Laird Superfood, Inc. Q2 FY2026 earnings call

Acquisition and Integration Progress

• Completed full integration of the Navitas acquisition into Laird Superfood's processes, organization, and ERP system; the combined business now operates on a single system with shared accountability and a unified market-facing structure.
• Closed the TerraSol Superfoods acquisition on April 21, 2026, and will now apply the same disciplined integration approach used for Navitas to TerraSol.
• These two acquisitions are the first steps in Laird Superfood's deliberate roll-up strategy for the fragmented superfoods and positive nutrition category.

Platform and Commercial Progress

• The combined platform brings together functional coffee/creamer leadership, trusted organic superfood brands, and vertically integrated ingredient capabilities, delivering greater scale, broader distribution, stronger sourcing leverage, and multiple growth levers across retail, club, e-commerce, and food service.
• Successfully launched 5 new coffee and creamer SKUs into over 1,000 Walmart stores nationwide, and expanded product assortment at Target; barely any revenue from the Walmart expansion was recognized in Q2, with nearly all impact expected in the second half of 2026.
• Cacao products continue strong performance, and the coffee business shows solid momentum in key retail channels; the company is seeing strong growth momentum across Amazon and other online marketplaces.

Financial and Operational Highlights

• Early synergy benefits are already visible in results, with cost efficiencies captured in supply chain, shared overhead, and marketing effectiveness; these benefits are expected to build through the second half of 2026, with savings realized earlier than originally expected.
• Gross margin compressed 9.6pp YoY to 30.3%, driven by the addition of lower-margin acquired businesses, unfavorable product/channel mix, and lingering inflation from prior-year commodity purchases that the company is continuing to work through.
• Ended Q2 2026 with $23.2 million in cash and no outstanding debt, providing a strong foundation for continued integration and future growth investments.
• The company is building out an expanded innovation platform and plans to overhaul its marketing approach to drive brand awareness and product trial, led by newly hired sales and marketing leadership.

Laird Superfood reports results by sales channel rather than product segment for the quarter:

1. Wholesale Channel: Net sales of $21.3 million, growing over 250% year-over-year, representing 51% of total Q2 2026 net sales. Growth was driven by the contribution of the acquired Navitas and TerraSol businesses.
2. E-commerce Channel: Net sales of $20.0 million, growing over 200% year-over-year, representing 49% of total Q2 2026 net sales. Growth was led by acquired business contributions and Amazon marketplace expansion, partially offset by softness in the company's direct-to-consumer channel.

For the first half of 2026, wholesale contributed 52% of total net sales and e-commerce contributed 48% of total net sales. Aggregate company Q2 2026 results: total net sales $41.3 million (up 244% YoY), gross profit $12.5 million (30.3% gross margin, down 9.6pp YoY), adjusted EBITDA $3.0 million (up from $0.1 million YoY), net loss $1.8 million ($0.25 per share, up from a $0.4 million net loss YoY).

• Management reaffirms its full-year 2026 guidance originally provided in the prior quarter, with no upward or downward revision.
• The company expects full-year 2026 consolidated net sales in the range of $138 million to $148 million, which reflects a full year of contribution from the post-acquisition Navitas and TerraSol businesses, and implies accelerating net sales growth in the second half of 2026 relative to the first half. Management currently expects full-year net sales will land near the midpoint or upper end of the guided range.
• Full-year 2026 adjusted EBITDA is guided to the range of $8 million to $12 million, reflecting confidence in current growth trends and the pace of synergy capture achieved to date.
• Management expects gross margins for the second half of 2026 will land in the low 30% range.
• Management will provide updated guidance as additional integration milestones are completed and visibility into full-year results improves.

• Gross margin is currently under pressure from the addition of lower-margin acquired businesses, unfavorable channel and product mix, and lingering inflationary costs from prior-year commodity purchases.
• Remaining TerraSol integration work will require additional time, investment, and one-time integration costs, with uncertainty around the timeline and final cost of facility expansion and staffing for the acquired Texas production facility.
• Forward-looking statements around future synergy capture, margin expansion, and growth are dependent on successful completion of integration activities and consumer demand trends, and actual results may differ materially from current expectations.
• Softness in the company's direct-to-consumer e-commerce segment is partially offsetting stronger growth in other e-commerce channels.

Q: Can you confirm the expected gross margin range for the second half of 2026, and explain what factors drive the revenue guidance range? / A: After completing a GAAP audit of the acquired TerraSol business, management confirmed TerraSol has a lower-margin business model than the existing Laird portfolio, so low 30% remains the appropriate expected gross margin range for the second half. Management reaffirmed the $138M–$148M net sales guidance range, which implies accelerated growth in the second half, and management expects full-year results will land near the midpoint or upper end of the range.

Q: What is the quarterly revenue impact of the new Walmart and Target retail expansions, and what is the path for future retail expansion? / A: There is no material revenue impact from the Walmart expansion in Q2 2026, with nearly all revenue from this initiative expected in Q3 and Q4 2026. Management did not provide additional detail on future expansion beyond noting these new placements are a key foundation for future sequential growth.

Q: What integration work remains, what are the biggest ongoing integration challenges, and what are long-term targets for gross and EBITDA margins? / A: Navitas integration is almost fully complete, with all organizational, ERP, sales, and back-end operations consolidated. Most remaining integration work centers on TerraSol, which was cordoned off during the Navitas integration process. The company acquired a Texas production facility from TerraSol, and expects in-house production of Laird and Navitas volume at this facility will drive long-term gross margin improvement, though additional analysis, capital investment, and staffing will be required before these benefits are realized. Management did not provide specific long-term margin targets.

Q: How has the combined three-brand platform improved e-commerce capabilities, and what are the expected benefits from the new marketing investment plan? / A: The three acquired brands have complementary e-commerce strengths: Navitas has an established 1P/3P hybrid presence on Amazon that the business can leverage across the entire portfolio. The newly hired sales and marketing leadership is developing a plan to modernize the company's marketing approach, with more details to be shared on future calls.