Else Nutrition (BABY) Q2 2025 earnings summary

Executive summary

• Achieved operational streamlining and advanced regulatory progress despite macroeconomic and funding challenges, focusing on long-term sustainability and compliance.

• Transitioned to European-based powder production to reduce costs, expand margins, and mitigate supply chain risks.

• Expanded Kids Ready-to-Drink Shakes to approximately 1,000 Walmart stores, maintaining strong consumer demand for plant-based products.

• Ongoing discussions with multinational companies for distribution and R&D collaborations validate brand strength.

• Advanced regulatory momentum in the U.S. and internationally, preparing for clinical trials of Plant-Based Infant Formula.

Financial highlights

• Q2 2025 revenues were $1.5 million, down from $2.6 million in Q2 2024, mainly due to inventory constraints and out-of-stock situations.

• Gross profit was a loss of $55,000, translating to a negative gross margin of -3.7%, compared to a positive margin of 10% in Q2 2024.

• Operating expenses reduced by 62% year-over-year to $1.3 million, with significant cuts in wages, consulting, and office expenses.

• Operating loss narrowed by 55% to $1.4 million from $3.1 million in Q2 2024.

• Cash balance as of June 30, 2025, was $0.9 million.

Outlook and guidance

• Targeting cash flow break even between late 2026 and early 2027, with ongoing progress expected each quarter.

• Production is underway with expected product availability next month, aiming to restore and expand gross margins.

• Priorities include growing online business, accelerating international expansion, progressing regulatory approvals, improving margins, and broadening the product portfolio.

• Committed to balancing financial discipline with strategic growth and international expansion.