Atlantic Sapphire (ASA) Q4 2025 earnings summary

Executive summary

• Revenue grew 87% year-over-year to $43.3 million in 2025, driven by higher volumes, improved pricing, and stable operations, but financial challenges persist due to lower-than-expected revenues and delayed cost reductions.

• Operational KPIs improved, with stable biology, increased standing biomass, and low losses in the saltwater stage; quarterly mortality remained below 1%.

• Premium pricing maintained, with premium share above 9% and premium graded salmon consistently achieving prices above $11/kg, well above market average.

• Adjusted EBITDA loss narrowed by $20 million, reflecting improved biological performance, but significant earnings impact from $115 million impairment charges related to reduced probability for Phase 2 expansion.

• Additional capital required to fund operations to positive EBITDA; a $10 million bridge loan was secured and fully disbursed.

Financial highlights

• Revenue increased from $22.8 million in 2024 to $43.3 million in 2025, but harvest volume was 5.6% below target at 5,096 tons.

• Operating loss (EBIT) was $180.5 million, including a $115 million impairment; net loss reached $191.3 million, compared to $167.3 million in 2024.

• Adjusted EBITDA improved to -$59.5 million from -$79.4 million in 2024.

• Cash position at year-end was $3.2 million, down from $29.9 million.

• Cost of goods sold rose by $3 million, with higher harvest volume and increased cooling water costs.

Outlook and guidance

• 2026 harvest volume expected to increase from 2025 levels, with bridge to EBITDA breakeven targeted for late 2026, contingent on operational improvements and capital infusion.

• Company requires $25–$30 million in liquidity to reach EBITDA breakeven, including repayment of a $10 million bridge loan maturing May 15th.

• Ongoing discussions with major shareholders for comprehensive refinancing; no final agreement or alternative proposals yet.

• Commercial reset in 2026 to focus on price realization stability and margin capture.