Q4 2025 Edible Garden AG Inc Earnings Call

March 31, 2026

Speaker #1: At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require Operator assistance during the conference, please press *0 on your telephone keypad.

Speaker #1: Please note, this conference is being recorded. I will now turn the conference over to your host, Ted Ayvas, Investor Relations. The floor is yours.

Speaker #2: Thanks, John. Good afternoon, and thank you for joining Edible Garden's 2025 fourth quarter and full-year 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.

Speaker #2: Earlier today, the company announced its operating results for the three-month and year-ended December 31, 2025. The press release is posted on the company's website, www.ediblegardenag.com.

Operator: Greetings. Welcome to the Edible Garden AG Incorporated Full Year and Q4 2025 Business Update Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Ted Ayvas, Investor Relations. The floor is yours.

Speaker #2: In addition, the company has filed its annual report on Form 10-K 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.

Speaker #2: 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. Before Mr. Kras reviews the company's operating results for the quarter and year-ended December 31, 2025, and provides a business update, we would like to remind everyone that this conference call may contain forward-looking statements.

Ted Ayvas: Thanks, John. Good afternoon, and thank you for joining Edible Garden's 2025 Q4 and full year 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 today, the company announced its operating results for the three months and year ended 31 December 2025. The press release is posted on the company's website, www.ediblegardenag.com. In addition, the company has filed its annual report on Form 10-K 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. Before Mr.

Theodore Ayvas: Thanks, John. Good afternoon, and thank you for joining Edible Garden's 2025 Q4 and full year 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 today, the company announced its operating results for the three months and year ended 31 December 2025. The press release is posted on the company's website, www.ediblegardenag.com. In addition, the company has filed its annual report on Form 10-K 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. Before Mr.

Speaker #2: All statements other than statements of historical facts contained in the conference call, including statements regarding our future result of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements.

Speaker #2: The words "aim," "anticipate," "believe," "could," "expect," "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.

Speaker #2: 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, result of operations, strategy, short-term and long-term business operations and objectives, and financial needs.

Speaker #2: 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 31, 2025.

In addition, the company has filed an annual report on Form 10-K with the US 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 Crenn Crescendo Communications at 211-267-11020.

Ted Ayvas: Jim Kras reviews the company's operating results for the quarter and year ended December 31, 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 the 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, and other words and terms of similar expression, 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.

Theodore Ayvas: Jim Kras reviews the company's operating results for the quarter and year ended December 31, 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 the 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, and other words and terms of similar expression, 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.

Speaker #2: Because of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in the conference call may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

Speaker #2: 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, levels of activity, performance, or achievements.

Before Mr. Kras reviews the company's operating results for the quarter and year ended December 31, 2025, and provides the 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 the 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.

Speaker #2: 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 statements except as required by law.

Speaker #2: All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made on the conference call.

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 December 31, 2025. Because of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in the 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, levels of activity, performance, or achievement. 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 statements except as required by law.

Theodore 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 December 31, 2025. Because of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in the 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, levels of activity, performance, or achievement. 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 statements except as required by law.

Speaker #2: You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. Having said that, I would now like to turn the call over to Jim Kras, Chief Executive Officer of Edible Garden.

The words: "aim," "anticipate," "believe," "could," "expect," "may," "plan," "project," "strategy," "will," and the negatives of such terms, in other words and terms of similar expressions, are intended to identify forward-looking statements. These forward-looking statements are largely based 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. 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 31, 2025.

Speaker #2: Jim,

Speaker #3: Thanks, Ted. Good afternoon, and thanks to everyone for joining us today. 2025 was a defining year for Edible Garden, as we continue to build on our foundation and expand our long-term growth potential.

Speaker #3: Over the past several quarters, we have executed a deliberate strategy to grow beyond our core controlled environment agriculture platform into a broader innovation-driven consumer packaged goods business, focusing on higher growth, higher margin opportunities aligned with what consumers and retailers are actively quarter, we continued to build momentum across our core business, securing new and expanded placements with key retail partners, including Kroger, Weiss Markets, Safeway, The Fresh Market, and Bush's, increasing our distribution to nearly 6,000 store locations.

Ted Ayvas: All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made on the 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 would now like to turn the call over to Jim Kras, Chief Executive Officer of Edible Garden. Jim?

Theodore Ayvas: All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made on the 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 would now like to turn the call over to Jim Kras, Chief Executive Officer of Edible Garden. Jim?

Because of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in the 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, levels 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 statements, except as required by law.

Speaker #3: This reflects growing demand for our products, our ability to gain market share, and the strength of our retail relationships. We saw a strong performance across both our core produce and CPG categories.

All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements, as well as others made on the 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 would now like to turn the call over to Jim Kras, Chief Executive Officer of Edible Garden. Jim.

Jim Kras: Thanks, Ted. Good afternoon, and thanks to everyone for joining us today. 2025 was a defining year for Edible Garden as we continued to build on our foundation and expand our long-term growth potential. Over the past several quarters, we have executed a deliberate strategy to grow beyond our core controlled environment agricultural platform into a broader, innovation-driven consumer packaged goods business, focusing on higher growth, higher margin opportunities aligned with what consumers and retailers are actively seeking. During Q4, we continued to build momentum across our core business, securing new and expanded placements with key retail partners, including Kroger, Weis Markets, Safeway, The Fresh Market, and Busch's, increasing our distribution to nearly 6,000 store locations. This reflects growing demand for our products, our ability to gain market share, and the strength of our retail relationships.

Thanks, Ted. Good afternoon, and thanks to everyone for joining us today.

Speaker #3: Including double-digit growth in cut herbs, driven by expansion in existing accounts, and the onboarding of Kroger as well as continued strength in our vitamin and supplement portfolio, where demand remains robust both domestically and internationally.

2025 was a defining year for Edible Garden. As we continue to build on our foundation and expand our long-term growth potential.

Speaker #3: We also saw significant growth in our condiment platform, supported by new customer wins such as Wakefern and Safeway. Importantly, these efforts, along with targeted investments in customer onboarding, resulted in incremental distribution of more than 700 additional retail locations, further expanding our reach across key markets.

Over the past several quarters, we have executed a deliberate strategy to grow beyond our core controlled environment agricultural platform into a broader, innovation-driven consumer packaged goods business, focusing on higher-growth, higher-margin opportunities aligned with what consumers and retailers are actively seeking.

Speaker #3: At the same time, we are expanding our portfolio of better-for-you brands, including Kick, Sports Nutrition, Jealousy GLP-1, Vitamin Way, Pickle Party, and Pulp, and broadening distribution across domestic, e-commerce, and international markets, including placements with Amazon, Pricemart, Target.com, and Walmart.com.

During the fourth quarter, we continued to build momentum across our core business, securing new and expanded placements with key retail partners including Kroger, Weiss Markets, Safeway, The Fresh Market, and Bushes. We increased our distribution to nearly 6,000 store locations.

This reflects growing demand for our products, our ability to gain market share, and the strength of our retail relationships.

Jim Kras: We saw a strong performance across both our core produce and CPG categories, including double-digit growth in cut herbs, driven by expansion in existing accounts and the onboarding of Kroger, as well as continued strength in our vitamin and supplement portfolio, where demand remains robust both domestically and internationally. We also saw significant growth in our condiment platform, supported by new customer wins such as Lakefront and Safeway. Importantly, these efforts, along with targeted investments in customer onboarding, resulted in incremental distribution of more than 700 additional retail locations, further expanding our reach across key markets. At the same time, we're expanding our portfolio of Better for You brands, including Kick Sports Nutrition, Jellyci GLP-1, Vitamin Way, Pickle Party, and Pulp, and broadening distribution across domestic, e-commerce, and international markets, including placements with Amazon, PriceSmart, Target.com, and Walmart.com.

