Barfresh Food Group (BRFH) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of $14.2 million for full year 2025, up 33% year-over-year, and $5.4 million in Q4, up 94% year-over-year, driven by the Arps Dairy acquisition and expanded school channel presence.

• Transitioned approximately 90% of revenue mix to in-house manufacturing, resolving prior supply constraints and enabling fulfillment of larger orders.

• Secured $7.5 million senior convertible note financing and a $2.4 million government grant to support facility upgrades and expansion.

• Won a 7-year contract with the fifth largest school district in the U.S., strengthening position in the education channel.

• Integration and optimization of a new 44,000 sq. ft. facility underway, with full transition and equipment upgrades expected by year-end 2026.

Financial highlights

• Q4 2025 revenue: $5.4 million (record high); full year 2025 revenue: $14.2 million (up from $10.7 million in 2024).

• Q4 2025 gross margin: 3% (down from 26% in Q4 2024); adjusted gross margin: 4% (down from 30%).

• Full year 2025 adjusted gross margin: 22% (down from 37% in 2024), impacted by startup costs and lower-margin dairy business.

• Q4 2025 net loss: $763,000 (improved from $852,000 loss in Q4 2024); full year net loss: $2.7 million (improved from $2.8 million loss in 2024).

• Q4 2025 adjusted EBITDA loss: $1.1 million (vs. $563,000 loss in Q4 2024); full year adjusted EBITDA loss: $2.1 million (vs. $1.3 million loss in 2024).

Outlook and guidance

• Fiscal 2026 revenue guidance: $28–$32 million, reflecting 97%–125% year-over-year growth.

• Fiscal 2026 adjusted EBITDA guidance: $3.2–$3.8 million.

• Q1 2026 revenue expected at $5–$5.2 million, with adjusted EBITDA break-even.

• Margin recovery and quarterly improvement in revenue and profitability expected as facility enhancements are completed.