Edible Garden AG — Second Quarter 2026 Earnings Summary

Financial Performance

• Revenue increased 12.8% to $3.6 million for the three months ended June 30, 2026, compared to $3.1 million in the prior-year period.
• Total sales grew 31.2% year over year for the quarter.
• Gross profit remained flat at $0.6 million for the quarter, compared to $0.6 million in the prior-year period.
• Selling, general and administrative expenses decreased 21.5% to $3.1 million, down from approximately $4.0 million in the prior-year period.
• Net loss improved to $3.3 million for the quarter, compared to a net loss of $4.0 million in the prior-year period.
• For the six months ended June 30, 2026, revenue was $6.9 million compared to $5.9 million in the prior-year period.
• Net loss for the six months ended June 30, 2026, was $6.9 million, compared to $7.4 million in the prior-year period.
• Cash on hand was $658,000 as of June 30, 2026, down from $1.1 million as of December 31, 2025.
• Total liabilities increased to $22.1 million as of June 30, 2026, from $8.1 million as of December 31, 2025.
• Short-term debt increased to $1.6 million as of June 30, 2026, from $1.4 million as of December 31, 2025.
• Long-term debt increased significantly to $12.2 million as of June 30, 2026, from $215,000 as of December 31, 2025.
• Accumulated deficit increased to $(65.6) million as of June 30, 2026, from $(58.6) million as of December 31, 2025.

Business Segments and Product Lines

• Cut herb sales increased 42% year over year, driven by growth with existing retail partners and new programs with Kroger, Target, and Weis Markets.
• Potted herb sales increased 11.3%, supported by new business with Busch's Fresh Food Market, Kroger, Pete's Market, and Weis Markets, alongside continued growth at Wakefern.
• International Vitamin sales increased 50.0%, reflecting incremental product offerings and promotional activity.
• Condiment sales surged 594.7%, driven by new customer placements with Safeway, Wakefern, and Woodman's Markets.
• The Company expanded its relationship with Target through a new fresh-cut herb distribution award at a key Midwest distribution center.
• The Company advanced development of the Prairie Hills manufacturing facility with the engagement of Structura Architects and E2 Building Group.
• Successfully completed RTD prototype production at Tetra Pak's New Product Development Center.
• The Prairie Hills facility is expected to provide annual production capacity of more than 100 million beverage units upon completion.

Management Commentary and Tone

• CEO Jim Kras stated the second quarter demonstrated continued execution across core business and long-term growth strategy, highlighting double-digit revenue growth and broad-based portfolio growth.
• Management noted the momentum in the core business continues to build, citing strong growth in cut herbs, potted herbs, International Vitamins, and condiments.
• The Company strengthened long-term revenue visibility through an expanded multi-year private-label agreement with a major Midwest retailer.
• Management indicated that transitioning to retailer distribution center deliveries in the Metro New York market is expected to improve operating leverage and reduce transportation costs.
• CEO Kras emphasized that the Farm-to-Formula strategy represents one of the most significant long-term growth opportunities in the Company's history.
• Management expressed confidence that combining existing retail relationships and commercialization capabilities with scalable domestic RTD manufacturing will expand the addressable market and diversify the revenue base.

Other Key Points

• The Company is pivoting toward RTD clean nutrition manufacturing, which contributed to higher depreciation and amortization expenses.
• The Company operates state-of-the-art, vertically integrated greenhouses and processing facilities in Grand Rapids, Michigan; Webster City, Iowa; and Belvidere, New Jersey.
• Edible Garden's products are available in over 6,000 retail locations across the United States, Caribbean, and South America.
• The Company holds multiple patents, including GreenThumb 2.0 software (US 11,158,006 B1, US 11,410,249 B2, US 11,830,088 B2) and a Self-Watering display (U.S. Patent No. D1,010,365).
• The Company is a multi-year participant in Walmart's Project Gigaton and has received NRG's Excellence in Energy Award.
• The Company owns three patents in advanced aquaculture technologies, including a closed-loop shrimp farming system.
• The Company is expanding the Prairie Hills facility into a dedicated ready-to-drink (RTD) clean nutrition manufacturing hub.
• The Prairie Hills platform is designed to support both Edible Garden's branded products and private-label manufacturing.