Edible Garden Q2 2026 Earnings Report

Edible Garden EPS Results

• Actual EPS: -$18.79
• Consensus EPS: -$11.70
• Beat/Miss: Missed by -$7.09
• One Year Ago EPS: N/A

Edible Garden Revenue Results

• Actual Revenue: $3.55 million
• Expected Revenue: $3.38 million
• Beat/Miss: Beat by +$169.00 thousand
• YoY Revenue Growth: N/A

Edible Garden Announcement Details

• Quarter: Q2 2026
• Date: 8/14/2026
• Time: Before Market Opens
• Conference Call Date: Friday, August 14, 2026
• Conference Call Time: 8:00AM ET

Edible Garden (NASDAQ:EDBL) AG, trading on the Nasdaq under the ticker EDBL, is a technology-enabled agriculture company specializing in the design, construction and operation of hydroponic greenhouse farms. By leveraging controlled-environment agriculture techniques and proprietary automation systems, the company produces a range of leafy greens and salad‐related vegetables, including branded Salanova products, for wholesale distribution to retailers, food service operators and distributors.

In addition to farm ownership and produce cultivation, Edible Garden develops and licenses its modular greenhouse technology and cultivation methods to third parties. The company’s end-to-end platform encompasses site design, equipment integration and remote monitoring services, aiming to optimize resource efficiency, crop quality and yield consistency across diverse climatic conditions.

Founded in 2015 and headquartered in Munich, Germany, Edible Garden has expanded its footprint through multiple cultivation sites across Europe. Its leadership team brings together expertise in agriculture technology, engineering and supply-chain management, positioning the company to address growing demand for locally sourced, high-quality produce in urban and peri-urban markets.

Edible Garden Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Second-quarter revenue rose 12.8% year over year to approximately $3.6 million, with particularly strong growth in cut herbs and potted products and broader expansion across major retail customers.
• Positive Sentiment: Edible Garden secured expanded fresh-cut herb distribution through a major Target Midwest distribution center and extended a multi-year private-label contract, benefiting from industry consolidation and retailer demand for reliable suppliers.
• Positive Sentiment: Operating efficiency improved, with SG&A falling 21.5% to $3.1 million and net loss narrowing to approximately $3.3 million; operating cash flow was positive for the second consecutive quarter.
• Positive Sentiment: The company completed commercial-condition prototype production with Tetra Pak and said Prairie Hills remains on track for its first bottle in late 2027, with co-manufacturing expected to begin in late fourth-quarter 2026 and commitments reportedly covering 100% of the facility.
• Negative Sentiment: Gross profit remained essentially flat at approximately $0.6 million despite revenue growth, while debt increased by roughly $14.2 million to fund Prairie Hills; only about $0.7 million of the $10.7 million in cash and restricted cash was unrestricted and available for operations.

Presentation

[Operator]

Good morning, everyone, and welcome to Edible Garden Incorporated 2026 second quarter business update conference. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your phone keypad. Please note this conference is being recorded. I will now turn the call over to your host, Ted Ayvas, Investor Relations at Crescendo Communications. Ted, the floor is yours.

[Ted Ayvas, VP at Crescendo Communications]

Thanks, Jenny. Good morning, and thank you for joining Edible Garden's 2026 second quarter earnings conference call and business update. On the call with us today are Jim Kras, Chief Executive Officer of Edible Garden, and Kostas Dafoulas, Interim Chief Financial Officer of Edible Garden. Earlier today, the company announced its operating results for the three and six months ended June 30, 2026.

[Ted Ayvas, VP at Crescendo Communications]

The press release is posted on the company's website, www.ediblegarden.com. In addition, the company has filed its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission, which can also be accessed on the company's website, as well as the SEC's website at www.sec.gov. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020.

[Ted Ayvas, VP at Crescendo Communications]

Before Mr. Kras reviews the company's operating results for the quarter ended June 30, 2026 and provides a business update, we would like to remind everyone that this conference call may contain forward-looking statements. All statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations are forward-looking statements.

