Q3 2025 Edible Garden AG Inc Earnings Call

November 14, 2025

At this time all participants are in a listen only mode and the floor will be opened for questions. Following the presentation.

Operator: Business Update Conference Call. At this time, all participants are in a listen-only mode, and the floor will be open for questions following the presentation. If anyone should require operator assistance during the conference, please press star zero on your phone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Ted Ayvas, Investor Relations, Crescendo Communications. Ted, the floor is yours.

If anyone should require operator assistance during the conference. Please press star zero on your phone keypad. Please note. This conference is being recorded.

I will now turn the conference over to your host Ted a vast investor Relations Crescendo Communications, Ted the floor is yours.

Thanks, Jenny good morning, and thank you for joining edible gardens third quarter 2025 earnings conference call and business update on the call with US today are Jim <unk>, Chief Executive Officer available Garden and causes the foolish interim Chief financial Officer available Garden.

Ted Ayvas: Thanks, Jenny. Good morning, and thank you for joining Edible Garden's Q3 2025 Earnings Conference Call and Business Update. On the call with us today are Jim Kras, Chief Executive Officer of Edible Garden, and Kostas Dafoulas, Interim Chief Financial Officer of Edible Garden. Earlier this morning, the company announced its operating results for the 3 months ended 30 September 2025. The press release is posted on the company's website, www.ediblegardenag.com. In addition, the company has filed its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission, which can also be accessed on the company's website as well as the SEC's website at www.sec.gov. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020.

Ted Ayvas: Thanks, Jenny. Good morning, and thank you for joining Edible Garden's Q3 2025 Earnings Conference Call and Business Update. On the call with us today are Jim Kras, Chief Executive Officer of Edible Garden, and Kostas Dafoulas, Interim Chief Financial Officer of Edible Garden. Earlier this morning, the company announced its operating results for the three months ended 30 September 2025. The press release is posted on the company's website, www.ediblegardenag.com. In addition, the company has filed its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission, which can also be accessed on the company's website as well as the SEC's website at www.sec.gov. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020.

Earlier this morning, the company announced its operating results for the three months ended September 32025. The press release is posted on the company's website Www Dot edible Garden AG Dot Com. In addition, the company has filed its quarterly report on Form 10-Q, with the U S Securities and Exchange Commission, which can also be accessed on the company's website as well as the SEC.

Site at Www Dot FCC Dot Gov. If you have any questions after the call, but like any additional information about the company. Please contact crescendo communications at 2126711020 for them is the kras reviews. The Companys operating results for the quarter ended September 32025 and provides a bit.

Ted Ayvas: Before Mr. Kras reviews the company's operating results for the quarter ended 30 September 2025 and provides a business update, we would like to remind everyone that this conference call may contain forward-looking statements. All statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements. The words aim, anticipate, believe, could, may, plan, project, strategy, will, and the negative of such terms, in other words and terms of similar expressions, are intended to identify forward-looking statements. These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, strategy, short-term and long-term business operations and objectives, and financial needs.

This update we would like to remind everyone that this conference call may contain forward looking statements all statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial position strategy and plans and our expectations for future operations are forward looking statements the words.

Aim anticipate believe could expect May plan project strategy will and the negative of such terms in other words in terms or similar expressions are intended to identify forward looking statements. These forward looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its finance.

Condition results of operations strategy short term and long term business operation and objectives and financial needs. These forward looking statements are subject to several risks uncertainties and assumptions as described in the company's filings with the SEC, including the company's annual report on Form 10-K for the year ended December 31st 2002.

Ted Ayvas: These forward-looking statements are subject to several risks, uncertainties, and assumptions as described in the company's filings with the SEC, including the company's annual report on Form 10-K for the year ended 31 December 2024. Because of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in this conference call may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements.

94, because of these risks uncertainties and assumptions the forward looking events and circumstances discussed in this conference call may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward looking statements you should not rely upon forward looking statements as projected as predictions of future events.

Although the company believes that the expectations reflected in the forward looking statements are reasonable it cannot guarantee future results level of activity performance or achievements. In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward looking statements. The company disclaims any duty to update any of these forward looking.

Ted Ayvas: The company disclaims any duty to update any of these forward-looking statements except as required by law. All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made on this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. Having said that, I'd now like to turn the call over to Mr. Jim Kras, Chief Executive Officer of Edible Garden. Jim.

Statements, except as required by law.

All forward looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made on this conference call you should evaluate all forward looking statements made by the company in the context of these risks and uncertainties, having said that I'd now like to turn the call over to Mr. Jim <unk>, Chief Executive Officer available Garden Jim.

Thanks, Ted good morning, and thank you to everyone for joining us today.

