforts on expanding distribution particularly in grocery and club stores where we've seen robust velocity gains and increased shelf space.

And our E Commerce channel, which represented 47% of net sales in the quarter, we experienced an 11% decline year over year, primarily due to softness in our direct to consumer platform from lower new customer acquisition.

However, this was partially offset by continued growth on Amazon Dot com.

Speaker #3: our core products like coffee creamers, hydration enhancers, and functional beverages, as shoppers increasingly seek out clean, functional ingredients that We're seeing strong consumer demand for align with healthier lifestyles.

Jason Vieth: It's a high-quality freeze-dried coffee blended with 10g of dairy protein per serving, perfect for anyone looking to add protein to their diet. With low calories and no sugar, it's also a perfect fit with today's health and wellness trends, and great support for anyone taking GLP-1s. As part of our strategy to streamline operations and focus resources on our highest-growth opportunities and Laird Superfood brand, we've made the decision to discontinue the Picky Bars brand in the second quarter of 2026. This will allow us to redirect investments toward the core Laird Superfood brand, which we believe has the strongest potential for scale. In connection with this, we recorded a $661,000 impairment charge in the quarter related to Picky Bars and tangible assets. From an operational standpoint, we were able to reduce our inventory by more than $1 million in the third quarter.

Year to date E Commerce was relatively flat and we remain optimistic about this channel's potential as we refine our digital marketing strategy and leverage our loyal repeat customer base, which accounted for about 88% of DTC sales in the quarter.

Speaker #3: The wholesale channel contributed 53% of net sales during Q3, and through the first three quarters of 2025, represented 49% of our total net sales.

Gross profit for the quarter was $4 $7 million down 7% from the prior year with gross margin contracted to 36, 5% from 43% last year.

Speaker #3: This is well aligned to our strategic intent of transitioning Laird Superfood to being a wholesale-led company. In our e-commerce channel, which represented 47% of net sales in the quarter, we experienced an 11% decline year over year primarily due to softness in our direct-to-consumer platform from lower new customer acquisition.

This was fully expected and largely due to commodity cost inflation and channel mix shifts towards wholesale.

But also due to the non recurrence of a onetime supplier settlement benefit that we recorded in Q3 of last year.

Which impacted margin by about three points.

Speaker #3: However, this was partially offset by continued growth on Amazon.com. Year-to-date, e-commerce was relatively flat, and we remain optimistic about this channel's potential as we refine our digital marketing strategy and leverage our loyal repeat customer base, which accounted for about 88% of DTC sales in the quarter.

Year to date gross profit increased 9% to $14 4 million as we have managed to offset a good portion of the commodity and tariff impacts that swept the national headlines.

Jason Vieth: You'll recall that we had strategically built our inventory through the first half of 2025 in order to meet rising demand without the out-of-stocks that we experienced last year and to mitigate the impact of tariffs on imported raw materials, particularly from Southeast Asia. As we continue to sell through this inventory in the coming quarters, we expect cash flows to improve as a result. Speaking of tariffs, I am also pleased to be able to report that we recently were informed that our coconut milk products will not be subject to additional tariffs, reducing the impact on our go-forward costs and improving our 2026 financials by more than $1 million. For the balance of 2025, we'll focus on optimizing our supply chain, managing costs, and driving efficiencies to expand margins over time.

Andrew will provide more details on our financials in a moment, but overall these results demonstrate the progress that we're making in scaling our business, while navigating a dynamic market environment.

Speaker #3: Gross profit for the quarter was $4.7 million, down 7% from the prior year, with gross margin contracting to 36.5% from 43% last year. This was fully expected and largely due to commodity cost inflation and channel mix shifts towards wholesale, but also due to the non-recurrence of a one-time supplier settlement benefit that we recorded in Q3 of last year, which impacted margins by about three points.

Turning to business highlights.

We're excited about the momentum in our wholesale expansion.

We've continued to add distribution points at major retailers and our velocities in core categories like shelf stable Creamers continued to outperform our expectations.

This validates our focus on premium functional ingredients that resonate with consumers shifting away from sugar laden and artificial options.

Speaker #3: Year to date, gross profit increased 9% to $14.4 million, as we have managed to offset a good portion of the commodity and tariff impacts that have swept the national headlines.

On the innovation front, we're continuing to invest in product development to diversify our portfolio and drive repeat usage.

We are excited to be launching our new protein coffee in the next months and.

Jason Vieth: We'll also continue to monitor the macroeconomic factors like commodity inflation and potential trade policies, but we're well-positioned to navigate them as we close out this year and head into 2026. Q3 was another step forward in our journey to build a scalable, profitable business. We're executing on our plan, and I'm excited about the opportunities ahead. With that, I'll turn it over to Anya for a more detailed review of our financials.

Speaker #3: Anya will provide more details on our financials in a moment, but overall, these results demonstrate the progress that we're making in scaling our business while navigating a dynamic market environment.

And we have already begun shipping our new liquid creamer products.

On liquid Creamers.

This marks an enormous improvement to our existing formulation.

We've now replace the coconut oil with organic coconut cream.

Speaker #3: Turning to business highlights, we're excited about the momentum in our wholesale expansion. We've continued to add distribution points at major retailers, and our velocities in core categories like shelf-stable creamers continue to outperform our expectations.

Increase the level of Adaptogenic mushrooms, and replaced cane sugar with lower glycemic index coconut sugar.

The resulting taste and texture are far superior to our previous products and I would dare say, the best tasting and healthiest products on the market.

Speaker #3: This validates our focus on premium, functional ingredients that resonate with consumers shifting away from sugar-laden and artificial options. On the innovation front, we're continuing to invest in product development to diversify our portfolio and drive repeat usage.

Anya Hamill: Thank you, Jason, and good afternoon, everyone. I will now provide you with some additional details on the third quarter of 2025 financial results and an outlook for the full-year performance. I am pleased to report another robust quarter for Laird Superfood, highlighted by double-digit top-line growth, healthy gross margins, positive adjusted EBITDA, and $1.1 million of positive operating cash flow. Net sales grew 10% to $12.9 million, compared to $11.9 million in the prior year period and $12.0 million last quarter. Excluding Picky Bars products, net sales increased 14% in the third quarter. Although net sales growth came in softer than anticipated, primarily due to the timing of large wholesale customer orders, our underlying fundamentals remained strong and unchanged. Our wholesale channel continued to deliver exceptional momentum, increasing 39% year-over-year and representing 53% of total net sales, driven by ongoing distribution gains in both grocery and club.

We are re launching these creamers has organic formulations.

Packaging them in a post consumer recycled plastic bottle that will be really attractive on the retailer shelves.

Now back to protein coffee, we have high expectations for this launch.

Speaker #3: We are excited to be launching our new protein coffee in the next month, and we have already begun shipping our new liquid creamer products.

This marks <unk> Super Foods first foray into dairy products, a market, which is somewhere around 10 times as large as the plant based market that we have been participating in to date.

Speaker #3: On liquid creamers, this marks an enormous improvement to our existing formulation. We've now replaced the coconut oil with organic coconut cream, increased the level of adaptogenic mushrooms, and replaced cane sugar with lower glycemic index coconut sugar.

And the product that we're launching is dynamite.

It's a high quality freeze dried coffee blended with 10 grams of dairy protein per serving.

Perfect for anyone looking to add protein to their diet.

Speaker #3: The resulting taste and texture are far superior to our previous products, and I would dare say the best tasting and healthiest products on the market.

And with low calories and no sugar, it's also a perfect fit with today's health and wellness trends and great support for anyone taking <unk>.

Speaker #3: We are relaunching these creamers as organic formulations and packaging them in a post-consumer recycled plastic bottle that will be really attractive on the retailer shelves.

As part of our strategy to streamline operations and focus resources on our highest growth opportunities and layered superfood brand. We've made the decision to discontinue the picky bars brand in the second quarter of 2026.

Speaker #3: Now, back to protein coffee. We have high expectations for this launch. This marks Laird Superfood's first foray into dairy products. A market which is somewhere around 10 times as large as the plant-based market that we have been participating in to date.

Anya Hamill: E-commerce sales declined 1% year-over-year, reflecting softness in DTC, though this was primarily offset by continued growth on Amazon. Overall, the e-commerce channel contributed 47% of total net sales. Gross margin in the third quarter delivered robust 36.5 points compared to 43.0 points in the corresponding prior year period. It is worth noting that prior year Q3 margins had benefited from one-time favorable supplier settlement that accounted for approximately 3 points of gross margin. Excluding that one-time benefit, Q3 gross margins were about 3.5 points lower than corresponding prior year period, and 3.4 points lower than the second quarter of 2025. These results are in line with our expectations, given commodity inflation in our key raw materials such as coffee and coconut milk powder, and increased tariff costs.

This will allow us to redirect investments toward the core third superfood brand, which we believe has the strongest potential for scale.

In connection with this we recorded a $661000 impairment charge in the quarter related to picky bars intangible assets.

Speaker #3: And the product that we are launching is Dynamite. It's a high-quality, freeze-dried coffee blended with 10 grams of dairy protein per serving. Perfect for anyone looking to add protein to their diet.

