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Image source: The Motley Fool. Friday, August 14, 2026 at 8:00 a.m. ET Chief Executive Officer - Jim Kras Interim Chief Financial Officer - Kostas Dafoulas Operator: Good morning, everyone, and welcome to Edible Garden Incorporated 2026 Second Quarter Business Update Conference. [Operator Instructions] 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: 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 3 and 6 months ended June 30, 2026. The press release is posted on the company's website, www.ediblegardenag.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, would like any additional information about the company, please contact Crescendo Communications at (212) 671-1020. 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. 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. 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. 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. 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? James Kras: 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 was 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. 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 multiyear 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. 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. In Metro North, for example -- in Metro New York, 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. 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. Most notably, we successfully completed prototype production at Tetra Pak's new product development center. This is much more than a product development exercise that 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. Together, these milestones represent meaningful progress towards a scalable commercial manufacturing platform we envision. 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. 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. 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 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 earnings profiles of the business. 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. 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: Thanks, Jim, and good afternoon -- good morning, everyone. Revenue for the 3 months ended June 30, 2026, increased 12.8% to approximately $3.6 million compared 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 $0.5 million 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. 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. 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. 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. 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. 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 6 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. We are focused on continuing to grow revenue [indiscernible] opportunities 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. 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: [Operator Instructions] Our first question is coming from Nick Sherwood of Maxim Group. Nicholas Sherwood: 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? James Kras: Nick, yes, it's significant. We've had a long-standing relationship with Target, and we've made quite a bit of investment in -- just in the relationship and being able to be positioned for this type of opportunity. And there's been market conditions. I think obviously, some produce suppliers, not us. We're very fortunate. We're in controlled environment agriculture, which means we control how we grow and we have incredible safety -- food safety processes in place. With that said, this is one of 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. So -- but this has been the long-standing largest. And so we had picked up some business earlier in the year, this year. And then this based on performance and market conditions, there's just a lot of consolidation in CEA right now with major -- 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. And so 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. And so for us, it's very significant since it's in Iowa, 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. And 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. And like I said, there's quite a bit of consolidation. We have 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 has 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. So yes, it's pretty significant. But any other specifics on that, Nick, that I can answer. I hope that helps. Nicholas Sherwood: No, yes, I think that's a perfect explanation for what I was thinking about. And kind of one thing that you mentioned in that answer was some of this consolidation that's kind of going on in the industry. Can you kind of give us a little bit of an insight on maybe how that may have accelerated in the past year and kind of what it's looking like through the end of the year and kind of the opportunity that might still remain available to Edible Garden in addition to this Target distribution expansion? James Kras: Well, yes, 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. And so there's going to be issues in these types of business, whether there's supply chain issues or whatnot. There's always just issues. And 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 -- the customer experience. Yes, we have technology with GreenThumb and it's patented and it helps with our supply chain efficiency, all those great things. We -- when we bought the greenhouse in Michigan, we did a retrofit versus doing a greenfield project. Just things like that, that have kept the business -- and you could 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. And 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. And I think this sort of build it and they will come attitude in this category, specifically has not worked out well because you really -- it's really ultimately about people buying your products and making sure that, that loop gets completed. And I think that's just somewhere where we've really done a nice job. 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 are people calling us because they just don't -- 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. Nicholas Sherwood: Yes. I mean it sounds like there's definitely a continued opportunity there. And then kind of switching gears, this Tetra Pak opportunity, it really is one of the key opportunities that it seems like for your company going forward. Can you kind of just give us 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? And just kind of tell us what do you still need to bring in or to do to make sure that everything remains on schedule for this? James Kras: 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 presold commitments for 100% of the facility, which is just unheard of, which tells you an idea of what the demand is there. It's -- we have a nice blend of our brand as well as private label. We knew there was a shortfall in the industry. Protein is hot. It continues to stay hot, 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. So we're really excited about that. And there's a lot of things on the horizon here that are just -- I think are 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. So it's -- Tetra Pak has been just an unbelievable partner. They're just such a great company. And 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. And we have some real significant players on our team that 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's 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's 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. I think this is going to be a much different company as we head into Q4 next year and especially in 2028 as we're pumping out product out of Iowa, and we're really focused on driving that business. So yes, it's really exciting. It's going really well. But honestly, we just have a great team and people are excited about what we're doing between our Zero-Waste Inspired mission and trying to cut out waste and have an eye on recyclable packaging. Tetra Pak obviously plays into that to this 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 we'll be launching in Q4 but also a lot of the development work that we're doing with major retailers on this product. So once again, really exciting. And I think what we've done and how the team is executing and where we focus our time and energy and just sticking to our knitting and getting to where we are, it's been challenging, but I mean, that's 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's in the herbs, whether it's in pickles with the Safeway win this past year and Woodman's, whether it's 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. Operator: [Operator Instructions] Our next question is coming from [ Nicole Kaufman of Blackridge Capital. ] Unknown Analyst: Congratulations on the quarter results. Jim, you've 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're seeing from potential customers and how those discussions are progressing? James Kras: Well, the interest has been just phenomenal. I mean that's really why we did this was because retailers were coming to us and saying, hey, you guys are an innovative group. You're in a really challenging category. You've done a great job servicing our business. We want more of what you're 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? I've 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. And -- but really, what's happened is I think it's been, once again, a real collective effort, leveraging from a very advantageous position where people are coming to us. It doesn't happen that way in this industry. I said to somebody, it's been a long time since I've been 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. So once again, I mean, 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? Look, private label continues to grow. There's a place for both. And it's very -- 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 not -- there just isn't -- there's just -- 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. A lot of it is just capacity. And so we're going to solve that problem, to solve with some of the major retailers. Like I said, we've got commitments on -- pretty much on the whole factory. And so right now, we're just focused on executing and getting it up and running. And then as there will be other opportunities, we'll continue to do that. And we're also -- we're seeing the ability to start to get some pricing power here on the herbs, which hopefully will lead to the RTDs as there's -- 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. So that obviously retailers will pay a little bit more now. And then because they want -- they don't -- they want some of the problems to go away and they want product. And if they don't have product on the shelves, they lose that sale. So we help take some of that risk away from them. And then on the RTDs, it's once again, I think we'll continue to capture that void of volume, and I think that will help us across the board, whether it's just driving top line or being able to price accordingly so that everybody sort of wins. Unknown Analyst: Well, that's great. I guess this kind of leads into my next question is that you guys delivered double-digit revenue growth this quarter and your SG&A significantly declined year-over-year. So what we are you seeing as the biggest opportunities that would translate into the continued revenue growth and improved profitability and operating leverage? James Kras: Well, look, I think it's kind of the conventional wisdom that many of our costs will stay relatively static as we put more volume into the existing greenhouses. We're not building any more greenhouses. Currently, we've got 2 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. And so I continue to see that revenue line continuing to go forward in that core business as well. And look, we'll make some investments in -- obviously, in Iowa, but we have a lot of people already that can do a lot of things and work across the whole platform. And so we're going to see some good gains on revenue. We'll see some incremental staffing that will be strategic that will be probably more focused on the Tetra Pak facility more than anything else. And some of that information will be forthcoming. But for me, I think it's like let's continue to grow the top line. We're streamlining costs really on the greenhouse business, and there's still some more work to do Kostas and his team have done a very nice job, I think, of that especially this last quarter of focusing on the SG&A. We're working to procure better on some of the things that -- some of the suppliers that we use. As we continue to be consistent with our orders, it allows us to negotiate better terms and with our suppliers. And a lot of that -- I probably don't speak enough about that. I think we've been -- I know that we've been doing this for over a decade, and we've got some really good suppliers that partner with us, and they're happy. Our business is growing. They're happy. They're obviously making money with us. And so as we scale, they're scaling and our costs go down as we get scale. I mean that's always right, the idea around economies of scale, and we're starting to see that pick some of that up and help limit our costs and be more efficient in what we're doing. 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. And then from there, we'll 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. Operator: Well, we have no further questions in the queue at this time. I will now hand back over to Jim for closing comments. James Kras: 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 the 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 we -- continued efforts to improve operating efficiency. 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. 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. 