Jim Kras: Thanks, Ted. Good morning, and thank you to everyone for joining us today. Q3 marked an important step forward for Edible Garden as we continued executing our strategic evolution towards a CEA-informed consumer packaged goods, or CPG, model. In Q3, traditionally our seasonally softest period, we delivered a 9% year-over-year revenue increase, underscoring our strategic growth driven by our product realignment, focus on non-perishable product expansion, and the resilience of our higher value branded portfolio. This growth was driven by key initiatives, the continued expansion of our retail footprint, strong performance from our shelf-stable portfolio, and the early benefits of our operational realignment following the NaturalShrimp asset acquisition. Together, these actions reinforce our progress in repositioning Edible Garden as a next generation sustainable food company that combines innovation, brand strength, and operational efficiency.

Third quarter marked an important step forward for edible garden as we continued executing our strategic evolution towards a CE informed consumer packaged goods or CPG model.

Q3, traditionally our seasonally softest period, we delivered a 9% year over year revenue increase underscoring our strategic growth driven by our product realignment and focus on the non perishable product expansion and the resilience of our higher value branded portfolio.

This growth was driven by key initiatives. The continued expansion of our retail footprint strong performance from our shelf stable portfolio and the early benefits of our operational realignment following the naturals shrimp asset acquisition.

Together these actions reinforce our progress in repositioning edible garden is a next generation sustainable food company that combines innovation brand strength and operational efficiency.

Building on our heritage and fresh herbs and produce where sustainability traceability impressions freshness define our brand we've expanded into categories with stronger margins and greater scalability.

Jim Kras: Building on our heritage in fresh herbs and produce, where sustainability, traceability, and freshness define our brand, we've expanded into categories with stronger margins and greater scalability. Our CPG products, including clean label and functional offerings, extend the Edible Garden brand beyond fresh produce into shelf-stable products that meet consumer demand for better-for-you plant-based nutrition. During the quarter, we continued to expand our retail footprint, launching our USDA organic fresh herb line at Kroger and introducing Edible Garden branded herbs at The Fresh Market. We also strengthened our Midwest presence through partnerships with Pete's Fresh Market and Angelo Caputo's Fresh Markets. Internationally, we expanded our reach through key partners, including PriceSmart and Amazon. Collectively, these relationships underscore the growing appeal of the Edible Garden brand and the momentum of our expanding global platform.

Our CPG products, including clean label and functional offerings extend the edible garden brand beyond fresh produce and to shelf stable products that meet consumer demand for better for you plant based nutrition.

During the quarter, we continued to expand our retail footprint. Once you go USDA organic fresh air blowing at Kroger and introducing edible garden branded herbs at the fresh market.

We also strengthened our Midwest presence through partnerships with pizza fresh market and Angelo Poodles fresh markets internationally, we expanded our reach through key partners, including price more on Amazon Com.

Secondly, these relationships underscore the growing appeal of the edible garden brand and the momentum of our expanding global platform.

Demand for better for Ya CPG products continues to accelerate creating a powerful tailwind for our business globally, the functional food and beverage market is projected to expand from approximately $400 billion to 610 billion by 2030.

Jim Kras: Demand for better-for-you CPG products continues to accelerate, creating a powerful tailwind for our business. Globally, the functional food and beverage market is projected to expand from approximately $400 billion to $610 billion by 2030, according to Virtue Market Research. In the US, sales of natural, organic, and functional products are expected to reach $386 billion by 2028, according to the Nutrition Business Journal. These trends reinforce the strength of our strategy and highlight the significant opportunity ahead for Edible Garden as we align our product portfolio with these macro trends. Our CPG portfolio continues to be an important driver of growth, anchored by brands such as Kick Sports Nutrition, Pickle Party, Pulp, and Vitamin Way. These brands represent a key pillar of our transformation into a diversified, innovation-driven CPG company and highlight the versatility of Edible Garden's platform.

According to virtual market research.

In the U S sales of natural organic and functional products are expected to reach $386 billion by 2028.

According to the nutrition nutrition business Journal these trends reinforce the strength of our strategy and highlight the significant opportunity ahead for edible garden as we align our product portfolio with these macro trends.

Our CPG portfolio continues to be an important driver of growth anchored by brands such as kick sports nutrition, Pickled party pulp and vitamin way.

These brands represent a key pillar of our transformation into a diversified innovation driven CPG company and highlight the versatility available gardens platform.

Sports nutrition continues to build momentum as a clean better for your performance line designed for athletes and active consumers seeking natural energy and recovery solutions brand is gaining meaningful meaningful traction across both online and retail channels supported by rising consumer interest in plant.

Jim Kras: Kick Sports Nutrition continues to build momentum as a clean, better-for-you performance line designed for athletes and active consumers seeking natural energy and recovery solutions. The brand is gaining meaningful traction across both online and retail channels, supported by rising consumer interest in plant-forward performance nutrition. Earlier this year, Kick entered a major Midwest big box retailer, expanding its brick-and-mortar presence while growing online footprint to broaden awareness and engagement. By leveraging our expertise in clean, functional ingredients, Kick delivers products that combine taste, convenience, and nutritional value, attributes that resonate strongly with the fast-growing health and wellness segment. Vitamin Way, our protein and supplement line, complements Kick by addressing the broader market for functional nutrition.

Plant forward performance nutrition earlier this year kick answered a major big Midwest box big box retailers, expanding its brick and mortar presence, while growing online footprint to broaden awareness and engagement.

