BRFH · Barfresh Food Group, Inc.

Barfresh Food Group delivered a strong Q1 2026 with revenue surging 92% to a record $5.6 million, exceeding guidance, primarily fueled by the Arps Dairy acquisition's raw and processed milk business contribution. CEO Riccardo Delle Coste highlighted the robust start and advancing construction at the 44,000-square-foot Defiance, Ohio facility, now owned free and clear after a $7.5 million convertible note financing paid off the prior mortgage, supplemented by a $2.4 million government grant for equipment. Gross margins compressed to 18% from 31% last year due to lower-margin milk processing and startup costs at the new facility, but net loss narrowed to $661,000 from $761,000, aided by reduced selling, marketing, and distribution expenses to $697,000 amid broker network leverage and product mix shift to no-equipment single-serve items. Adjusted EBITDA loss of $238,000 improved from $506,000 but missed breakeven guidance due to revenue mix and production inefficiencies, which management states are improving with volume ramp-up. G&A ticked up slightly to $755,000. The company issued Q2 revenue guidance of $5.2-5.6 million (over 200% growth) with modest Adjusted EBITDA loss, while reiterating full-year targets of $28-32 million revenue (97-125% growth) and $3.2-3.8 million Adjusted EBITDA, underscoring confidence in the integrated manufacturing model's scalability post-facility enhancements.