Barfresh Food Group (BRFH) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 4% year-over-year to $2.93 million, driven by expanded bottle capacity and new customer signings in the education channel.

• Gross margin for Q1 2025 was 31% (30.7%–31%), down from 41%–41.4% in Q1 2024, impacted by onboarding costs for new co-manufacturers and supply chain inefficiencies.

• Net loss widened to $761,000 from $449,000 year-over-year, primarily due to lower gross margin and higher onboarding and logistics costs.

• $3 million in growth financing was raised in February 2025 to support production scaling and mitigate supply chain disruptions.

• New product launches, including Pop & Go 100% juice freeze pops, are gaining traction in the education channel and expanding the addressable market.

Financial highlights

• Q1 2025 revenue: $2.93 million (up from $2.8 million in Q1 2024).

• Gross margin: 31% (30.7%–31%) vs. 41%–41.4% prior year; adjusted gross margin: 31% vs. 43%.

• Selling, marketing, and distribution expense: $824,000 (28% of revenue), up from $694,000 (25%).

• G&A expenses: $747,000, down from $855,000 year-over-year.

• Net loss: $761,000; adjusted EBITDA loss: $506,000 (vs. $53,000 gain/loss in Q1 2024).

Outlook and guidance

• Full-year 2025 revenue guidance reiterated at $14.5 million to $16.6 million (35%–55% growth), with margin expansion expected in the second half as manufacturing comes online.

• Gross margin expected to normalize to around 40% in the second half of 2025 as new co-manufacturers reach full capacity.

• Positive adjusted EBITDA projected for the second half of 2025.

• Bidding for 2025-2026 school year underway, with notifications of awards expected through June.

• Management expects improved top and bottom-line results in the second half of 2025, leveraging new education channel customers.