From an operational standpoint, we were able to reduce our inventory by more than $1 million in the third quarter.

You'll recall that we have strategically built our inventory through the first half of 2025 in order to meet rising demand without the out of stocks that we experienced last year.

Speaker #3: And with low calories and no sugar, it's also a perfect fit with today's health and wellness trends and great support for anyone taking GLP-1s.

And to mitigate the impact of tariffs on imported raw materials, particularly from southeast Asia.

Speaker #3: As part of our strategy to streamline operations and focus resources on our highest growth opportunities and the Laird Superfood brand, we've made the decision to discontinue the Picky Bars brand in the second quarter of 2026.

As we continue to sell through this inventory in the coming quarters, we expect cash flows to improve as a result.

And speaking of tariffs I'm also pleased to be able to report that we recently were informed that our coconut milk products will.

Speaker #3: This will allow us to redirect investments toward the core Laird Superfood brand which we believe has the strongest potential for scale. In connection with this, we recorded a $661,000 impairment charge in the quarter related to picky bars and tangible assets.

Not be subject to additional tariffs.

Reducing the impact on our go forward costs, and improving our 2026 financials by more than $1 million.

Anya Hamill: We are confident in our ability to hold gross margins in the upper 30s for full year 2025 and beyond, which is at the level of best-in-class CPGs, despite inflationary pressures and even without using pricing as a lever. Our supply chain team continues to drive efficiencies by directly partnering with key raw material suppliers and co-packing partners to find cost savings to offset rising commodity costs. Operating expenses increased $0.4 million in the third quarter compared to the same quarter last year, driven by increased marketing investment, advertising costs, and increased selling costs due to higher sales volume. General and administrative expenses were relatively flat during Q3 2025, with Picky Bars impairment charges largely offset by decreased personnel costs and professional fees. Net loss for the third quarter was $1.0 million compared to $0.2 million loss in the prior year period.

Speaker #3: From an operational standpoint, we were able to reduce our inventory by more than $1 million in the third quarter. You'll recall that we had strategically built our inventory through the first half of 2025 in order to meet rising demand without the out-of-stocks that we experienced last year.

For the balance of 2025, we will focus on optimizing our supply chain managing costs and driving efficiencies to expand margins over time.

We will also continue to monitor the macroeconomic factors like commodity inflation and potential trade policies, but we are well positioned to navigate them as we close out this year and head into 2026.

Speaker #3: And to mitigate the impact of tariffs on imported raw materials particularly from Southeast Asia. As we continue to sell through this inventory in the coming quarters, we expect cash flows to improve as a result.

Q3 was another step forward in our journey to build a scalable profitable business.

We're executing on our plan and I'm excited about the opportunities ahead.

Speaker #3: And speaking of tariffs, I am also pleased to be able to report that we recently were informed that our coconut milk products will not be subject to additional tariffs.

With that I'll turn it over to <unk> for a more detailed review of our financials.

Thank you, Jason and good afternoon, everyone. I will now provide you with some additional detail on the third quarter of 2025 financial results and our outlook for the full year performance.

Speaker #3: Reducing the impact on our go-forward costs and improving our 2026 financials by more than $1 million. For the balance of 2025, we're focused on optimizing our supply chain, managing costs, and driving efficiencies to expand margins over time.

I am pleased to report another robust quarter for layered superfood highlighted by double digit top line growth.

Anya Hamill: The increase in net loss was primarily due to a $0.7 million impairment charge of long-lived intangible assets related to the Picky Bars brand, as well as higher marketing and selling costs on higher top-line sales. This was offset in part by decreased personnel costs. Adjusted EBITDA was positive $0.2 million compared to $0.1 million in the same quarter prior year. The improvement in adjusted EBITDA was driven by top-line growth, and discipline around cost control, as we are well on the way to break-even and profitability. Now, turning to our balance sheet, we ended the quarter with $5.3 million in cash and no debt. As we discussed last quarter, we made targeted forward purchases of certain raw materials earlier this year to mitigate tariff-related cost increases.

Gross margins positive adjusted EBITDA, and $1 1 million of positive operating cash flow.

Speaker #3: We'll also continue to monitor the macroeconomic factors like commodity inflation and potential trade policies but we're well-positioned to navigate them as we close out this year and head into 2026.

Net sales grew 10% to $12 9 million compared to $11 9 million in the prior year period, and 12.0 million last quarter and excluding picky bar products net sales increased 14% in the third quarter.

Speaker #3: Q3 was another step forward in our journey to build a scalable, profitable business. We're executing on our plan, and I'm excited about the opportunities ahead.

Although net sales growth came in softer than anticipated primarily due to the timing of large wholesale customer orders, our underlying fundamentals remain strong and unchanged.

Speaker #3: With that, I'll turn it over to Anya for a more detailed review of our financials.

Speaker #2: Thank you, Jason, and good afternoon, everyone. I will now provide you with some additional details. On the third quarter of 2025 financial results, and an outlook for the full year performance.

Our wholesale channel continued to deliver exceptional momentum, increasing 39% year over year, and representing 53% of total net sales driven.

Speaker #2: I am pleased to report another robust quarter for Laird Superfood, highlighted by double-digit top-line growth, healthy gross margins, positive adjusted EBITDA, and $1.1 million of positive operating cash flow.

Driven by ongoing distribution gains in both grocery and club.

Anya Hamill: During the third quarter, we began drawing down this inventory, reducing our position from approximately $11 million to $10 million, while increasing our cash balance by $1.1 million quarter over quarter. We expect to continue rebuilding our cash position in the fourth quarter and into early 2026, as inventory continues to convert to cash. We exited the third quarter with solid momentum in our core categories, a strong innovation pipeline, and continued confidence in our team, and our brand. While macroeconomic uncertainty, particularly with the e-commerce channel and the timing of large customer orders, are impacting our near-term top line, our underlying fundamentals remain strong. Reflecting year-to-date trends and these timing effects, we are updating our full-year 2025 net sales growth expectation to approximately 15% growth. We continue to expect gross margin to hold in the upper 30s range, and to achieve break-even adjusted EBITDA for the full year.

E Commerce sales declined 1% year over year, reflecting softness in DTC.

This was primarily offset by continued growth on Amazon overall, the E Commerce channel contributed 47% of total net sales.

Speaker #2: Net sales grew 10% to $12.9 million, compared to $11.9 million in the prior year period, and $12.0 million last quarter, and excluding picky bar products, net sales increased 14% in the third quarter.

Gross margin in the third quarter delivered robust 36, five points compared to 43.0 points in the corresponding prior year period.

Speaker #2: Although net sales growth came in softer than anticipated, primarily due to the timing of large wholesale customer orders, our underlying fundamentals remain strong and unchanged.

It is worth noting that prior year Q3 margin had benefited from one time favorable supplier settlement that accounted for approximately three points of gross margin.

Speaker #2: Our wholesale channel continued to deliver exceptional momentum, increasing 39% year over year and representing 53% of total net sales. Driven by ongoing distribution gains, in both grocery and club, e-commerce sales declined 1% year over year, reflecting softness in DTC, though this was primarily offset by continued growth on Amazon.

Excluding that onetime benefit Q3 gross margins were about three five points lower than corresponding prior year period, and three four points lower than the second quarter of 2025.

These results are in line with our expectations, given commodity inflation and all key raw materials, such as coffee and coconut milk powder and increased tariff costs. We are confident in our ability to hold gross margins in the upper 30 for full year 2025, and beyond which is at the level of best in.

Speaker #2: Overall, the e-commerce channel contributed 47% of total net sales. Gross margin in the third quarter delivered robust 36.5 points, compared to 43.0 points in the corresponding prior year period.

Anya Hamill: We also remain confident in our ability to deliver a strengthened cash position, supported by our disciplined execution and positive operating cash flow in the third quarter. I will turn the discussion back to the operator and open it up for questions.

Glass cpg's, despite inflationary pressures and even without using pricing as a lever.

Speaker #2: It is worth noting that prior year Q3 margins had benefited from one-time favorable supplier settlements that accounted for approximately three points of gross margin.

Our supply chain team continues to drive efficiencies by directly partnering with key raw material suppliers and co pack and partners to find cost savings to offset rising commodity costs.

Operator: If you would like to ask a question, please press Star followed by 1 on your telephone keypad. If for any reason you would like to remove that question, please press Star followed by 2. Again, to ask a question, press Star 1. As a reminder, if you're using a speakerphone, please remember to pick up your handset before asking your question. We will pause here briefly as questions are registered. First question is from the line of Eric Dislaria with Craig-Hallum Capital Group. Can you allow him to open?

Speaker #2: Excluding that one-time benefit, Q3 gross margins were about 3.5 points lower than corresponding prior year period and 3.4 points lower than the second quarter of 2025.

Operating expenses increased <unk> 4 million in the third quarter compared to the same quarter last year.

And by increased marketing investment and advertising costs as well as increased selling costs due to higher sales volume.

Speaker #2: These results are in line with our expectations, given commodity inflation and our key raw materials such as coffee and coconut milk powder and increased tariff costs.

General and administrative expenses were relatively flat during Q3 of 2025 with picky impairment charges, largely offset by decreased personnel costs and professional fees.

