Hofseth BioCare (HBC) Q3 2025 earnings summary

Executive summary

• Q3 2025 marked a period of operational progress and transition, with record production volumes at the Midsund plant and continued investments in process improvements and capacity expansion.

• Despite challenging market conditions, the company maintained solid execution, improved gross margins, and advanced its R&D pipeline, supporting a long-term plan for sustainable profitability.

Financial highlights

• Total operating revenue for Q3 2025 was NOK 54.9 million, down from NOK 67.9 million in Q3 2024, reflecting lower sales volumes and weaker commodity prices.

• Gross margin improved to 35% from 28% year-over-year, driven by a shift toward higher-value specialty ingredients.

• EBITDA was negative NOK 21.1 million (Q3 2024: -NOK 21.0 million); Operational EBITDA* improved slightly to -NOK 12.9 million (Q3 2024: -NOK 13.9 million).

• Net financial items were positive NOK 2.3 million, compared to negative NOK 4.5 million in Q3 2024.

• Profit before tax was negative NOK 28.3 million, an improvement from negative NOK 35.0 million in Q3 2024.

• Cash flow from operations was positive NOK 1.3 million, compared to negative NOK 13.0 million in Q3 2024.

• Cash and cash equivalents at quarter-end were NOK 65.5 million, with total liquidity (including credit facilities) at NOK 67.0 million.

Outlook and guidance

• The medium-term outlook remains strong, with October already showing a noticeable pick-up in revenues.

• The company expects normalization of commodity prices and continued growth in high-margin markets to benefit future quarters.

• Upcoming tradeshows and customer feedback are anticipated to support conversion of scientific credibility and production scale into sustainable profitability.