By leveraging our expertise in clean functional ingredients kicked delivers products that combine taste convenience and nutritional value attributes that resonate strongly with the fast growing health and wellness segment.

Vitamin whey protein and supplement line complements kip by addressing the broader market for functional nutrition.

Pick a party highlights the engaging flavor forward side of our CPG drive strategy offering a line of fresh for meta pickles, and sauerkraut crafted with clean label non GMO ingredients and natural fermentation.

Jim Kras: Pickle Party highlights the engaging flavor-forward side of our CPG draft strategy, offering a line of fresh fermented pickles and sauerkraut crafted with clean label, non-GMO ingredients, and natural fermentation. The brand combines bold, craveable flavors with a focus on gut health and sustainability, striking a balance between indulgence and wellness. Its distinctive identity as both fun and functional continues to resonate with younger consumers and health-conscious shoppers seeking better-for-you alternatives in the condiment aisle. Finally, Pulp, our line of organic refrigerated fermented hot sauces, continues to expand through new retail placements and regional growth. The brand has gained meaningful traction through rollouts at Target, Meijer, and most recently at ShopRite, further broadening its reach and consumer visibility.

The branch combines bold craveable flavors with focus with a focus on gut health and sustainability striking a balance between $1 indulgence and wellness.

It's distinctive identity is both fun and functional continues to resonate with younger consumers and health conscious shoppers seeking better for you alternatives in the condiment I'll.

Finally pulp our line of organic refrigerated fermented hot sauces continues to expand through new retail placements and regional growth. The brand has gained meaningful traction through rollout to target Meyer and most recently a top rate further broadening broadening its reach and consumer visibility pulp brings culinary innovation to the <unk>.

Our front available garden portfolio offering bold clean label condiments that reflect our commitment to flavor sustainability and the better for Ya principles driving today's consumer demand.

Jim Kras: Pulp brings culinary innovation to the forefront of the Edible Garden portfolio, offering bold, clean-label condiments that reflect our commitment to flavor, sustainability, and the better-for-you principles driving today's consumer demand. Collectively, these brands showcase how we're leveraging our expertise in sustainability, flavor, and functional nutrition to build a high-margin, scalable portfolio that extends the Edible Garden brand far beyond fresh produce and positions us to capture meaningful share in the growing clean-labeled CPG market. Turning to our produce business. We remain a trusted provider of sustainably grown herbs and leafy greens. Our new organic program with Kroger is gaining traction, while our presence at The Fresh Market and established retail partners, including Pete's Market and Angelo Caputo's Fresh Markets, continues to broaden retail penetration and increase brand visibility across key markets.

Collectively these brand showcase how we're leveraging our expertise in sustainability flavor and functional nutrition to build a high margin scalable portfolio that extends the edible garden brand far beyond fresh produce and positions us to capture meaningful share in the growing clean labeled CPG market.

Turning to our produce business, we remain a trusted provider of sustainable sustainably grown herbs and leafy Greens are new organic program with Kroger is gaining traction while our presence at the fresh market and established retail partners, including pizza market and <unk> and <unk> components fresh markets.

News to Brian.

Retail penetration increased brand visibility across key markets.

Operationally, we have strengthened our platform platform for growth through enhanced efficiency and scalability.

Jim Kras: Operationally, we've strengthened our platform for growth through enhanced efficiency and scalability. Innovation and sustainability remain central to our strategy. Guided by our zero waste-inspired approach, we're pursuing new categories, including nutraceuticals, sustainable proteins, and functional foods that align with our commitment to health, flavor, and environmental responsibility. As we move into the Q4 beyond, we believe that Edible Garden is positioned for continued growth. Our focus remains on disciplined execution, expanding retail partnerships, and advancing product innovation to build long-term shareholder value. I'm extremely proud of our team. Their dedication and commitment to quality, sustainability, and innovation have been instrumental in driving our progress and momentum heading into year-end. With that, I'll turn the call over to Kostas Dafoulas, our Interim CFO, who will review the financial results for the quarter ending 30 September 2025. Kostas.

Innovation and sustainability remains central to our strategy guided by our zero with inspired approach pursuing new categories, including Nutraceuticals sustainable proteins and functional foods that align with our commitment to health of flavor and environmental responsibility as.

As we move into the fourth quarter beyond we believe that <unk> is positioned for continued growth. Our focus remains on disciplined disciplined execution, expanding retail partnerships and advancing product innovation to build long term shareholder value.

Extremely proud of our team the dedication and commitment to quality sustainability and innovation have been instrumental in driving our progress and momentum heading into year end with that.

I'll turn the call over to cost us the full as our interim CFO, who will review the financial results for the quarter ended September 32025 cost us.

Thanks, Jim and good morning, everyone.

Revenue for the quarter increased 9% to $2 8 million compared to $2 6 million in the third quarter of 2024.

