BRFH · Barfresh Food Group, Inc.

Barfresh Food Group's fourth quarter and full-year 2025 results demonstrate significant revenue growth driven primarily by the acquisition of Arps Dairy, which contributed to a 94% year-over-year increase in Q4 revenue to $5.4 million and a 33% increase for the full year to $14.2 million. However, this growth came at the expense of profitability metrics, with gross margin declining sharply to 3% in Q4 2025 from 26% in the prior year period, and Adjusted EBITDA losses widening to $1.1 million from $563,000. Management attributed the margin pressure to startup and implementation costs associated with transitioning production to the company's new manufacturing facility, as well as the inclusion of Arps Dairy's lower-margin milk processing business. The company's strategic shift toward in-house manufacturing is central to its growth plans, with approximately 90% of revenue now manufactured in its own facility. Looking ahead, Barfresh provided updated guidance for 2026, expecting revenue of $28-$32 million (representing 97-125% growth over 2025) and Adjusted EBITDA of $3.2-$3.8 million, though management noted this reflects a more conservative ramp-up schedule due to extended facility construction timelines. The company also announced securing $7.5 million in convertible note financing to pay off its facility mortgage and accelerate manufacturing expansion, positioning the facility to support over $200 million in annual revenue capacity. CEO Riccardo Delle Coste emphasized that fiscal 2025 was a transformational year and expressed confidence in the company's integrated manufacturing model driving sustainable growth in 2026.