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. Operator: Thank you very much. This does conclude today's conference. You may disconnect your phone lines at this time, and have a wonderful day. We thank you for your participation. Before you buy stock in Edible Garden Ag, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Edible Garden Ag wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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International Vitamin Sales Increase 50% as Retail Expansion, Broad-Based Product Growth, and Improved Operating Efficiency Strengthen the Company’s Commercial Foundation Successful Tetra Pak Prototype Production and Prairie Hills Development Advance RTD Commercialization Strategy Conference Call Today at 8:00 a.m. Eastern Time BELVIDERE, N.J., Aug. 14, 2026 (GLOBE NEWSWIRE) -- Edible Garden AG Incorporated (“Edible Garden” or the “Company”) (Nasdaq: EDBL, EDBLW), a leader in controlled environment agriculture (“CEA”), locally grown, organic and sustainable produce and products, today reported financial results for the three and six months ended June 30, 2026. Edible Garden continued building momentum during the second quarter, with revenue increasing 12.8% to $3.6 million and total sales growing 31.2% year over year. The results reflected strong demand for the Company’s cut herb portfolio, growth across its herb and condiment portfolio, with continued expansion among both existing and new retail customers. During the quarter, the Company also strengthened its strategic foundation by expanding relationships with leading national and regional retailers, improving operating efficiency through strategic supply-chain initiatives, advancing its Farm-to-Formula® strategy through continued progress toward commercialization of its ready-to-drink (“RTD”) platform, and receiving industry recognition for both its controlled environment agriculture platform and branded consumer products. Subsequently, Edible Garden further expanded its relationship with Target through a new fresh-cut herb distribution award at a key Midwest distribution center, which is expected to broaden distribution of the Company’s premium fresh-cut herb portfolio across a network of Target stores throughout the region. These accomplishments build on Edible Garden’s Farm-to-Formula strategy, leveraging the Company’s established retail relationships, vertically integrated operating platform, nationwide distribution network, food safety expertise, and commercialization capabilities Financial & Operating Highlights for the Three Months Ended June 30, 2026 Revenue increased 12.8% to $3.6 million, compared with $3.1 million in the prior-year period, primarily reflecting continued growth in the Company’s cut herb portfolio. Broad-based growth supported the quarter’s performance, with total sales growing 31.2% year over year, including: Advanced commercialization of the Company’s Farm-to-Formula strategy, successfully completing RTD prototype production at Tetra Pak’s New Product Development Center while continuing development of the Prairie Hills manufacturing platform, which is expected to provide annual production capacity of more than 100 million beverage units upon completion. “Our second quarter demonstrated continued execution across both our core business and our long-term growth strategy,” said Jim Kras, Chief Executive Officer of Edible Garden. “We delivered double-digit revenue growth, generated broad-based growth across our product portfolio, expanded relationships with leading retailers and continued advancing the key commercialization milestones supporting our Farm-to-Formula strategy. We believe these results reflect the strength of our operating platform and the increasing value of the foundation we have built.” “The momentum in our core business continues to build. Cut herb sales increased more than 42%, driven by growth with existing customers and new programs with Kroger, Target, and Weis, while potted herbs, International Vitamins and condiments also delivered strong growth. We further expanded programs with Walmart, Wakefern, ShopRite and The Fresh Market and strengthened long-term revenue visibility through an expanded multi-year private-label agreement with a major Midwest retailer. Our recent award of fresh-cut herb distribution through a key Target Midwest distribution center further expands that relationship and demonstrates our ability to leverage our Midwest production and distribution infrastructure to efficiently support additional volume. At the same time, our transition to retailer distribution center deliveries in the Metro New York market is expected to improve operating leverage while reducing transportation costs and further supporting our Zero-Waste Inspired® mission.” We also continued making meaningful progress toward commercialization of our Farm-to-Formula strategy, which we believe represents one of the most significant long-term growth opportunities in Edible Garden's history. During the quarter, we successfully completed prototype production at Tetra Pak's New Product Development Center, validating our proprietary clean-label formulations under commercial processing conditions while generating valuable data to support product optimization, customer sampling, and manufacturing readiness. We also advanced development of the Prairie Hills manufacturing facility through the engagement of Structura Architects and E2 Building Group, further strengthening the team responsible for bringing the project from design to commercial production.” "Prairie Hills is being developed as a flexible, high-capacity manufacturing platform for shelf-stable, clean-label nutritional beverages utilizing advanced Tetra Pak processing and packaging technologies. At full production, the facility is expected to have the capacity to manufacture more than 100 million beverage units annually, supporting opportunities across sports nutrition, protein beverages, functional wellness, meal replacement, and other better-for-you categories. Importantly, the platform is being designed to support both Edible Garden's branded products and private-label manufacturing, creating multiple potential avenues for long-term growth.” "What makes this opportunity especially compelling is that we are not starting from scratch. We have spent years building trusted relationships with leading retailers, developing nationally recognized brands, establishing food safety and supply chain capabilities, and creating a commercialization platform with products available in more than 6,000 retail locations. We believe combining those assets with scalable domestic RTD manufacturing positions Edible Garden to significantly expand its addressable market, diversify its revenue base, improve the long-term earnings profile of the business, and create sustainable value for our shareholders,” concluded Mr. Kras. Financial Overview Financial results for the second quarter of 2026 reflected continued revenue growth and a reduction in operating loss, supported by lower selling, general and administrative expenses, partially offset by higher cost of goods sold and depreciation and amortization associated in part with the Company’s pivot toward RTD clean nutrition manufacturing. Financial Results for the Three Months Ended June 30, 2026 Revenue increased 12.8% to $3.6 million, compared to $3.1 million for the three months ended June 30, 2025. The 12.8% growth was primarily attributable to continued growth in the Company’s cut herb portfolio across its retail customer base, which increased approximately $0.5 million, or 50.5%. Gross profit was $0.6 million, compared to $0.6 million in the prior-year period. Selling, general and administrative expenses were $3.1 million, compared to approximately $4.0 million in the prior-year period, a decrease of approximately $0.9 million, or 21.5%. Net loss improved to $3.3 million, compared to a net loss of $4.0 million for the three months ended June 30, 2025. Conference Call Edible Garden will host a conference call today, Friday, August 14, 2026, at 8:00 a.m. Eastern Time to discuss financial results for the quarter ended June 30, 2026, and provide a business update. The conference call will be available via telephone by dialing toll-free +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering access code 248059. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2914/54376 or on the investor relations section of the Company’s website at https://ediblegardenag.com/presentations/. A webcast replay will be available on the investor relations section of the Company’s website through August 14, 2027. A telephone replay will be available approximately one hour following the call through August 28, 2026, and may be accessed by dialing +1 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 54376. ABOUT EDIBLE GARDEN® Edible Garden AG Incorporated is a leader in controlled environment agriculture (CEA), delivering organic, better-for-you, sustainable produce and products through its Zero-Waste Inspired® next-generation farming model. Available in over 6,000 retail locations across the United States, Caribbean, and South America, Edible Garden is at the forefront of the CEA and sustainability technology movement, distinguished by its advanced safety-in-farming protocols, sustainable packaging, patented GreenThumb software, and innovative Self-Watering in-store displays. The Company operates state-of-the-art, vertically integrated greenhouses and processing facilities, including Edible Garden Heartland in Grand Rapids, Michigan; Edible Garden Prairie Hills in Webster City, Iowa; and its headquarters at Edible Garden Belvidere in New Jersey. It also partners with a network of contract growers strategically located near major U.S. markets to ensure freshness and reduce environmental impact. The Company is also expanding its Prairie Hills facility in Webster City, Iowa, into a dedicated ready-to-drink (RTD) clean nutrition manufacturing hub, supporting its Farm-to-Formula® strategy and its transformation into higher-margin, shelf-stable nutrition categories. Edible Garden’s proprietary GreenThumb 2.0 software—protected by U.S. Patents US 11,158,006 B1, US 11,410,249 B2, and US 11,830,088 B2—optimizes vertical and traditional greenhouse growing conditions while aiming to reduce food miles. Its patented Self-Watering display (U.S. Patent No. D1,010,365) is designed to extend plant shelf life and elevate in-store presentation. In addition to its core CEA operations, Edible Garden owns three patents in advanced aquaculture technologies: a closed-loop shrimp farming system (US 6,615,767 B1), a modular recirculating aquaculture setup with automated water treatment and feeding (US 10,163,199 B2), and a sensor-driven ammonia control method utilizing electrolytic chlorine generation (US 11,297,809 B1). The Company has been recognized as a FoodTech 500 firm by Forward Fooding, is a multi-year participant in Walmart’s Project Gigaton and a Giga Guru designee, and has received NRG’s Excellence in Energy Award for its commitment to measurable environmental performance and energy stewardship. Edible Garden also develops and markets a growing line of nutrition and specialty food products, including Vitamin Way® and Vitamin Whey®—plant and whey protein powders—and Kick. Sports Nutrition, a premium performance line for health-conscious athletes seeking cleaner, better-for-you options. The Company’s offerings further include fresh, sustainable condiments such as Pulp fermented gourmet and chili-based sauces, as well as Pickle Party, a collection of fermented fresh pickles and krauts. Learn more at https://ediblegardenag.com. For Pulp products, visit https://www.pulpflavors.com. For Vitamin Whey® products, visit https://vitaminwhey.com. For Kick. Sports Nutrition products, visit https://kicksportsnutrition.net/ Watch the Company’s latest corporate video here. FORWARD-LOOKING STATEMENTS This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “aim,” “believe,” “continue,” “develop,” “expect,” “future,” “intend,” “expand,” “advance,” “design,” “opportunity,” “plan,” “potential,” “position,” “strategy,” “target,” “will,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. These statements include, without limitation, statements regarding the Company’s ability to improve its financial results and operating margins; convert inbound retailer interest into new or expanded programs; service additional volume; continue growing its fresh cut herb, USDA Organic, nutrition and specialty food product lines; realize the expected benefits of cost reduction, automation, in-sourcing and strategic partnership initiatives; complete construction, equipment installation, commissioning and commercial production readiness at the Prairie Hills facility; commercialize its RTD platform; achieve anticipated manufacturing capacity; attract branded and private-label customers; and capitalize on the expected growth of the RTD and clean nutrition markets. Forward-looking statements are based on the Company’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied, including those described in the “Risk Factors” section and other sections of the Company’s reports filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date on which they are made, and the Company undertakes no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Investor Contacts: Crescendo Communications, [email protected] Tables Follow

