0001477932-26-001837
SEC filingEdible Garden AG Incorporated reported a full year 2025 revenue decline to $12.8 million and a gross loss of $0.2 million, driven by strategic repositioning and elevated procurement costs, while announcing an expansion into the higher-margin ready-to-drink category.
Edible Garden AG Incorporated reported mixed financial results for the fourth quarter and full year ended December 31, 2025, reflecting a company in strategic transition. Full-year revenue declined to $12.8 million from $13.9 million in the prior year, a decrease management attributed to a deliberate repositioning away from lower-margin, commoditized produce categories toward higher-margin, value-added product lines. This strategic pivot is central to the company's evolution from a controlled environment agriculture (CEA) focus to a broader consumer packaged goods (CPG) platform.
Profitability faced significant pressure during the year. Gross margin deteriorated sharply to -1.6% for the full year, a swing of over 18 percentage points from the 16.7% recorded in 2024. Management explained that fourth quarter procurement and logistics costs were elevated due to accelerated sourcing required to meet unexpected demand from new and existing customers facing supply chain disruptions elsewhere. While this impacted near-term margins, the company successfully serviced this incremental demand, deepening customer relationships. SG&A expenses rose 34.6% to $15.6 million, largely driven by depreciation and rent expenses related to the Natural Shrimp asset acquisition, alongside increased professional fees and compensation costs.
Operationally, the company demonstrated traction in its growth initiatives. Q4 revenue grew approximately 5% year-over-year to $4.1 million, bolstered by new distribution agreements with Kroger and the initial international shipment of Kick Sports Nutrition products to PriceSmart. The company expanded its retail footprint to nearly 6,000 store locations. Looking forward, management is prioritizing an expansion into the ready-to-drink (RTD) category, leveraging its Midwest facility and a planned integration with Tetra Pak processing capabilities to target a large, underserved market for shelf-stable nutrition products. This move is intended to drive higher-margin growth and vertical integration.