Kostas Dafoulas: Thanks, Jim. Good morning, everyone. Revenue for the quarter increased 9% to $2.8 million, compared to $2.6 million in Q3 2024. With our strategic exit from the floral and lettuce categories now complete, this quarter reflects the strength and resilience of our repositioned portfolio. The growth of $0.2 million or 9% was primarily driven by strong performance across our shelf-stable product portfolio, including Kick Sports Nutrition, Vitamin Way, Pulp, and Pickle Party. Specifically, this portfolio grew 54% year over year in Q3. Within our core herb portfolio, we saw strength in Hydro Basil up 21% year over year, and Wheatgrass up 59% year over year.

It's our strategic exit from the floral and lettuce categories now complete this quarter reflects the strength and resilience of our repositioning portfolio.

Yeah.

The growth of <unk>.

<unk> 2 million or 9% was primarily driven by strong performance across our shelf stable product portfolio, including kicks sports nutrition vitamin way pulp in Pickle Party.

Specifically this portfolio grew 54% year over year in Q3.

Then our core air portfolio, we saw strength in hydro basal up 21% year over year, and <unk> up 59% year over year.

Gross profit totaled approximately $8 3 million compared to <unk> 7 million in the prior year quarter, reflecting higher labor freight and raw material costs.

Kostas Dafoulas: Gross profit totaled approximately $0.3 million compared to $0.7 million in the prior year quarter, reflecting higher labor, freight, and raw material costs, as well as inflationary pressures within the nutraceutical supply chain. Selling, General and Administrative expenses were $3.8 million, compared to $2.2 million in the same period last year, primarily due to expenses related to the assets purchased from NaturalShrimp and the associated depreciation, legal, audit, and accounting expenses. Net loss was $4 million, compared to a net loss of $2.1 million in Q3 2024. We ended the quarter with $0.8 million in cash and equivalents, compared to $3.5 million at year-end 2024. Furthermore, the company refinanced its outstanding debt, securing a lower interest rate and more favorable terms.

Well as inflationary pressures within the nutraceutical supply chain.

Selling general and administrative expenses were $3 8 million compared to $2 2 million in the same period.

Period last year.

Primarily due to expenses related to the assets pursuits from natural shrimp and the associated depreciation legal audit and accounting expenses.

Yes.

Net loss was $4 million compared to a net loss of $2 1 million in the third quarter of 2024.

We ended the quarter with $2 8 million in cash and equivalents compared to $3 5 million at year end 2024.

Furthermore, the company refinanced its outstanding debt, securing a lower interest rate and more favorable terms.

The refinancing is expected to reduce annual interest expense and reduced financing cash outflows, providing greater flexibility.

Kostas Dafoulas: This re-refinancing is expected to reduce annual interest expense and reduce financing cash outflows, providing greater flexibility to support the company's strategic initiatives and growth objectives. We continue to manage working capital with discipline, optimizing inventory.

To support the company's strategic initiatives and growth objectives.

Continue to manage working capital with discipline optimizing inventory.

Inventory turnover through improved production planning and distribution efficiency the.

Kostas Dafoulas: Inventory turnover through improved production planning and distribution efficiency. At the same time, we are diversifying our sources of liquidity at a lower cost of capital to ensure that we have the flexibility to act decisively on strategic opportunities as they arise. With that, I will open the call for any questions.

The same time, we are diversifying our sources of liquidity at a lower cost of capital to ensure that we have the flexibility to act decisively on strategic opportunities as they arise.

Yes.

With that.

I will open the call for any questions.

Thank you very much we are now opening the floor for questions.

Operator: Our first question is coming from Anthony Vendetti of Maxim Group. Anthony, your line is live.

If you would like to ask a question. Please press star one on Youll find key pipe now confirmation tone will indicate that your line is Nicky.

May press Star two if you would like to remove your question Keith.

Anyone using speaker equipment, it may be necessary to pick up your handset before you press the keys.

Please wait a moment, whilst we poll for questions.

Thank you. Our first question is coming from Anthony Vendetti of Maxim Group Anthony Your line is live.

Operator: Our first question is coming from Anthony Vendetti of Maxim Group. Anthony, your line is live.

Thank you.

Just in terms of the.

Anthony Vendetti: Thank you. Just in terms of the natural shrimp facility that you acquired, can you talk about the build-out of that, how you intend to utilize that initially and then over the next six to 12 months? What specific product lines will be going in there? Any color on that would be helpful. Thanks.

The natural shrimp facility.

That you acquired can you talk about the build out of that.

How you intend to utilize that initially and then over there over the next six to 12 months.

And then what specific product lines.

We'll be we'll be going in there.

Any color on that would be helpful. Thanks.

Sure Anthony Good morning, how are you being on the call.

Jim Kras: Sure, Anthony. Good morning. How are you? Thanks for being on the call.

Well first of all it is.

It's an impressive facility so $6 two acres, it's about an hour from des Moines Airport.

Anthony Vendetti: Thanks, Jonah.

