Edible Garden (EDBL) investor relations material

Executive summary

• Revenue grew 12.8% year-over-year to $3.6 million for Q2 2026, with total sales up over 31% and strong gains in cut herb sales, driven by expanded programs with major retailers like Kroger, Target, and Weis.

• Strategic initiatives included expanding distribution with Target, securing a multi-year private label contract with a major Midwest retailer, and advancing the Farm-to-Formula RTD beverage strategy.

• Significant progress on the Farm-to-Formula strategy, including prototype production at Tetra Pak's development center and ongoing construction of the Prairie Hills RTD manufacturing facility.

• Strategic focus on improving operating efficiency by transitioning more volume to retail distribution centers and leveraging logistics hubs to reduce costs.

Financial highlights

• Revenue for Q2 2026 increased 12.8% year-over-year to $3.6 million, driven by a 50% increase in cut herb and potted portfolio sales.

• Gross profit was approximately $0.6 million, flat year-over-year, with gross margin at 16.7%.

• SG&A expenses declined 21.5% to $3.1 million, reflecting improved expense management.

• Net loss improved to $3.3 million from $4 million in Q2 2025.

• Operating cash flow was positive for the second consecutive quarter, with $0.9 million net cash provided in the first half of 2026.

Outlook and guidance

• Prairie Hills facility development is expected to provide annual RTD beverage production capacity exceeding 100 million units, with pre-sold commitments for 100% of capacity.

• Facility in Iowa expected to begin production at the end of 2027.

• Continued focus on revenue growth, operating efficiency, and disciplined capital deployment, especially in developing the Prairie Hills RTD platform.

• Anticipates further revenue growth and improved profitability as scale increases and cost structure remains relatively static.