[Analyst]: Great. Thank you for taking my questions. First one for me, I just wanted to zero in a little bit more on the guidance. I certainly understand the volatility and size and timing of some key customer orders in the wholesale channel. I guess I'm just a little confused if this negatively impacted Q3 results or Q4 or maybe both. If you could just give a bit more color on perhaps where this timing shifted to, it'd be helpful. Thank you.

Speaker #2: We are confident in our ability to hold gross margins in upper 30s for full year 2025 and beyond, which is at the level of best-in-class CPGs.

Net loss for the third quarter was one <unk> million compared to 0.2 million loss in the prior year period. The increase in net loss was primarily due to <unk> 7 million impairment charge of long lived intangible assets related to the cookie bars brand as well as higher marketing and selling <unk>.

Speaker #2: Despite inflationary pressures and even without using pricing as a lever, our supply chain team continues to drive efficiencies by directly partnering with key raw material suppliers and co-packing partners to find cost savings to offset rising commodity costs.

Costs on higher top line sales.

This was offset in part by decreased personnel costs.

Speaker #2: Operating expenses increased 0.4 million in the third quarter, compared to the same quarter last year. Driven by increased marketing investment and advertising costs, as well as increased selling costs due to higher sales volume, general and administrative expenses were relatively flat during Q3 of 2025, with picky impairment charges largely offset by decreased personal costs and professional fees.

Jason Vieth: Yeah. Hey, Eric. Good to hear from you again, and thanks for that question. Yeah. You know, I mean, the reality is that you hit it on the head. This is a timing issue related to reorders and new orders of pretty substantial orders, by the way, for new regions in the club space. That's primarily what drove this. Similar, you know, because we only have a couple of customers that we ship to that distribute then to the rest of the retail space, that being, of course, UNFI and KeHE. We did experience a little bit of a timing issue there too. What we're seeing is we have really healthy sell-through, and we just had a timing issue that kind of caught us a little bit off.

Adjusted EBITDA was positive <unk> 2 million compared to 0.1 million in the same quarter prior year. The improvement in adjusted EBITDA was driven by top line growth and discipline around cost control as we are well on our way to breakeven and profitability.

Now turning to our balance sheet. We ended the quarter was $5 3 million in cash and no debt.

Speaker #2: Net loss for the third quarter was $1.0 million, compared to $0.2 million loss in the prior year period. The increase in net loss was primarily due to $0.7 million impairment charge of long-lived intangible assets related to the picky bars brand, as well as higher marketing and selling costs on higher top-line sales.

We discussed last quarter, we made targeted forward purchases of certain raw materials earlier this year to mitigate tariff related cost increases.

During the third quarter, we began drawing down this inventory, reducing our position from approximately $11 million to $10 million, while increasing our cash balance by $1 1 million quarter over quarter, we expect to continue rebuilding our cash position in the fourth quarter and into early 2026 inventory.

Jason Vieth: I think we were being a little bit, as we got into Q4, we're also being a little bit cautious looking at timing there too. Everything's just, it's turning well, and the results look great. It's just moving a little bit slower than we expected with regards to when replenishment schedules come and the inventories that are being carried. I think there's some rebalancing of inventories that took place also, especially with the retail distributors. We're taking a cautious eye towards that. For us, it's impacting Q3, Q4, but we don't believe that there's long-term impact from any of those to the long-term health of the business. We think that the business is still exactly as it was. In fact, we continue to gain momentum, especially in that club space.

Speaker #2: This was offset in part by decreased personnel costs. Adjusted EBITDA was positive 0.2 million, compared to 0.1 million in the same quarter prior year.

Continues to convert to cash.

We exited the third quarter with solid momentum in our core categories.

Speaker #2: The improvement in adjusted EBITDA was driven by top-line growth and discipline around cost control as we are well on the way to breakeven and profitability.

Strong innovation pipeline and continued confidence in our team and our brand while macroeconomic uncertainty, particularly with E Commerce channel.

Speaker #2: Now turning to our balance sheet, we ended the quarter with $5.3 million in cash and no debt. As we discussed last quarter, we made targeted forward purchases of certain raw materials earlier this year to mitigate tariff-related cost increases.

And the timing of large customer orders are impacting our near term top line.

Our underlying fundamentals remain strong.

Reflecting year to date trends and these timing effects. We are updating our full year 2025, net sales growth expectation to approximately 15% growth. We continue to expect gross margin to hold in the upper thirty's range and to achieve breakeven adjusted EBITDA for the full year.

Speaker #2: During the third quarter, we began drawing down this inventory, reducing our position from approximately $11 million to $10 million, while increasing our cash balance by $1.1 million, quarter over quarter.

Jason Vieth: We think we're exactly where we thought we'd be, just off by, broadly, exactly where we thought we'd be, just off with a little bit of timing.

Speaker #2: We expect to continue rebuilding our cash position in the fourth quarter and into early 2026, as inventory continues to convert to cash. We exited the third quarter with solid momentum in our core categories.

[Analyst]: Yeah. Yeah. Yeah. No, that certainly makes sense to me. Yeah, I mean, at this size and the size of the orders, certainly this dynamic isn't unique to you guys. I just wanted to sort of zero in on Q3 versus Q4, but I got what I need now. Thanks for that. Next question, I suppose, is somewhat related. Last quarter, the 750 milliliter product refresh had some nice impact on shelf space and velocities. I just wanted to sort of check in and see how those sales are trending, and any sort of early indications on how you might think of this protein beverage as well. Obviously, not out on shelves yet, but just curious how you're looking at that as well.

We also remain confident in our ability to deliver our strengthened cash position supported by our disciplined execution and positive operating cash flow in the first quarter and now I will turn the discussion back to the operator and open it up for questions.

Speaker #2: Strong innovation pipeline and continued confidence in our team and our brand. While macroeconomic uncertainty, particularly with e-commerce channel, and the timing of large customer orders are impacting our near-term top line, our underlying fundamentals remain strong.

If you'd like to ask a question. Please press star followed by one or your telephone keypad. If for any reason you would like to remove that question. Please press star followed by two.

Again to ask a question press Star one as a reminder, if youre using a speakerphone. Please pick up your handset before asking your question, we will pause briefly as questions registered.

Speaker #2: Reflecting year-to-date trends and these timing effects, we are updating our full year 2025 net sales growth expectation to approximately 15% growth. We continue to expect gross margin to hold in the upper 30s range and to achieve breakeven adjusted EBITDA for the full year.

First question is from the line of Eric just Laura just with Greg How are you doing in the open.

Great. Thank you for taking my questions.

First one for me I, just wanted to zero in a little bit more on the guidance.

Speaker #2: We also remain confident in our ability to deliver a strengthened cash position, supported by our disciplined execution and positive operating cash flow in the third quarter.

And I certainly understand the volatility in.

Size and timing of.

Jason Vieth: Yeah. Yeah. Great question. I'll take that one again and probably try and hand everything to Anya from here so she can work out her vocal cords. On the first piece with regards to the 750ml, the upsizing worked about as we expected. When I go look at the data now, what I can see are a decline in units and a commensurate increase in dollar sales relative to the resizing that took place. Recall, we went from 500ml to 750, so up 25%. We saw units shrink down just about that much on a velocity basis, and sales basically hold from a velocity perspective. It's kind of, give that one, maybe I'd grade that a check mark at this point. Don't really get to an A to F scale because we're going to go right back into it again.

Some key customer orders in the wholesale channel I guess, we're just a little confused at this.

Speaker #2: And now, I will turn the discussion back to the operator and open it up for questions.

Negatively impacted Q3 results or Q4 or maybe both if you could just give a bit more color on perhaps where this.

Speaker #1: If you would like to ask a question, please press star followed by one on your telephone keypad. If for any reason you would like to remove that question, please press star followed by two.

Timing shifted to be helpful. Thank you.

Speaker #1: Again, to ask a question, press star one. As a reminder, if you're using a speakerphone, please remember to pick up your handset before asking your question.

Yeah, Hey, Eric.

Good to hear from you again and thanks for that question Yeah.

I mean, the reality is you hit it on the Hey. This is this is a timing issue.

Speaker #1: We will pause here briefly as questions are registered. First question is from the line of Eric Deslarriers with Craig Hallam, Carolina Open.

Related to Reorders and new orders.

Of pretty pretty.

Orders by the way for new regions.

Speaker #2: Craig, thank you for taking my questions. First one for me, I just wanted to zero in a little bit more on the guidance. So, you know, certainly understand the volatility and size and timing of some key customer orders in the wholesale channel.

And club space, that's primarily what drove this similar because we only have a couple of customers that we shipped to that distribute them to the rest of the retail space that being of course, UNFI and K E. We did experience a little bit of timing.

Jason Vieth: That was a nine-month exercise, essentially. As we mentioned, we're leaving that co-packer completely, moving to just an incredible formulation in a better package that's 100% organic, that we think is really poised to make waves. We did what we had to on that one. We had to play some catch-up, as you guys know, because we had lots in distribution at small accounts right out of the gates, and put a lot of pressure on our broker to make that up. We're just getting to where they've made it up, and we're going through the transition again. We've got all the battle scars on our backs, and we're going to make sure as we go forward that those lessons get applied so that we don't relive Groundhog Day on that one. We feel like we know exactly what we need to do.

