Edible Garden AG Incorporated Q3 FY2025 earnings call

• The third quarter marked progress towards a CEA-informed consumer packaged goods (CPG) model with 9% year-over-year revenue increase.
• Driven by initiatives like retail footprint expansion, strong performance from shelf-stable portfolio, and operational realignment post-shrimp asset acquisition.
• Expanded into categories with stronger margins and scalability, with CPG products including clean label and functional offerings.
• Continued to expand retail footprint, launching USDA organic fresh herb line at Kroger and introducing branded herbs at The Fresh Market, and expanding internationally through partners like PriceSmart and Amazon.
• Innovation and sustainability central to strategy, pursuing new categories like nutraceuticals and sustainable proteins.

Revenue for the quarter increased 9% to $2.8 million compared to $2.6 million in 2024. Growth was driven by strong performance across the shelf-stable product portfolio including Kick Sports Nutrition, Vitamin Whey, Pulp, and Pickle Party. The core herb portfolio saw strength in hydro basil (up 54% year over year) and wheatgrass (up 59% year over year). The produce business remains a trusted provider of sustainably grown herbs and leafy greens, with the organic program with Kroger gaining traction and retail penetration broadening through partnerships with The Fresh Market, Pete's Fresh Market, and Angelo Caputo's Fresh Markets.

• Q4 is typically a strong season for the company.
• Confidence in growth in 2026 driven by retail partnerships, private label opportunities, and expansion of branded CPG products like Kick Sports Nutrition, Pickle Party, etc.

• Forward-looking statements subject to risks, uncertainties, and assumptions as described in SEC filings, including potential differences between actual results and forward-looking statements; risks related to market conditions, competition, and operational challenges.

Q: Just in terms of the natural shrimp facility that you acquired, can you talk about the build-out of that? How you intend to utilize that initially, and then over the next six to twelve months? And then what specific product lines will be going in there?

A: The facility is 6.2 acres near Des Moines, going through gap analysis with third party. Near-term plan is R&D for next-generation products, possibly nutraceuticals or food. Has significant retailer relationships, and will be a nutritional and sustainability hub.

Q: So just to follow up, it sounds like the big grocery stores in particular are where the largest opportunity is. Would you say that's also the largest opportunity moving into '26?

A: Yes, big grocery chains like ShopRite, Kroger, Fresh Market are where the most opportunity in 2026 lies, with focus on produce, branded business, and private label.

Q: On the margin side, so you know, sometimes private label is tougher to get a larger margin on, but if they're asking for the natural products, the ones with less additives, that's right in your wheelhouse, are you able to push back and say, look. We can do that for you. But those are higher-priced products. You know? And then maybe talk about the margin related to that as well as your Kick Sports Nutrition program, you know, the protein. How's that doing, and what do you see the outlook for that in '26?

A: On private label, there's opportunity for fair margin with volume and long-term contracts. Kick Sports Nutrition is gaining traction, with outlook for growth in 2026 driven by retail support and consumer demand for better-for-you products