Jim Kras: Well, first of all, it's an impressive facility. I mean, 6.2 acres, it's about an hour from Des Moines Airport. It's right there in the, you know, in the center of the country and gives us access to all types of different raw materials and whatnot to do all types of products, some of which we've already started. Our near-term plan is, actually the facility is going through a gap analysis right now with a third party. We will be doing some R&D for next generation products, whether they're nutraceuticals or food is sort of in the works right now. We have some major opportunities with our retailers.

It's right there.

The center of.

Of the country and gives us access to all types of different raw materials and whatnot do all types of products some of which we've already started.

Our near term plan is actually the facility is going through a gap analysis right now with third party, we will be doing some R&D for next generation <unk>.

Alex.

Whether the Nutraceuticals R R.

Or.

Food is.

Sort of in the works right now.

We have some major opportunities with our retailers and one of the one of the great things about edible gardening and there are many.

Jim Kras: You know, one of the great things about Edible Garden, and there are many, is that we have significant relationships with major retailers and, you know, being, you know, on trend with the type of products that we're offering, clean labeled, fermented. All those products that we are currently pushing out are, you know, are only growing in demand as people are focusing on having less processed, you know, product. You know, Walmart, for example, just came out and said, I think it was in the last month, that they're mandating their suppliers of their private label to remove all artificial colors and dyes and sweeteners from their products. Something Edible Garden's been doing for the last year, and then some.

Is that we have significant relationships with major retailers and being on trend with the type of products that we're offering clean labeled.

Fermented.

All of those products that we are currently pushing out our.

Our only growing in demand as people are focusing on having less processed.

Product and Walmart for example, just came out and said it was within the last month that mandating the suppliers of their private label to two.

Two.

Move all artificial colors, and dyes and sweeteners from their products something edible gardens <unk> been doing for the last year.

And then some.

Fact that we are growers.

And we grow the actual raw ingredients plants that go into many of these products and can harvest some of the therapeutics without additives and without.

Jim Kras: The fact that we are growers, and we grow the actual raw ingredients, plants that go into many of these products and can harvest some of the therapeutics without additives and without artificial dyes or colors or things that just aren't really needed. That trend, we're at the forefront and we're doing in line with sustainability. To answer your question, we're getting asked by major companies to come in, work on their private label products, many of which I think will go into Heartland, which I think will be an incredible nutritional hub and sustainability hub in that part of the country.

Artificial dyes are colors or things that just arent really needed that trend. We're at the forefront and we are doing in line with our sustainability. So to answer your question.

Getting asked by major companies to come in and work on their private label products.

Many of which I think will go into Heartland, which I think will be an incredible nutritional hub and sustainability hub in that part of the country.

And we couldnt be more exciting excited timing and.

Jim Kras: We couldn't be more excited, timing and happenstance sometimes work to your advantage, and I think we're just at that intersection of having the ability, the right products at the right time. Now we're gonna have the right, you know, the right vertical integration to deliver on it. I couldn't be more excited. It's all come together quite well, and I think a lot of it's really the team as well.

Happen stance, sometimes work to your advantage and I think we're just at that intersection of having the ability the right products at the right time now we're going to have the right.

The right vertical to vertical integration to deliver on it and.

I couldnt be more excited it gets all come together quite quite well and I think a lot of it is really the team is well I want to give the people that work with us quite a bit of credit because it's been it's been a big effort here to to not only tool up with the facilities that we currently have but to get focus get efficient.

Jim Kras: I wanna give the people that work with us, quite a bit of credit 'cause it's been a big effort here to not only tool up with the facilities that we currently have, but to get focused, get efficient, you know, let some of the, you know, business that we knew that was a drag on the business kinda go, and kind of bite the bullet the last, you know, the previous quarters a little bit. You know, we're back on track and, you know, Q4, you know, is always a strong season for us and we're excited about that. It looks great. We're in the heat of the battle right now with Thanksgiving, which is our Super Bowl.

Let some of the business that we knew that was a drag on the business kind of go and kind of bite the bullet.

Previous quarters, a little bit, but we're back and we're back on track in Q4 is always a strong strong season for us and we're excited about that looks great.

The battle right now with Thanksgiving, which is our Super Bowl.

Once again, Kroger fresh market shop right.

Jim Kras: you know, once again, Kroger, Fresh Market, ShopRite, you know, they're all coming to us not only for our branded product, but some of these other innovative things that we're doing. I think Edible Garden Prairie Hills, which is what we named Iowa, will, I think, be at the forefront of driving that innovation and volume for us, frankly.

It all come in cost not only for our branded product, but some of these other innovative things that we're doing and I think.

Edible gardening Prairie Hills, which is what we named.

Iowa will I think be at the forefront of driving that innovation and volume for us frankly.

Okay. So just to follow up it sounds like the big grocery stores in particular are aware.

Anthony Vendetti: Okay. Just to follow up, it sounds like the big grocery stores in particular are where the largest opportunity is. Would you say that's also the largest opportunity moving into 2026? It's the ShopRites, the Krogers, Fresh Market, these bigger grocery chains where you see the most opportunity in 2026?

The largest opportunity years would you say that's also the largest opportunity moving into 2006, it's the shop rates for kroger's.

The fresh market.

These bigger.

