Barfresh Food Group (BRFH) Q2 2025 earnings summary

Executive summary

• Revenue increased 11% year-over-year to $1,625,000 for Q2 2025, driven by expanded capacity and new manufacturer relationships, despite ongoing supply chain constraints.

• Net loss narrowed to $880,000 for Q2 2025 from $1,011,000 in Q2 2024, primarily due to reduced general and administrative expenses.

• Gross margin declined to 31.1% from 34.8% year-over-year, impacted by product mix, trial costs at new manufacturers, and sub-optimal production processes.

• Equipment installation at a second co-manufacturing partner completed at the end of Q2 2025, enabling two co-manufacturers to produce as of Q3 2025.

• Added a higher-capacity bottling manufacturer for Twist & Go bottles, expected to exceed replaced manufacturer's volume by 400% starting January 2026.

Financial highlights

• Q2 2025 revenue: $1,625,000 (up 11% year-over-year); six-month revenue: $4,555,000 (up 6%).

• Gross profit for Q2 2025: $506,000 (31.1% margin); six-month gross profit: $1,406,000 (30.9% margin).

• Net loss for Q2 2025: $880,000, improved from $1,011,000 in Q2 2024; adjusted EBITDA loss for Q2 2025: $600,000, improved from $682,000 loss in Q2 2024.

• Operating expenses for Q2 2025: $1,374,000 (down from $1,514,000 in Q2 2024).

• Cash and accounts receivable as of June 30, 2025: $1.3 million; inventory: $1.8 million, mostly bottles.

Outlook and guidance

• Fiscal year 2025 revenue guidance revised to $12.5–$14 million, representing 17%–31% year-over-year growth despite earlier supply challenges.

• Gross margin expected to normalize and improve in H2 2025 as new co-manufacturers reach full capacity and supply constraints ease.

• Expanded production capacity and resolved logistics issues position the company for stronger H2 2025 performance.

• Management expects improved cash cycle and production efficiency in the second half of 2025.