This article first appeared on GuruFocus. Revenue: $3.6 million for Q2 2026, up 12.8% year-over-year. Total Sales Growth: Increased by more than 31% year-over-year. Cut Herb Sales: Increased more than 42% year-over-year. Cut Herb and Potted Portfolio Growth: Increased approximately $0.5 million, or 50% year-over-year. Gross Profit: Approximately $0.6 million, essentially flat with the prior year period. SG&A Expenses: Declined approximately $0.9 million, or 21.5%, to $3.1 million from approximately $4 million in Q2 2025. Net Loss: Improved to approximately $3.3 million from approximately $4 million in Q2 2025. Total Debt: Increased to approximately $14.2 million from approximately $1.9 million at year-end, reflecting $13.5 million of new financing for the Prairie Hills facility. Cash and Restricted Cash: Approximately $10.7 million at June 30, 2026, with approximately $10 million held in a restricted account for the Iowa facility. Unrestricted Cash: Approximately $0.7 million available for operations, compared with approximately $1.1 million at year-end. Total Assets: Approximately $27.7 million, compared with approximately $20.6 million at December 31, 2025. Total Liabilities: Approximately $22.1 million. Operating Cash Flow: 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, versus cash used in operations of approximately $6.8 million in the prior-year period. Warning! GuruFocus has detected 2 Warning Signs with EDBL. Is EDBL fairly valued? Test your thesis with our free DCF calculator. Release Date: August 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue grew 12.8% year-over-year to $3.6 million, with total sales up 31%. Cutter herb sales increased over 42%, driven by expanded programs with major retailers like Kroger, Target, and Weis. SG&A expenses declined 21.5% year-over-year, reflecting improved operational efficiency. Operating cash flow was positive for the second consecutive quarter, with $0.9 million provided by operations. Prairie Hills RTD facility is on track for production by end of 2027, with 100% of capacity pre-sold. Gross profit remained flat year-over-year at $0.6 million due to elevated cost of goods sold. Net loss was $3.3 million, though improved from $4 million in the prior year. Total debt increased significantly to $14.2 million from $1.9 million at year-end, driven by Prairie Hills financing. Unrestricted cash dropped to $0.7 million, limiting operational liquidity. The company faces execution risks in scaling Prairie Hills and managing cost pressures in the core business. Q: Can you contextualize the new Target distribution expansion and how significant this win is for Edible Garden? A: Jim Kras (CEO): This is a significant win. We have a long-standing relationship with Target, and this new award is for one of their largest fresh distribution centers. Due to market conditions and consolidation in the CEA (controlled environment agriculture) space, with major competitors going out of business, Target reached out to us. They wanted a trusted supplier with best-in-class fill rates and on-time performance. This is particularly important for us because the distribution center is in Iowa, aligning perfectly with our facilities there and their base in Minnesota. It demonstrates our ability to leverage our Midwest infrastructure to support additional volume. Q: Can you provide insight into the industry consolidation and the remaining opportunity for Edible Garden beyond this Target expansion? A: Jim Kras (CEO): There has been significant consolidation driven by competitors over-investing in technology and yield-per-square-foot rather than securing retail relationships and customer experience. Our focus on execution, on-time delivery, and in-stock rates has positioned us to pick up business when competitors drop the ball. We are seeing the benefits of our disciplined approach, and our phone has been ringing off the hook with retailers looking for a reliable partner. This trend is creating a substantial opportunity for us to capture additional volume and market share. Q: Is the timeline for the Tetra Pak facility still on track, and can you provide insights into the prototype production and what is needed to keep the project on schedule? A: Jim Kras (CEO): We are on track to see the first bottle come off the line at the tail end of 2027. We have pre-sold commitments for 100% of the facility's capacity, which is a blend of our own brands and private label. We are starting with a co-manufacturer at the end of Q4 this year to bring products to market quickly and capture pent-up demand. The prototype production at Tetra Pak's facility in Denton, Texas was successful, allowing us to run our clean-label formulations under commercial conditions. We have experts like Dr. Chuck Sizer on our team, who helped develop major Tetra Pak patents, ensuring we are well-positioned for success. Q: Can you talk about the level of interest from potential customers for the Prairie Hills facility and how those discussions are progressing? A: Jim Kras (CEO): The interest has been phenomenal. Retailers came to us because they see us as an innovative group that services their business well. They asked us to expand into beverages, and we have seen major retailers, both existing and new, express interest. The private label RTD market is underserved due to a lack of capacity, and we are solving that problem. We have commitments for essentially the entire factory, and we are now focused on execution and getting the facility up and running. This demand also gives us some pricing power, which is a positive development. Q: What are the biggest opportunities for continued revenue growth and improved profitability and operating leverage? A: Jim Kras (CEO): Our costs will remain relatively static as we put more volume through our existing greenhouses. We can continue to drive our signature products and fresh-cut herbs without needing to build new greenhouses. We are streamlining costs on the greenhouse business and working to procure better terms with suppliers as we scale. We will make strategic investments in people, particularly for the Tetra Pak facility, but overall, we expect revenue to climb while costs are minimized, allowing us to capture economies of scale and improve our financial profile. Q: Can you elaborate on the financial results for the second quarter, specifically regarding revenue growth and SG&A improvements? A: Kostas Dafoulas (Interim CFO): Revenue for Q2 2026 increased 12.8% year-over-year to approximately $3.6 million, driven by a 50% increase in our cutter herb and potted portfolio. Net SG&A declined by approximately $0.9 million, or 21.5%, to $3.1 million, reflecting our focus on managing expenses. Net loss improved to approximately $3.3 million from $4 million in the prior year. We also generated positive operating cash flow of $0.9 million for the six months, a significant improvement from the $6.8 million used in the prior-year period. Q: Can you provide details on the balance sheet and the financing related to the Prairie Hills facility? A: Kostas Dafoulas (Interim CFO): Total debt increased to approximately $14.2 million from $1.9 million at year-end, reflecting $13.5 million of new financing related to our initial investment in the Prairie Hills facility. Cash and restricted cash were approximately $10.7 million at June 30, 2026, with about $10 million held in a restricted account for the Iowa facility, leaving approximately $0.7 million for operations. Total assets were approximately $27.7 million, and we continue to focus on strengthening our capital position as we fund the business and invest in Prairie Hills. Q: How is the company's strategy evolving with the "Farm to Formula" initiative, and what is the potential scale of the Prairie Hills facility? A: Jim Kras (CEO): Prairie Hills is being developed as a flexible, high-capacity platform for shelf-stable, clean-label nutritional beverages using advanced Tetra Pak processing. At full production, we expect the facility to have capacity to manufacture more than 100 million beverage units annually. This platform will support our own brands, private label, and co-manufacturing opportunities. We are not starting from scratch; our products are already in over 6,000 retail locations, and we have the commercial infrastructure to serve them. This initiative has the potential to fundamentally change the scale and profile of our business, expanding our addressable market and diversifying our revenue base. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth of 12.8% was primarily driven by a 42% surge in cut herb sales, supported by expanded distribution through major retailers like Kroger, Target, and Weis. Management attributes recent market share gains to industry-wide consolidation in the Controlled Environment Agriculture (CEA) space, where competitors focused on technology over retail execution. Operational efficiency is being targeted through a transition from direct store deliveries to retail distribution centers and regional logistics hubs, specifically in the Metro New York area. The 'Farm-to-Formula' strategy represents a pivot from traditional produce into higher-margin, shelf-stable nutritional beverages to diversify the revenue base. The company successfully completed prototype production at Tetra Pak's development center, validating proprietary clean label formulations under commercial processing conditions. Management highlighted that their existing infrastructure of 6,000 retail locations provides a ready-made commercial foundation for new product launches that competitors lack. SG&A expenses were reduced by 21.5% year-over-year, reflecting a disciplined focus on organizational efficiency and expense management as the business scales. The Prairie Hills facility is expected to reach commercial production by late 2027, with a projected annual capacity of over 100 million beverage units. Management intends to utilize a co-manufacturer starting in Q4 2026 to bridge the gap to full facility completion and capture immediate demand for protein and wellness beverages. The company claims to have pre-sold commitments for 100% of the Prairie Hills facility capacity, spanning both branded and private label opportunities. Future growth assumes the ability to leverage existing greenhouse assets for higher-value branded nutrition and functional foods without requiring additional greenhouse construction. Financial priorities are centered on converting higher sales volumes into improved operating leverage by maintaining relatively static costs while scaling revenue. Total debt increased by approximately $14.2 million, primarily reflecting $13.5 million in new financing dedicated to the Prairie Hills facility investment. Liquidity remains tight with only $0.7 million in unrestricted cash available for operations, as $10 million of the total cash balance is restricted for the Iowa facility development. The company achieved positive operating cash flow for the second consecutive quarter, a significant shift from the $6.8 million cash burn in the prior year period. Management noted that while top-line growth is strong, cost of goods sold remains elevated, making profitability improvement a critical ongoing focus. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The expansion was driven by Target's new fresh distribution center and Edible Garden's status as a trusted supplier with high fill rates during a period of competitor instability. Management noted that the proximity of their Iowa facilities to Target's Minnesota headquarters creates a logistical advantage for the Midwest region. The first commercial bottles are expected off the line in late 2027, but revenue generation will begin sooner via co-manufacturing partnerships starting in Q4 2026. The company is leveraging specialized expertise, including a former Tetra Pak patent developer, to ensure the technical success of the clean-label formulations. Interest is driven by a market-wide shortage of RTD manufacturing capacity, particularly for private label protein and whey-based products. Management indicated they are seeing new pricing power in their core herb business due to supply consolidation, which they hope to replicate in the beverage category.

BELVIDERE, NJ, Aug. 07, 2026 (GLOBE NEWSWIRE) -- Edible Garden AG Incorporated (“Edible Garden” or the “Company”) (Nasdaq: EDBL, EDBLW), a leader in controlled environment agriculture (CEA), locally grown, organic, better-for-you, sustainable produce and products, announced today that it will host a conference call on Friday August 14, 2026, at 8:00 AM Eastern Time to discuss financial results for the quarter ended June 30, 2026, and provide a business update. The conference call will be available via telephone by dialing toll-free +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering access code 248059. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2914/54376 or on the investor relations section of the company’s website, https://ediblegardenag.com/presentations/. A webcast replay will be available on the investor relations section of the Company’s website at https://ediblegardenag.com/presentations/ through August 14, 2027. A telephone replay of the call will be available approximately one hour following the call, through August 28, 2026, and can be accessed by dialing +1 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 54376. ABOUT EDIBLE GARDEN® Edible Garden AG Incorporated is a leader in controlled environment agriculture (CEA), delivering organic, better-for-you, sustainable produce and products through its Zero-Waste Inspired® next-generation farming model. Available in over 6,000 retail locations across the United States, Caribbean, and South America, Edible Garden is at the forefront of the CEA and sustainability technology movement, distinguished by its advanced safety-in-farming protocols, sustainable packaging, patented GreenThumb software, and innovative Self-Watering in-store displays. The Company operates state-of-the-art, vertically integrated greenhouses and processing facilities, including Edible Garden Heartland in Grand Rapids, Michigan; Edible Garden Prairie Hills in Webster City, Iowa; and its headquarters at Edible Garden Belvidere in New Jersey. It also partners with a network of contract growers strategically located near major U.S. markets to ensure freshness and reduce environmental impact. The Company is also expanding its Prairie Hills facility in Webster City, Iowa, into a dedicated ready-to-drink (RTD) clean nutrition manufacturing hub, supporting its Farm-to-Formula® strategy and its transformation into higher-margin, shelf-stable nutrition categories. Edible Garden’s proprietary GreenThumb 2.0 software—protected by U.S. Patents US 11,158,006 B1, US 11,410,249 B2, and US 11,830,088 B2—optimizes vertical and traditional greenhouse growing conditions while aiming to reduce food miles. Its patented Self-Watering display (U.S. Patent No. D1,010,365) is designed to extend plant shelf life and elevate in-store presentation. In addition to its core CEA operations, Edible Garden owns three patents in advanced aquaculture technologies: a closed-loop shrimp farming system (US 6,615,767 B1), a modular recirculating aquaculture setup with automated water treatment and feeding (US 10,163,199 B2), and a sensor-driven ammonia control method utilizing electrolytic chlorine generation (US 11,297,809 B1). The Company has been recognized as a FoodTech 500 firm by Forward Fooding, is a multi-year participant in Walmart’s Project Gigaton and a Giga Guru designee and has received NRG’s Excellence in Energy Award for its commitment to measurable environmental performance and energy stewardship. Edible Garden also develops and markets a growing line of nutrition and specialty food products, including Vitamin Way® and Vitamin Whey®—plant and whey protein powders—and Kick. Sports Nutrition, a premium performance line for health-conscious athletes seeking cleaner, better-for-you options. The Company’s offerings further include fresh, sustainable condiments such as Pulp fermented gourmet and chili-based sauces, as well as Pickle Party, a collection of fermented fresh pickles and krauts. Learn more at https://ediblegardenag.com.For Pulp products, visit https://www.pulpflavors.com.For Vitamin Whey® products, visit https://vitaminwhey.com.For Kick. Sports Nutrition products, visit https://kicksportsnutrition.net/.Watch the Company’s latest corporate video here. Investor Contacts: Crescendo Communications, [email protected]