Speaker #2: I guess I'm just a little confused if this negatively impacted Q3 results or Q4 or maybe both. If you could just give a bit more color on perhaps where this timing shifted to, it'd be helpful.

Timing issue there too.

What we're saying is we have really healthy sell through and we just had a timing issue that kind of caught us a little bit off.

I think we were being a little bit as we go into Q4, we're also being little bit cautious looking at timing there too.

Speaker #2: Thank you.

Speaker #3: Yeah. Hey, Eric. Good day here from you again, and thanks for that question. Yeah, you know, I mean, the reality is that you hit it on the head.

Everything is just its turning well and the results are great. It's just moving a little bit slower than we expected with regards to win.

Speaker #3: This is a timing issue related to reorders and new orders of pretty substantial orders, by the way, for new regions in the club space. That's primarily what drove this.

When replenishment schedules come in the inventories that are being carried in I think theres. Some rebalancing of inventories that took place also especially with the retail distributors. So.

Jason Vieth: Our broker is very clear. The communication is there. We're into that transition now. In fact, you can find us on a couple of shelves already with the new post-consumer recycled plastic bottles, 100% organic formula, great tasting, super healthy creamer at Whole Foods, and a few other retailers already. We think we don't have any returns on that yet. It just hit the shelf in the last week, but we think that's going to be dynamite. Where were we expected to be? When I look at, if I look at the scanner data, we're right on it, in fact. Kudos to the team for its forecasting. It just took us longer to get here than we thought it would take. We finally got caught up, and we'll hold that from here.

So we're taking a cautious eye towards that.

Speaker #3: Similar, you know, because we only have a couple of customers that we ship to that distribute and to the rest of the retail space, that being, of course, UNFI and Kayhee, we did experience a little bit of a timing issue there too.

For us it's impacting Q3 Q4, but we don't believe that there's long term impact from any of those two.

To the long term health of the business, we think that the business is still exactly as it was in fact, we continue to gain momentum, especially in that club space. So I think we are.

Speaker #3: What we're seeing is we have really healthy sell-through and we just had a timing issue that kind of caught us a little bit off.

We're exactly where we thought we'd be just just off by.

Broadly exactly whether it'd be just off with a little bit of timing.

Speaker #3: I think we're being a little bit, as we go into Q4, we're also being a little bit cautious looking at timing there too. And everything's just, it's turning well and the results look great.

Yeah, Yeah, no that certainly makes sense to me and.

Yes, I mean at this site.

And the size of the of the orders certainly.

Speaker #3: It's just moving a little bit slower than we expected with regards to when replenishment schedules come and the inventories that are being carried. And I think there's some rebalancing of inventories that took place also especially with the retail distributors.

This dynamic is unique.

So you guys I just wanted to sort of zero in on.

[Analyst]: Great. Appreciate that, Color. Next one, just a bit of a high-level question. Coffee prices obviously at record highs right now. On the one hand, I could see that having a negative impact to volumes of coffee-adjacent products like creamers. On the other hand, it may have a tailwind to coffee alternatives like your mushroom-based coffee and functional coffee. Just curious what you're seeing from a sort of macro impact on your different product types here and just kind of how to think about the impact of elevated coffee prices on your business.

Q3 versus Q4, but I got it.

Thanks.

The next question I suppose.

Speaker #3: So we're taking a cautious eye towards that. It's, you know, for us, it's impacting Q3 and Q4, but we don't believe that there's a long-term impact from any of those on the long-term health of the business.

Somewhat related.

Last quarter.

750, milliliter product refresh.

I had some some nice impact on.

Shelf space and velocities.

Speaker #3: We think that the business is still exactly as it was. In fact, we continue to gain momentum, especially in that club space. So we think we're exactly where we thought we'd be, just off by, you know, broadly exactly where we thought we'd be, just off with a little bit of timing.

I just wanted to sort of.

Checking to see see how those sales are.

Our trending in.

Any sort of early.

Indications on.

How you might think of this.

This protein beverage as well, obviously not not out on shelves yet but.

Speaker #2: Yeah. Yeah, yeah. No, that certainly makes sense to me. And, yeah, I mean, at this size and the size of the orders, you know, this dynamic isn't unique to you guys.

Just curious how you're looking at that as well.

Jason Vieth: Yeah. This is on our mind pretty constantly, probably everybody in the category. We have done a nice job of acquiring our coffee throughout 2025 to put us in position to be able to hold the line on price so far. We've taken in total, I think, $1 at retail in the last few years. We're in a position where if coffee continues to climb like this and we have to make purchases into that headwind, we may need to touch price. We were a little bit premium price coming in, but by holding price through that time, I think we've been able to capture a lot of volume, and we've been able to gain nice distribution points as well by partnering with retailers to be a strong premium, yet not ridiculously priced play for them. It's been good for us.

Yeah, Yeah, Great question, I'll take that one again, and probably China and everything the on you from here.

Speaker #2: I just wanted to sort of zero in on Q3 versus Q4, but I got what I need now. Thanks for that. Next question, I suppose is somewhat related.

You can work out our vocal cords.

So.

On the first piece with regards to the 750 mill. The upsizing worked about as we expected you know when I go look at the data now what I can see are a.

Speaker #2: Last quarter, the 750 milliliter product refresh had some nice impact on shelf space and velocities. I just wanted to sort of check in and see how those sales are trending and any sort of early indications on how you might think of this protein beverage as well.

A decline in units and a commensurate increase in dollar sales relative to.

The resizing that took place recall, we went from.

500 to $750 are up 25% and we saw units shrink down just about that much on a velocity based system sales basically hold from a velocity perspective. So it was kind of give that one maybe I'd grade data checkmark at this point.

Don't don't really get to an Ada F scale.

Speaker #2: Obviously, not out on shelves yet, but just curious how you're looking at that as well.

Because we're going to go right back into it again.

That was a nine month exercise essentially and as we mentioned, we're leaving that co packer completely moving to just an incredible formulation and a better package. That's 100% organic that we think is really poised to make waves. So.

Speaker #3: Yeah. Yeah. Great question. I'll take that one again and probably try and hand everything to Anya from here. She can work out her vocal cords.

Jason Vieth: I think on the creamer side, we've certainly seen creamer slow down. We know volumetrically there's got to be a slowdown, that's obvious, but there's still so much share for us in the coffee category for us to be able to take. We think we have just an incredible proposition with a high-altitude Peruvian organic coffee with functional mushrooms at the price point that we're at. So far, what we're seeing is we're being rewarded for that.

Speaker #3: So on the first piece with regards to the $750 million, the upsizing worked about as we expected. When I go look at the data now, what I can see are a decline in units and a commensurate increase in dollar sales relative to the resizing that took place for call; we went from $500 million to $750 million, so up 25%.

So we did what we had to on that one we had to play some catch up as you guys know because we had lost some distribution and small accounts right out of the gates.

But a lot of pressure on our broker to make that up we're just getting to where they have made it up and then we are going through the transition again, but we've got all the battle scars on our backs and we're going to make sure as we go forward that those lessons get applied so that we don't relive groundhog day on that one.

Speaker #3: And we saw units shrink down just about that much on a velocity basis and sales basically hold from a velocity perspective. So it was kind of, you know, give that one maybe I'd grade that a check mark at this point.

[Analyst]: That's great. Congrats on the continued strong wholesale growth, and I appreciate you taking my questions.

We feel like we know exactly what we need to do our brokers very clear in our communications is there were into that transition now in fact, you can find us on a couple of shelves already with the new post.

Jason Vieth: Thanks, Eric.

Operator: Thank you for your question. Next question is from the line of Nicholas Sherwood with Maxim Group. Your line's now open.

Speaker #3: Don't really get to an A to F scale because we're going to go right back into it again. That was a nine-month exercise, essentially.

[Analyst]: Hi. Thank you for taking my questions. Can you talk about some of what you've seen in limited-time offer products? I've seen the Pumpkin Spice Creamer on the shelves, and I kind of just want to see what you've been seeing from retailers and consumers when it comes to those products.

Post consumer recycled plastic bottles, 100% organic formula of great tasting Super healthy Kramer.

Speaker #3: And as we mentioned, we're leaving that Copacker completely, moving to just an incredible formulation in a better packaged that's 100% organic that we think is really poised to make waves.

At whole foods and a few other retailers already and we think we don't have any any returns on that yet just hit the shelf in the last week, but we think thats going to going be dynamite. So we're where we expected to be you know when I look at if I look at the scanner data.

Speaker #3: So we did what we had to on that one. We had to play some catch-up, as you guys know, because we had lost some distribution at small accounts right out of the gates.

Jason Vieth: Yeah. Hey, Nicholas. Yeah. You know what we've seen is that it's been a pretty good pumpkin year, it looks like, across the category. We got a late start with one of our key retailers, just kind of a weird operational snafu, but we've done really well. We're catching up on that as well. For us, it'll end up being a pretty typical year. It's not a big part of our business. In fact, I think in the future, it's an opportunity for us, and we are selling aggressively as we move from this year in that space. We sold out early in almost all retailers. I think we'd call it a really successful year.