Speaker #3: This expanded retail footprint and brand portfolio positions us to support our next phase of growth into higher margin, self-stable, and ready-to-drink ink categories. This is not a shift away from what we've built; it's a deliberate evolution of our business, supported by our national retail distribution and infrastructure.

We saw a strong performance across both our core produce and CPG categories, including double-digit growth in cut herbs driven by expansion in existing accounts and the onboarding of Kroger, as well as continued strength in our vitamin and supplement portfolio, where demand remains robust both domestically and internationally.

Speaker #3: Much of which is already in place and positioned to drive scale across higher-value categories. Key next step in our strategy is expanding into the ready-to-drink or RTD category, the fast-growing market where demand for clean label, shelf-stable nutrition, continues to outpace supply.

We also saw significant growth in our condiment platforms, supported by new customer wins such as Lake Farm, and importantly, Safeway. These efforts, along with targeted investments and cons... customer onboarding, resulted in incremental distribution to more than 700 additional retail locations.

Speaker #3: We are leveraging our farm-to-formula approach, our sustainable manufacturing infrastructure, and our established relationships with leading retailers to enter this category from a position of strength.

Further expanding our reach across key markets.

Speaker #3: Importantly, we are not starting from scratch. Our products are already carried across approximately 6,000 store locations. Giving us the ability to deepen existing relationships while expanding into a category that aligns closely with our brand portfolio.

Jim Kras: This expanded retail footprint and brand portfolio positions us to support our next phase of growth into higher margin, shelf-stable, and ready to drink categories. This is not a shift away from what we've built. It's a deliberate evolution of our business, supported by our national retail distribution and infrastructure, much of which is already in place and positioned to drive scale across higher value categories. Key next step in our strategy is expanding into the ready-to-drink or RTD category, a fast-growing market where demand for clean label, shelf-stable nutrition continues to outpace supply. We are leveraging our Farm to Formula approach, our sustainable manufacturing infrastructure, and our established relationships with leading retailers to enter this category from a position of strength. Importantly, we are not starting from scratch.

Speaker #3: To support this expansion, we recently announced the development of a state-of-the-art RTD manufacturing initiative at our Midwest facility as part of our Zero Waste Inspired platform.

Across domestic e-commerce and international markets, including placements, with Amazon price, target.com, and walmart.com. This expanded retail footprint and brand portfolio positions us to support our next phase of growth into higher margin self shelf stable and ready to ready to drink categories.

Speaker #3: We have selected Tetra Pak, a global leader in food processing and packaging solutions to plan, install, and integrate proprietary processing capabilities which we expect will enable us to meet growing retailer demand at scale.

Shift away from what we've built. It's a deliberate evolution of our business, supported by our national retail distribution and infrastructure.

Much of which is already in place and positioned to drive scale across higher-value categories.

Speaker #3: When you look at the broader market, the opportunity is significant. The global RTD category is estimated at approximately 842.5 billion in 2025 and is projected to reach roughly 1.26 trillion by 2033.

Key. Next up in our strategy is expanding into the ready to drink or RTD category, the fast growing Market where demand for clean label shelf stable nutrition continues to outpace supply

We're leveraging our farm-to-formula approach, our sustainable manufacturing infrastructure, and our established relationships with leading retailers to enter this category from a position of strength.

Jim Kras: Our products are already carried across approximately 6,000 store locations, giving us the ability to deepen existing relationships while expanding into a category that aligns closely with our brand portfolio. To support this expansion, we recently announced the development of a state-of-the-art RTD manufacturing initiative at our Midwest facility as part of our Zero-Waste Inspired platform. We have selected Tetra Pak, a global leader in food processing and packaging solutions, to plan, install, and integrate proprietary processing capabilities, which we expect will enable us to meet growing retailer demand at scale. When you look at the broader market, the opportunity is significant. The global RTD category is estimated at approximately $842.5 billion in 2025 and is projected to reach roughly $1.26 trillion by 2033.

Importantly, we are not starting from scratch.

Speaker #3: We believe this represents a durable opportunity and builds naturally on our platform, combining controlled environment agriculture, scalable aseptic capabilities, and our portfolio of differentiated brands across Sports Nutrition, Performance Nutrition, Adult Nutrition, Kids Nutrition, GLP-1 supportive, and functional categories.

Our products are already carried across approximately 6,000 store locations, giving us the ability to deepen existing relationships or expand into a category that aligns closely with our brand portfolio.

To support this expansion, we recently announced the development of a state-of-the-art RTD manufacturing.

Speaker #3: Looking ahead, we are focused on scaling our presence in higher-margin RTD, shelf-stable categories while continuing to build a more diversified consumer packaged goods business beyond fresh produce.

Initiative at our Midwest facility as part of our zero-waste inspired platform.

Speaker #3: As we execute on this strategy, Edible Garden is evolving into a more vertically integrated, innovation-driven company with the ability to deliver more predictable and scalable results.

We have select selected Tetra packs, a global leader in food processing and packaging solutions to plan install and integrate proprietary processing capabilities which we will, which we expect will enable us to meet growing retail with demand at scale.

Speaker #3: We believe this positions us as a differentiated player in the evolving food and nutrition landscape with a clear path to sustainable, long-term growth. With that, I'll turn the call over to Kostas.

Speaker #3: To review the financials.

Jim Kras: We believe this represents a durable opportunity and builds naturally on our platform, combining controlled environment agriculture, scalable aseptic capabilities, and our portfolio of differentiated brands across sports nutrition, performance nutrition, adult nutrition, kids nutrition, GLP-1 supportive, and functional categories. Looking ahead, we are focused on scaling our presence in higher margin RTD shelf-stable categories while continuing to build a more diversified consumer packaged goods business beyond fresh produce. As we execute on this strategy, Edible Garden is evolving into a more vertically integrated, innovation-driven company with the ability to deliver more predictable and scalable results. We believe this positions us as a differentiated player in the evolving food and nutrition landscape with a clear path to sustainable long-term growth. With that, I'll turn the call over to Costas to review the financials.

Speaker #4: Thanks, Jim. And good afternoon, everyone. Starting with the fourth quarter results, revenue for the three months ended December 31st, 2025, was approximately $4.1 million compared to $3.9 million in the prior year period, reflecting a strong quarter across the business.

When you look at the broader market, the opportunity is significant. The global RTD category is estimated at approximately $842.5 billion in 2025, and is projected to reach roughly $1.26 trillion by 2033. We believe this represents a durable opportunity and builds naturally on our platform, combining controlled environment agriculture.

Speaker #4: We launched our USDA organic herb programs with Kroger in October and recorded our first international CPG shipment of Kick, Sports Nutrition to Pricemart. Marking our entry into the markets beyond domestic retail.

Scalable aseptic capabilities and our portfolio of differentiated brands across sports nutrition, performance nutrition, adult nutrition, kids nutrition, go-to-market support, and functional categories.

Speaker #4: These wins reflect the growing demand we are seeing for our products and the continued strength of our retail relationships heading into 2026. Cost of goods sold in Q4 was approximately $5.3 million, compared to $3.8 million in the year prior.

Looking ahead, we are focused on scaling our presence and higher-margin RTD shelf. In stable categories, we'll continue to build and more diversified consumer packaged goods business beyond fresh produce.

As we execute on the strategy, Edible Garden is evolving into a more vertically integrated, innovation-driven company with the ability to deliver more predictable and scalable results.

Speaker #4: The increase reflects the cost profile of the company that was actively onboarding new retail customers during a seasonally compressed period. We made a deliberate investment in these new accounts that secures 2026 shelf space and builds the fulfillment track record that major retailers require.

