Barfresh Food Group Inc.

Second-quarter 2026 revenue was $4.7 million, up 190% from $1.6 million in Q2 2025. Arps Dairy contributed $3.2 million, including $2.9 million in raw and processed milk sales, and legacy Barfresh frozen beverage and food revenue increased 9%. Gross loss was $150,000, or negative 3.2% of revenue, versus gross profit of $506,000, or 31.1% of revenue in the prior-year quarter. Net loss was $1.9 million versus $880,000 last year, and adjusted EBITDA was a loss of about $1.2 million versus a loss of about $600,000. As of June 30, 2026, cash and accounts receivable were about $1.4 million and inventory was about $2.2 million. Full-year 2026 guidance was reduced to revenue of $23 million to $26 million and adjusted EBITDA of negative $1 million to $2 million; management expects adjusted EBITDA of negative $0.5 million to breakeven in the back half of the year.

Riccardo Delle Coste framed the quarter as part of a longer transformation from relying on third-party co-manufacturers to controlling production in-house. He emphasized that the company preserved customer supply, rebuilt relationships in education, and is focused on setting up 2027 growth, while acknowledging the Arps facility ramp took longer and cost more than planned. His tone was constructive but candid: the operational issues are viewed as temporary, with the new Defiance plant described as the key step toward better efficiency, margin, and profitability.

Lisa Roger walked through the quarter’s numbers and the revised outlook, highlighting the $4.7 million revenue base, the $150,000 gross loss, and the $1.9 million net loss. She attributed the full-year EBITDA guidance cut to several quantified items: about $1.8 million from higher processing spend at Arps, about $0.8 million from lost ice cream mix business due to equipment and infrastructure constraints, about $0.8 million from material cost increases, about $0.6 million from delayed recovery in legacy Barfresh lines, and about $0.6 million from unrealized synergies such as inbound/storage freight and cold storage. She also noted the March 2026 $7.5 million senior convertible note was used to pay off the Defiance mortgage and other obligations, and said the company expects sequential revenue improvement in Q3 and Q4 as school wins ramp and production efficiency improves.

Analysts focused on why ice cream production had to be moved out of the facility, whether the problem was fully fixed, and whether Barfresh could still fulfill school contracts. Management said the issue was not a bad acquisition but that the plant’s infrastructure and equipment needed more attention once real production loads were applied; they said they have already made significant improvements and can meet education-channel demand. When asked about capacity and financing, management said they do have capacity for the upcoming school year, are still using some third-party manufacturing, and do not plan to raise equity capital; instead, they plan to pursue a new mortgage and equipment financing for the new plant.