Speaker #3: And put a lot of pressure on our broker to make that up. We're just getting to where they've made it up, and then we're going through the transition again.

Right on it in fact, and so kudos to the team for its forecasting.

It just took us longer to get here than we thought it would take so.

Speaker #3: But we've got all the battle scars on our backs, and we're going to make sure as we go forward that those lessons get applied so that we don't relive Groundhog Day on that one.

So we finally kind of got caught up and we'll hold that from here.

Great.

I appreciate that color next one just a bit of a high level question.

Speaker #3: We feel like we know exactly what we need to do. Our broker is very clear. The communication is there. We're into that transition now.

So.

Coffee prices, obviously are at record highs right now.

Speaker #3: In fact, you can find us on a couple of shelves already with the new post-consumer recycled plastic bottles 100% organic formula. Great tasting, super healthy creamer.

The one hand, I could see that.

A negative impact to volumes of copy adjacent products like Creamers AR on the other hand, they may have.

[Analyst]: Okay. Perfect. Switching gears, looking at e-commerce, what is the strategy for the Amazon sales to start replacing some of those lost DTC sales? Is that something that we can kind of expect to see more in 2026? Can you kind of just walk me through what kind of strategy you're seeing there right now?

Speaker #3: At Whole Foods and a few other retailers already. And we think we don't have any returns on that yet. It just hit the shelf in the last week.

Tailwind to coffee alternatives like your mushroom based coffee and functional copy so.

Speaker #3: But we think that's going to be dynamite. So what were we expected to be? When I look at the scanner data, we're right on it, in fact.

Just curious what you're seeing.

From a sort of macro impact on your different product types here and just kind of how to think about the impact of elevated coffee prices on your business.

Speaker #3: And so kudos to the team for its forecasting. Just took us longer to get here than we thought it would take. So we finally got caught up and we'll hold that from here.

Yeah.

Jason Vieth: Yeah. Yeah. Great question. The two key strategies that we have from a sales perspective are, one, to take our products to retail. When I got here a couple of years ago, we were a very small portion retail business, and we're now about running around 50/50. We expect over the next couple of years that to grow and approach a two-thirds, one-third retail to online business, or wholesale to online, and then to only grow from there. Our expectation is that we become more wholesale-driven over each year as we go forward, or at least over the period of a couple of years. Within online, we expect that we become more Amazon than we do wholesale. I'm sorry, more Amazon than we do DTC.

This is on our mind pretty constantly probably everybody in the category. We've we have done a nice job of acquiring our coffee throughout 2025 to put us in position to be able to hold the line on price so far and so we've not we've taken in total I think $1.

Speaker #2: Great. Appreciate that color. Next one, just a bit of a high-level question. So coffee prices, obviously, at record highs right now. On the one hand, I could see that having a negative impact to volumes of coffee adjacent products like creamers.

At retail in the last few years and so we're we're in position where.

If coffee continues decline like this and.

Speaker #2: have a tailwind to coffee On the other hand, it may alternatives like your mushroom-based coffee and functional coffee. So just curious what you're seeing from a sort of macro impact on your different product types here and just kind of how to think about the impact of elevated coffee prices on your business.

And we have to make purchases into that headwind, we may need to touch price, but by holding and we were a little bit premium price coming in but by holding price at that time, I think we've been able to capture a lot of volume and we've been able to gain nice distribution points as well.

Jason Vieth: The problem with Amazon from an overall growth and pricing perspective is you really have to watch to make sure that you're priced in line with the rest of retail. We have done that. As a result, we've seen strong growth over the last couple of years. It's slowed down most recently, and we hear that that's pretty much an industry issue right now, that Amazon has slowed across the food space for most brands. We have some good strategies that we're tweaking right now to implement against that, reapportioning spend across various top and bottom funnel drivers at the site, and then using our awareness to drive folks back to Laird when they get to the Amazon site as well. We feel good about the future of Amazon.

By partnering with retailers to be.

Strong.

Speaker #3: Yeah. It's on our mind pretty constantly, probably everybody in the category. We've done a nice job of acquiring our coffee throughout 2025 to put us in position to be able to hold the line on price.

Premium yet not ridiculously priced play for them and so it's been good for US I think on the kremers side, we've certainly seen creamers slowdown, we know volumetric leaders gotta be a slowdown.

But there's still so much share for us on the coffee and a coffee category for us to be able to take and we think we have just an incredible proposition with.

Speaker #3: So far. And so we've not taken in total I think $1 at retail in the last few years. And so we're in a position where if coffee continues to climb like this, and we have to make purchases into that headwind, we may need to touch price.

A high altitude Peruvian organic.

Coffee with functional mushrooms at the price point that we're at and so far what we're seeing as well.

We're being rewarded for that.

Speaker #3: But by holding and we were a little bit premium price coming in, but by holding price to that time, I think we've been able to capture a lot of volume.

That's great. Congrats on the continued strong wholesale growth and I appreciate you taking my questions.

Thanks, Eric.

Speaker #3: And we've been able to gain nice distribution points as well by partnering with retailers to be a strong premium yet not ridiculously priced play for them.

Thank you for your question next question is from the line of Nicholas Sherwood with Maxim Group. Your line is now open.

Jason Vieth: For us, DTC is really intended to be a place where consumers can go to find the full breadth of product. They can sign up for the broadest offering of subscriptions, and they can get education, especially as it relates to Laird and Gabby and what they eat and how they basically run their lives from a health and wellness position across the physical, emotional, spiritual, dietary spectrum. That's what it's played out for us over the year for us, rather. If you think about the next, I would call it, couple of years, we would expect DTC to be fairly flat. We had a great year last year. This year is a little bit more challenged. Over the course of the two years, I think it's close to flat. As we go forward, that's really our intent.

Oh.

Hi, Thank you for taking my questions can you talk about some of the.

What you've seen in the limited time offer products.

Seen the pumpkin Spice creamer on the shelves or kind of just want to see what you've been seeing from retailers and consumers when it comes to those products.

Yeah, Hi, Nicholas.

Yeah, what we've seen is that theres its been a pretty good pump 10 year. It looks like across the category. We got a late start with one of our key retailers just kind of a weird operational snafu, but where we've done really well, we're catching up on that as well.

So for US, it's it'll end up being a pretty pretty typical year its not a big part of our business in fact, I think in the future. It's an opportunity for us and we are selling aggressively you know as we move from this year in that space, but but we sold out early in almost all retailers.

Jason Vieth: The growth driver of online should be Amazon, and then the wholesale business for the entire company. For us, DTC plays a more marginal role as time goes on.

I think we called out a really successful year.

Okay, perfect and then switching gears looking at E Commerce.

How what is the strategy for the Amazon sales too.

[Analyst]: Understood. My last question is, talking about this new protein coffee, looks like a really big opportunity for the company. Can you sort of walk me through what you're thinking for the strategy on activating that new product? Are there specific regions, specific types of consumers that you're looking to reach, or specific retailers that you're partnering with in the early stages of this product activation? Are there any early learnings that you've already had in the early stages of bringing this to market?

Let's start replacing some of those loss of DTC sales and is that something that we can kind of expect to see more in 2026 can you kind of just walk me through what kind of strategy, you're seeing there right now.

Yeah.

Yeah, Great question so.

The two key strategies that we have from a sales perspective or one.

If you take our products to retail you know when I got here a couple of years ago. We were a very small portion of the retail business and we are we're now about fit running around 50 50, and we expect over the next couple of years that to grow and approach two thirds, one third retail to online business or wholesale or online and then the only grow from there. So our expectation is that we do.

Jason Vieth: Yeah. Great question. I apologize at the same time to Eric. I forgot to answer that when he had asked that earlier as well. Yeah. We're really excited about this product. This is our first foray into dairy. I think you guys have heard us in the past talk about Laird and Gabby's diet being omnivorous in nature. This is an area that we've always intended to go as a company. It also happens to be the 90% to the 10% that is plant-based, so it just opens up an incredible market for us. This protein coffee product, this has been a really big trend on TikTok for a long time, putting the protein powder into the coffee. We're excited to bring it to market. We've basically taken the highest quality freeze-dried coffee, cold-brewed freeze-dried coffee that I've ever tasted. It is so smooth and fantastic.

Come more wholesale driven.

Over each year as we go forward or at least over the period of a couple of years.

Within online, we expect that we become more Amazon than we do wholesale and I'm, sorry, more Amazon than we do.

DTC.

The problem with Amazon from a overall growth and pricing perspective is you really have to watch to make sure that you are priced in line with the rest of retail so we've done that.

As a result, we've seen strong growth over the last couple of years. It slowed down most recently and we hear that that's pretty much an industry issue right now that Amazon has slowed across the food space for for most brands we.

Jason Vieth: Put it together with a pretty unique blend of dairy proteins. I won't go into details for competitive reasons, but it's pretty unique. The ability to get it to blend and froth as a cold beverage is really unique, and it tastes great. It's a product that is great for anyone seeking protein, but it's really on trend right now with what's going on with GLP-1. As folks are having to find high-protein products to supplement their loss of protein and overall calories, we feel like we're right on trend with this product. We've got a really, we have a partner for a very early big launch. We'll be putting shippers on their floor. The retail space will come back and talk about that next quarter. Coming out of the gate's really strong there and then seeing some good pickup for permanent placement as well.