[Ted Ayvas, VP at Crescendo Communications]

The words aim, anticipate, believe, could, expect, may, plan, project, strategy, will, and the negative of such terms and other words and terms of similar expressions are intended to identify forward-looking statements. These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, strategy, short-term and long-term business operations and objectives, and financial needs.

[Ted Ayvas, VP at Crescendo Communications]

These forward-looking statements are subject to several risks, uncertainties and assumptions as described in the company's filings with the SEC, including the company's annual report on Form 10-K for the year ended December 31, 2025. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in the conference call may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

[Ted Ayvas, VP at Crescendo Communications]

You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The company disclaims any duty to update any of these forward-looking statements except as required by law.

[Ted Ayvas, VP at Crescendo Communications]

All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements, as well as others made on this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. With that, I would now like to turn the call over to Mr. Jim Kras, Chief Executive Officer of Edible Garden. Jim?

[Jim Kras, CEO at Edible Garden]

Thanks, Ted, and good morning, everyone. The second quarter was another period of solid progress for Edible Garden. Revenue grew 12.8% year-over-year to $3.6 million, while total sales increased by more than 31%. What is particularly encouraging was the breadth of that growth. Cut herb sales increased more than 42%, driven by continued growth with existing customers and newer programs with major retailers, including Kroger, Target, and Weis.

[Jim Kras, CEO at Edible Garden]

We saw growth across potted herbs, international vitamins, and condiments as well, while expanding our relationships with retailers including Target, Walmart, Wakefern ShopRite, and The Fresh Market. In addition, we extended a multi-year private label contract with a major Midwest retailer. More recently, we were awarded fresh cut herb distribution through a key Target Midwest distribution center, further expanding that relationship and broadening distribution of our premium fresh cut herb portfolio across the region.

[Jim Kras, CEO at Edible Garden]

We believe the award demonstrates our ability to leverage our Midwest production and distribution infrastructure to efficiently support additional volume as our retail programs expand. Overall, we see a core business that continues to gain traction across customers, products, and channels. Improving the underlying economics of the business remains an important priority.

[Jim Kras, CEO at Edible Garden]

In Metro N.Y., for example, we are transitioning more volume from direct store deliveries to retail distribution centers and regional logistics hubs. We believe this can reduce transportation and delivery-related costs, simplify the network, and create better operating leverage as we grow. At the same time, the retail relationships, distribution capabilities, and infrastructure we have built through our core business gives us a foundation that can be leveraged well beyond traditional produce.

[Jim Kras, CEO at Edible Garden]

That brings me to what we believe is the most significant long-term growth opportunity in front of Edible Garden, our Farm-to-Formula strategy and the development of the ready-to-drink RTD manufacturing platform at Prairie Hills in Webster City, Iowa. We believe this has the potential to fundamentally change the scale and profile of our business over time, and we made significant progress during the second quarter.

[Jim Kras, CEO at Edible Garden]

Most notably, we successfully completed prototype production at Tetra Pak's new product development center. This is much more than a product development exercise. It allowed us to run our proprietary clean label formulations under commercial processing conditions, generate production data, further optimize the products, and advance our preparation for customer sales and commercial manufacturing. In parallel, we continued moving forward with the physical development of Prairie Hills forward with Structura Architects and E2 Building Group supporting the design, engineering, and construction process.

[Jim Kras, CEO at Edible Garden]

Together, these milestones represent meaningful progress towards the scalable commercial manufacturing platform we envisioned. The reason why we are so focused on this opportunity is the potential scale. Prairie Hills is being developed as a flexible, high-capacity platform for shelf-stable, clean label nutritional beverages, utilizing advanced Tetra Pak processing and packaging technologies.

[Jim Kras, CEO at Edible Garden]

At full production, we expect the facility to have capacity to manufacture more than 100 million beverage units annually, providing the potential to participate across sports nutrition, protein beverages, functional wellness, meal replacement, GLP-1 support, and other better-for-you categories. Importantly, the platform is being developed to drive our own brands as well as private label and co-manufacturing opportunities, giving us multiple potential paths to build volume and create value from the facility. What makes this opportunity particularly compelling is that we are not starting from scratch.