Image source: The Motley Fool. Friday, May 15, 2026 at 8 a.m. ET Chief Executive Officer — James Kras Interim Chief Financial Officer — Kostas Dafoulas James 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 3 months and year ended December 31, 2025. The press release is posted on the company's website, www.ediblegardenag.com. In addition, the company has filed its annual report on Form 10-K 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 and would like any additional information about the company, please contact Crescendo Communications at (212) 671-1020. Before Mr. Kras reviews the company's operating results for the quarter and year ended December 31, 2025, and provide 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 the 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. 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. 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. 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, levels 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. All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made on the conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. Having said that, I would now like to turn the call over to Jim Kras, Chief Executive Officer of Edible Garden. Jim? James Kras: Thanks, Ted. Good afternoon, and thanks to everyone for joining us today. 2025 was a defining year for Enable Garden as we continue to build on our foundation and expand our long-term growth potential. Over the past several quarters, we have executed a deliberate strategy to grow beyond our core controlled environment agriculture platform into a broader innovation-driven consumer packaged goods business focusing on higher growth, higher margin opportunities aligned with what consumers and retailers are actively seeking. During the fourth quarter, we continued to build momentum across our core business, securing new and expanded placements with key retail partners, including Kroger, Weis Markets, Safeway, The Fresh Market and Busch's, increasing our distribution to nearly 6,000 store locations. This reflects growing demand for our products, our ability to gain market share and the strength of our retail relationships. We saw a strong performance across both our core produce and CPG categories, including double-digit growth in cut herbs, driven by expansion in existing accounts and the onboarding of Kroger as well as continued strength in our vitamin and supplement portfolio, where demand remains robust, both domestically and internationally. We also saw significant growth in our condiment platform, supported by new customer wins such as Wakefern and Safeway. Importantly, these efforts, along with targeted investments in customer onboarding, resulted in incremental distribution of more than 700 additional retail locations, further expanding our reach across key markets. At the same time, we are expanding our portfolio of better-for-you brands, including Kick. Sports Nutrition, Jealousy GLP-1, Vitamin Whey, Pickle Party and Pulp and broadening distribution across domestic e-commerce and international markets, including placements with Amazon, PriceSmart, Target.com at Walmart.com. This expanded retail footprint and brand portfolio positions us to support our next phase of growth into higher margin, shelf-stable and ready-to-drink categories. This is not a shift away from what we've built. It's a deliberate evolution of our business, supported by our national retail distribution and infrastructure, much of which is already in place and positioned to drive scale across higher value categories. Key next step in our strategy is expanding into the ready-to-drink, or RTD category. The fast-growing market where demand for clean label, shelf-stable nutrition continues to outpace supply. We're leveraging our Farm-to-Formula approach, our sustainable manufacturing infrastructure and our established relationships with leading retailers to enter this category from a position of strength. Importantly, we are not starting from scratch. Our products are already carried across approximately 6,000 store locations, giving us the ability to deepen existing relationships while expanding into a category that aligns closely with our brand portfolio. To support this expansion, we recently announced the development of a state-of-the-art RTD manufacturing initiative at our Midwest facility as part of our Zero-Waste Inspired platform. We have selected Tetra Pak, a global leader in food processing and packaging solutions to plan, install and integrate proprietary processing capabilities, which we expect will enable us to meet growing retailer demand at scale. When you look at broader market, the opportunity is significant. The global RTD category is estimated at approximately $842.5 billion in 2025 and is projected to reach roughly $1.26 trillion by 2033. We believe this represents a durable opportunity and builds naturally on our platform, combining controlled environment agriculture, scalable aseptic capabilities and our portfolio of differentiated brands across sports nutrition, performance nutrition, adult nutrition, kids nutrition, GLP-1 supportive and functional categories. Looking ahead, we are focused on scaling our presence in higher-margin RTD, shelf-stable categories while continuing to build a more diversified consumer packaged goods business beyond fresh produce. As we execute on the strategy, Edible Garden is evolving into a more vertically integrated, innovation-driven company with the ability to deliver more predictable and scalable results. We believe this positions us as a differentiated player in the evolving food and nutrition landscape with a clear path to sustainable long-term growth. With that, I'll turn the call over to Kostas to review the financials. Kostas Dafoulas: Thanks, Jim, and good afternoon, everyone. Starting with the fourth quarter results. Revenue for the 3 months ended December 31, 2025, was approximately $4.1 million compared to $3.9 million in the prior year period, reflecting a strong quarter across the business. We launched our USDA Organic herb programs with Kroger in October and recorded our first international CPG segment of Kick. Sports Nutrition to PriceSmart, marking our entry into the markets beyond domestic retail. These wins reflect the growing demand we are seeing for our products and the continued strength of our retail relationships heading into 2026. Cost of goods sold in Q4 was approximately $5.3 million compared to $3.8 million in the year prior. The increase reflects the cost profile of the company that was actively onboarding new retail customers during a seasonally compressed period. We made a deliberate investment in these new accounts that secures 2026 shelf space and builds the fulfillment track record that major retailers require. We expect the cost structure to normalize as those programs mature and volume increases. Gross profit was approximately a $1.2 million loss compared to flat in 2024. Q4 was a quarter where we made a deliberate decision to absorb elevated costs to secure a 2026 shelf space and deepen relationships with retailers like Kroger, Wakefern and Safeway. Bringing customers of that caliber requires front-loaded investment and we see this as necessary to support future growth and operational scalability. Selling, general and administrative expenses were approximately $4.6 million compared to $2.6 million in the prior year. Primary drivers were depreciation and rent tied to the NaturalShrimp asset acquisition, higher legal and professional fees from that acquisition and our capital markets activities, along with higher compensation expenses in 2025. While the absolute number is elevated, a meaningful portion reflects nonrecurring or deal-related costs rather than ongoing run rate expense. Turning to the full year. Revenue was approximately $12.8 million versus $13.9 million in 2024. The headline decline is largely a function of our strategic exit from floral and lettuce which together contributed approximately $1 million of 2024 revenue but at low margins. Excluding those exits, core revenue was essentially flat year-over-year, and Q4 was a genuine growth quarter, up approximately 5%. That trajectory is what we consider most indicative of where the business is headed. Full year cost of goods sold was approximately $13 million versus $11.6 million in 2024. The increase was concentrated in the second half and driven by the same Q4 onboarding dynamics I described earlier. Gross profit for the full year was approximately a loss of $0.2 million compared to a gain of $2.3 million in 2024. The first half ran at margins more consistent with our historical range. However, the full year result reflects Q4 specifically and we do not view it as a representative of our ongoing cost structure. Gross margin recovery is a top priority for 2026. As new programs scale, third-party procurement cost decline and fixed costs are absorbed over a larger revenue base. Full year SG&A was approximately $15.3 million versus $11.6 million in 2024 with the increase driven primarily by the NaturalShrimp acquisition, along with other capital markets activity. The balance reflects continued investment in the team and infrastructure supporting our long-term strategy. On the balance sheet, we ended the year in a stronger position. Stockholders' equity improved through the preferred stock issuance associated with the NaturalShrimp acquisition and total debt declined approximately $0.6 million year-over-year as we continue to reduce our outstanding notes. We remain focused on managing costs while investing in the infrastructure and capabilities needed to support our transition to a higher margin, more scalable business model. With that, I will turn the call over to the operator for any questions. Operator: [Operator Instructions] Our first question comes from Jeremy Pearlman with Maxim Group. Jeremy Pearlman: Firstly, as you transition your business, you expanded away from -- not away from it -- from the fresh to include more shelf-stable CPG and now the RTD. How should we view the margin from the fresh to the CPG products? And what do you think the revenue expectation and breakdown for CPG versus fresh through 2026? James Kras: Kostas, do you want to -- I can do this with you? How do you want to... Kostas Dafoulas: You want to talk high level, and I can get into some detail. James Kras: Yes, that would be great. So first of all, thanks for the question. Our expectation, obviously, is there's going to be much more of a robust margin as it relates to the RTD business and the consumer packaged items. The fact that they are shelf stable, we don't have to worry about some of the shrink issues that we have with fresh. The fresh business has been great to us. It's really opened doors. It's built our relationships with major retailers such as Walmart, Meijer, whatnot, where we have great performance as it relates to our in-stocks and our delivery capabilities. So when you have a 98% in-stock rate and acceptance rate with major retailers, they tend to want to do more business. And this business is really all about availability. So on the margin end, what will be nice here is that there's a much more stable business because you control much more in manufacturing with the shelf-stable products that you may with fresh goods. And fresh goods, like I said, our -- have been our staple. And I think it's really showed our -- how we can execute and our operational excellence to be able to deliver on time in full in a really difficult category, and that's really paying out for us, that investment. So you'll see. But in this business, you're going to see the margins, they're going to be much more stable. There will be, like I said, more robust as a function of that. And then the revenue side of it, just based on the size of the market, which I outlined in the call earlier in our script, is more than meaningful. And this is a big category with a lot of pent-up demand, with a lot of capacity issues out there. And so we're stepping in really at the request of retailers who trust us and want these products, and they want it from somebody who they know who can deliver in time, on full, on spec. So for us, it's a great evolution, leveraging our Farm-to-Formula approach and our wherewithal as a strong supplier to major accounts. So Kos, do you want to add to that at all? Kostas Dafoulas: Yes, sure. Thanks, Jim. Yes, Jeremy. So just to kind of add to what Jim said, we can think about the portfolio kind of in 3 pieces, right, the core CEA business, which I think we'll see kind of return to steady growth in the high single digits sort of range, maybe even higher depending on customer wins and customer growth. In the CEA space margins, we can kind of look to return to like normalized margins that we saw earlier this year and last year. In addition to that, the nutraceutical business actually showed really strong growth in kind of double-digit, 20%-ish range year-over-year. And that, I think, is going to be a larger component of our revenue growth story going into 2026. The trade-off there is most -- a good portion of that product is co-manufactured. So while it gives us a lot of stability and visibility into our cost structure, the margins are not as rich as if we were to do it ourselves. So I think blended margin kind of low double digits to mid-teens is a reasonable expectation going forward. And then the biggest upside we have in the whole portfolio is around this RTD business where we're looking at pretty significant revenue opportunity with margins kind of in the 20% to 30% range. We're working through that right now as we start scoping this project out and understand the input cost a little bit better, but that's sort of first [ plus ] expectations there. Jeremy Pearlman: Okay. Great. And maybe while we're talking about RTD, it is a broad category. Where specifically do you expect to put out your products within there? I don't know, energy drinks, more like the healthy green drinks. Just -- and then is that also -- is that going to be produced at the Midwest facility that you talked about? And then I have another question to follow up about that facility afterwards. James Kras: Okay. It's going to be primarily