We have some good strategies that we're tweaking right now to implement against that Ria.

Reapportioning spend across various top and funnel drive top and funnel top and bottom funnel drivers.

At the site and.

Driving.

Using our awareness to drive folks back to layered when they get to the Amazon site as well. So we feel good about the future of Amazon for S. DTC is really intended to be a place where.

Consumers can go to find a full breadth of product they can sign up for the broadest offer or the broadest offering of subscriptions and they can get education, especially as it relates to layered and Gabby and.

we have from a sales perspective or 1 to take our products to retail. You know, when I got here a couple of years ago, we were a very small portion of retail business. And we are, you know, we're we're now about running around 50/50 and we expect over the next couple of years that to grow and Approach at 2/3 1/3 retail to online business or wholesale online and and then to only grow from there. So, our expectation is that we become more wholesale driven, uh, over each year as we go forward or at least over the the, you know, the period of a couple of years. Uh, within online, we expect that we become more Amazon than we do wholesale and I'm sorry more Amazon than we do. Um, uh DTC uh, the problem with Amazon from a, you know, overall growth of pricing perspective is you really have to watch to make sure that your priced in line with uh the rest of retail. So

What they eat and how they.

Basically how they run their lives from a health and wellness.

Jason Vieth: This will be a product that we launch online simultaneously to putting it into the store. You'll see it in DTC on Amazon and out at retail. We're going to support it with some third-party social influencer groups that help to really get the brand out and run a 360-degree campaign on this, where we'll bring in retail activations with that influencer work that I just mentioned, some organic marketing that Laird and Gabby will execute, will put onto our website, and then we'll have strong TikTok execution behind it as well. You'll really see us bring probably our strongest launch effort in my tenure here at Laird to this product. Hopefully, we'll see consumers respond in kind. We'll make a big deal out of the fact that we're getting into dairy. We think that that'll be really well received.

Does it position across the <unk>.

Physical emotional spiritual.

Dietary spectrum and Thats, what has played out for us or over the year for us rather so if you think about the next.

I would call a couple of years.

We would expect DTC to be fairly flat, we had a great year last year. This year is a little bit more challenged over the course of the two years I think it's close to flat and as we go forward. That's that's really our intent the growth driver of online should be Amazon and then and in the wholesale business for the entire company so for us.

DTC plays a more marginal role as time goes on.

Mhm.

Understood and then my last question is they're talking about this new protein coffee it looks like a really big opportunity for the company can you sort of walk me through what you're thinking for the strategy on activating that new products are there specific regions specific types of consumers that you are looking to reach our specific retailers that you're partnering in the early stages of.

Jason Vieth: It's a very clean product, as it always is for us. I think it's a real market changer with regards to delivering a great taste with that nutritional profile in this category.

[Analyst]: Thank you. I appreciate all that detail, and I'll return to the queue.

Yeah.

Product activation and are there any early learnings that you've already had kind of in the early stages of that.

Jason Vieth: Yep, thank you very much.

Operator: Thank you for your question. Next question is from the line of George Kelly with Roth Capital Partners. Your line's now open.

Bringing this to market.

Yes, great question and I apologize at the same time, Eric I forgot to answer that one he had asked that earlier as well.

George Kelly: Everyone, thanks. A few questions for you. First, just to follow up on that prior question related to the protein coffee that you're launching. Do you anticipate launching additional dairy products as soon as next year? What might those look like?

Really excited about this product. This is our first foray into dairy yeah. I think you guys have heard us in the past talk about layered and Gabby guided being omnivorous in nature. This is an area that we've always intended to go as a company.

Really intended to be um, a place where you know, consumers can go to find a full breadth of product, they can sign up for the broadest opport or the broadest offering of subscriptions and they can get education especially as it relates to land and Gabby and um what they eat and how they um you know, basically how they uh run their lives from a health and wellness. Um you know, position across the you know, I think physical emotional, spiritual um, dietary spectrum and and that's what it's played out for, uh, as us over the year for us rather. So, you know, if you think about the next, um, I would call it couple of years. Uh, we would expect DTC to be fairly flat. Uh, we had a great year last year, this year is a little bit more challenged over the course of the 2 years. I think it's, it's close to Flat. Uh, and as we go forward, that's that's really our intent. The growth driver of online should be Amazon. And then, uh, and then the wholesale business for the entire

Entire company. So for us, DTC plays a more marginal role as time goes on.

It also happens to be that the 90% to the 10% that is plant based so it just opens up an incredible market for us.

Jason Vieth: Yeah. Great question, George. Thanks for that. We do. We're working on a platform right now to make this much broader than just a singular product that we bring out. We think that there's opportunity across a number of products that we're probably not ready to go into at this point, George, but you can imagine that there are really two vectors to that. One is in the dry category space where we see additional opportunity to expand this line and potentially take it into very close, but adjacent lines that we're in today. You can probably surmise a pretty good guess against that. We also see the opportunity to take this into liquid products. We've been working to develop both of these. We think that protein is very important.

This protein coffee product. This has been a really big trend on tick talk for a long time, putting the protein powder into the coffee.

And we're excited to bring it to market.

Acyclic taken a highest quality freeze dried coffee cold brewed freeze dried coffee.

Understood. And then my last question is, you know, talking about this Nu protein coffee; it looks like a really big opportunity for the company. Can you sort of walk me through what you're thinking for the strategy on activating that new product? Are there specific regions, specific types of consumers that you're looking to reach, or specific retailers that you're partnering with in the early stages of this?

I've ever tasted it is so smooth and fantastic.

Together with a pretty unique blend of dairy proteins.

Product activation and, you know, are there any early learnings that you've already had, you know, kind of in the early stages of, you know, bringing this to Market?

The details for competitive reasons, but it's pretty unique in the ability to to get it to blend and fraud as a cold beverages.

Really unique and it tastes great.

Product that is great for anyone seeking protein, but it's really on trend right now with what's going on with <unk> and his folks are having to find high protein products.

Jason Vieth: We believe that we can bring a cleaner protein, not only the protein source, but the ingredients that surround it, than what you see at market today, and that we have the brand to do that. You will absolutely see additional dairy products. Yes, we would expect them to come to market over the course of the next 15 months.

Products to supplement their their loss of protein and overall calories. So we feel like we're right on trend with this product we've got.

Really.

We have a partner for a very early big launch so we'll be putting shippers on their floor in the retail space will come back and talk about that next quarter.

George Kelly: Okay. That's helpful. The conversation in response to one of the questions just about sort of how you're going about the protein coffee launch, I was hoping you could do something kind of similar with the new liquid product. I guess what I'm trying to understand, it's just so hard for me to try to quantify what the ramp could look like and the implications on the model and consolidated growth for the next few years, etc. It's just such a big category and such an important category, and you've had kind of varying success there historically. I guess if you could help at all just with what the distribution plan is, have you lost any distribution points versus the prior formulation? Do you anticipate a lot of promotion behind it or just any kind of context you can give about that launch?

So coming out of the gates really strong there and then seeing some good pickup for permanent placement as well.

This will be a product that we launch online simultaneously to putting it into the stores. So you'll see it in DTC on Amazon and out at retail we're going to support it with some third party social influencer groups that help to really get the brand out and run a 360 degree campaign on this where we are.

Yeah, great question and, and I apologize at the same time that Eric, I forgot to answer that when you had asked that earlier as well. Yeah, we're really excited about this product. This is our first for rain to Dairy. I think you guys have heard us in the past, talk about layered and Gabby's diet being omnivorous in nature. Uh, this is an area that we've always intended to go as a company. It's all it also happens to be the the 90% to the 10% that is plant-based. So it just opens up an incredible market for us. Uh, this protein coffee product. You know, this has been a, a really big trend on Tik Tok for a long time, putting the protein powder into the coffee. Uh, and we're excited to bring it to market. We've we basically taken the highest quality freeze dried. Uh coffee, cold brewed, freeze-dried coffee uh that I've ever tasted. It is so smooth and fantastic. Uh, put it together with, uh, a pretty unique blend of dairy proteins, uh, won't go into details for competitive reasons, but it's pretty unique and the ability to, um, to get it to, to, uh, blend and fro.

Bring in retail Activations with that Influencer work that I just mentioned some organic.

Marketing that layered in Gaby will executed will put onto our website and then we have strong tictoc execution behind it as well, so you'll really see us, bringing probably our strongest launch effort.

In my tenure here at Laird to this product.

Hopefully, we'll see consumers responding kind so well.

Jason Vieth: Yeah. Yeah. Thanks, George. That's another very good question that I wanted to speak to a bit more. What I would tell you is this. We lost some distribution early on in that transition, as I mentioned. We've largely recovered that. I think we're just about right back to where we expected to be and regained what we had lost. I don't think we've had the right product or proposition in the past. At the 500ml, we were a little bit too small. We went to 750. I think there was a self-inflicted wound there, if I'm honest, in that we went to 750, and we really didn't capture the consumers. Didn't really highlight plus 50% more now at a better price. There was a value question. I think people just got confused as we made that transition in general.