[Jim Kras, CEO at Edible Garden]

Our products are already available in more than 6,000 retail locations and growing. We've spent years developing relationships with national and regional retailers, along with the food safety supply chain and commercialization and retail execution capabilities needed to serve them. Combining that existing commercial infrastructure with scalable domestic RTD manufacturing has the potential to significantly expand our addressable market, diversify our revenue base, and over time, improve the earning profiles of the business.

[Jim Kras, CEO at Edible Garden]

That is really what Farm-to-Formula is about. We started with controlled environment agriculture and fresh produce, expanded into higher value branded nutrition and functional foods, and now Prairie Hills gives us the opportunity to take another significant step into shelf-stable, clean label nutrition. We view Prairie Hills as much more than a new manufacturing facility.

[Jim Kras, CEO at Edible Garden]

We believe it has the potential to become an important growth engine for Edible Garden and a key part of our evolution into a broader clean label food and nutrition platform. Our focus remains on execution, growing the core business, improving operating efficiency, and advancing Prairie Hills towards commercial production and developing the branded and private label opportunities that can ultimately utilize that capacity. We believe the pieces are increasingly coming together, and we're excited about the direction of the business and the opportunity ahead. With that, I'll turn the call over to Kostas to review the financials. Kostas?

[Kostas Dafoulas, Interim CFO at Edible Garden]

Thanks, Jim, and good morning, everyone. Revenue for the three months ended June 30, 2026 increased 12.8% to approximately $3.6 million, paired with approximately $3.1 million in the prior year period. The increase was driven by continued growth in our cut herb and potted portfolio, which increased approximately half a million dollars or 50% year-over-year. Revenue growth was supported by underlying volume gains concentrated in select categories, with total gross sales increasing 7.6% year-over-year.

[Kostas Dafoulas, Interim CFO at Edible Garden]

While cut herbs and condiments drove the growth, our financial focus is on converting that higher volume and revenue into improved operating performance as we continue to scale the business. Gross profit for the quarter was approximately $0.6 million, essentially flat with the prior year period. While we continue to generate top-line growth, cost of goods sold remained elevated, and improving profitability of that growth remains an important focus for us.

[Kostas Dafoulas, Interim CFO at Edible Garden]

One of the more meaningful improvements during the quarter was in selling, general and administrative expenses. SG&A declined approximately $0.9 million, or 21.5%, to $3.1 million, compared with approximately $4 million in the second quarter of last year. We believe this reflects a continued focus across the organization on managing expenses and improving operating efficiency as we scale the business.

[Kostas Dafoulas, Interim CFO at Edible Garden]

Net loss improved year-over-year to approximately $3.3 million from approximately $4 million in the second quarter of 2025. Turning to the balance sheet and cash flow, total debt increased approximately $14.2 million from approximately $1.9 million at year-end, reflecting $13.5 million of new financing this quarter related to our initial investment in the Prairie Hills manufacturing facility in Iowa.

[Kostas Dafoulas, Interim CFO at Edible Garden]

Cash and restricted cash together were approximately $10.7 million at June 30, 2026, though approximately $10 million of that was held in a restricted account for the Iowa facility, leaving approximately $0.7 million of cash available for operations, compared with approximately $1.1 million of unrestricted cash at year-end. Total assets were approximately $27.7 million, compared with approximately $20.6 million at December 31, 2025, and total liabilities were approximately $22.1 million.

[Kostas Dafoulas, Interim CFO at Edible Garden]

We continue to focus on strengthening our capital position as we fund the business and invest in Prairie Hills. Operating cash flow was positive for the second consecutive quarter, with net cash provided by operating activities of approximately $0.9 million for the six months ended June 30, 2026, compared with cash used in operations of approximately $6.8 million in the prior year period. As we look ahead, our financial priorities remain closely aligned with the operating strategy Jim discussed.