We believe this positions us as a differentiated player in the evolving food and nutrition landscape, with a clear path to sustainable, long-term growth.

With that, I'll turn the call over to Kostas to review the financials.

Kostas Dafoulas: Thanks, Jim, and good afternoon, everyone. Starting with the Q4 results, revenue for the three months ended 31 December 2025 was approximately $4.1 million, compared to $3.9 million in the prior year period, reflecting a strong quarter across the business. We launched our USDA organic herb programs with Kroger in October, and recorded our first international CPG shipment of Kick Sports Nutrition to PriceSmart, marking our entry into the markets beyond domestic retail. These wins reflect the growing demand we are seeing for our products and the continued strength of our retail relationships heading into 2026. Cost of goods sold in Q4 was approximately $5.3 million compared to $3.8 million in the year prior. The increase reflects the cost profile of the company that was actively onboarding new retail customers during a seasonally compressed period.

Speaker #4: We expect the cost structure to normalize as those programs mature in volume increases. Gross profit was approximately $1.2 million loss compared to flat in 2024.

Thanks Jim and good afternoon, everyone. Starting with the fourth quarter results revenue for the 3 months, ended December 31st 2025 was approximately 4.1 million compared to 3.9 million in the prior year period. We're f****** a strong quarter across the business.

Speaker #4: Q4 was a quarter where we made a deliberate decision to absorb elevated costs to secure a 2026 shelf space and deepen relationships with retailers like Kroger, Wakefern, and Safeway.

We launched our USDA organic herb programs with Kroger in October and recorded our first international CPG shipment of Kicks Sports Nutrition to Price Mark, marking our entry into markets beyond domestic retail.

Speaker #4: Bringing customers of that caliber requires front-loaded investment, and we see this as necessary to support future growth and operational scalability. Selling general and administrative expenses were approximately $4.6 million, compared to $2.6 million in the prior year.

These winds reflect the growing demand. We are seeing for our products and the continued strength of our retail relationships, heading into 2026.

Cost of goods sold in Q4 was approximately $5.3 million, compared to $3.8 million in the year prior.

Speaker #4: Primary drivers were depreciation and rent tied to the natural shrimp asset acquisition, higher legal and professional fees, from that acquisition in our capital markets activities, along with higher compensation expenses in 2025.

Kostas Dafoulas: We made a deliberate investment in these new accounts that secures 2026 shelf space and builds the fulfillment track record that major retailers require. We expect the cost structure to normalize as those pro-programs mature and volume increases. Gross profit was approximately a $1.2 million loss, comparatively flat in 2024. Q4 was a quarter where we made a deliberate decision to absorb elevated costs to secure 2026 shelf space and deepen relationships with retailers like Kroger, Wakefern, and Safeway. Bringing customers of that caliber requires front-loaded investment, and we see this as necessary to support future growth and operational scalability. Selling, general, and administrative expenses were approximately $4.6 million, compared to $2.6 million the prior year.

The increase reflects the cost profile of the company that was actively onboarding new retail customers during a seasonally compressed period.

We've made a deliberate investment in these new accounts that secures

Speaker #4: While the absolute number is elevated, a meaningful portion reflects non-recurring or deal-related costs rather than ongoing run rate expense. Turning to the full year, revenue was approximately $12.8 million versus $13.9 million in 2024.

2026 shelf space and builds the Fulfillment track record that major retailers require. We expect the cost structure to normalize as those pro programs mature in volume increases.

Gross profit was approximately a $1.2 million loss compared to

Speaker #4: The headline decline is largely a function of our strategic exit from floral and lettuce, which together contributed approximately $1 million of 2024 revenue, but at low margins.

Speaker #4: Excluding those exits, core revenue was essentially flat year over year, and Q4 was a genuine growth quarter, up approximately 5%. That trajectory is what we consider most indicative of where the business is headed.

Flat in Q4 2024 was a quarter where we made a deliberate decision to absorb elevated costs to secure a 2026 self shelf, space, and deepen relationships with retailers like Kroger, Wakefern, and Safeway.

Bringing customers of that caliber requires front loader investment. And we see this as necessary to support, future growth and operational scalability.

Speaker #4: Full-year cost of goods sold was approximately $13 million versus $11.6 million in 2024. The increase was concentrated in the second half and driven by the same Q4 onboarding dynamics I described earlier.

Selling, general, and administrative expenses were approximately $4.6 million compared to $2.6 million in the prior year.

Kostas Dafoulas: Primary drivers were depreciation and rent tied to the Natural Shrimp asset acquisition, higher legal and professional fees from that acquisition in our capital markets activities, along with higher compensation expenses in 2025. While the absolute number is elevated, a meaningful portion reflects non-recurring or deal related costs rather than ongoing run rate expense. Turning to the full year, revenue was approximately $12.8 million versus $13.9 million in 2024. The headline decline is largely a function of our strategic exit from floral and lettuce, which together contributed approximately $1 million of 2024 revenue, but at low margins. Excluding those exits, core revenue was essentially flat year over year, and Q4 was a genuine growth quarter, up approximately 5%. That trajectory is what we consider most indicative of where the business is headed.

Speaker #4: Gross profit for the full year was approximately a loss of $0.2 million, compared to a gain of $2.3 million in 2024. The first half ran at margins more consistent with our historical range, however, the full year result reflects Q4 specifically, and we do not view it as a representative of our own ongoing cost structure.

Compensation expenses in 2025.

While the absolute number is elevated, a meaningful portion reflects non-recurring or deal-related costs rather than ongoing run-rate expense.

Returning to the full year. Revenue was approximately 12.8 million versus 13.9 million in 2024.

Speaker #4: Gross margin recovery is a top priority for 2026, as new programs scale, third-party procurement costs decline, and fixed costs are absorbed over a larger revenue base.

The headline decline is largely a function of our strategic exit from floral and lettuce, which together contributed approximately a million dollars of 2024 revenue, but at low margins.

Speaker #4: Full-year SGNA was approximately $15.3 million versus $11.6 million in 2024, with the increase driven primarily by the natural shrimp acquisition, along with other capital markets activities.

Excluding those exits core Revenue was essentially flat year-over-year. In Q4 was a genuine growth quarter up approximately 5%.

Kostas Dafoulas: Full year cost of goods sold was approximately $13 million versus $11.6 million in 2024. The increase was concentrated in H2 and driven by the same Q4 onboarding dynamics I described earlier. Gross profit for the full year was approximately a loss of $0.2 million, compared to a gain of $2.3 million in 2024. H1 ran at margins more consistent with our historical range. However, the full year result reflects Q4 specifically, and we do not view it as a representative of our own ongoing cost structure. Gross margin recovery is a top priority for 2026 as new program scale, third party procurement costs decline, and fixed costs are absorbed over a larger revenue base.

That trajectory is what we consider most indicative of where the business is headed.

Speaker #4: The balance reflects continued investment in the team and infrastructure supporting our long-term strategy. In the balance sheet, we ended the year in a stronger position, stockholders' equity improved through the preferred stock issuance associated with the natural shrimp acquisition, and total debt declined approximately 0.6 million year over year, as we continue to reduce our outstanding notes.

Full year cost of goods sold was approximately $13 million versus $11.6 million in 2024. The increase was concentrated in the second half and driven by the same Q4 onboarding dynamics I described earlier.

Gross profit for the full year was approximately a loss of 0.2 million compared to a gain of 2.3 million. In 2024, the first half ran at margins more consistent with our historical range.

Speaker #4: We remain focused on managing costs while investing in the infrastructure and capabilities needed to support our transition to a higher-margin, more scalable business model.