We will make a big deal out of the fact that we're getting into dairy we think that that'll be really well received it's very clean product as it always is for us and I think it's a real market changer with regards to.

Delivering a great taste with that nutritional profile in this category.

Okay.

Yeah.

Thank you I appreciate all that detail and I'll return to the queue.

Not as a cold. Beverage is, uh, really unique and it tastes great. Uh, it's a product that is great for anyone seeking protein, but it's really on Trend right now with what's going on with tp1. And, you know, as folks are having to find high protein, uh, products to supplement their their, uh, loss of protein in in overall calories. So, we feel like we're right on Trend with this product. We've got, um, a really, we, we have a partner for a very early, big launch, uh, so we'll be putting shippers on their floor. Uh, and the retail space will come back and talk about that next quarter. Uh, so coming out of the gates, really strong there and then seeing some good pickup, uh, for permanent placement as well. Uh, this will be a product that we launched online simultaneously, to putting it into the store, so you'll see it in DTC on Amazon and out at retail. We're going to support it with some third-party social influencer groups uh that help to really get the the brand out and run.

Yeah.

Yeah. Thank you very much.

Thank you for your question next question is from the line of George Kelly with Roth Capital Partners. Your line is now open.

Everyone. Thanks.

A few questions for you just to follow up on that.

Prior question related to the protein coffee that you're launching.

Jason Vieth: What you'll see now is a very different product that's appearing. I mentioned that plastic bottle that is already recycled and lived one life, which is very important to our consumers. We're highlighting that story. It's 100% organic, which is very important to our consumers, especially in the natural channel. We're highlighting that story. There's no more cane sugar in there. It's now all coconut sugar. There's no more coconut oil. It's now all coconut cream. The product tastes unbelievable, and we've added more mushrooms as well. It's a more efficacious dose of the adaptogens. There's a lot there to tell. To your point, it's going to take a bigger marketing activation to do that. That is absolutely underway. We haven't started to execute it. We're letting some of the distribution roll out before we do.

Do you anticipate launching.

Additional dairy products as soon as next year and what might those look like.

A 360, uh, degree campaign on this, where we'll bring in retail activations with that influencer work. That I just mentioned some organic, uh, marketing that layered and Gabby will execute. It will will put onto our website and then we have strong Tik, Tok execution, uh, behind it as well. So you'll really see us uh bring probably our strongest launch effort uh in in my tenure here at clared to this product and um you know, hopefully we'll we'll see consumers respond in kind so.

Yeah, Great question George.

Thanks for that we do we're working on our platform right now too.

To make this much broader than just a singular product that we bring out we think that there is opportunity.

Um, we'll make a big deal out of the fact that we're getting into Dairy. We think that that'll be really well received. It's very clean product, as it always is, uh, for us. And I think it's a real Market changer with regards to, um, delivering a great taste, uh, with that, nutritional profile in this category.

Across a number of products that we're probably not ready to go into at this point George but you can imagine that there are really two vectors to that one is in the dry category space, where we see additional opportunity to expand this line and potentially take it into very close but adjacent lines that we're in today. So you can probably.

Thank you. I appreciate all that detail, and I'll return to the queue.

Yep, thank you very much.

Thank you for your question. Next question is from the line of George Kelly with Roth Capital Partners no open.

Everyone. Thanks.

Jason Vieth: You'll start to see that come out very soon with activations specifically linked to where we picked up the distribution already. All those transitions take place over the course, most of them over the course of the next two months, so into January, just a couple of small laggards after that. Retailers are really excited. They wanted to get on board. A couple of them cut in ahead of their planned changeovers. I think we are really in a fortunate position to be able to turn on marketing in a big way here as we close out this year at the start of January. You'll start to see that very similar to what I described with the protein coffee. You'll really start to see that come to life here over the course of the next few weeks. Relative to the size, you're exactly right.

Surmise it pretty good guest against that and we also see the opportunity to take this into liquid products.

Um, a few questions for you first, just to follow up on that.

And so we've been working to develop both of these we think that protein is very important we believe that we can bring a cleaner protein not only the protein source, but the ingredients that surround it and what you see at market today and that we have the brand to do that so.

Related to, to the um, protein coffee that you're launching. Um, do do you anticipate launching, uh, additional dairy products?

As soon as next year and and what might those look like?

Yeah, great question. George. Um,

You will absolutely see additional dairy products and yes, we would expect them to come to market over the course of the next 15 months.

Okay. Okay. That's helpful.

And then.

The conversation in response to one of the questions just about the sort of how youre going about the incident the protein coffee launch.

Jason Vieth: I was having this discussion earlier today with an investor. Actually, it was with our board. The reality is this is a category that's over $6 billion. It's largely comprised of products that contain four ingredients, the only healthy one of which is water. We're mostly transporting water. The rest is sugar, bad-for-you oils, hydrogenated oils, and chemicals. There is this incredible opportunity to reinvent it. We just haven't had the right proposition. I think we do now. We'll activate early, get the early reads, figure out where we are. I hope that we're able to really press this one in a big way based on the feedback that we get in the marketplace.

I was hoping you could do some kind of similar with the new liquid product.

And I guess, what I'm trying to understand it's just so hard for me to try to quantify you know what the ramp could look like and the implications on the model.

Thanks for that. Uh, we do, we're working on a platform right now, um, to, to make this much broader than just a singular product that we bring out. We think that there's opportunity, uh, across a number of products that we're probably not ready to go into at this point George, but you can imagine that there are really 2 vectors to that 1 is in the dry category space, where we see additional opportunity to expand this line and potentially take it into very close, but adjacent lines, uh, that we're in today. So you, you could probably, um, surmise a pretty good guess against that. And we also see the opportunity to take this into liquid products.

Consolidated growth for the next few years et cetera, It's just such a big category.

Such an important category and you've had kind of.

Varying success there historically.

So I guess, if you could help at all just with what the distribution plan is have you lost any distribution points versus the prior formulation and do you anticipate.

A lot of promotion behind it or just any kind of context, you can give about that will launch.

And so we've been working to develop both of these. We think that protein is very important; we believe that we can bring a cleaner protein, not only the protein source but the ingredients that surround it, and what you see at market today, and that we have the brand to do that. So, you will absolutely see additional dairy products, and yes, we would expect them to come to market over the course of the next 15 months.

Yeah, Yeah. Thanks, George that's another good very good question that I wanted to speak to a bit more so yeah. What I would tell you is that we we lost some distribution early on in that transition as I mentioned, we've largely recovered that I think we're just about right back to where.

Okay, okay, that's helpful. And then, um,

George Kelly: Okay. That's helpful. Thanks. Two last questions for me. Tariffs, what's the impact this year and the expectation for next year? The second question is on club. I was curious if you have any significant promotions planned in the next quarter or two. That's all I had. Thank you.

The conversation in response to to 1 of the questions, just about the sort of how you're going about the instant, the protein coffee launch.

I was hoping you could do something similar with the new liquid product.

Where we expect it to be and regained what we have lost.

I don't think we've had the right product proposition in the past at the 500 mill, we were a little bit too small we went to 750.

Anya Hamill: Hi, George. This is Anya. I'll take the questions on tariffs and club. Jason, feel free to add anything. The tariff situation is very dynamic, and we are assessing it kind of as it unfolds. I think Jason mentioned earlier, maybe on the pre-record, that we have some favorable developments as far as some of our key raw materials now being excluded from the tariffs, such as coconut milk powder. That was good news. It's still very much kind of unfolding and emerging. We started seeing the tariffs impact in Q3, and you see that reflected in our gross margins. Anticipate kind of similar dynamic to continue to Q4. We are developing our plans for next year and evaluating what the action items that we need to take. Pricing could be on the table if we need to.

There was a self inflicted wound.

And I guess what I'm trying to understand, it's just so hard for me to try to quantify, you know, what the ramp could look like and the implications on the model, you know, and consolidated growth for the next few years, etc. It's just such a big category and such an important category, and you've had kind of.

If I'm honest in that we went to $7 50, and we really didn't capture the consumers didn't really highlight plus 50% more now at a better price than southern.

A value question I think people just got confused as we made that transition in general and so what you'll see now is a very different product. That's appearing I mentioned that plastic bottle that is already recycled and Luc one life, which is very important to our consumers. We're highlighting that story to 100% organic that's very important to our consumers, especially in the natural channel we're highlighting that.

Um, varying success there historically. So I guess if you could help at all, just with what the distribution plan is, have you lost any distribution points versus the prior formulation? And if you anticipate, you know, a lot of promotion behind it or just any kind of context you can give about that launched.

Sorry.

No more cane sugar and it's now all coconuts sugar Theres no more coconut oil, it's now all coconut cream and the product tastes unbelievable and so.

And we've added more mushrooms as well so it's a more efficacious dose of the Adaptogen. So theres a lot there to tell and it takes to your exact exactly to your point, it's going to take a bigger marketing.