[Kostas Dafoulas, Interim CFO at Edible Garden]

We are focused on continuing to grow revenue we believe can generate the greatest long-term returns. At the same time, we are continuing to invest in the development of Prairie Hills and the RTD platform. As we make those investments, we intend to remain disciplined in how we deploy capital and balance the requirements of the existing business with the opportunity we see in building a scalable domestic clean label beverage manufacturing platform.

[Kostas Dafoulas, Interim CFO at Edible Garden]

We believe the combination of continued revenue growth, a more efficient operating structure, and disciplined investment in higher value growth opportunities provides a path towards improving the financial profile of Edible Garden over time. With that, I'll turn the call back to the operator for questions.

[Operator]

Thank you very much. At this time, we will be conducting our question and answer session. If you would like to ask a question, please press star one on your phone keypad now. A confirmation tone will indicate that your line is in the queue. You may press star two if you would like to remove your question from the queue. For any participants using speaker equipment, it may be necessary to pick up your handset before you press the keys. Please wait a moment whilst we poll for questions. Thank you. Our first question is coming from Nick Sherwood of Maxim Group. Nick, your line is live.

[Nick Sherwood, Analyst at Maxim Group]

Hi. Good morning. Thank you for taking my questions. My first question is about the new expansion and the new Target expanded distribution. Can you kind of contextualize what that distribution was before and how big of a win or a gain this new distribution is?

[Jim Kras, CEO at Edible Garden]

Good morning, Nick. Yes, it's significant. We've had a longstanding relationship with Target, and we've made quite a bit of investment just in the relationship and being able to be positioned for this type of opportunity. There's been market conditions and obviously, some peril for suppliers, not us. We're very fortunate.

[Jim Kras, CEO at Edible Garden]

We're in a controlled environment, agriculture, which means we control how we grow, and we have incredible food safety processes in place. With that said, this is their largest, if not one of their largest, pretty close. They just opened up a new fresh distribution center since they've been growing this part of their business, Target. But this has been the longstanding largest. We had picked up some business earlier in the year, this year, and then this based on performance and market conditions.

[Jim Kras, CEO at Edible Garden]

There's just a lot of consolidation in CEA right now, with some of our major competitors basically going out of business. We're a trusted supplier with best-in-class fill rates and on-time rates. With the changes, the concerns, some of the instability in the business, Target reached out and wanted us to be able to pick this up for them because they wanted to know that they would hopefully have a partner where they wouldn't have anything to worry about. For us, it's very significant since it's in Iowa. It helps align with our facilities out there, as well as the fact that they're based in Minnesota, which isn't that far from Iowa.

[Jim Kras, CEO at Edible Garden]

Thus, like I said, this is really kind of central to their business, and we're very fortunate and happy to have gotten this opportunity. Like I said, there's quite a bit of consolidation. We had put out a press release, I think it was maybe even a week or two ago, that just talked about the fact that my phone's been ringing off the hook with people trying to align with Edible Garden since my team does such a great job of execution, and it's always been the key for us. Yeah, it's pretty significant. Any other specifics on that, Nick, that I can answer? I hope that helps.

[Nick Sherwood, Analyst at Maxim Group]

Yeah. I think that's a perfect explanation for what I was thinking about. One thing that you mentioned in that answer was some of this consolidation that's going on in the industry. Can you give us a little bit of an insight on maybe how that may have accelerated in the past year and what it's looking like through the end of the year and the opportunity that might still remain available to Edible Garden in addition to this Target distribution expansion?

[Jim Kras, CEO at Edible Garden]

Well, yeah, there's been quite a bit of consolidation, and I think it's really driven by where people put their investment dollars and the fact that Edible Garden had put an investment in their distribution platform and the relationships. So, there's going to be issues in these types of business, whether it's supply chain issues or whatnot. There's always just issues. I think what's happened is that our competitors put a lot of money into technology, a lot of money in trying to talk more about yield per square foot than really going out, securing the relationships, in parallel, making investments like we have in the customer experience.

