Sow Good Inc.

Revenue was $1.6 million in Q3 2025 versus $36 million in Q3 2024. Gross loss was $8.9 million compared with $600,000 of gross profit a year ago, and gross margin was negative 576% versus 16% last year. Operating expenses were $3.7 million versus $3.8 million, net loss was $10.9 million or negative $0.90 per diluted share versus $3.4 million or negative $0.33, and adjusted EBITDA was negative $10.9 million versus negative $1.9 million. Cash and cash equivalents ended the quarter at $387,300, down from $3.7 million at December 31, 2024. On guidance, management said cost savings should reduce monthly expense to about $4.50 million to $5.50 million after January, with better visibility on breakeven around March or April; they also expect gradual margin improvement beginning in mid-2026 and reiterated a path back to profitability in 2026.

Claudia Goldfarb framed the quarter as a transitional period focused on simplifying the business and resetting the cost base. She emphasized lease amendments, footprint reductions, payroll efficiencies, and automation as the foundation for scaling more profitably in 2026. She also pointed to new private label and innovation opportunities, especially caramel crunch, as the next growth engine, while saying the company is leaning into cleaner-label, higher-margin categories.

Donna Guy focused on the hard numbers behind the reset: $1.6 million revenue, $8.9 million gross loss, negative 576% gross margin, $3.7 million operating expenses, $10.9 million net loss, and $387,300 in quarter-end cash. She said the gross loss was driven mainly by approximately $8.5 million in non-cash inventory charges tied to discontinued SKUs, while lower payroll and professional fees helped keep operating expenses slightly below last year. She also said the company ended the quarter with a stronger and more efficient cost structure and that the business is maintaining financial rigor as it moves into 2026.

Analysts pressed on funding, monthly burn, breakeven, and the economics of the new caramel crunch product. Claudia said the company has $1 million of additional commitments from her and Ira, expects the cash burn to decrease significantly after January when Rock Quarry comes offline, and believes that money provides short-term runway to execute private label and digital asset partnership strategies. On breakeven, she said visibility should improve around March or April and estimated monthly expense at about $4.50 million to $5.50 million, while noting caramel crunch should see better margins later in the year as manufacturing is refined. She also said the sales team is doing a good job despite a difficult period and called the first private label customer a major win.