BioHarvest Sciences, Inc. Q4 FY2025 earnings call

• BioHarvest North Star's mission is to discover, develop, manufacture, and democratize life-changing compounds from plants. It is a leader in botanical synthesis using a patented non-GMO platform. - The company operates through two business units: direct-to-consumer products division and CDMO services division. - Fourth quarter revenues were within guidance, driven by core consumer products. - VINIA business has strong growth, with Vineyard.com delivering ~80% of revenues and over 90% subscription revenue. Amazon sales are a strong contributor. - Launched Vineyard Blood Flow Hydration in December 2025, which has achieved key results and is being marketed to broader consumer audiences. - Health pros channel initiative is scaling, with 250 health pros partnered and more to be added. - CDMO business has multiple development programs, including a breakthrough in fragrance program stage one, and is investing in capabilities like AI-driven molecule discovery.

Fourth quarter revenues were $9.1 million, up 25% year over year. Annual revenues were $34.5 million, up 37% from the previous year. Gross margins were 58% for the fourth quarter, up 100 basis points compared to the same period last year, and 59% for the year, up 400 basis points compared to last year. The DTC business had full year revenues of $30.6 million in the USA and achieved the title position of being the number one resveratrol polyphenol brand in the United States. The CDMO business generated approximately $2 million in third-party revenue in 2025, and total activity including internal manufacturing was approximately $9 million. The CDMO has multiple active development programs, including projects in nutraceuticals, nutrition, fragrance, and pharma.

• Revenue guidance for 2026 is $4 to $6 million from external CDMO customers. - Q1 is expected to have more moderate growth as it's a critical quarter for adjusting marketing mix. Q2 and beyond will see acceleration due to incremental investments. - Gross margins for DTC expected to increase through the year with scale and process optimization, aiming for 64%-65% range. CDMO has lumpiness but sees benefits from deals moving from stage one to stage two and new deals. - Adjusted EBITDA expected to improve as investments in CDMO lead to future opportunities.

• Ongoing conflict in the Middle East has affected commercial traffic, but cargo flights have gradually resumed. The situation is constantly fluctuating and monitored closely. - Seasonality challenges and higher transportation costs in Q4 and Q1 for DTC business. - Lumpiness in CDMO revenue due to nature of deals and getting deals signed at different times.

Q: About CDMO business, details on Tate & Lyle contract and pharma project.

A: R&D focused on CDMO, resources allocated, projects in various stages with progress made.

Q: Pipeline of CDMO, focus on building infrastructure or shepherding programs.

A: Continue to invest in infrastructure to absorb more projects, guide to $4 - $6M revenue from external customers.

Q: Marketing shift for Vinnia to younger cohorts, time to see effect.

A: Migration to digital channels starting, expect to optimize mix by end of Q2.

Q: Revenue and gross margin expectations per quarter.

A: Q1 moderate growth, Q2 and beyond acceleration; DTC gross margins to increase through year, CDMO with lumpiness but benefits from deals.

Q: Marketing expenses and efficiencies, health pros channel.

A: Health pros channel efficient for customer acquisition, efficiencies plowed back into growth.

Q: Timing of fragrance and saffron product commercialization.

A: Second half of 2027 realistic for manufacturing and revenue growth, premiumization strategy to drive growth.