EDBLW · Edible Garden AG Incorporated

Edible Garden AG Incorporated reported Q1 2026 results reflecting revenue momentum offset by significant expense pressures. Revenue rose 22.9% to $3.3 million from $2.7 million in the prior-year quarter, driven by increased sales volumes. This growth partially mitigated the sharp widening of operating losses to -$6.7 million, a -128.2% change from -$2.9 million last year. The increase in the loss from operations stemmed from higher overall expenses across cost of goods sold and depreciation expense and amortization, as noted in management's discussion. Cost of goods sold rose primarily due to the increased sales and a portfolio shift to cut herbs, which are sourced from third-party growers at higher costs. These dynamics resulted in an operating margin of -199.9%, underscoring margin erosion from the product mix and sourcing changes.

Net income showed relative resilience, improving -10.4% to -$3.7 million from -$3.3 million, with diluted EPS at -$5.25 versus -$2.47. This moderation reflects the interplay of operating pressures with other income statement factors. Cash flow marked a notable inflection, with net cash provided by operating activities flipping to +$251,000 from -$3.3 million, aided by non-cash depreciation and improved working capital efficiency. After $104,000 in capital expenditures—up from $79,000—free cash flow stood at $147,000, providing some liquidity buffer.