Grocery chains, where you see the most opportunity in 2026.

I see yes look ICR.

Jim Kras: I'd say yes. Look, I see our, you know, our core business is that we're a business that has excelled in produce where many have failed. Whether established companies that have been around for quite some time or, you know, upstarts that came in sort of kinda drafting us and kind of, you know, spinning a similar story. I mean, we're one of the last standing and we're, you know, and we're accelerating the business. Yes, what's happening is not only is it our produce business, it's the existing branded business that we have in there, whether it's Kick Sports Nutrition or Pickle Party. Then there's private label. We have a substantial private label business currently with key players like Meijer.

Core business is that we're a business that has excelled in produce where many of sale failed whether established companies that have been around for quite some time or upstart that came in sort of drafting us and kind of.

Been in similar story I mean, we're one of the last standing and we're and we're accelerating the business. So yes, whats happening is not only that our produce business. It's an existing branded business that we have in there whether it's kicked sports nutrition or vehicle bharti.

Then there is private label and we have a substantial private label business currently with.

Key players like Myer.

And we're getting asked to do more of the next generation products.

Jim Kras: We're getting asked to do more of the next generation products, from the likes of the big box retailers coming to us and saying, All right, you know, we love what you're doing. You're on trend. The current, you know, political environment is pushing for less, you know, less processed foods. Research is coming back and saying as such. What can you do for us under our label? We like what you're doing. We can do some in your label. A lot of it's being driven by these big box retailers saying, Hey, you know, private label is such a powerhouse now.

The likes of the big box retailers coming to us and saying, we love what you're doing you're on trend.

The current political environment is pushing for less less processed foods research is coming back and saying as such what can you do for us under our label.

Like what Youre doing we can do some in your label to allow a lot of it's being driven by these big box retailers, saying, Hey, you know private label is such a powerhouse now.

What can you do to sort of allow us to be instead.

Jim Kras: You know, what can you do to allow us to be, you know, in step with you with these innovations and have those offerings out on our shelves as quickly as possible? 2026 is gonna be a great year, and yeah, it's gonna be driven by, you know, retailers coming to us and saying, Hey, you know, what can you do for us? 'Cause we like what you're doing, and we want more of what you have. It's a great place to be, and it doesn't always happen. You know, I think timing is just on our side, and a lot of it's just driven by who we are and what we've been doing for the last decade.

In step with you with these innovations and have those offerings out on ourselves as quickly as possible. So.

Only 26 is going to be a great year, and yes, it's going to be driven by.

People retailers kind of coming to us.

And saying Hey, what can you do for us because we like what Youre doing and we want more of what you have.

So it's a great place to be and it doesn't always happen.

And I think timing is just on our side and a lot of it's just driven by who we are what we've been doing for the last decade.

End up looking like overnight success, but ultimately it's been 10 years in the work to get work to get to this place.

Jim Kras: You know, it might end up looking like overnight success, ultimately it's been 10 years in the work to get to this place.

So on the on the margin side, Jim So obviously.

Anthony Vendetti: On the margin side, Jim, obviously, you know, if, you know, sometimes private label's tougher to get a larger margin on. If they're asking for, you know, the natural products, the, you know, the ones with less additives, that's like you said, that's right in your wheelhouse. Are you able to push back and say, Look, we, yeah, we can do that for you, but, you know, those are higher priced products. You know, and then maybe talk about the margin related to that as well as your Kickstart program, you know, the protein. You know, how's that doing and what do you see the outlook for that in 2026?

Sometimes private level tougher to get a larger margin on but if they're if they're asking for.

The natural product.

The ones with less additives. That's like you said that's right in your wheelhouse are you able to push back and say look we yeah. We can do that for you but.

<unk>.

Those are.

Higher priced product.

And then and then maybe talk about the margin related to that as well.

As your Kickstart programme.

The protein.

How is that doing and what do you see the outlook for that in 2000.

Okay.

So I think on the private label piece, yes to a certain extent I think you can.

Jim Kras: I think on the private label piece, you know, yes, to a certain extent, I think you can. It's, you know, I think some of it's also sort of like modulating the words that we use, right? I think command's a strong word. I don't think you know, I think when you're Edible Garden, you know, we're a smaller company that's nimble and can move quickly, and that I've always told my crew that, you know, we're a customer service company that makes things. I think that's boded well for us because, you know, we are quick to respond. I would tell you that I think that, you know, the margin, you know, there's opportunity to have a fair margin, but what you're getting is volume. You're gonna get contracts. You're gonna get consistent volume.

Right.

I think some of it is also sort of like modulating the words that we use right. So.

As the commands.

Strong word I don't thank you.

Your edible gardening, we're a smaller company that is nimble and can move quickly in that I've always told my crew that we work with the customer service company that makes things.

I think that's boded well for us because we are quick to respond I would tell you that I think that the.

On the margin.

There is opportunity to have a fair margin, but what youre getting is volume youre going to get contracts youre going to get consistent volume youre going to have a relationship with major retailers.

