Edible Garden (NASDAQ:EDBL) reported higher first-quarter revenue for 2026 as the company expanded retail distribution and posted growth across cut herbs, vitamins and supplements, condiments and international sales, while management said it is increasingly directing resources toward ready-to-drink nutrition products.
On the company’s first-quarter business update call, Chief Executive Officer Jim Kras said revenue rose approximately 22.9% year over year to about $3.3 million for the three months ended March 31, 2026. Kras said the quarter reflected “continued progress across the business” and stronger traction from investments and strategic initiatives put in place over the past year.
Cut Herbs, Supplements and Condiments Drive Growth
Kras said cut herb sales increased approximately 46% year over year, helped by existing-account growth and new retail accounts. He also cited growth outside the company’s core produce categories, including approximately 27% growth in vitamin and supplement sales and approximately 51% growth in condiment sales.
Dafoulis said Edible Garden also saw broad-based growth across Hydro Basil, wheatgrass, vitamins and supplements and condiments. International sales increased approximately 50% year over year, which management linked to expanded demand for the company’s branded product portfolio and a retail footprint that now exceeds 6,000 locations.
During the quarter, the company added or expanded distribution with retail partners including Target, Safeway, The Fresh Market, Hannaford, Busch’s Fresh Food Market and Woodman’s Market. Kras said the company also broadened distribution across consumer product lines including Pickle Party, Pulp, Kick. Sports Nutrition, Vitamin Whey and JEALOUSY GLP-1 support products.
In response to an analyst question, Kras described the company’s retail mix as still heavily weighted toward herbs, with cut herbs representing roughly 40% to 50% of the business and vitamins and supplements around 20%. He said he expects the mix to evolve as higher-margin, shelf-stable products and ready-to-drink beverages become a larger part of the company’s portfolio.
Operating Expenses Rise; Net Loss Widens
Edible Garden reported operating expenses of $10 million for the first quarter, compared with $5.6 million in the prior-year period. Dafoulis said the $4.4 million increase was primarily driven by higher cost of goods sold as the company scaled cut herb distribution through third-party sourcing, which he described as “transitional” as the company works to renegotiate supplier terms.
The second major factor was depreciation and amortization, which increased by approximately $2.5 million. Dafoulis said that reflected accelerated depreciation of certain fixed assets tied to the company’s pivot toward ready-to-drink clean nutrition manufacturing at its Prairie Hills facility.
The company recorded an income tax benefit of approximately $3.4 million for the quarter, which Dafoulis said was primarily related to a valuation allowance release connected to the sale of certain tax benefits under the New Jersey Economic Development Authority’s Technology Business Tax Certificate Transfer Program. He described the benefit as a discrete, non-recurring item.
Net loss for the quarter was approximately $3.7 million, compared with approximately $3.3 million in the prior-year period.
Cash Improves as Management Focuses on Working Capital
Edible Garden ended the quarter with approximately $2 million in cash, up from $1.1 million at year-end. Dafoulis said the increase marked the company’s first sequential cash increase in five quarters.
He attributed the improvement to positive operating cash flow of approximately $251,000, favorable working capital movements including receivables collections and inventory reductions, and net financing inflows. Dafoulis said the company continues to manage a working capital deficit and is focused on improving its capital position as it executes its growth strategy.
For 2026, Dafoulis said the company’s priorities are to continue scaling revenue through the expanding retail network, improve its cost structure by transitioning cut herb sourcing and scaling higher-margin branded categories, advance the RTD manufacturing platform with Tetra Pak and maintain disciplined capital management.
Ready-to-Drink Platform Becomes Key Strategic Focus
Management spent much of the call discussing the company’s ready-to-drink, or RTD, strategy. Kras said Edible Garden sees RTDs as a compelling long-term opportunity and cited Phoenix Research projections that the global RTD market could grow from approximately $842.5 billion in 2025 to roughly $1.26 trillion in 2033.
Kras said retailers and brands are seeking scalable domestic production solutions for clean-label, shelf-stable functional nutrition products. He said Edible Garden is advancing its Iowa Midwest RTD initiative, including work related to integrating Tetra Pak processing and packaging solutions. He described Tetra Pak as a globally recognized leader in food processing and aseptic packaging.
During the question-and-answer session, Kras said retailer reception to the RTD concept has been “overwhelming.” He said Edible Garden is working with a co-manufacturer to begin servicing demand before its own factory is operational, with prototype work expected in mid-July and manufacturing through a co-manufacturer beginning in September. Kras said the company has teamed with McCormick to develop products, including a sports nutrition dairy-based RTD and an adult nutrition drink comparable to products such as Boost or Ensure.
Kras said the company’s own factory is expected to launch in the tail end of 2027 or early 2028, while the co-manufacturing approach would allow Edible Garden to service business before then. Those comments were presented by management as forward-looking expectations.
Retail Relationships and International Sales Remain Central
Kras said Edible Garden’s distribution footprint across the United States, Caribbean and South America provides a foundation for future product placement. In response to a question about international sales, he said growth was driven largely by PriceSmart, which he described as a major big-box retailer in the Caribbean and South America and a partner for nearly a decade.
He said PriceSmart continues to grow and expand into Edible Garden products, including the Kick. Sports Nutrition line. Kras said he expects vitamins, supplements, sports nutrition and clean-label products to become a more significant part of the business mix over time.
Asked how the company plans to deepen relationships with retailers, Kras said the focus is on selling more products across the existing retail base rather than simply adding new accounts. He cited relationships with retailers including Walmart, Target, Meijer, Wakefern ShopRite, Hannaford, Ahold Delhaize banners and Safeway.
In closing remarks, Kras said the first quarter showed “meaningful progress” and continued validation of the company’s broader strategy. He said Edible Garden remains focused on expanding distribution, improving operational efficiencies, strengthening margins over time, advancing the RTD initiative and leveraging established infrastructure and retail relationships.
About Edible Garden (NASDAQ:EDBL)
Edible Garden AG, trading on the Nasdaq under the ticker EDBL, is a technology-enabled agriculture company specializing in the design, construction and operation of hydroponic greenhouse farms. By leveraging controlled-environment agriculture techniques and proprietary automation systems, the company produces a range of leafy greens and salad‐related vegetables, including branded Salanova products, for wholesale distribution to retailers, food service operators and distributors.
In addition to farm ownership and produce cultivation, Edible Garden develops and licenses its modular greenhouse technology and cultivation methods to third parties.
