Eshbal Functional Food (ESBL) Q3 2025 earnings summary

Executive summary

• Q3 revenue grew 25% year-over-year to $3.38M, with gross margin rising from 22% to 29%.

• Nine-month revenue increased 16% to $10.1M, with gross margin up from 22.8% to 27%.

• EBITDA for the nine months reached $679K; operating income remained positive at $127K despite new public company costs.

• Net loss of $2.1M for the nine months, driven by a one-time $2M non-cash listing expense from the RTO.

• Israeli subsidiary achieved 10% revenue growth, 25% gross margin, and over 50% net profit growth in local currency.

Financial highlights

• Q3 gross profit was $995K (29% margin), up from $596K (22%) in Q3 2024.

• Nine-month gross profit was $2.7M (27% margin), up from $2M (22.8%) year-over-year.

• Q3 net loss was $507K; nine-month net loss was $2.1M, mainly due to the RTO-related expense.

Outlook and guidance

• Focus on scaling Israeli operations, margin optimization, and product expansion.

• North American strategy includes advancing manufacturing, launching gluten-free products, and M&A integration.

• Committed to long-term growth in the "better-for-you" food category.