Jim Kras: You're gonna have a relationship with major retailers that like we have currently with, like I said, some key retailers now that we're doing private label, where you build on that. Yes, there's the margin play, but there's the additional products. There's a deeper relationship, and it's long-term. I mean, most private label relationships, I mean, all private label, you know, private label relationships come with a contract and contracted business and, you know, and commitments to take a certain base amount of product. You know, you can call it an offtake agreement, is key, and it's key to the business. It gives us security that we know we can support the facilities.

Like we have currently with like I said, some key some key retailers now that we're doing private label, where you build on that and so yes. There is the margin play.

The additional products there is a deeper relationship and it's long term and most most private label relationships I mean, all private label.

Private label relationships come with the contract and contract business.

And commitments to take a certain base amount of product.

You can call it an off take agreement.

Is key and is key to the business. It gives us security that we can support the facilities.

It also gives us visibility down the road.

Jim Kras: It also gives us visibility down the road for, you know, for a long period of time that we know that we, you know, as long as we don't do anything that's, you know, catastrophic to the business, or there's a black swan event, we are, you know, we are in business with a major retailer making something that has their label on it that, you know, that's got upside. There is that pushback that, you know, will allow you to say, Hey, you know, you guys are getting this first. We're putting the focus of the company on this. You know, and the idea is, you know, you're gonna get all this, you know, this is how you grow the business, frankly. I mean, ideally, you have a blend, right?

A long period of time that we know that we as long as we don't do anything thats catastrophic to the business.

Or there is a black Swan event. We are we are in business with a major retailer, making something that has their label on that.

Scott upside so yes, there is that that pushed back.

That will allow you to say Hey, you guys are getting this first we're putting the focus of the company on this but the others.

The idea is you're going to get all of this this is how you grow the business frankly, so I mean, the ideal ideally you have a blend right you have a blend of.

<unk>.

Our retailers' private label.

Jim Kras: You have a blend of, you know, their, you know, of retailers' private label, you know, and then you have obviously your branded products, and then maybe you even make stuff for, you know, other brands that, you know, that have, you know, that can command, you know, you can command a higher margin, and that kind of gives you a blended margin on the manufacturing. That's where we're going with Iowa, with some of the new products that, you know, I can't disclose, but that we're gonna be putting in there that are gonna, you know, be, offer significant upside. I think you had another question regarding Kick. I don't know if I answered that or not.

And then you have obviously your branded products and then maybe you even make stuff for other brands that that have that can command you can command a higher model.

Margin in that kind of gives you a blended.

Margin on the manufacturing and that's where we're going.

With IOR with some of the new products that I can't disclose that we're going to be putting in there that are going to be.

Offer significant upside and I think we have another question regarding kick I don't know if I answered that yes, I don't think so.

Let's say so.

Anthony Vendetti: Yeah.

Jim Kras: I don't think I did.

No.

Anthony Vendetti: Yeah. Let's say, you know, maybe it's, okay, you know what? You want guaranteed product availability of, you know, certain products that are private label that maybe aren't as high margin. You know, we'll provide that to you, but, you know, alongside that, yeah, you know, you have to take our higher margin protein product, even if you're using somebody else's, or you have to take some of, you know, some of our branded products as well.

Maybe if it's okay, you know what you want guaranteed.

Product availability.

Certain products that are private label that maybe aren't as high margin, but you know.

We'll provide that to you.

Alongside that yes, you have to you have to take our higher margin protein product, even if youre in somebody else's.

To take somebody some of our branded products as well as some of that but there is some of that orange. There. Okay. Yes, yes. There is some of that I mean look it's business right and its an exact science and it's in everybody's best interest to support, especially if you're a major retailer I mean pick one.

Jim Kras: There's some of that.

Anthony Vendetti: Have a little bit of that approach there? Okay.

Jim Kras: Yeah. Yeah, there's some of that. I mean, you know, look, it's business, right? It's not an exact science, and it's in everybody's best interest to support, especially if you're a major retailer. I mean, pick one, whoever it is. You know, it could be CVS. I don't know. You know, somebody who, let's say, we're doing a nutraceutical product, for example, for them. You know, you know that it's, you know, it's a usually a 2 or 3-year sort of, you know, contract, you know, sometimes longer. We're gonna push for the longest ones possible. Yeah, I mean, they realize it's in their best interest to support the company, you know, because it takes time to tool up.

It is going to be Cvs.

Let's say, we're doing a nutraceutical product for example from them.

No that it's.

Usually a two or three year sort of in your.

Contract.

Sometimes longer we're going to push for the longest ones possible.

And yeah, I mean, they they realize it's in their best interest to support the company because it takes time tool up.

When you look at our facility like Iowa, and the things that we're looking to do that takes that we've already started spending money on getting the place up and running.

Jim Kras: You know, I think, you know, when you look at a facility like Iowa and the things that we're looking to do, that takes, you know, we've already started spending money on getting the place up and running last quarter. We'll continue to, you know, to get the place ready for primetime. These retailers, they understand it's in their best interest to put other products in, maybe your branded product or a higher margin private label that they know that, you know, will help, you know, I guess, underwrite, you know, the, you know, maybe the higher volume, lower margin business that they wanna compete in.

