Edible Garden exits low-margin products, focuses on shelf-stable lines

BELVIDERE, N.J. - Edible Garden AG Incorporated (NASDAQ:EDBL), a micro-cap controlled environment agriculture company with a market capitalization of $6.58 million, reported Thursday that its non-perishable unit sales increased approximately 17% year-over-year for the quarter ended June 30, 2025, despite an overall revenue decline as the company exits low-margin product lines. According to InvestingPro analysis, the company’s stock has faced significant headwinds, declining over 92% in the past year.

The controlled environment agriculture company posted revenue of $3.1 million for the second quarter, down from $4.3 million in the same period last year. The company attributed $741,000 of the decline to its strategic exit from the floral and lettuce categories.

Edible Garden reported a net loss of $4.0 million for the quarter, compared to a $1.9 million loss in the second quarter of 2024. The increased loss was primarily driven by higher selling, general and administrative expenses related to strategic transactions.

Private label products sold through major retailers grew 19.1% year-over-year, while hydroponic basil increased 7.1%, potted herbs rose 6.4%, and wheatgrass sales grew 4.1%. International vitamin and supplements revenue increased 66.5% compared to the same period last year.

"By exiting underperforming, low-margin product lines and investing in CEA-informed, better-for-you shelf-stable products, we are building a stronger, more resilient portfolio," said Jim Kras, Chief Executive Officer of Edible Garden, in the press release statement.

The company also highlighted its acquisition of the NaturalShrimp aquaculture facility in Iowa, now operating as Edible Garden Prairie Hills, which it says enhances research and development capabilities in aquaponics and improves distribution efficiency.

Gross profit totaled $634,000 for the quarter, compared to $1.56 million in the second quarter of 2024, reflecting shifts in product mix and sales volume, along with higher labor and raw material costs, according to the company.

Edible Garden’s products are available in over 5,000 retail locations across the United States, Caribbean, and South America.

In other recent news, Edible Garden AG reported mixed financial results for Q1 2025, with notable improvements in gross profit and a reduction in net loss, despite experiencing a decline in revenue. Additionally, Edible Garden AG has made changes to the voting rights of its Series B Preferred Stock to comply with Nasdaq listing standards. The updated certificate allows the holder of Series B Preferred Stock to cast votes equal to the lesser of 1,305,483 shares of common stock or 9.99% of the company’s outstanding common stock.

Furthermore, the company has expanded its retail presence in the Northeast, adding its sustainably grown products to more stores in New York and New Jersey. This expansion aims to meet the growing consumer demand for clean-label, sustainably sourced food. Edible Garden AG also announced a new warrant deal with an institutional investor, involving the exercise of existing warrants at a reduced price and the issuance of new five-year warrants. The reduced exercise price is set at $3.50 per share, down from the original $9.00 per share.

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