Arcadia Biosciences (RKDA) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was $1.1 million, down 8% year-over-year, entirely from Zola coconut water sales.

• Zola coconut water unit volumes rose 18% year-over-year, supported by a price increase.

• Net loss for Q1 2026 was $4.4 million, compared to net income of $2.6 million in Q1 2025, driven by non-recurring losses and lower revenue.

• The company faces substantial doubt about its ability to continue as a going concern due to insufficient cash and a defaulted promissory note receivable.

• Focus remains on growing Zola and launching a new product in the fall.

Financial highlights

• Product revenues declined 8% year-over-year to $1.1 million, mainly due to the absence of a revenue reserve release present in 2025.

• Cost of revenues increased 3% to $700,000, reflecting higher product and freight costs and increased Zola sales volume.

• Selling, general, and administrative expenses fell 32% to $1.2 million, reaching their lowest level in company history.

• Total operating expenses increased 180% year-over-year to $1.88 million, reflecting the absence of prior-year gains.

• Other loss, net was $1.5 million, primarily from unrealized losses on AFII stock.

Outlook and guidance

• Management states existing cash is insufficient for the next 12 months, raising substantial doubt about ongoing operations.

• Additional funding is required in the near term; options include debt, equity, or asset sales, but availability and terms are uncertain.

• Strategic alternatives, including asset sales or restructuring, are being evaluated while maintaining focus on Zola growth and a new product launch expected in the fall.