Yeah, yeah, thanks George. That's another good, very good. Uh, question that I wanted to speak to a bit more. So, um, yeah, what I would tell you is if we we lost some distribution early on in that transition, as I mentioned, uh, We've largely recovered that I think we're just about right back to where, um, you know, where we expect you to be what what, and and regain, what we had lost. Um, I don't think we've had the right product or, or proposition in the past at the 500 mil. We were a little bit too small, we went to 750, I think there was a self-inflicted wound there. If if, you know, if I'm honest in that, we

Activation to do that so that is absolutely underway where.

Anya Hamill: Our intent and goal is to continue holding the margins in the upper 30s, even with the additional tariffs and the commodity cost. That's on tariffs. With regards to club, we had great success in club this year. We have a rollout strategy to support the new region's distribution and new products, and we intend to continue executing on the strategy in Q4 and into next year.

We haven't started executed we're letting some of the distribution rollout before we do but youll start to see that come out very soon with.

Activation, specifically linked to where we picked up the distribution already.

That all those transitions take place over the course of most of them over the course of the next two months so into January.

A couple of small laggards after that but retailers are really excited they wanted to get on board a couple of them cut in ahead of their.

Of their planned.

Changeovers and so we I think we are really fortunate in a fortunate position to be able to turn on marketing in a big way here as we close out this year to start January so you'll start to see that very similar to what I described with the protein coffee, you'll really start to see that you've come to life here over the course of the next few weeks and Red.

George Kelly: Okay, thank you.

Operator: Thank you for your question. There are no additional questions waiting at this time. I'll pass the call back to the management team for any closing remarks.

<unk> to the side Youre exactly right I was having this discussion earlier today with.

With an investor in the the reality are excellent.

Went to 750 and um we we really didn't capture. The consumers didn't really highlight, you know, plus 50% more now at a better price and so there was a value question. I think people just got confused as we made that transition in general. And so what you'll see, now is a very different product, that's appearing. I mentioned that plastic bottle, it is already recycled and lived 1 life, which is very important to our consumers. We're highlighting that story. It's 100% organic. That's very important to our consumers, especially in the natural Channel. We're highlighting that story. Uh, there's no more cane sugar in there. It's now all coconut sugar. There's no more coconut oil. It's now all coconut cream and the product case. Unbelievable. And so, you know, we and we've added more mushrooms as well. So it's a more efficacious dose of the adaptogens. And so, there's a lot there to tell and it takes to your exact, exactly to your point. It's going to take a bigger marketing, uh, activation to do that. So that is absolutely underway. Uh, we haven't started executing. We're letting some of the distribution roll out.

Our board.

Jason Vieth: Hey, guys. Yeah. I think we all know the headwinds that are in the consumer and overall in the consumer economy right now, and the challenges that others are facing throughout this year, kind of only magnifying more recently. We're really excited to still be growing this business in the double digits, and we believe we're in position to continue to do that next year and for future years to come for quite some time. We have a lot of white space, we have an incredible portfolio of products, and an incredible team. As we look to the balance of this year and into next year, we're still incredibly optimistic that despite any headwinds that have emerged and will continue to emerge, we're going to fight our way through and stay at the top of it.

The reality is this is.

A category is over $6 billion.

It's largely comprised of products that contain four ingredients. The only healthy one of which is water, we mostly transporting water and the rest is sugar bad for your oil hydrogenated oil and chemicals and so there's this incredible opportunity to reinvent and we just haven't had the right proposition and I think we do now so we'll activate early get the early read.

Before we do. But you'll start to see that come out very soon with um activations specifically linked to where we picked up the distribution already. Uh, that all those transitions take place over the course most of them over the course of the next 2 months. So, in the January, uh, just a couple small laggers after that, but, uh, retailers are really excited. They wanted to get on board, a couple of them cut in ahead of their, um, of their planned, um, uh, changeovers. And so, you know, we I think we, uh, are are really

Figure out where we are and then I hope that we're able to really press. This one in a big way based on the feedback that we get in the marketplace.

Okay. That's helpful. Thanks, and then to two questions.

Questions for me.

Tariffs.

What's the impact this year and the expectation for next year and then the second question is on club.

Jason Vieth: Thanks again to everybody for being a part of the journey and listening to the story again today. We'll look forward to seeing you in the quarter.

Was curious if you have any significant promotions planned in the next quarter or two.

That's all I had thank you.

Operator: That concludes the conference call. Thank you for your participation. You may now disconnect your lines.

Hey, George this is tonya.

So I'll take the questions on tariffs and crop and then Jason feel free to add anything. So so the tariff situation is very dynamic and we are assessing that kind of as it unfolds.

Jason mentioned earlier, maybe on the on the.

P record that.

We have some favorable developments as far as some of our key raw materials now being excluded.

Uh, products that contain 4 ingredients, the only healthy 1 of which is water. We mostly transporting water. And the rest is sugar bad for your oils, hydrogen, oils and chemicals. And so there's this incredible opportunity to reinvent it and we just haven't had the right proposition and I think we do now. So we'll activate early, uh, get the early reads figure out where we are. And then I hope that we're able to really press this 1 in a big way uh based on the feedback that we get in the marketplace.

From the tariffs such as coconut milk powder. So that was good news, we but it's still very much.

Okay, that's helpful. Thanks. And then two less, uh, questions for me. Um, tariffs.

Kind of unfolding and emerging and we started seeing the tariffs impact in Q3, and so youll see that reflected in our gross margins.

Anticipate kind of a similar dynamic to continue into Q4, and then we are developing our plans for next year.

Uh, what What's the impact this year? And the expectation for next year? Uh, and then the second question is on club. Um, I was curious if you have any, uh, significant promotions planned in the next quarter or 2 and that's all I have. Thank you.

Hi George. This is Anna. Um,

And evaluating.

What the action items that we need to take on pricing could be on the table.

If I, if we need to but our intent and goal is to continue holding the margins in the <unk>.

Upper Thirty's so.

With even with the additional tariffs.

Commodity cost.

So that's that's on tariffs and then with regards to club.

We had a great success in club this year and we have a.

Strategy.

Rollout strategy was to support the new regions distribution and new products and we.

I like the questions on on tariffs and some some club and then, um, Jason feel free to add anything. So so the Tariff situation is very Dynamic and we are assessment kind of as it unfolds. Um, I think Jason mentioned earlier, um, and maybe on the, on the uh pre-record, um, that we have some uh, favorable developments as far as, you know, some of our um, key role materials. Now being excluded uh, from the, the tariffs such as coconut milk powder so that was good news. Um, we um, but but, you know, it's still very much, um, kind of unfolding and emerging

We intend to continue executing on that strategy in Q4 and into next year.

Okay. Thank you.

Thank you for your question.

There are no additional questions waiting at this time, so I'll pass the call back to the management team for any closing remarks.

Hey, guys, yes.

Yes, so look it's.

I think we all know the headwinds that are in the consumer.

Um, we started seeing the tariffs impact in Q3, and so you see that, uh, reflective now gross margins, uh, anticipate kind of similar Dynamic to continue to Q4. And then we are developing our plans for next year. Um, and evaluating um, you know what, the action items that we need to take and pricing could be on the table, um, if um, if we need to, but our intent and goal, uh, is to continue holding the margins in the upper 30s. Um, so, uh, with even with the, the additional tariffs, um, and the commodity cost,

And overall in the consumer economy, right now and the challenges that others are facing.

um, so that's that's on tariffs and then with regards to Club, um,

Throughout this year and kind of only magnifying more recently, we're really excited there'll.

There'll be growing this business in the double digits and we believe we're in a position to continue to do that next year and for future years to come for quite some time.

A lot of white space, we have an incredible portfolio of products.

We had a great success in club this year and we have, you know, a strategy, um, a rollout strategy with, uh, to support the new regions distribution and new products. And we, um, intend to continue executing on the strategy in Q4, um, and into next year.

And.

Okay, thank you.

And an incredible team and as we look to the balance of this year and into next year, we're still incredibly optimistic that despite any headwinds that have emerged and we will continue to emerge that we're going to fight our way through and stay at the top of it so.

Thank you for your question.

There are no additional questions waiting at this time, so I'll pass the call back to the management team for any closing remarks.

Again to everybody for being a part of the journey.

And listening to the story again today, and we'll look forward to see in the quarter.

Yeah.

That concludes the conference call. Thank you for your participation you may now disconnect your lines.

Uh, Hey guys. Um, yeah, so, you know, look it's uh, I think we all know the headwinds that are in the consumer, uh, and overall in the consumer economy right now and the, the challenges that others are facing uh, throughout this year and and kind of only magnifying more recently, we're really excited, uh, still be growing this, this business in the double digits and we believe we're in position to continue to do that. Uh, next year and for, for future years to come, uh, for quite some time. Uh, we have a lot of white space, we have an incredible portfolio of products. Uh, and, you know, as as we and incredible team and as we look to the balance of this year, and into next year, we're still incredibly optimistic that despite any headwinds that have emerged and and will continue to emerge that we're going to fight our way through and stay at the top of it. So thanks again to everybody for being a part of the the journey uh and and listening to the story again today. And we'll look forward to seeing you in a quarter.

That concludes the conference call. Thank you for your participation. You may now disconnect your lines.