However, the full-year result reflects Q4 specifically, and we do not view it as representative of our ongoing cost structure.

Speaker #4: And with that, I will turn the call over to the operator for any questions.

Gross margin recovery is a top priority for 2026 as new programs scale.

Speaker #5: Thank you. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press *1 on your telephone keypad.

Kostas Dafoulas: Full year SG&A was approximately $15.3 million versus $11.6 million in 2024, with the increase driven primarily by the Natural Shrimp acquisition along with other capital markets activity. The balance reflects continued investment in the team and infrastructure supporting our long-term strategy. On the balance sheet, we ended the year in a stronger position. Stockholders equity improved through the preferred stock issuance associated with the Natural Shrimp acquisition, and total debt declined approximately $0.6 million year over year as we continue to reduce our outstanding notes. We remain focused on managing costs while investing in the infrastructure and capabilities needed to support our transition to a higher margin, more scalable business model. With that, I will turn the call over to the operator for any questions.

Third party procurement costs Decline and fixed costs are absorbed over a larger Revenue base.

Speaker #5: A confirmation tone will indicate your line is in the question queue. You may press *2 if you would like to remove your question from the queue.

Full-year SG&A was approximately $15.3 million versus $11.6 million in 2024, with the increase driven primarily by the Natural Shrimp acquisition, along with other capital markets activity.

Speaker #5: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the *keys. One moment, please, while we pull for questions.

The balance reflects continued investment in the team and infrastructure, supporting our long-term strategy.

Speaker #5: Our first question comes from Jeremy Pearlman. With Maxim Group, please proceed.

On the balance sheet, we ended the year in a stronger position. Stockholders' equity improved through the preferred stock issuance associated with the Natural Shrimp acquisition, and total debt declined approximately $0.6 million year-over-year as we continue to reduce our outstanding notes.

Speaker #6: Thank you for taking my question. Good afternoon. Firstly, as you transition your business, you expanded away from not away from, but from the fresh to include more shelf-stable CPG, and now the RTD.

We remain focused on managing costs while investing in the infrastructure and capabilities needed to support our transition to higher-margin, more scalable business models.

Speaker #6: How should we view the margins from the fresh to the CPG products, and what do you think the revenue expectation and breakdown for CPG versus fresh through 2026?

With that, I will turn the call over to the operator for any questions.

Operator: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from Jeremy Pearlman with Maxim Group. Please proceed.

Thank you.

Speaker #5: Kostas, do you want to I can do this with you. How do you want to I think.

Speaker #6: No, you want to talk high level, and I can get into some details.

Speaker #5: Yeah, that'd be great. So first of all, thanks for the question. Our expectation, obviously, is there's going to be much more of a robust margin as it relates to the RTD business and the consumer packaged items.

At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions.

Speaker #5: The fact that they are shelf-stable, we don't have to worry about some of the shrink issues that we have with fresh. The fresh business has been great to us.

Our first question comes from Jeremy Perlman with Maximum Group. Please proceed.

Jeremy Pearlman: Thank you for taking my question. Good afternoon. Firstly, you know, as you transition your business, you expand it from the fresh to include, you know, more shelf-stable CPG and now the RTD. How should we view the margin, you know, from the fresh to the CPG products? And what do you think, you know, the revenue expectation breakdown for CPG versus fresh through 2026?

Speaker #5: It's really opened doors; it's built our relationships with major retailers such as Walmart, Meyer, whatnot, where we have great performance as it relates to our in-stocks and our delivery capabilities.

Thank you for taking my question, good afternoon, firstly, you know, as you transition your business, you expanded away from not away from but from the Fresh to include you know, more shelf, stable cpg. And now the RTD, how should we view the margins, you know, from the, the fresh to the the cpg products and and what do you think, you know, the the revenue expectation, the breakdown for cpg versus fresh through 2026

Jim Kras: Kostas, I can do this with you. I think

Speaker #5: So when you have a 98% in-stock rate and acceptance rate with major retailers, they tend to want to do more business, and this business is really all about availability.

Uh, cost us. Do you want to, I can do this with you. How do you want to?

Kostas Dafoulas: You want to talk high level and I can get into some detail.

Jim Kras: Yeah, that'd be great. First of all, thanks for the question. You know, our expectation obviously is there's going to be much more of a you know robust margin as it relates to you know to the RTD business and the consumer packaged you know items. The fact that they are shelf stable, we don't have to worry about some of the shrink issues that we have with fresh. You know, the fresh business has been great to us. It's really opened doors. It's built our relationships with major retailers, you know, such as Walmart, Meijer, whatnot, where you know we have great performance as it relates to our in-stocks and our delivery capability.

Speaker #5: So on the margin end, what will be nice here is that it's a much more stable business because you control much more in manufacturing with the shelf-stable products than you may with fresh goods, and fresh goods, like I said, are have been our staple, and I think it's really showed our how we can execute and our operational excellence to be able to deliver on time in full in a really difficult category, and that's really paying out for us, that investment.

I think you want to talk high level, and I can get into some details. Yeah, that'd be great. So, um, well, first of all, thanks for the question. You know, our expectation, obviously, is there's going to be much more of a, you know, robust margin as it relates to, you know, the RTD business and the consumer packaged.

uh,

Speaker #5: So you'll see, but in this business, you're going to see the margins. They're going to be much more stable. They'll be, like I said, more robust as a function of that.

Speaker #5: And then the revenue side of it, just based on the size of the market, which I outlined, in the call earlier and our script, is more than meaningful.

items. You know, they're the the fact that they are shelf stable, we don't have to worry about the sum of the shrink issues that um, that we have with fresh. Um, you know, the fresh business has been great to us. It's really opened doors. It's built our relationships with major retailers, you know, such as Walmart. Um, my or whatnot, where, you know, we have we have great performance, um, as it relates to our in stocks and, and, and, and our delivery, um, you know, you know, um, um,

Jim Kras: When you know when you have a 98% in-stock rate and acceptance rate with major retailers, they tend to want to do more business. This business is really all about availability. On the margin end, what'll be nice here is that it's a much more stable business because you control much more in manufacturing with the shelf-stable products than you may with fresh goods. Fresh goods, like I said, you know, have been our staple. I think it's really showed how you know how we can execute and our operational excellence to be able to deliver on time, in full, in a really difficult category. That's really paying off for us, that investment. You'll see.

Speaker #5: And this is a big category with a lot of pent-up demand with a lot of capacity issues out there. And so we're stepping in really at the request of retailers who trust us and want these products, and they want it from somebody who they know who can deliver in time, on full, on spec.

That you met with, um, with, uh, fresh goods, and fresh goods. Like I said, are, are, um,

Speaker #5: So for us, it's a great evolution, leveraging our farm-to-formula approach and our wherewithal as a strong supplier to major accounts. So Kostas, do you want to add to that at all?

Jim Kras: In this business, you're gonna see the margins, you know, they're gonna be much more stable. They'll be, like I said, more robust as a function of that. Then, you know, the revenue side of it, you know, just based on the size of the market, which I outlined in the call earlier in our script, is more than meaningful. This is a big category with a lot of pent-up demand, with a lot of capacity issues out there. We're stepping in really at the request of retailers who trust us and want these products, and they want it from somebody who they know who can deliver in time, on full, on spec.

Speaker #6: Yeah, sure. Thanks, Jim. Yeah, Jeremy, so just to kind of add to what Jim said, we can think about the portfolio kind of in three pieces, right?

Speaker #6: The core CEA business, which I think we'll see kind of return to steady growth in the high single digits, sort of range, maybe even higher depending on customer wins and customer growth.

