Else Nutrition Holdings Inc.

Q3 revenue was $1.66 million, down from $1.79 million in Q3 last year. Gross margin was 34%, versus negative 9% a year ago and negative 3.7% in the prior quarter. Operating expenses were $1.15 million, down 68% year over year from $3.56 million. Monthly cash burn fell below $200,000 from $1.15 million a year ago. Management said the quarter was affected by temporary out-of-stock issues, but demand remained strong across online and retail channels. Looking ahead, the company expects revenue to resume growth as inventories stabilize, believes gross margin improvement can be sustained through 2026 and beyond, and sees cash flow breakeven between late 2026 and early 2027.

Hamutal Yitzhak framed the quarter as a stabilization and turnaround period, emphasizing that the company is now leaner, more efficient and better positioned for sustainable profitable growth. She highlighted operational discipline, manufacturing and supply chain improvements, and a stronger foundation for future scale. She also stressed that Else is advancing its plant-based infant formula opportunity as U.S. regulatory standards evolve and said the company is preparing for the next clinical phase.

No separate CFO remarks were provided; the CEO delivered the financial commentary. She cited gross margin of 34%, operating expenses of $1.15 million, and monthly cash burn below $200,000, all reflecting major year-over-year improvement. She also linked these results to cost reductions in manufacturing in the U.S. and Europe, and said the company’s capital structure was simplified through the recently completed 10-for-1 share consolidation.

Analysts asked about the regulatory outlook, partnerships, and the recent 10-for-1 share consolidation. Management said it is encouraged by legislative and scientific developments, expects to begin the next phase of clinical trials in the near term, and believes the U.S. market is moving toward standards that better accommodate innovation. On partnerships, management said it is in early discussions on distribution, co-manufacturing and R&D collaborations, and on the consolidation it said the move was intended to simplify the capital structure and support the company’s viability without changing proportional ownership.