[Jim Kras, CEO at Edible Garden]

Yes, we have technology with GreenThumb, and it's patented, and it helps with our supply chain efficiency, all those great things. When we bought the greenhouse in Michigan, we did a retrofit versus doing a greenfield project, just things like that.

[Jim Kras, CEO at Edible Garden]

That's kept the business, and you can see it in our numbers this quarter, just tighter and tighter and tighter as we've continued to drive the business, the delivery part of the business, as I like to say, the on time and in full, in stock rates. So all of that has really just led to us being positioned to really pick up the ball when it's been dropped by our competitors. I think this sort of build it and they will come attitude in this category, specifically, has not worked out well because it's really ultimately about people buying your products and making sure that that loop gets completed. I think that's just somewhere where we've really done a nice job.

[Jim Kras, CEO at Edible Garden]

I think Kostas has brought a discipline to the business that's allowed us to really focus on cleaning up SG&A and doing some things just to be more and more efficient. We're still in serious growth mode. Obviously with the Iowa facility, that's going to really take the company to the next level. Excited about that. But I think, most importantly here, I think we've earned our stripes to be where we are and people are calling us because they don't want a headache. They want people who are going to service their business, and that's something that my team has been really focused on, and so I think it's paid off.

[Nick Sherwood, Analyst at Maxim Group]

Yeah. Sounds like there's definitely a continued opportunity there. Kind of switching gears, this Tetra Pak opportunity, it really is one of the key opportunities it seems like for your company going forward. Can you just give some insight on, is that timeline still intact on building out the facility? Any specific insights into the completion of the prototype production at Tetra Pak's new product development center? Just tell us what do you still need to bring in or to do to make sure that everything remains on schedule for this.

[Jim Kras, CEO at Edible Garden]

Well, first of all, we're still on track, and we're looking at the tail end of 2027 to see the first bottle come off the line. We have, once again, having the reputation that we have for our service levels, our execution, we've got pre-sold commitments for 100% of the facility, which is just unheard of, but just tells you an idea of what the demand is there. We have a nice blend of our brand as well as private label. We knew there was a shortfall in the industry. Protein's hot. It continues to stay hot. It continues to grow. We continue to innovate as well. Obviously, kind of building that bridge from Farm-to-Formula is a big thrust for us to harness and really add another dimension to what we do in the greenhouse.

[Jim Kras, CEO at Edible Garden]

We're really excited about that, and there's a lot of things on the horizon here that are just, I think, going to be just tremendous. But we're on track. We are going to be starting with a co-manufacturer this year at the end of Q4 to allow us to kind of continue to prove out the formulas, to allow us to go to market quickly and see the revenue from that, and not have to wait over a year to really capture some of this pent-up demand for these type of products. Tetra Pak has been just an unbelievable partner. They're just such a great company, and I consider us fortunate to continue to work with them. The development process at their state-of-the-art facility in Denton, Texas, was just phenomenal.

[Jim Kras, CEO at Edible Garden]

And we have some real significant players on our team who have been working with Tetra Pak for decades that came on to Edible Garden. Dr. Chuck Sizer is one of them. He helped develop the majority of the patents for Tetra Pak on some of their packaging. He is on our team and advises us, and was there on the run to develop the product. But great tasting, clean labeled product that right now is just really exciting to be able to work with. So, it is really pretty tremendous, and to be able to leverage off a growing core business, I think, just really continues to uniquely position us for the type of growth.

[Jim Kras, CEO at Edible Garden]

I think this is going to be a much different company as we head into Q4 next year and especially in 2028 as we are pumping out product out of Iowa, and we are really focused on driving that business. So, it is really exciting. It is going really well. But honestly, we just have a great team, and people are excited about what we are doing between our zero waste inspired mission and trying to cut out waste and have an eye on recyclable packaging.

[Jim Kras, CEO at Edible Garden]

Tetra Pak obviously plays into that to this Farm-to-Formula notion that I think is quite novel, that I think will continue to shake up the industry and get us positioned properly with not only our own brands like Kick., which will be launching in Q4, but also a lot of the development work that we are doing with major retailers on this product.