You know, our products have been our staple, and I think it really shows, you know, how we can execute and our operational excellence, to be able to deliver on time, in full, in a really difficult category. And that’s really paying out for us, that investment. So, uh, you’ll see. But in this business, you’re going to see the margins, you know, they’re going to be much more stable. They’ll be, like I said, more robust as a function of that. And then, you know, the revenue side of it, you know, just based on the size of the market, which I outlined in, uh, you know, in...

Speaker #6: In the CEA space, margins, we can kind of look to return to normalized margins that we saw earlier this year and last year. In addition to that, the nutraceutical business actually showed really strong growth and kind of double-digit, 20%-ish range year over year.

Jim Kras: For us, it's a great evolution, leveraging our Farm to Formula approach, and our, you know, wherewithal as a strong supplier to major accounts.

Speaker #6: And that I think is going to be a larger component of our revenue growth story going into 2026. The trade-off there is most a good portion of that product is co-manufactured.

Kostas Dafoulas: Right.

Jim Kras: Kostas, do you wanna add to that at all?

In, in the call earlier. And and our script um, is is, is is, is is, is is more than meaningful. And this is a big category with a lot of pent-up Demand with a lot of capacity, um, issues out there. And so we're stepping in really at the request of retailers who trust us and want these products. And they want it from somebody who they know who can deliver in time on full on spec. Uh, so for us, it's, uh, it's it's a great Evolution. Uh, leveraging. Our Pharma formula formula approach, uh, and, and our, you know, in our wherewithal, as a, as a strong supplier of the major accounts,

So, um, do you want to add to that at all?

Kostas Dafoulas: Yeah, sure. Thanks, Jim. Yeah, Jeremy. Just to kinda add to what Jim said, you know, we can think about the portfolio kind of in three pieces, right? The core CEA business, which I think we'll see kind of return to steady growth in the high single digits sorta range, maybe even higher, depending on customer wins and customer growth. In the CEA space, you know, margins, we can kinda look to return to, like, normalized margins that we saw earlier this year and last year. In addition to that, the nutraceutical business actually showed really strong growth, you know, in kind of double-digit, 20%-ish range year over year. That, you know, I think is gonna be a larger component of our revenue growth story going into 2026. The trade-off there is, you know, most...

Yeah, sure. Uh, thanks, Jim. Um,

Speaker #6: So while it gives us a lot of stability and visibility into our cost structure, the margins are not as rich as if we were to do it ourselves.

Speaker #6: So I think blended margin kind of low double digits to mid-teens is a reasonable expectation going forward. And then the biggest upside we have in the whole portfolio is around this RTD business where we're looking at pretty significant revenue opportunity with margins kind of in the 20 to 30 percent range.

Yeah, Jeremy. So just to kind of add to what Jim said, you know, we can think about the portfolio kind of in three pieces, right? The core CA business, which I think we'll see kind of—

Return to steady growth in the high single digits sort of range. Maybe even higher depending on um customer wins and customer growth. Um in the CA space, you know, margins we can kind of look to return to like normalize margins that we saw earlier this year and last year um

In addition to that, the, um,

Speaker #6: We're working through that right now as we start scoping this project out and understand the input costs a little bit better. But that's sort of first blessing expectations there.

Speaker #5: Okay, great. Yeah, thanks for that information. And maybe while we're talking about RTD, it is a broad category. We are specifically do you expect to put out your products within there?

Kostas Dafoulas: A good portion of that product is co-manufactured. While it gives us a lot of stability and visibility into our cost structure, the margins are not as rich as, you know, if we were to do it ourselves. I think, you know, blended margin, kind of low double digits to mid-teens is, you know, a reasonable expectation going forward. You know, the biggest upside we have in the whole portfolio is around this RTD business, where we're looking at, you know, pretty significant revenue opportunity, with margins kind of in the 20% to 30% range. We're working through that right now as we start scoping this project out and understand the input costs a little bit better, but that's sort of first blush expectations there.

The the neutral business actually showed really strong growth, you know, and and kind of double digits 20% range year over year and that, you know, I think it's going to be a larger component of our, our Revenue growth story, going into 2026. Um the trade-off there is you know most a good portion of that. Um,

Speaker #5: I don't know, energy drinks, more like the healthy green drinks, just and then is that also is that going to be produced at the Midwest facility that you talked about?

Speaker #5: And then I have another question to follow up about that facility afterwards. Okay. It's going to be primarily in the protein segment. Obviously, we'll have a few different formulations, but we've been requested by major retailer to help develop this for their private label as a start.

That product is is coal manufactured. So, um, well, it gives us a lot of stability and visibility into our cost structure. The margins are not as rich as you know, if we were to do it ourselves. So I think, you know, Blended margin kind of low. Double digits to Mid teens is, you know, a reasonable expectation going forward and then, you know, the biggest, uh,

Speaker #5: And then it just opened up the floodgates. We're at a point now where our goal is, and I don't think it's lofty, but is to sell out the plant in the next 90 days or so.

Speaker #5: Which when you think about, we're looking at capacity into the hundreds of millions of units within a couple of years. This is transformative for edible garden.

Jeremy Pearlman: Okay, great. Yeah, thanks for the information. Maybe while we're talking about RTD, you know, it is a broad category. Where specifically do you expect to, you know, to put out your products within there? You know, I don't know, energy drinks, more like the healthy, you know, green drinks? And then is that also going to be produced at the Midwest facility that you talked about? And then I have another question to follow up about that facility afterwards.

Upside we have in the whole portfolio is around this RTD business, where we're looking at, you know, pretty significant revenue opportunity, with margins kind of in the 20% to 30% range. We're working through that right now as we start scoping this project out and understand the input costs a little bit better, but that's sort of first blessing expectations there.

Speaker #5: It's a huge opportunity. The fact that we've got the type of association that we have with Tetra Pak, that's driven by the major retailers saying, "Hey, we trust these guys.

Jim Kras: Okay. It's gonna be primarily in the protein segment. You know, obviously we'll have a few different formulations, but we've been requested by a major retailer to help develop this for their private label as a start, and then it just opened up the floodgates. You know, we're at a point now where our goal is, and I don't think it's lofty, but is to sell out the plant in the next 90 days or so. You know, which when you think about, we're looking at capacity into the hundreds of millions of units within a couple years. This is transformative for Edible Garden. It's a huge opportunity.

Okay great. Yeah, thanks for that information. And maybe maybe while we're talking about rtz, you know, it is a broadcast category, we are specifically, do you expect to, you know, to put out your products within there, you know, I don't know, energy, drinks, more like the healthy, you know, glean drinks. Just and then is that also, is that going to be produced at the Midwest facility that you talked about? And then I have another question to follow up about that facility afterwards.

Speaker #5: These guys do a great job, not only in fresh, but also in the nutraceuticals." I've been doing nutraceuticals I grew up in the business.

Okay. Uh,

Speaker #5: I've been doing it for almost 30 years. So it kind of all points have led to this. And so for us, we're going to be playing in the sports nutrition performance nutrition.

Speaker #5: Arena, I don't want to use anybody out there as an example, I just know we're going to do it cleaner. We're going to do it better.

It's going to be primarily in the protein segment. Um, you know, obviously we'll have a few different for formulations, but we've been we've been requested um by a major retailer to um to help develop this for their private label as a star. And then it just opened up the floodgates.

Speaker #5: And we're going to do it at massive scale. We'll be not only driving our own kick high protein lower calorie, lower carb type of product, that's going to be that's going to be something that we'll be providing.

Speaker #5: We'll be doing clean labeled, of course. We have a GLP-1 formula supported formula under our jealousy brands, and we'll have our own higher margin brands.