And last quarter and.

We will continue to be to get the place ready for primetime and these retailers they understand it's in their best interest to put other.

Their products and maybe your branded product or a higher margin private label that they know that will help I guess underwrite.

Maybe the higher volume lower margin business that they want to compete and so those are the type of strategic conversations that we're having multiple major retailers.

Jim Kras: You know, those are the type of strategic conversations that we're having at multiple major retailers and, you know, you're already starting to see some of that come to fruition, and you will see more as we move forward into 2026. Yeah, there is that type of relationship. You know, it's like anything else. It's, you know, it's, you gotta have something that they want, and you gotta work hard with them. You know, there's a whole certification process, and their people come in and inspect everything and, you know, But we've gotten pretty good at it, and we got a great crew, so I couldn't be more excited. Yeah. Yeah, that's definitely, you know, the way that it should go.

You are already starting to see some of that come to fruition and you will see more as we move forward into 2026. So yes. There is that type of relationship it's like anything else. It's.

It's.

And you've got to have got to have something that they want and you got to work hard with them.

A whole certification process and there are people come in and inspect everything.

But we've gotten pretty good at it and we've got a great crew, so I couldn't be more excited.

But yeah. So yes, that's definitely the way that it should go not everybody does that but they should work with you and understanding it's in their best interest.

Jim Kras: Not everybody does that, but they should work with you, understanding it's in their best interest to help give you some fuel to build out the business. You can't just, you know, rely on us to, you know, bring in our own capital. I mean, some of that's gotta be kinda cushioned with, you know, products that they know that are established, that they give to us that, you know, allow us to offset.

To help give you some fuel to build out the business you can't just rely on us to bring in our own capital and then they've got some of that is going to be kind of cushioned with prana.

Products that they know that our established that they give to us that allow us to offset.

I'm, sorry that was a long winded, but yes, yes, yes.

Anthony Vendetti: Okay.

Jim Kras: Sorry that was so long-winded, but yeah. Yeah. Yes. I guess yes.

Yes.

Is that opportunity.

To answer your question Anthony I don't know, if I did or not.

Anthony Vendetti: All right. Thank you.

Jim Kras: There is that opportunity. Did I answer your quick question, Anthony? I don’t know if I did or not.

Yes, no thats right.

Welcome.

Yes that was good thanks, so much I'll hop back in the queue appreciate it alright.

Anthony Vendetti: Yeah, no.

Jim Kras: Anthony, did I?

Anthony Vendetti: That's what I was gonna Yep, that was good. Thanks so much. I'll hop back in the queue. Appreciate it.

Alright, Thank you Anthony.

Thank you very much just to remind you that if there are any further questions you can still join the queue by pressing star one on your phone key patent.

Jim Kras: All right. Thank you, Anthony.

Operator: Thank you very much.

Jim Kras: Uh-

Operator: Just a reminder there, if there are any further questions, you can still join the queue by pressing star one on your phone keypad now. Wait to see if anybody else jumps into the queue. Okay. I'm not seeing any further questions in the queue, so I will now hand back over to the management team for any closing comments.

Let's see if anybody else jumps into the queue.

Okay.

Any further questions in the queue. So I will now hand back over to the management team for any closing comments.

Thanks again.

To everyone for joining us today third quarter was another important step forward for edible garden.

Jim Kras: Thanks again to everyone for joining us today. This Q3 was another important step forward for Edible Garden. We're executing our strategy with focus, expanding our retail reach, growing our higher margin CPG brands, and strengthening our operations to support scalable, profitable growth. Momentum continues across Kick Sports Nutrition, Pickle Party, Pulp, and Vitamin Way. These brands show that our approach is working and that consumers are responding to clean label, better for you products. At the same time, our core produce business remains strong, grounded in freshness, sustainability, and quality. As we approach year-end, our priorities are clear: continue executing at a high level, advance our innovation pipeline, and deliver lasting value for our shareholders. We're excited about where we're heading and look forward to sharing more of our progress in the months ahead. Thank you.

We are executing.

Our strategy with focus expanding our retail reach.

Growing our higher margin CPG brands and strengthening our operations to support scalable profitable growth.

Growth momentum continues across cross kicks sports nutrition Pickle party pulp and vitamin way. These brands show that our approach is working and that consumers are responding to clean label better for you products at the same time, our core protein business remained strong grounded in freshness sustainability and quality as.

As we approach year end, our priorities are clear continue executing at a high level advance our innovation pipeline and deliver lasting value for our shareholders. We're excited about where we're heading.

And look forward to sharing more of our progress in the months ahead. Thank you.

Thank you very much. This does conclude today's conference you may disconnect. Your phone lines at this time and have a wonderful day and a wonderful.

Operator: Thank you very much. This does conclude today's conference. You may disconnect your phone lines at this time, and have a wonderful day and a wonderful weekend. We thank you for your participation.

For weekend, we thank you for your participation.

Q3 2025 Edible Garden AG Inc Earnings Call

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