[Jim Kras, CEO at Edible Garden]

So once again, really exciting, and I think what we have done and how the team has executed and where we focused our time and energy and just sticking to our knitting and getting to where we are, it has been challenging, but that is part of business, and I think everybody that I work with wants to compete and hopefully continue the wins that we have going on, whether it is in the herbs, whether it is in pickles, with the Safeway win this past year and Woodman's, or whether it is continued growing Pulp with Wakefern this year and some other retailers or just the RTDs, which I think is just going to be just incredibly awesome, to be quite frank.

[Nick Sherwood, Analyst at Maxim Group]

Okay, great. Yeah. Looking forward to following along, and I will return to the queue. Thank you for answering all my questions.

[Jim Kras, CEO at Edible Garden]

You are welcome.

[Operator]

Thank you very much. Just a reminder, if there are any questions, you can join the queue now by pressing star one on your phone keypad. Our next question is coming from Nicole Coffman of BlackRidge Capital. Nicole, your line is live.

[Nicole Coffman, Analyst at BlackRidge Capital]

Hi. Good morning, guys. Congratulations on the quarter results. Jim, you have talked about the significant opportunity you see at Prairie Hills and the ability to support both Edible Garden brands and private label and co-manufacturing customers. Can you talk about the level of interest you are seeing from potential customers and how those discussions are progressing?

[Jim Kras, CEO at Edible Garden]

Well, the interest has been phenomenal. Why we did this was because retailers were coming to us and saying, "Hey, you guys are an innovative group. You are in a really challenging category. You have done a great job servicing our business. We want more of what you are doing. Have you thought about doing this and taking what it is that you grow and potentially put it into a beverage, helping us with our current milk and whey-based products? Can you do something there?"

[Jim Kras, CEO at Edible Garden]

I have got years of experience working at companies like Nature's Bounty and Ajinomoto, so that always gave me some credibility that I could figure this out with the team. But really what has happened is, I think it has been, once again, a real collective effort, leveraging from a very advantageous position where people are coming to us. It does not happen that way in this industry.

[Jim Kras, CEO at Edible Garden]

I said to somebody, "It's been a long time, where since I'm managing, where am I going to put my time, and how do I prioritize who we work with based on opportunity and collective vision versus just trying to sell more widgets." Once again, major retailers, everyone from the major retailers that we currently deal with to even new people who are coming that we haven't necessarily worked with before on the fresh side saying, "Hey, can you do this for us?" Private label continues to grow.

[Jim Kras, CEO at Edible Garden]

There's a place for both. It's underserved, the private label part of it, for a multitude of reasons. There's just not enough capacity out in the marketplace. There's a pent-up demand, especially on private label. If you go into most of the grocery stores, you won't see a private label RTD. There's reasons for that, and a lot of it's just capacity. We're going to solve that problem. We're going to solve it with some of the major retailers.

[Jim Kras, CEO at Edible Garden]

Like I said, we've got commitments on pretty much on the whole factory. Right now we're just focused on executing and getting it up and running, and then, as there'll be other opportunities, we'll continue to do that. We're also seeing the ability to start to get some pricing power here on the herbs, which hopefully will lead to the RTDs. Once again, it's like consolidation on the herbs, and not many companies who do what we do and do it as well as we do. That, obviously, retailers will pay a little bit more now.

[Jim Kras, CEO at Edible Garden]

Because they want some of the problems to go away, and they want products, and if they don't have product on the shelves, they lose that sale. We help take some of that risk away from them. On the RTDs, once again, I think we'll continue to capture that void of volume, and I think that'll help us across the board, whether it's just driving top line or being able to price us accordingly so that everybody sort of wins.

[Nicole Coffman, Analyst at BlackRidge Capital]

Well, that's great. I guess this kind of leads into my next question is, you guys delivered double-digit revenue growth this quarter, and your SG&A significantly declined year over year. What are you seeing as the biggest opportunities that would translate into the continued revenue growth and improved profitability and operating leverage?