Jim Kras: The fact that we've got the type of, you know, association that we have with Tetra Pak, that's driven by the major retailers saying, "Hey, you know, we trust these guys. These guys do a great job, not only in fresh but also in the nutraceuticals." I've been doing nutraceuticals. You know, I grew up in the business. I've been doing it for almost 30 years. You know, it kind of all paths have led to this. For us, we're gonna be playing in the sports nutrition, performance nutrition, arena. I don't wanna use anybody out there as an example. I just know we're gonna do it cleaner, we're gonna do it better, and we're gonna do it at massive scale.

Speaker #5: We'll also be taking on co-man opportunities with brands that are out there that don't have their own manufacturing. Then obviously, I would say half of the facility will be private label ranging from all the major players from you name them, all the chains, and the existing what's great about edible gardens, the existing relationships we have.

Um, you know we're we're at a point now where you know, our goal is and I'm its I I don't think it's lofty but it's to sell out the plant in the next 90 days or so. You know which when you think about we're looking at, you know, you know, capacity into the into the hundreds of millions of units within a within a couple years, um this is this is a, this is, this is transformative for Edible Garden, it's a huge opportunity. Uh, the fact that we've got the type of, you know, Association that we have with Tetra, that's driven by the major retailers saying, hey, you know, we trust These Guys, these guys do a great job, not only in fresh, but also in the nutrients. Uh, I've been doing nutless, you know, I grew up in the business. I've been doing it for almost 30 years. So, um,

Speaker #5: I mean, we service Meyer. We service Walmart, Wakefern, Aho Delahaze, Kroger, Safeway. So that investment that you saw in Q4 serves a couple of purposes, one of which obviously is it's great to get their businesses or competitors had issues and they turned to us and picked up the phone and we made the investment to service their business and capture that opportunity.

Jim Kras: We'll be not only driving our own Kick, high protein, you know, lower calorie, lower carb type of product. That's gonna be something that we'll be providing. We'll be doing, you know, clean labeled, of course. We have a GLP-1 supportive formula under our Jellyci brand. We'll have our own higher margin brands. We'll also be taking on co-manufacturing opportunities with brands that are out there that don't have their own manufacturing. Obviously, you know, I would say

Speaker #5: We have a nice business with YS Market right now. We have a nice business with Kroger. Those conversations, when they're happy with you, they turn to RTDs for them as well.

Speaker #5: Not whether it's looking at what you're currently making for yourself or for your brand or doing it for them. And so when you look at our roster of accounts, Walmart and Target and Meyer and Wakefern and like I said, Aho Delahaze and the list goes on and on.

Jim Kras: You know, half of the facility will be private label, ranging from, you know, all the major players, you know, from, you know, you name them, all the chains and the existing relationships we have. I mean, what's great about Edible Garden is the existing relationships we have. You know, we service Meijer, you know, we service Walmart, Wakefern, you know, Ahold Delhaize, Kroger, Safeway. That investment that you saw in Q4 serves a couple purposes, one of which, obviously, is it's great to get their businesses. Our competitors had issues, and they turned to us, and we picked up the phone, and we made the investment to service their business and capture that opportunity. We have a nice business with Weis Markets right now. We have a nice business with Kroger.

Speaker #5: CVS and Walgreens, I mean, these are they're coming to us for innovation. They're coming to us for because they know that we'll get the job done.

Um, Arena. I don't want to use, uh, anybody out there as an example. I just know we're going to do a cleaner. We're going to do it better and uh we're going to do it at massive scale. Uh, we'll be not only driving our own kick high protein, you know, um, lower calorie, lower carb type of product. Um, that's going to be, that's that that's going to be something that will be providing. We'll be doing clean labels. Of course, we have a glp1 formula supportive formula under our jealousy Brands and we'll have our own higher margin Brands. We'll also be taking on Co man opportunities with brands that are out there that don't have their own manufacturing, but then obviously, you know, I would say, you know, half of the facility will be private label. Ranging from, you know, all the major players, you know, from, you know, you name them all the, all the chains and the existing. Uh, what's great about edible garnish is the existing.

Relationships. We have, I mean, we, you know, we service—

Speaker #5: So for us, we're going to start to answer it's a long way to but I'm excited about it. The it's really in the sports nutrition.

Speaker #5: Then we'll move to the adult type of products. Many of these you're familiar with out in the marketplace, whether it's Ensure or Boost or Premier Proteins product.

Speaker #5: We'll be doing similar type of products in Tetra Pak, which is the world leader in this packaging. So sustainable as well, which really goes to our core as a company and what we stand for with sustainable using sustainable materials using less resources.

Buyer. You know, we you know, we service Walmart wake for, you know, a whole Dees Kroger Safeway so that investment that you saw in Q4 serves a couple purposes 1 of which obviously is it's great to get their their businesses are are competitors had issues and they tend to us and we pick up the phone and we made the investment to service their business and capture that opportunity. We have a nice business with white market right now, we have a nice business.

Jim Kras: Those conversations, when they're happy with you, they turn to RTDs for them as well. It's not whether it's, you know, looking at what you're currently making for yourself or, you know, for your brand or doing it for them. When you look at our roster of accounts, you know, Walmart, Target, Meijer, Wakefern, and, like I said, Ahold Delhaize, and the list goes on and on, CVS, and Walgreens. I mean, these are. They're coming to us for innovation. They're coming to us because they know that we'll get the job done. For us, we're gonna start today. Sorry it was so long-winded, but I'm excited about it. It's really in the sports nutrition. Then we'll move to the adult, you know, type of products.

Speaker #5: It's why we're Giga Guru with Walmart. So that's the plan. It's exciting. And it's I got an excited team here, so. I hope that answers your question.

Speaker #5: Yeah, no, that's great. It really sounds like a really great opportunity for the company. And maybe just final question just around the Midwest facility.

Speaker #5: What can we expect some of the CapEx requirements for that and the build-out timeline and when you expect to be what's the total scale of that, what you're hoping for, and when you can reach that?

Jim Kras: You know, many of these you're familiar with out in the marketplace, whether it's you know Ensure or Boost or you know Premier Protein product. You know, we'll be doing similar type of products in Tetra Pak, which you know is the world leader in this packaging. Sustainable as well, which really goes to our core as a company and what we stand for with you know sustainable using sustainable materials, you know, using less resources. It's why we're Giga-Guru with Walmart. You know, that's the plan. It's exciting. It's you know I got an excited team here. I hope that answers your question.

Speaker #5: Thanks. Well, yeah, I mean, it's I don't want to give any specific numbers, but and there's and some of it's also we just don't this is such a huge opportunity.

Speaker #5: We're not the only ones who would want it, right? So but look, this is going to be this is a significant we're talking about a big facility with considerable velocity coming out of it.

With Kroger those conversations. When they're happy with you, they turn to rtds for them, as well as not, whether it's, you know, looking at what you currently making for yourself or, you know, for your brand or doing it for them. And so, when you look at the our roster of accounts, you know, you know, Walmart and Target and, and mire and wakeford, and like I said a hotel Hays and, and, you know, the list goes on and on and CVS and, you know, wake, uh, Walgreens. I mean, these are these are, they're coming to us for Innovation, they're coming to us for because they know that we'll get the job done. So, um, for us, we're going to start to sew a long waited but I'm excited about it. The the it's really the Sports Nutrition. Then we'll move to the adult, you know type of products. Um, you know, many of these you're familiar with out in in the marketplace, whether it's, you know, ensure or boost or or you know, pre a protein product. Um, you know, we'll be doing similar type of products in Tetra pack, which, you know, is the world leader.

Speaker #5: We're looking we're working closely with the local and state to areas to be able to support this with incentives. We've already gotten the nod on a few things.