in the protein segment. Obviously, we'll have a few different formulations, but we've been requested by a major retailer to help develop this for their private label as a start. And then it just opened up the floodgates. We're at a point now where our goal is -- I don't think it's lofty, but is to sell out the plant in the next 90 days or so, which when you think about we're looking at capacity into the hundreds of millions of units within a couple of years. This is transformative for Edible Garden. It's a huge opportunity. The fact that we've got the type of association that we have with Tetra Pak, that's driven by the major retailers saying, hey, we trust these guys. These guys do a great job, not only in fresh, but also in the nutraceuticals. I've been doing nutraceuticals, I grew up in the business, I've been doing it for almost 30 years. So kind of all points have led to this. And so for us, we're going to be playing in the sports nutrition, performance nutrition arena. I don't want to use anybody out there as an example. I just know we're going to do it cleaner, we're going to do it better, and we're going to do it at massive scale. We'll be not only driving our own Kick, high protein, lower calorie, lower carb type of product, that's going to be something that we'll be providing. We'll be doing clean label, of course. We have a GLP-1 formula, supported formula under our Jealousy brand. So we'll have our own higher-margin brands. We'll also be taking on [ co-man ] opportunities with brands that are out there that don't have their own manufacturing. But then obviously, I would say, half of the facility will be private label, ranging from all the major players, from -- you name them, all the chains. And the existing -- what's great about Edible is the existing relationships we have. I mean we service Meijer. We service Walmart, Wakefern, Ahold Delhaize, Kroger, Safeway. So the investment that you saw in Q4 serves a couple of purposes, one of which obviously is, it's great to get their businesses. Our competitors had issues and they turned to us and we picked up the phone and we made the investment to service their business and capture that opportunity. We have a nice business with Weis Markets right now. We have a nice business with Kroger. Those conversations, when they're happy with you, they turn to RTDs for them as well, not whether it's looking at what you're currently making for yourself or for your brands or doing it for them. And so when you look at our roster of accounts, Walmart and Target and Meijer and Wakefern, and like I said, Ahold Delhaize and the list goes on and on, CVS and Walgreens. I mean, these are -- they're coming to us for innovation. They're coming to us for -- because they know that we'll get the job done. So for us, we're going to start -- [ the answer was so long awaited ] but excited about it. The -- it's really in the sports nutrition, then we'll move to the adult type of products. Many of these you're familiar with out in the marketplace, whether it's Ensure or BOOST or Premier Protein product. We'll be doing similar type of products in Tetra Pak, which is the world leader in this packaging. So sustainable as well, which really goes to our core as a company and what we stand for with sustainable -- using sustainable materials, using less resources. It's why we're Giga Guru with Walmart. So that's the plan. It's exciting. And it's -- I got an exciting team here. So I hope that answers your question. Jeremy Pearlman: No, that's great. It really sounds like a really great opportunity for the company. And maybe just a final question just around the Midwest facility. What can we expect some of the CapEx requirements for that and the build-out time line and when you expect to be -- what's the total scale of that, what you're hoping for and when you could reach that? James Kras: Well, yes, I mean it's -- I don't want to give any specific numbers, but -- and there's -- some of it's also we just don't -- it's such a huge opportunity. We're not the only ones who would want it, right? So -- but look, this is a significant -- we're talking about a big facility with considerable velocity coming out of it. We're working closely with the local and state areas to be able to support this with incentives. We've already gotten the nod on a few things, which is great. Obviously, we're going to need to buy machines and retrofit a building. So you're talking some real CapEx. But we've been there before. And we've built a significant greenhouse in New Jersey, and we did a beautiful retrofit in Grand Rapids for Meijer. So we're prepared as a company to take on the challenge. And our plan is to really hopefully be out in the marketplace probably towards the tail end of 2027. Operator: [Operator Instructions] The next question comes from [ Nick Pincus with Forest Capital. ] Unknown Analyst: Congrats on the progress. A lot of my questions have already been asked. But you highlighted the strong fourth quarter momentum, including new retail placements and expansion to nearly 6,000 locations. My question is how sustainable is this level of growth? And should we expect similar distribution gains and category performance going forward? James Kras: Oh, yes, yes, yes. The expansion into doors, I mean that has -- that's been a lot of us getting kind of organized on the greenhouse business and getting focused and getting rid of some of the product lines that just didn't make sense like floral and lettuce at the time because of the lack of margin. We really shored things up this past year. It's been challenging and tough because we are in a growth sector. People are eating better. People are buying more fresh goods. People are cooking -- continue to cook more and more at home, whether it's pressures with cost of eating out or just people being more creative because that's been a trend line. We benefited from that. Herbs, they make any average dish that much better, right, using fresh herbs. And so for us, it's really just about making sure that we continue to take care of our current customers. They're the ones who got us here. They continue to give us opportunity not only within this category, which means more penetration and ideally more velocity, sales velocity at current doors. And then there's a great story around our organic growth, by the way, Nick. And that's where we've seen good same-store sales over the last year. So for us, that's great kind of exit velocity out of the year. We're going to continue to focus on our core because that's what's gotten us here. And now when you look at something like RTD, which is just a huge massive business with just so much untapped opportunity and there's just a shortfall of capacity. It's very rare in your career that, that does intersect, and you've got people asking you right, for -- to take on their business because they trust you. It's -- it makes me sleep a little better at night knowing that the money that we spent over the last couple of years has really gone to unlock these opportunities. So look, you're going to see more store count, I think across -- I know you're going to see it across the whole business, whether it's the herbs, whether it's the pickles, which, by the way, is a sleeper. And then RTDs, I think you're going to see doors, you're going to see new accounts, you're going to see all kinds of -- it's just incredibly -- I mean those are sold everywhere in all kinds of classes of trade, including classes of trade that we're not even in like convenience store currently, right? And there's -- so the beverage business, it's a great business. People love the convenience. These are great items. Protein is hot, has been hot for a while. No one sees that slowing down. And we're going to have a state-of-the-art facility cranking the stuff out for the betterment of our supermarket partners. So yes, it's going to continue, Nick. Operator: Okay. We have no further questions in the queue. I'd like to turn the floor back over to management for any closing remarks. James Kras: So thanks again to everyone for joining us today. We believe 2025 was a year of meaningful progress for Edible Garden as we continued to build our -- build beyond our CEA foundation and expand into broader, higher-margin consumer packaged goods platform. We're seeing that progress reflected in our momentum across our business, growing demand for our products and our ability to continue to gain market share with our leading retail partners. At the same time, we believe our expansion into the ready-to-drink category represents a significant opportunity for Edible Garden, one that builds on our existing infrastructure, retail relationships and our product development capabilities and positions us to scale into a large and growing market where demand continues to outpace supply. As we look ahead, we remain focused on executing against that opportunity while continuing to expand higher-margin categories and leverage our retail network to support long-term growth. We believe this continued evolution of our business is positioning us to deliver greater scale, improved margins and long-term value for our shareholders, and we're confident in the path that we're on as we continue to execute and deliver on the opportunity ahead. We're encouraged by the progress we're making and look forward to updating you on our continued execution and success in the months ahead. So thank you, everybody. Appreciate it. Operator: This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Edible Garden Ag, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Edible Garden Ag wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,852!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,317,207!* Now, it’s worth noting Stock Advisor’s total average return is 984% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 27, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Edible Garden (EDBL) Q4 2025 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: May 15, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue increased approximately 22.9% year-over-year to $3.3 million, driven by retail expansion and growth across multiple categories. Sales in the Cutter business increased by 46% year-over-year, with new account contributions from Kroger and Weiss Markets. International sales grew by 50% year-over-year, reflecting expanding demand for clean label products. The company expanded its retail footprint to over 6,000 locations, including new partnerships with Target, Safeway, and The Fresh Market. Edible Garden AG Inc (NASDAQ:EDBL) is advancing its RTD initiative, leveraging Tetra Pak processing and packaging solutions to meet growing demand for clean-label, shelf-stable nutrition products. Operating expenses increased to $10 million from $5.6 million year-over-year, driven by higher cost of goods sold and increased depreciation and amortization. Net loss for the quarter was approximately $3.7 million, compared to $3.3 million in the prior-year period. The increase in cost of goods sold is seen as transitional, with efforts underway to renegotiate supplier terms. The company is still in the early stages of its evolution into higher-margin, shelf-stable categories, which may take time to fully realize. Despite revenue growth, the core produce business, particularly cut herbs, remains a low-margin segment, impacting overall profitability. Warning! GuruFocus has detected 3 Warning Signs with EDBL. Is EDBL fairly valued? Test your thesis with our free DCF calculator. Q: Across the 6,000 retail locations your products are found in, how many of those stores are carrying the cut herb products? How many of them are carrying vitamin supplements? A: It's a combination and a mix. We're seeing growth in cut herbs, which is the preferred form for consumers due to convenience. Target will be coming online soon, which will be significant for us. Currently, cut herbs make up 40-50% of our business, with vitamin supplements at 20%. As we evolve, especially with ready-to-drinks (RTDs), this mix will change, with RTDs becoming a larger part of our business due to higher velocity and margin. (Jim Krash, CEO) Q: Regarding the new ready-to-drink platform, have you provided prototypes to retail partners, and what has been their reception? A: The reception has been overwhelming. The demand for protein consumption is growing, and we've received significant commitments from retailers. We're working with a co-manufacturer to meet this demand and expect to be at capacity soon. Our RTD products, developed with McCormick, will launch in late 2027 or early 2028. The demand is high, and we're excited about the potential. (Jim Krash, CEO) Q: How do you ensure customer loyalty across your product categories? A: It comes down to marketing, distribution, and customer service. We focus on quality and consistency, ensuring that consumers know they are getting the best with Edible Garden. Our marketing initiatives, including advertising, store promotions, and social media, reinforce this message. Our stable revenue and strong retailer relationships reflect our success in building brand loyalty. (Jim Krash, CEO) Q: How are you balancing investment between the core product business and the larger RTD opportunity? A: We're allocating resources where we see growth, focusing on shelf-stable, better-for-you products. While maintaining our core business, we're shifting investment towards the RTD and nutrition platform, which offers a larger opportunity. Our strong distribution platform and reputation support this shift. (Jim Krash, CEO) Q: International sales increased approximately 50% year-over-year. What's driving that growth, and how important are international markets for your business? A: The growth is primarily driven by Price Smart, a major player in the Caribbean and South America. We've been in business with them for almost a decade, benefiting from their expansion. Our Kick Sports Nutrition line is also contributing to this growth, and we expect further expansion in international markets. (Jim Krash, CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Friday, May 15, 2026 at 8 a.m. ET Chief Executive Officer — James Kras Interim Chief Financial Officer — Kostas Dafoulas Investor Relations — Ted Ayvas Need a quote from a Motley Fool analyst? Email [email protected] Ted Ayvas: Thanks, Jenny. Good morning, and thank you for joining Edible Garden's 2026 First 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 3 months ended March 31, 2026. The press release is posted on the company's website, www.ediblegarden.ag.