[Jim Kras, CEO at Edible Garden]

Well, look, I think it is kind of the conventional wisdom that many of our costs will stay relatively static as we put more volume into the existing greenhouses. We are not building any more greenhouses currently. We have got two greenhouses. We can continue to not only drive our signature potted product, and expand that, but also continue to drive more fresh-cut herbs, which are not necessarily contingent on how much growing space we have.

[Jim Kras, CEO at Edible Garden]

I continue to see that revenue line continuing to go forward in that core business, as well. Look, we will make some investments obviously in Iowa, but we have a lot of people already that can do a lot of things and work across the whole platform. You are going to see some good gains on revenue. We will also see some incremental staffing that will be strategic, that will be probably more focused on the Tetra Pak facility more than anything else. Some of that information will be forthcoming.

[Jim Kras, CEO at Edible Garden]

For me, I think it is like, let us continue to grow our top line. We are streamlining costs, really on the greenhouse business, and there is still some more work to do. Kostas and his team have done a very nice job, I think, especially this last quarter of focusing on the SG&A. We are working to procure better on some of the suppliers that we use. As we continue to be consistent with our orders, it allows us to negotiate better terms with our suppliers.

[Jim Kras, CEO at Edible Garden]

A lot of that, I probably do not speak enough about that. I know that we have been doing this for over a decade, and we have got some really good suppliers that partner with us. They are happy our business is growing, and they are happy they are obviously making money with us. As we scale, they are scaling, and our costs go down as we get scale. That is always the idea around economies of scale, and we are starting to see that pick some of that up and help limit our costs and be more efficient in what we are doing.

[Jim Kras, CEO at Edible Garden]

So, revenue will continue to climb here with costs being minimized and relatively static. Some key strategic investments in people, which I think is our most important asset. Then from there, we will continue to do what we need to do to capture the opportunities and make the investments in the relationships or branding or anything else that we feel is warranted to make sure that we continue in the current trajectory.

[Nicole Coffman, Analyst at BlackRidge Capital]

Well, thank you, Jim. I appreciate that insight. I will jump back in the queue if I have additional questions.

[Jim Kras, CEO at Edible Garden]

Thank you very much. Appreciate it.

[Operator]

Thank you very much. We have no further questions in the queue at this time. I will now hand back over to Jim for closing comments.

[Jim Kras, CEO at Edible Garden]

Thank you. Before we conclude, I want to leave you with a few thoughts. We came into 2026 focused on strengthening our core business while continuing to build a foundation for Edible Garden's next phase of growth. Through the first half of the year, we believe we made meaningful progress on both fronts. Our core business continues to grow, supported by expanding relationships with leading retailers, broader growth across our product portfolio, and with continued efforts to improve operating efficiency.

[Jim Kras, CEO at Edible Garden]

We believe that business provides an increasingly strong commercial foundation for where we want to take Edible Garden next. At the same time, we are making tangible progress with Farm-to-Formula and Prairie Hills. The work completed with Tetra Pak, along with the continued development of Prairie Hills facility, brings us closer to our goal of building a scalable domestic RTD manufacturing platform capable of supporting both our own brands and private label opportunities.

[Jim Kras, CEO at Edible Garden]

We believe Prairie Hills has the potential to significantly expand the scale and reach of Edible Garden while we combine that opportunity with retail relationships, distribution network, and operating capabilities we have already built. We believe we have the foundation to evolve Edible Garden into a much broader clean label food and nutrition company.

[Jim Kras, CEO at Edible Garden]

There's a lot of work ahead and our focus remains on execution, but we are encouraged by the progress we are making and excited about the opportunity in front of us. Thank you to our employees, customers, retail partners, and shareholders for your continued support. We look forward to updating you on our progress. Thank you for joining us today.

Participants

Executives

• Jim Kras, CEO
• Kostas Dafoulas, Interim CFO

Analysts

• Ted Ayvas, VP at Crescendo Communications
• Nick Sherwood, Analyst at Maxim Group
• Nicole Coffman, Analyst at BlackRidge Capital