Deveron (FARM) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 declined 22% year-over-year to $11.9M, with H1 2025 revenue down 17% to $19.1M, mainly due to softer sales in Canada and exit from the carbon business.

• Adjusted EBITDA for Q2 2025 fell 39% to $3.4M, and H1 2025 Adjusted EBITDA dropped 31% to $3.1M, reflecting lower Canadian volumes and margin compression.

• Net income for Q2 2025 was $0.2M, down 85% year-over-year; H1 2025 net loss improved to $(1.1)M from $(4.5)M in the prior year.

Financial highlights

• Gross profit margin decreased to 68% in Q2 2025 from 74% a year ago, impacted by inflation and lower high-margin product volumes.

• Operating expenses reduced by 22% to $7.24M, with 16% from cost optimization and headcount reductions.

• Adjusted EBITDA margin declined to 28.7% from 36.8% year-over-year.

• Weighted average shares outstanding increased to 210.5M in Q2 2025 from 156.4M in Q2 2024.

Outlook and guidance

• Management expects volume pickups in Q3 2025 following cost adjustments and is reviewing strategic alternatives due to upcoming debt maturities.