In this packaging. So sustainable as well, which really goes to our core as a, as a company and what we stand for, with, you know, sustainable, um, um, using sustainable, um, um, materials, you know, using less resources, um, it's why we're dig a guru with Walmart. So, um, you know, that's, that's the plan, it's, it's exciting. Uh, it's and it's, you know, I got an excited team here. So,

Jeremy Pearlman: Yeah, no, that's great. It really sounds like a really great opportunity for the company. Maybe just a final question, just around the Midwest facility. You know, what can we expect some of the CapEx requirements for that and the build-out timeline and, you know, when you expect to be, you know, what's the total scale of that, what you're hoping for and when you can reach that? Thanks.

Speaker #5: Which is great. Obviously, we're going to need to buy machines and retrofit a building. So you're talking some real CapEx. But we've been there before.

Speaker #5: And we've we built a significant greenhouse in New Jersey and we did a beautiful retrofit in Grand Rapids for Meyer. So we're prepared as a company to take on the challenge.

Jim Kras: Well, yeah. I mean, it's. I don't want to give any specific numbers, but you know, and there's you know, and I, and some of it's also, we just don't you know, this is such a huge opportunity. We're not the only ones you know who would want it, right? You know, look, this is gonna be a significant you know. We're talking about a big facility with considerable you know velocity coming out of it. You know, we're looking you know we're working closely with the local and state areas to be able to support this with incentives. We've already gotten the nod on a few things, which is great.

Um, I hope that answers your question. Yeah, no, that's great. It really sounds like a, a really great opportunity for the company. And maybe just a final question, just around the Midwest facility. You know, what do you—what can we expect in terms of some of the CapEx requirements for that, and the build-out timeline? And, you know, when you expect to be—you know, what's the total scale of that, what you're hoping for? And, and when you can reach that?

Speaker #5: And our plan is to really hopefully be out in the marketplace probably towards the tail end of 2027. Okay, great. Thank you so much for all the information.

Speaker #5: And thank you. Great questions. Thank you. Nice to meet you. Have a good night. Yeah. Okay.

Speaker #6: Once again, if you have a question or a comment, please press star one on your touchtone phone. The next question comes from Nick Pinkos with Forest Capital.

Speaker #6: Please proceed.

Speaker #7: Hey, thanks for taking the call and congrats on the progress. A lot of my questions have already been asked. But highlighted the strong fourth-quarter momentum, including new retail placements and expansion.

Jim Kras: You know, obviously, you know, we're gonna need to buy machines and retrofit a building. You know, you're talking some real CapEx. You know, we've been there before, and we've built a significant greenhouse in New Jersey, and we did a beautiful retrofit in Grand Rapids for Meijer. You know, we're prepared as a company to take on the challenge. Our plan is to really hopefully be out in the marketplace, you know, probably towards the tail end of 2027.

Speaker #7: To nearly 6,000 locations. My question is how sustainable is this level of growth? And should we expect similar distribution gains in category performance going forward?

Thanks. Well, yeah, I mean it's it's I don't want to give any specific numbers but you know, and there's you know and I, you know, some of it's also we just don't you know, this is such a huge opportunity, we're not the only 1's, you know, who would want it, right? So. Um but you know, look this is this is going to be a, this is a, this is a significant, you know, you were talking about a, you know, a big, a big, a big facility with um, considerable, you know, uh, velocity coming out of it. Um, you know, we're looking, you know, we we're working closely with um, with the the local and state to, you know, areas to, um, to be able to support this with incentives. We've already gotten the knot on a few things, um, which is great. Um, you know, obviously, you know, we're going to need to buy machines and, uh, and retrofit a building. So, um, you know, you're talking, you know, you're talking some, some real cat-backs but, you know, we've been there before and we've, you know, we've, you know, we we built a, you know, a significant greenhouse and

Speaker #5: Well, yes, yes, and yes. The expansion into doors and that has been that's been a lot of us getting kind of organized on the greenhouse business and getting focused and getting rid of some of the product lines that just didn't make sense like floral and lettuce at the time because of the lack of margin.

In New Jersey, and we did a beautiful retrofit in Grand Rapids from higher. So, you know, we're prepared as a company to take on the challenge, and our plan is to really, hopefully, be out in the marketplace, you know, probably towards the tail end of 2027.

Jeremy Pearlman: Okay, great. Thank you so much for all that information and thank you. Take care.

Jim Kras: Great question. Thank you. Nice to meet you.

Jeremy Pearlman: Have a good night.

Jim Kras: Yep.

Okay, great. Thank you so much for all that information, and thank you. Nice to meet you. Have a nice day.

Operator: Once again, if you have a question or a comment, please press star one on your touch tone phone. The next question comes from Nick Pinkos with Barst Capital. Please proceed.

Speaker #5: We really short things up this past year. It's been challenging and tough because we are in a growth sector. People are eating better. People are buying more fresh goods.

Once again, if you have a question or a comment, please press star 1 on your touchtone phone. The next question comes from Nick Pincus with Forest Capital. Please proceed.

Nick Pinkos: Hey, thanks for taking the call, and congrats on the progress. A lot of my questions have already been asked, but you highlighted the strong Q4 momentum, including new retail placements and expansion to nearly 6,000 locations. My question is, how sustainable is this level of growth, and should we expect similar distribution gains and category performance going forward?

Speaker #5: People are cooking continue to cook more and more at home, whether it's pressures with costs of eating out or just people are being more creative because that's been a trend line.

Speaker #5: We've benefited from that. The herbs are they make they make any average dish that much better, right, using fresh herbs. And so for us, it's really just about making sure that we continue to take care of our current customers.

Already been asked, but you highlighted the strong fourth quarter momentum, including new retail placements and expansion to nearly 6,000 locations. My question is: How sustainable is this level of growth, and should we expect similar distribution gains and category performance going forward?

Jim Kras: Well, yes and yes. You know, the expansion of the doors and that has been that's been a lot of us getting kind of organized on the greenhouse business, getting focused and getting, you know, getting rid of some of the product lines that just didn't make sense, like floral and lettuce at the time because of, you know, the lack of margin. We really shored things up this past year. It's been challenging, you know, and tough because, you know, we are in a growth sector. People are eating better. People are buying more fresh goods.

Speaker #5: They're the ones who got us here. They continue to give us opportunity not only within this category which means more penetration and ideally more velocity sales velocity at current doors.

Well, yes, yes, and yes. Um, uh, you know, the expansion at the doors, and that has been, um, that's been a lot of us getting—

Speaker #5: And then there's and there's a great story around our organic growth, by the way, Nick. And that's where we've seen good same-store sales over the last year.

Speaker #5: So for us, that's great kind of exit velocity out of the year. We're going to continue to focus on our core because that's what's gotten us here.

Jim Kras: People are cooking, you know, continue to cook more and more at home, whether it's, you know, pressures with costs of eating out or just people are being more creative because that's been a trend line. You know, we've benefited from that. The herbs, they make any average dish that much better, right, using fresh herbs. For us, you know, it's really just about making sure that we continue to take care of our current customers. They're the ones who got us here. They continue to give us opportunity, not only within this category, which means more penetration and ideally more velocity, you know, sales velocity at current doors.

