Barfresh Food Group, Inc. Q2 FY2025 earnings call

• Co-manufacturing progress: The second co-manufacturing partner completed equipment installations during the second quarter, and there are now 2 co-manufacturers producing product. A new higher capacity bottling manufacturer for Twist & Go bottles will replace one current manufacturer starting in 2026, with the new manufacturer already producing Twist & Go smoothie cartons.
• Revenue: Second quarter 2025 revenue was $1.6 million, up 11% YOY. Fiscal year 2025 revenue guidance is revised to $12.5 million to $14 million due to manufacturing constraints in the first half.
• Market position: Sales network covers most of the U.S., with only 5% market penetration in the education channel. Bidding process for the 2025-2026 school year is concluding, with interest in Twist & Go products and new Pop & Go 100% juice freeze pops.
• Inventory: Building inventory for the education channel high season ahead.
• Manufacturing: Progress on manufacturing consistency expected to contribute to margin improvement in the second half of the year, with revenue growth anticipated in the back half of 2025.

In the second quarter of 2025, Barfresh Food Group reported revenue of $1.6 million, which is an 11% year-over-year growth compared to $1.5 million in the second quarter of 2024. Gross margin for the second quarter of 2025 was 31% compared to 35% in the second quarter of 2024. Adjusted EBITDA in the second quarter of 2025 was a loss of approximately $600,000, down from a loss of approximately $682,000 in the same period last year. The company's product segments include Twist & Go and Pop & Go, but specific revenue contribution percentages for each segment aren't detailed beyond general mentions.

• Revised fiscal year 2025 revenue guidance to $12.5 million to $14 million, reflecting greater-than-anticipated impact of manufacturing constraints in the first half.
• Expect margin improvement in the second half of 2025 due to manufacturing consistency.
• Anticipate revenue growth in the back half of 2025 as production capabilities align with market demand.

• Manufacturing constraints in the first half impacted revenue and margins.
• Dependence on co-manufacturers and potential issues with equipment installations or production consistency could affect future performance.
• Low market penetration in the education channel (5%) poses risks related to bidding process outcomes and ability to capture market share.

Q: Thomas McGovern asks about contract progress for the upcoming school year and interest in Pop & Go.

A: Riccardo Delle Coste states there's good pickup on Pop & Go with some large school districts already approving, bidding process is completing with some bids still pending, and there's a positive start to the year for Pop & Go.

Q: William R. Gregozeski inquires about inventory composition, new school additions, and manufacturing capacity.

A: Lisa Roger says inventory is mostly bottles built for the school year; Riccardo Delle Coste mentions soon on new school additions for traditional products, capacity on bottles to increase to $20 million to $25 million next year, and cartons have more than 3x current selling capacity.