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, would like any additional information about the company, please contact Crescendo Communications at 212-671-1020. Before Mr. Kras reviews the company's operating results for the quarter ended March 31, 2026, I'll provide 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 the 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. The words aim, anticipate, believe, could, expect, may, plan, project, strategy will and the negative of such terms in other words in 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. 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. 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 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. 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 Jim Kras, Chief Executive Officer of Edible Garden. Jim? James Kras: Thanks, Ted, and good morning, everyone. The first quarter of 2026 reflected continued progress across the business as we began seeing stronger traction from many of our -- many of the investments and strategic initiatives we put in place over the past year. Revenue increased approximately 22.9% year-over-year to approximately $3.3 million, supported by continued retail expansion and growth across multiple categories. One of the strongest contributors during the quarter was our cut herbs business, where sales increased approximately 46% year-over-year, driven by continued growth within existing accounts as well as new account contributions from Kroger and Weis Markets. That momentum also extended beyond our core produce categories. Vitamin and supplement sales increased approximately 27% year-over-year while condiment sales increased approximately 51%. We also continued seeing strong growth internationally with sales increasing approximately 50% year-over-year reflecting continued expansion of our distribution footprint and our growing demand for clean label, better-for-you products across multiple markets and categories. As a result, we continued expanding distribution with both existing and new retail partners during the quarter, including Target, Safeway, the Fresh Market, Hannaford, Busch's Fresh Food Market and Woodman's market. At the same time, we're broadening distribution across our branded consumer product portfolio, including Pickle Party, Pulp, Kick, Sports Nutrition, Vitamin Whey and JEALOUSY GLP-1 support products. We believe this momentum reflects the broader platform we have been building over the past years, leveraging the controlled environment foundation, vertically integrated infrastructure, retail relationships operational capabilities and product development expertise established through our core business. We continue expanding into adjacent higher margin and shelf-stable categories. As we continue evolving beyond our traditional greenhouse and fresher business, one of the areas we are most focused on is the ready-to-drink, or the RTD category. We believe RTDs represent a compelling long-term opportunity with the global market projected to grow from approximately $842.5 billion in 2025 to roughly $1.26 trillion in 2033, according to Phoenix Research. More importantly, through ongoing discussions with both existing and prospective retail partners, we continue seeing increasing demand for scalable domestic production solutions that can deliver clean-label, shelf-stable functional nutrition products with consistency, transparency and operational reliability. We believe this reflects a meaningful unmet need as retailers and brands continue searching for reliable U.S.-based partners across functional beverage and wellness-focused nutrition categories. To support that opportunity, we continue advancing our Iowa Midwest RTD initiative during the quarter, which is including ongoing work related to the integration of Tetra Pak processing and packaging solutions. Tetra Pak is a globally recognized leader in food processing and aseptic packaging solutions, and we believe this relationship significantly strengthens the operational foundation of our RTD platform. Our retail footprint now exceeds 6,000 locations across the United States, Caribbean and South America. During Q1, we added new retail partners, including Target, Safeway, Busch's Fresh Food Market and the Fresh market. This expanding distribution network is not only driving current revenue growth but also represents the foundation for our future RTD product placement. These are relationships that are already in place that we will nurture and look to leverage. More broadly, our foundation in controlled environment agriculture has allowed us to build deep expertise and traceability, sustainability, operational discipline, supply chain management and retail execution. We believe those capabilities naturally support a broader farm-to-formula strategy and Zero Waste inspired initiative while supporting our continued expansion into shelf-stable and functional nutrition categories. While we're in the early stages of this evolution, we believe the foundation is firmly in place through expanding retail network, growing branded product portfolio and continued advancement of our RTD manufacturing initiative. At the same time, we remain focused on improving operational execution, scaling higher-margin categories, strengthening margins over time and positioning the company for long-term scalable growth and value creation. With that, I'll turn the call over to Kostas Dafoulas to review the financials. Kostas? Kostas Dafoulas: Thanks, Jim, and good morning, everyone. Revenue for the 3 months ended March 31, 2026, increased approximately 22.9% year-over-year to approximately $3.3 million compared to approximately $2.7 million in the prior year period. The increase was primarily driven by continued growth across the company's cut herb portfolio, which increased approximately 45.9% year-over-year. That growth was supported by expansion within existing customer accounts along with new account contributions from Kroger and Weis markets. We also saw broad-based growth across hydroponic basil, wheat grass, vitamins and supplements and condiments. International sales increased approximately 50% year-over-year and condiment sales grew 51%, reflecting expanding demand for our branded product portfolio across the retail footprint that now exceeds 6,000 locations. Operating expenses were $10 million for the 3 months ended March 31, 2026, compared to $5.6 million for the 3 months ended March 31, 2025. The increase of $4.4 million was primarily driven by 2 factors: First, cost of goods sold increased as we scaled cut herb distribution through third-party sourcing. The dynamic we view as transitional as we work to renegotiate supplier terms. Second, depreciation and amortization increased approximately $2.5 million primarily reflecting accelerated depreciation of certain fixed assets in connection with the company's pivot to RTD, clean nutrition manufacturing at our Prairie Hills facility. The company recorded an income tax benefit of approximately $3.4 million for the 3 months ended March 31, primarily related to a valuation allowance release in connection with the sale of certain tax benefits under the New Jersey Economic Development Authority's Technology Business Tax Certificate Transfer Program. This benefit is a discrete nonrecurring item. Net loss for the quarter was approximately $3.7 million, compared to approximately $3.3 million in the prior year period. Turning to the balance sheet and cash flow. Cash increased to approximately $2 million at the end at March 31 from $1.1 million at year-end for a sequential increase in 5 quarters. That improvement was driven by positive operating cash flow of approximately $251,000 which reflected favorable working capital, including collections on receivables and inventory reductions as well as net financing inflows. We continue to manage our working capital deficit and are focused on improving the company's capital position as we execute on our growth strategy. Looking ahead, our priorities for 2026 are clear. Continue scaling revenue through our expanding retail network, improve our cost structure by transitioning cut herb sourcing and scaling higher-margin branded categories, advance the RTD manufacturing platform with Tetra Pak and maintain disciplined capital management. We're encouraged by the top line momentum and the cash flow improvement this quarter, and we are focused on translating that momentum into margin improvement over the balance of the year. With that, operator, please open the line for questions. Operator: [Operator Instructions] Our first question is coming from Nick Sherwood of the Maxim Group. Nicholas Sherwood: My first question is across the 6,000 retail locations your products are found in, how many of those stores are carrying the cup herb products? How many of them are carrying vitamin supplements? How should we conceptualize what's being held across the stores? James Kras: It's a combination and a mix, obviously. We're seeing growth come out of cut herbs as that's the preferred form that consumers like based on convenience, and that continues to accelerate. We have Target which is going to be coming online in the next week or so. That will be significant for us as a business -- as a blend with the largest percentage being cut herbs with some potted herbs as well. As we start to evolve as a business and get into higher, more shelf-stable opportunities and products, you'll see that mix start to even out where I think you're going to see, especially with the ready-to-drinks down the road, that becoming a larger part of our business and at a much higher velocity as well as margin, the RTD business. But near term, let's say, the next 6 to 12 months as we bring on the RTDs, it's going to be, I think, driven primarily by the vitamin supplements, which currently right now, I would say, is 20% of our business with cut herbs being probably 40% to 50% and then the rest is kind of everything else, potted, wheat grass, hydroponic basil, which is also a big player for us at a nice margin. So I think a lot of top line growth coming out of cut herbs, even I think even more coming out of vitamins and supplements, knowing that the ring for a lot of these products is much higher than the clamshell cut herbs. And then the rest of it is going to be some of the other products that are in the mix that have, I think, better margins that will offset some of the top line growth that's coming out of the cut herbs with once again the vitamins and supplements, I think, becoming a bigger and bigger part of our business. Nicholas Sherwood: Understood. I appreciate the detail on that answer. And then kind of looking at this new ready-to-drink platform, have you been able to provide some of your retail partners with prototypes? Can you kind of talk about the reception from your retail partners? How should we think about... James Kras: The reception has been overwhelming. It looks great about being in the food business is people have to eat, right? And ready-to-drink is in the segment, which is just incredibly compelling with the growth in protein consumption, you can't turn the television on and not see it come up, whether in advertisements or people speaking about just the growing need, whether you're looking to be an active individual and put on muscle mass or to recover which is with a healthier lifestyle or if you're older and you're looking to keep your weight on or if you may unfortunately be sick, the protein needs just continue to grow across the full spectrum of consumers. So for us, the retailers, many of which that we are -- we've already gotten significant commitments with the factory that's going up. I think we're going to be at a point where it's going to become more and more of a negotiation to figure out who we're going to start to bring in post launch. We are working with a co-manufacturer to start driving the business and servicing the overwhelming demand. And I think we're probably going to be close to capacity with them probably in the next few weeks. So it's really been incredibly exciting. We are focused on the core business. The greenhouse has got us here. But the RTD business, it's just a monster with the product lines that we have in there, both a performance high-protein drink and then we'll have an adult nutrition drink that's in there that will be launching in once again in a tail end of 2027, early 2028 in our own factory, and we'll be launching prior or servicing business prior out of a co-manufacturer. So once again, just overwhelming demand, and we're going to be seeing this paradigm shift for us as a business directed more and more towards that. And once again, I think we're so uniquely qualified because there's really no one out there that is coming out of the greenhouse business that's doing the innovative things that we're doing. And isn't as qualified as we are to really stand for something, whether it's clean label, which is what's driving the thrust of this or just having an eye on sustainability and working with someone like Tetra Pak has been a phenomenal resource for us as we build out this platform So I mean, we're -- like I said, we're -- we've got probably more orders than we can handle. And we're already -- we'll be running our prototype to get more specific in mid-July with product beginning to manufacture at a co-man in September, while we build out the factory in Iowa. And so we're already in the final stages of finalizing the product. We teamed up with McCormick in order to develop the products. Like I said, one is a Sports Nutrition, dairy-based premix that then gets turned into an RTD in a Tetra Pak and then the other one is an adult product, not unlike Boost, Ensure and those types. And so it's just fantastic. A joke, I said to people, I've always wanted to be in the hot cakes business and now we've got -- we're in the hot cakes business because everything is selling like hot cakes. So it's been pretty cool and all honestly, exciting, I think, for the team, the company, investors, I mean, just fantastic. Nicholas Sherwood: Yes. It sounds like there's a lot of momentum there and something we look forward to. And then my last question is how do you keep -- or how do you make customers sort of loyal to your brand across product categories so that someone is recognizing that you're the people behind the cut herbs that they buy and the vitamin supplements that they may buy or maybe the condiments that they buy in ensuring that