Speaker #5: And now when you look at something like RTD, which is just a huge massive business with just so much untapped opportunity and there's just a shortfall of capacity, it's very rare in your career to does that intersect and you've got people asking you, right, for to take on their business because they trust you.

kind of organized on the greenhouse business uh, getting and getting focused and getting, you know, getting rid of some of the product lines that just didn't make sense, like floral and and lettuce at the time because of, you know, the lack of margin. Um, we really short things up this past year. It's been, it's been challenging, you know, in the tough because, you know, we are in a, we are in a growth sector. Um, people are eating better, people are buying more Fresh Goods. Uh, people are cooking, you know, continue to cook more and more at home, whether it's, you know, pressures with costs of eating out, or just people are being more creative because that's been a trend line. Uh, you know, we've benefited from that and the herbs there and they, they know they make a, you know, they make any average dish that much better right using fresh herbs. And so, um, for us, you know, it's it's really just about um, you know, making sure that, you know, we we we continue to take care of our current customers, they're the ones who

Speaker #5: It's it makes me sleep a little better at night knowing that the money that we spent over the last couple of years has really gone to unlock these opportunities.

Jim Kras: Then, you know, there's a great story around our organic growth, by the way, Nick. That's where, you know, we've seen, you know, good same store sales over the last year. For us, you know, that's great, you know, kind of exit velocity out of the year. We're, you know, gonna continue to, you know, focus on our core 'cause that's what's gotten us here. Now when you look at something like RTD, which is just a huge, massive business with just so much untapped opportunity, you know, there's just a shortfall of capacity.

Speaker #5: So look, you're going to see more store accounts, I think, across the I know you're going to see it across the whole business, whether it's the herbs, whether it's the pickles, which, by the way, is a sleeper.

Speaker #5: And then RTDs, I think you're going to see doors. You're going to see new accounts. You're going to see all kinds of it's just incredibly I mean, those are sold everywhere.

Speaker #5: In all kinds of classes of trade, including classes of trade that we're not even in like convenience store currently, right? And there's so the beverage business, it's a great business.

Speaker #5: People love the convenience. These are great items. Protein's hot. Has been hot for a while. No one sees that slowing down. And we're going to have a state-of-the-art facility cranking this stuff out for the betterment of our great supermarket partners.

Jim Kras: It's very rare in your career that intersect and you've got people asking you, right, for to take on their business because they trust you. You know, it makes me sleep a little better at night knowing that the money that we spent over the last couple years has really gone to unlock, you know, these opportunities. You know, look, you're gonna see more store counts, I think. I know you're gonna see it across the whole business, whether it's the herbs, whether it's the pickles, which by the way, is a sleeper, and then RTDs. I think you're gonna see doors, you're gonna see new accounts, you're gonna see all kinds of, you know, it's just incredibly.

Got us here. They continue to give us opportunity. Not only within this category, uh, which means, you know, more penetration, um, um, and ideally more velocity, uh, you know, sales velocity at, you know, current you know, current doors and then you know, there's there's you know, and there's a great story around our organic growth, by the way, uh, Nick. And that's where, you know, we've seen, you know, good same store sales over the last year so, um, for us, you know, that is that's great, you know, kind of exit velocity out of the out of the year. Um, we're, you know, we're we're going to continue to, you know, focus on our core because that's what's gotten us here. And now when you look at something like RTD, which is just a huge massive business with just so much untapped um, opportunity, you know, in the, you know, and there's just a shortfall of capacity. It's very rare in your career. Do you? You know that does that intersect and you've got people asking you right. You know for you know to to to take on their business.

Speaker #5: So yes. It's going to continue, Nick.

Speaker #7: Yeah, keep up the good work. Thank you.

Speaker #5: I appreciate it. Thanks, Nick.

Speaker #6: Okay, we have no further questions in the queue. I'd like to turn the floor back over to management for any closing remarks.

Um, because they trust you, you know, it's, you know, it it makes me sleep a little better at night knowing that the, the money that we spent over the last couple years is really gone to unlock, you know, these opportunities. So, you know, look, you're going to see more

Speaker #5: So thanks again, to everyone for joining us today. We believe 2025 was a year of meaningful progress for Edible Garden as we continued to build our build beyond our CEA foundation, expand into broader higher margin consumer packaged goods platform.

Jim Kras: I mean, those are sold everywhere in all kinds of classes of trade, including classes of trade that we're not even in, like convenience store currently, right? So the beverage business, it's a great business. People love the convenience. These are great items. Protein's hot. Has been hot for a while. No one sees that slowing down. You know, we're gonna have a state-of-the-art facility, you know, cranking this stuff out, you know, for the betterment of our great supermarket partners. So, yes.

Speaker #5: We're seeing that progress reflected in our momentum across our business, growing demand for our products and our ability to continue to gain market share with our leading retail partners.

Speaker #5: At the same time, we believe our expansion into the ready-to-drinks category represents a significant opportunity for Edible Garden. One that builds on our existing infrastructure.

Speaker #5: Retail relationships and our product development capabilities and positions us to scale into a large and growing market where demand continues to outpace supply. As we look ahead, we remain focused on executing against that opportunity while continuing to expand higher margin categories and leverage our retail network to support long-term growth.

Store accounts. I think across the, I know you're going to see it across the whole business, whether it's the herbs, whether it's the pickles, which by the way, is a sleeper, uh, and then the rtds, I think you're going to see doors, you're going to see new accounts, you're going to see all kinds of, you know, it's just incredibly. I mean those are sold everywhere. In all kinds of classes of trading classes of trade. Then we're not even in like convenience store, currently, right. And there's so the beverage business. It's it's it's a great business. People love the convenience. These are great items. Protein hot has been hot for a while. No, 1 seese.

Nick Pinkos: Very well.

Jim Kras: It's gonna continue, Nick.

Nick Pinkos: Yes. Keep up the good work. Thank you.

So yes, it's going to it's going to continue Nick.

Jim Kras: I appreciate it. Thanks, Nick.

Keep up the good work. Thank you. I appreciate it. Thanks, Nick.

Operator: Okay. We have no further questions in the queue. I'd like to turn the floor back over to management for any closing remarks.

Okay, we have no further questions in the queue. I'd like to turn the floor back over to management for any closing remarks.

Jim Kras: Sure. Thanks again to everyone for joining us today. We believe 2025 was a year of meaningful progress for Edible Garden as we continued to build beyond our CEA foundation and expand it out into broader, higher margin consumer packaged goods platform. We're seeing that progress reflected in our momentum across our business, growing demand for our products, and our ability to continue to gain market share with our leading retail partners. At the same time, we believe our expansion into the ready-to-drinks category represents a significant opportunity for Edible Garden, one that builds on our existing infrastructure, retail relationships, and our product development capabilities, and positions us to scale into a large and growing market where demand continues to outpace supply.

Speaker #5: We believe this continued evolution of our business is positioning us to deliver greater scale, improved margins, and long-term value for our shareholders. And we're confident in the path that we're on as we continue to execute and deliver on the opportunity ahead.

Or.

So, thanks again to everyone for joining us today.

We believe 2025 was a year of meaningful progress at Incredible Garden as we continue to build our

Speaker #5: We're encouraged by the progress we're making and look forward to updating you on our continued execution and success in the months ahead. So thank you, everybody.

Speaker #5: Appreciate it.

Jim Kras: As we look ahead, we remain focused on executing against that opportunity while continuing to expand higher margin categories and leverage our retail network to support long-term growth. We believe this continued evolution of our business is positioning us to deliver greater scale, improved margins, and long-term value for our shareholders, and we're confident in the path that we're on as we continue to execute and deliver on the opportunity ahead. We're encouraged by the progress we're making and look forward to updating you on our continued execution and success in the months ahead. Thank you, everybody. Appreciate it.

And we're confident in the path that we're on, as we continue to execute and deliver on the opportunity ahead. We're encouraged by the progress we're making, and look forward to updating you on our continued execution and success in the months ahead.

So thank you, everybody appreciate it.

Operator: This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.

Q4 2025 Edible Garden AG Inc Earnings Call

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