Edible Garden (NASDAQ:EDBL) reported second-quarter revenue growth and lower selling, general and administrative expenses as the company expanded retail distribution for its fresh herbs and advanced plans for a ready-to-drink beverage manufacturing platform in Iowa.
Revenue for the three months ended June 30 rose 12.8% year over year to approximately $3.6 million, compared with about $3.1 million in the prior-year period. Interim Chief Financial Officer Kostas Dafoulas said growth was driven by the company’s cut-herb and potted portfolio, which increased by roughly $500,000, or 50%, from a year earlier.
Retail Distribution and Core Business
Edible Garden said it extended a multiyear private-label agreement with a major Midwest retailer and was awarded fresh-cut herb distribution through a Target Midwest distribution center. Kras described the Target opportunity as significant, noting that the distribution center is among the retailer’s largest and is positioned near Edible Garden’s Iowa operations.
Kras said consolidation among controlled-environment agriculture suppliers has contributed to opportunities for the company. He attributed Edible Garden’s positioning to its service levels, food-safety practices, fill rates and on-time delivery performance.
The company is also seeking to improve the economics of its existing produce business. In the New York metropolitan area, Edible Garden is moving more volume from direct-store deliveries to retail distribution centers and regional logistics hubs. Kras said the shift is intended to reduce transportation and delivery costs, simplify the logistics network and improve operating leverage as volume grows.
During the question-and-answer session, Kras said the company does not currently plan to build additional greenhouses. Instead, it expects to pursue growth by increasing volumes through its existing facilities and expanding fresh-cut herb sales, which he said are not necessarily dependent on additional growing space.
Profitability and Balance Sheet
Gross profit was approximately $600,000 in the second quarter, essentially unchanged from the prior-year quarter, as cost of goods sold remained elevated. Dafoulas said converting higher sales volume into improved operating performance remains a financial priority.
SG&A expenses fell approximately $900,000, or 21.5%, to $3.1 million from about $4 million a year earlier. The company attributed the decline to expense management and efforts to improve operating efficiency.
Net loss improved to approximately $3.3 million in the second quarter from roughly $4 million in the second quarter of 2025.
Operating cash flow was positive for a second consecutive quarter. For the six months ended June 30, net cash provided by operating activities was approximately $900,000, compared with net cash used in operations of approximately $6.8 million in the prior-year period.
Total debt rose to approximately $14.2 million at June 30 from approximately $1.9 million at the end of 2025. Dafoulas said the increase reflected $13.5 million of new financing during the quarter for the company’s initial investment in the Prairie Hills manufacturing facility in Webster City, Iowa.
Cash and restricted cash totaled approximately $10.7 million at quarter-end, although about $10 million was restricted for the Iowa facility, leaving approximately $700,000 available for operations. Total assets were approximately $27.7 million, while total liabilities were approximately $22.1 million.
Prairie Hills Beverage Platform
Edible Garden is developing Prairie Hills as a manufacturing platform for shelf-stable, clean-label nutritional beverages using Tetra Pak processing and packaging technology. Kras said the facility is expected to have capacity for more than 100 million beverage units annually at full production and could serve sports nutrition, protein beverages, functional wellness, meal replacement and GLP-1 support categories.
The company said it completed prototype production at Tetra Pak’s new product development center, allowing it to test proprietary formulations under commercial processing conditions, gather production data and further optimize products. Design, engineering and construction work is continuing with Structura Architects and E2 Building Group.
Kras said Edible Garden remains on track to see the first bottle come off the Prairie Hills line near the end of 2027. He also said the company expects to begin working with a co-manufacturer near the end of the fourth quarter to continue testing formulations, bring products to market sooner and begin addressing demand before the Iowa facility is operational.
According to Kras, the company has commitments for the planned Prairie Hills capacity from a mix of Edible Garden-branded, private-label and co-manufacturing customers. He said retailer interest has been particularly strong for private-label ready-to-drink products, citing limited manufacturing capacity in the market.
The company said its priorities are to continue growing its core business, manage costs, advance Prairie Hills toward commercial production and pursue branded and private-label opportunities for the platform.
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.