they're buying across your product categories as opposed to just kind of buying one of them. James Kras: Sure. Look, it comes down to an exercise in marketing and distribution, right? So -- and customer service, both for our retailers and our end user. It comes down to quality and consistency. I mean the art of this is communicating and hopefully training consumers, for lack of a better word, to know that when they want the best and that they only deserve the best, they buy Edible Garden. And so putting forth the marketing initiatives that communicate that is something that I think we do a fairly good job of, whether it's through advertising and marketing and in-store promotions and reinforcement or social media. But once again, I think if you're -- if you've got the quality and the consistency and the availability and you're shipping at 98% like we have, I mean, it drives not only, I think, loyalty because people know when they go in your product is going to be in there and look for Edible Garden because you know what you're going to get. You're going to get safe, high-quality, best quality produce that's super fresh. I think you just continue to give a consumer that experience and it tastes great and it makes sure everything that you cook taste that much better. And we believe if we deliver on that and we do our job, I think people will continue to be loyal and want our product, and we see that through the fact that we have a very stable revenue line, albeit a small comparison to maybe other companies out there now with the RTDs and our reputation with not only the consumers, but the retailers, once again, talk about this notion of Farm-to-Formula and what that means, it's harnessing the greenhouses and all the great R&D stuff that we do. And we don't talk enough about it at the company, the universities we're involved in the partnerships with the EPA, the USDA to things that just help drive quality, consistency and elevate us beyond anybody else in the category. There's not too many people left because I don't think people made the investment. And I think the shareholders was backing us to allow us to get to where we are to do the great things that we're doing. And I think all of that goes into building brand loyalty because people know that, hey, this is -- if I want the best in herbs, I want the best in condiments, I want great tasting, better-for-you products and somebody who's got an eye on the environment as well, usually buy Edible Garden. And I think we've seen that. Once again, I think what really reflects is our consistent relationships and the opportunities that it drives for something like the RTDs where major retailers came to us and say, can you do this? We've got a problem. We've got -- I mean, the shortfall in the marketplace on this item is tremendous and to be able to do it better, cleaner and do it where, like I said, where people are calling us and saying, "Hey, we've heard about what you guys are doing. Can you do it for us? It's just -- I mean, you work a lifetime to get to this position and the company has put in 10 years and thought hard to be where we are, and now it's starting to pay off. So it's an exciting time, and I couldn't be any more bullish on the business, and we're just in a great spot. And I got to think, frankly, the retailers for their support -- and because they're excited, they've got a problem, we've got a solution, and they've worked with us to craft a solution that works for all parties. And like I said, it's a huge opportunity that's only accelerating and growing. Operator: [Operator Instructions] Our next question is coming from Ellen [indiscernible] of Forest Capital. Unknown Analyst: You discussed the growing RTD opportunity and increasing retailer interest in domestic clean label functional nutrition products. As you look ahead, how are you balancing investment between the company's core produce business and really like the larger RTD opportunity? And what do you think positions Edible Gardens to compete effectively in that market? James Kras: Well, welcome. Nice to meet you, and thanks for joining the call. We're looking to make -- look, where the future is going to be the shelf-stable, better-for-you products. And we are going to be kind of allocating our resources along where we see the growth is. The core business, I think, look, I know that we've made a significant investment in the operations, adding greenhouses, tying them to contracts, that's the thing -- that's the other thing that's very unique about the relationships we have. The distribution platform of 6,000 stores holds steady and is growing every day that we're out there selling and working with our retail partners. But I think you're going to see a shift towards the investment in the RTD and nutrition platform because that's the future, and it's the larger opportunity with the shelf stability, just the overwhelming demand. I think only if you're lucky once in your career, I've been fortunate to have it a few times harking back to my days in nutritional supplements with [indiscernible], where you catch a craze. And right now, we've got a protein craze. People want convenience. They want liquids. They don't necessarily want to mix powders. They want to have their nutrition, and they want to have it on the go. They want to have it when they need it. And what's great is everybody from kids all the way to seniors have these nutritional needs and these protein needs. And we're just starting there. I mean there's so many other segments, hydration and whatnot that we could play in. And so we're going to be investing a good chunk of our resources, our money in that platform, really backed by the greenhouses and the wherewithal and the reputation that we have for being a supplier that supplies very difficult, highly perishable products at 98% ship rate, which is just unheard of. And so I mean, all of that has driven the retailers. This RTD opportunity came from the world's largest retailer said, hey, can you help us out? I mean, and it wasn't necessarily something that was on our radar. But then when we started working with them and with their resources, we were able to partner with a Tetra Pak, partner with McCormick. And when you think about Edible Garden and our size and the partners that we're working with, it's a real credit to everybody at Edible Garden who sat there and made sure the truck left on time in full because that means everything to the retailers. They want availability. If you don't have a product on the shelf, you're missing a sale. And I think that's just boiling it down in simple terms, that's kind of what I think has made us effective. And like I said, we're going to be putting more and more resources towards that. And I think I answered your second question, which is what positions us for this opportunity, and that was really just our commitment. I tell people at Edible Garden, we're a customer service company first that happens to make things or grow things. And I think just getting in there and understanding the importance of the retailers and addressing their needs is something that I think we've just done really well as a team, and it's paying off -- paying off. And it's frustrating because it's been years of investment in managing costs and managing suppliers. And those challenges aren't going to stop, but now we have such a huge opportunity. And when you're -- when everybody has got something in it to gain, people come to the table with the resources because we're all going to win. So I hope I answered your question. Was that enough? Unknown Analyst: Yes. Yes. No, you definitely did. And obviously, it looks like you run a very tight ship. I mean I have another question. So like as you continue to evolve toward higher margin and shelf-stable categories, like what specific initiatives are you underway with, with the core produce business to improve the operational efficiencies and strengthen the margins over time? James Kras: Well, right now, a lot of it is not only a redeployment of existing resources that we have of people that, let's say, like whether it's in our regulatory department or our food safety, things like that can be deployed across the whole platform, including the RTD. So it's not like you're hiring another person. We'll be looking to probably shift the business around, blend the business with our suppliers, negotiate harder with our suppliers based on the growing demand, which I think puts us in a more advantageous position than we've been in the past to get some price considerations on what we're bringing in-house. I also think you're going to see a lot of, I think -- I think I know we're going to be looking to focus on the accounts where we make money. And I think we'll start to remove some of the businesses that are maybe too far from the greenhouse with the rising diesel costs and if we're delivering it that way. We've already begun and have impacted in this quarter quite a bit of labor reduction just based on the investments that we made in Q1 or the investments we made in Q4 to bring in more automation and more lines especially in preparation of what we anticipate to be a growing business. When you think about it, the overall business is up 22% with growth coming out of that core produce business. I don't see that stopping. And I think we've got a bunch of opportunities lined up. It's just going to be -- it's going to be a margin play for us, reduction of some costs and operations, negotiating better with our suppliers and focusing on where we know that we can drive margin and profit and because we've got a lot of the market share now. So that's kind of happened and that investment has paid off. So I think it's really a refinement and focus on what is traditionally a low-margin business especially cutters and so that drags us down a little bit. But once we start to shift to these higher-margin products and we pick up velocity, that will start to shift. And I think we're already starting to see that while we reduce costs because we've been -- I appreciate you saying I run a tight ship, but there's more to do, and we'll just -- we got to continue to refine our costs so that we can focus our energies where we need to, where we can drive margin as well as drive top line. Unknown Analyst: Yes. No, no, that definitely makes sense. It looks like you guys are on your way. You also mentioned that international sales increased approximately 50% year-over-year. Can you discuss what's driving that growth and how important international markets could become within the broader business over time? James Kras: Yes. A lot of it is driven -- or the majority, honestly, is driven by PriceSmart. They are the major player in big box. So think Costco, except in the Caribbean and in South America. And they are continuing to grow. I know that they're opening stores in Chile. They're already in Colombia and some of the other countries in South America as well as throughout the Caribbean. They're NASDAQ listed as well. They're performing extremely well. And we've been able to continue -- we've been in business with them for almost a decade. And so we've been able to benefit from their growth. It's been a phenomenal relationship. They continue to not only drive an existing product that's been there for a while, but also expand into our Kick Sports Nutrition line. I think you'll see even more growth out of that over the next year. Like I said, your earlier question about what does that product mix look like? You're going to see vitamin supplements, our sports nutrition lines, the clean label products even before we start benefiting from this tremendous upside that we see on the RTDs. You'll see our existing protein powders, plant protein powders, all clean labeled. Those will start to come online, I would say, towards the tail end of this year as well in significant numbers at a much -- and a really nice margin. So once again, as that mix shifts, the lower-margin cut herb business doesn't become such -- and I don't like using the word drag. It's just -- it is a little bit of a drag on margin just because it's a lower-margin product line that right now, we're getting requests to whether it's Target or others to say, "Hey, can you take this business and you do such a great job for our competitors? Can you do it for us. But you're going to start to see a lot of this higher-margin vitamins and supplement type of products, sports nutrition come online this year as well as the high velocity, better margin RTDs as well towards the tail end of the year. Unknown Analyst: That's fantastic. I just got one more question. So you highlighted expansion with several major retail partners during the quarter, right? And as an investor, how should I think about the opportunity to continue increasing distribution within your existing retail relationships going forward? James Kras: Well, it's going to be -- I mean, we're in an advantageous position, right? When you think about the fact that we're in 6,000 stores, once again, super stable relationships really based on performance. I mean, we're servicing Walmart. We're servicing Target. We're servicing Meijer. We're servicing Wakefern and ShopRite. We're servicing the Hannaford and Ahold Delhaize family of banners, Safeway. It's -- these are the who's who of people who sell food to the majority of the country. We're going to continue to put -- look to go deep versus we do -- while we kind of go wide -- but really, it's about selling more products across our total portfolio to the existing customers that we have. We will add on new accounts as new accounts make sense. Once again, this whole idea of kind of rationalizing out the relationship, the portfolio, the retailers and making sure that we're going deep and driving the business at a higher margin and while addressing the operational inefficiencies that the business has that we've continued to improve upon so that we're more efficient. Our whole seed-to-store or cradle-to-grave or whatever you want to say it, process here is efficient and that we are benefiting from the margin that we need by servicing the retailers in a way that allows them to have the products that sell at an efficient rate for them as well as us and that we're getting the margin and getting the margin expansion that we need because we have the optimal mix. So I think a lot of it's going to be continuing to work with the relations -- retailers that we've been working with for the last decade that we've worked so hard to prove ourselves and that's paying off. And so