Vintage Wine Estates, Inc.

Revenue for the quarter was down $4.8 million, or about 6%, year over year. Gross profit declined $4.8 million and gross margin was down 410 basis points versus last year, though margin improved 690 basis points sequentially versus the trailing fourth quarter. SG&A declined $2.7 million, or nearly 9%, and adjusted EBITDA was approximately $450,000, down $5.3 million versus the prior year period. Loss from operations was $10 million, net loss attributable to common stockholders was $15 million, and interest expense was about $5 million, up $1.5 million on higher rates. Management withdrew fiscal 2024 guidance, citing the work remaining on the turnaround and saying the company is using the Five-Point Plan during this transition year; capex guidance was reduced to $8 million to $10 million.

Seth Kaufman said he joined because he believes the underlying business is sound and sees meaningful upside in the turnaround. He emphasized a Five-Point Plan focused on simplification, productivity, prioritizing key brands, and building the right team, while also calling for a broader strategic planning process to define the company’s future direction. His tone was constructive but candid: he repeatedly stressed urgency, accountability, and the need to reimagine the business rather than simply optimize the current one.

Chris Johnston said revenue weakness came from DTC and wholesale, while B2B grew about 6% to $36.1 million on a large private-label wine shipment. He noted gross margin pressure in the quarter but said pricing actions, higher productivity, and efficiency gains are already improving margins sequentially; SG&A fell $2.7 million despite $1 million of elevated legal and audit fees, and restructuring costs totaled $4 million. On liquidity, he said the company believes it has sufficient liquidity for the transition year, but cash will stay below $20 million under the amended credit agreement and management is working with an advisor to monetize assets and reduce debt; capex is now expected at $8 million to $10 million.

There was no formal analyst Q&A captured in the transcript, so the main follow-up content came from management’s prepared remarks. The most notable issues raised were the decision to withdraw fiscal 2024 guidance, the reverse stock split proposal as a possible tool to regain NASDAQ compliance, and the plan to monetize assets to meet covenant and principal-payment needs. Management said the reverse split is not imminent and is intended as a risk-mitigation measure only if needed.