MustGrow Biologics (MGRO) Q4 2025 earnings summary

Executive summary

• 2025 sales totaled CAD 8.3 million, a significant increase from 2024, driven by TerraSante™ U.S. growth but below expectations due to NexusBioAg underperformance.

• Net loss for 2025 was CAD 7.3 million, up from $4.9 million in 2024, reflecting higher expenses tied to NexusBioAg.

• NexusBioAg was shut down effective April 15, 2026, with asset divestment underway and resources reallocated to U.S. TerraSante™ expansion.

• TerraSante sales grew 377% year-over-year to CAD 600,000, with strong repeat customer demand and inventory shortages limiting further growth.

• Focus has shifted to proprietary, higher-margin products, especially TerraSante, with expansion planned in the U.S. and internationally.

Financial highlights

• Gross profit (excluding impairment loss) was CAD 1.5 million, with an 18% margin; TerraSante gross profit was CAD 116,000, with a margin near 20%.

• U.S. TerraSante™ sales reached $0.6 million in 2025, up 377% year-over-year, with a gross margin of 20%.

• Net loss for 2025 was CAD 7.3 million.

• Cash and equivalents stood at $0.9 million as of December 31, 2025, with inventory of $2.0 million.

• Fourth quarter TerraSante sales were about CAD 260,000, up 40-45% sequentially.

Outlook and guidance

• Anticipates continued TerraSante™ sales and production growth in 2026, with improved margins due to lower tariffs and continuous production.

• Plans to commercialize TerraSante™ in new international markets with potential for fast-tracked registrations.

• Cash flow breakeven targeted for 2027, contingent on meeting demand.

• Strategic priorities include U.S. and global TerraSante growth and biocontrol product registrations.