it's selling more of what we currently have to be the existing platform of retailers and distribution that we have versus going after necessarily new accounts. We've got a lot of business that we can do better at, I guess, is the best way to do it, and we're going to focus on that by getting them to take in ideally the Pickles, which has been gaining momentum and with fermented hot sauces and like I said, the vitamin supplements is really probably going to be on segmented out and focused on separately, but they all kind of dovetail as better-for-you and overall push that we have as a company and that aligns obviously with the -- not only with what the consumers are looking for, but what the retailers are looking to do as there's been such a dramatic and overwhelming initiative by the retailers to remove artificial colors, artificial sweeteners from products. And so for us, timing was great. We were already doing it. Not only were we doing it with what we grew and USDA Organic, the first out there with USDA certified organic product with our hydro basil, which is incredibly innovative from the team. But we're just in a position where we've got the right product at the right time and the retailers are pushing this as they understand the importance of getting it to better-for-you products because they're getting that pressure from a consumer base that's demanding and an administration that's pushing it as well in Washington. So we're in a good spot. Operator: [Operator Instructions] Well, we appear to have reached the end of our question-and-answer session. I will now hand back over to the management team for any closing comments. James Kras: Thank you, operator, and thanks again to everyone for joining us today and for your continued interest in Edible Garden. We believe the first quarter reflected meaningful progress across the business and continued validation of the broader strategy we have been executing against over the past several years. We're seeing encouraging momentum across our retail footprint, branded product portfolio and operational initiatives while continuing to build the foundation for future growth and opportunities in higher-margin shelf-stable nutrition categories. As we move through 2026 and beyond, our focus remains on disciplined execution. That includes continuing to expand distribution, improve operational efficiencies, strengthen margins over time, advance our RTD initiative and further leverage the infrastructure and retail relationships we have already established across the business. Well, while we are still in the early stages of this evolution, we believe Edible Garden is becoming increasingly well positioned as a diversified clean label nutrition company with expanding capabilities across fresh, functional and shelf-stable categories and a stronger foundation for long-term growth. We appreciate everyone's continued support and look forward to updating you on our progress in the quarters ahead. Thanks again, and have a great day. Operator: Thank you very much. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. We thank you for your participation. Before you buy stock in Edible Garden Ag, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Edible Garden Ag wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Edible Garden (EDBL) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Retail Expansion, Operational Execution and Higher-Margin Product Growth Support Company’s Evolution Into a Diversified Clean-Label Nutrition Platform Company Advances Midwest RTD Infrastructure Initiative and Tetra Pak Integration to Address Growing Demand for Shelf-Stable Functional Nutrition Solutions Conference Call to Be Held Today at 8:00 a.m. ET BELVIDERE, N.J., May 15, 2026 (GLOBE NEWSWIRE) -- Edible Garden AG Incorporated (“Edible Garden” or the “Company”) (Nasdaq: EDBL, EDBLW), a leader in controlled environment agriculture (CEA), locally grown, organic, and sustainable produce and products, today reported financial results for the three months ended March 31, 2026. During the first quarter of 2026, the Company continued executing on its strategic evolution into a broader clean-label consumer packaged goods and ready-to-drink (“RTD”) nutrition platform, leveraging its controlled environment agriculture foundation, retail distribution network, and vertically integrated infrastructure to expand into higher-value and shelf-stable categories. Financial & Operating Highlights For the Three Months Ended March 31, 2026: Revenue increased approximately 22.9% to approximately $3.3 million, compared to $2.7 million for the three months ended March 31, 2025, reflecting broad-based growth across cut herbs, vitamins and supplements, and branded condiments. Cut Herb Sales increased approximately 46% year-over-year, driven by growth in existing accounts and new account contributions from Kroger and Weis Markets. Vitamin and Supplements Sales increased approximately 27% year-over-year, reflecting continued demand across the Company’s better-for-you nutrition portfolio. International Sales increased approximately 50% year-over-year reflecting continued expansion of the Company’s distribution footprint and growing demand across international markets. Condiment Sales increased approximately 51% year-over-year, reflecting continued expansion of the Company’s value-added branded product portfolio. Continued advancement of the Company’s Midwest RTD manufacturing platform, including progress related to the planned integration of Tetra Pak processing and packaging solutions. “Our first quarter results reflect the continued momentum we are building across the business as the investments we made in our retail network, product portfolio, and operational infrastructure begin translating into measurable growth,” said Jim Kras, Chief Executive Officer of Edible Garden. “Revenue increased 22.9% year-over-year, supported by expansion across more than 6,000 retail locations, new and expanded relationships with major retail partners including Target and Safeway, and approximately 46% growth in cut herb sales.” “The first quarter of 2026 represented an important step in our evolution as we continued expanding beyond our traditional greenhouse and fresh herb business into a broader clean-label nutrition and functional beverage platform. Leveraging the controlled environment agriculture foundation, operational infrastructure, vertically integrated platform, retail distribution network, and product development capabilities we have established over the past several years, we continue expanding into adjacent, expected higher-value and shelf-stable categories. “During the quarter, we expanded our retail footprint with key partners including Target, Safeway, The Fresh Market, Hannaford, Busch’s Fresh Food Market, and Woodman’s Markets, while broadening distribution across our branded product portfolio, including Pickle Party™, Pulp®, Kick. Sports Nutrition®, Vitamin Whey®, and JEALOUSY GLP-1 support products. We believe the growing traction we are seeing across both retail distribution and branded products reflects increasing consumer and retailer demand for clean-label, wellness-focused, and functional nutrition offerings across multiple categories.” “We believe the ready-to-drink category represents a significant long-term opportunity, with the global RTD market projected to grow from approximately $842.5 billion in 2025 to roughly $1.26 trillion by 2033. Through discussions with existing and prospective retail partners, we expect to see growing demand for scalable domestic production solutions that can deliver clean-label, shelf-stable functional nutrition products with consistency, transparency, and operational reliability, reflecting what we believe is a meaningful unmet need within the market. We believe our selection of Tetra Pak, a globally recognized leader in food processing and aseptic packaging solutions, further strengthened the foundation of our RTD platform, while our existing relationships across more than 6,000 retail locations position us to support future growth through established buyer relationships already in place.” “Our foundation in controlled environment agriculture has allowed us to build deep expertise in traceability, sustainability, operational discipline, supply chain management, and retail execution. We believe our evolution into ready-to-drink and shelf-stable nutrition categories is a natural extension of our Farm-to-Formula® strategy and our commitment to delivering clean-label, responsibly produced products that meet evolving consumer demand. We are still in the early stages of this evolution, but we believe the foundation is in place: a growing retail network, an expanding branded product portfolio, and a path to RTD manufacturing with Tetra Pak. We remain focused on executing against these opportunities while continuing to position Edible Garden for potential improved margins, greater scalability, and long-term value creation,” concluded Kras. Financial Overview Financial results for the first quarter of 2026 reflect continued revenue growth and retail expansion, alongside ongoing investment in the Company's platform-driven growth initiatives. Results for the Three Months Ended March 31, 2026 Revenue for the three months ended March 31, 2026, was approximately $3.3 million, compared to $2.7 million for the three months ended March 31, 2025, an increase of approximately $0.6 million, or 22.9%. The increase in revenue was primarily attributable to continued growth in the Company’s cut herb portfolio across its retail customer base, which increased approximately $0.6 million, or 45.9%, supported by growth in existing accounts and new account contributions from Kroger and Weis Markets. Revenue growth was broad-based, with year-over-year dollar sales increases across hydroponic basil, wheatgrass, vitamins and supplements, and condiments, reflecting the expanding reach of the Company's diversified product portfolio across its growing retail footprint. Operating expenses were $10.0 million for the three months ended March 31, 2026, compared to $5.6 million for the three months ended March 31, 2025. The increase of $4.4 million or 77.5% was primarily due to increase in cost of goods sold and depreciation expense and amortization. Increase in cost of goods sold was primarily driven by increased sales and a portfolio shift to cut herbs, which is primarily sourced from third party growers at higher cost. Depreciation expense increase of $2.5 million was primarily due to accelerated depreciation of certain fixed assets as a result of the Company’s pivot to RTD clean nutrition manufacturing. The Company recorded an income tax benefit of approximately $3.4 million for the three months ended March 31, 2026, primarily related to a valuation allowance release in connection with the sale of certain state tax benefits under the New Jersey Economic Development Authority’s Technology Business Tax Certificate Transfer Program. Net loss was $3.7 million, compared to a net loss of approximately $3.3 million for the three months ended March 31, 2025. Net loss per common share was approximately $(5.25) for the three months ended March 31, 2026, compared to approximately $(24.74) for the three months ended March 31, 2025. Conference Call Edible Garden will host a conference call today at 8:00 A.M. Eastern Time to discuss the Company’s financial results for the three months ended March 31, 2026, as well as the Company’s corporate progress and other developments. The conference call will be available via telephone by dialing toll-free +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering access code 794078. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2914/54011 or on the investor relations section of the company’s website, https://ediblegardenag.com/presentations/. A webcast replay will be available on the investor relations section of the Company’s website through March 31, 2027. A telephone replay will be available approximately one hour following the call, through April 14, 2026, and can be accessed by dialing +1 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 53775. ABOUT EDIBLE GARDEN® Edible Garden AG Incorporated is a leader in controlled environment agriculture (CEA), delivering locally grown, organic, better-for-you, sustainable produce and products through its Zero-Waste Inspired® next-generation farming model. Available in over 6,000 retail locations across the United States, Caribbean, and South America, Edible Garden is at the forefront of the CEA and sustainability technology movement, distinguished by its advanced safety-in-farming protocols, sustainable packaging, patented GreenThumb software, and innovative Self-Watering in-store displays. The Company operates state-of-the-art, vertically integrated greenhouses and processing facilities, including Edible Garden Heartland in Grand Rapids, Michigan; Edible Garden Prairie Hills in Webster City, Iowa; and its headquarters at Edible Garden Belvidere in New Jersey. It also partners with a network of contract growers strategically located near major U.S. markets to ensure freshness and reduce environmental impact. The Company is also expanding its Prairie Hills facility in Webster City, Iowa, into a dedicated ready-to-drink (RTD) clean nutrition manufacturing hub, supporting its Farm-to-Formula® strategy and its expansion into higher-margin, shelf-stable nutrition categories. Edible Garden’s proprietary GreenThumb 2.0 software—protected by U.S. Patents US 11,158,006 B1, US 11,410,249 B2, and US 11,830,088 B2—optimizes vertical and traditional greenhouse growing conditions while aiming to reduce food miles. Its patented Self-Watering display (U.S. Patent No. D1,010,365) is designed to extend plant shelf life and elevate in-store presentation. In addition to its core CEA operations, Edible Garden owns three patents in advanced aquaculture technologies: a closed-loop shrimp farming system (US 6,615,767 B1), a modular recirculating aquaculture setup with automated water treatment and feeding (US 10,163,199 B2), and a sensor-driven ammonia control method utilizing electrolytic chlorine generation (US 11,297,809 B1). The Company has been recognized as a FoodTech 500 firm by Forward Fooding, is a multi-year participant in Walmart’s Project Gigaton and a Giga Guru designee and has received NRG’s Excellence in Energy Award for its commitment to measurable environmental performance and energy stewardship. Edible Garden also develops and markets a growing line of nutrition and specialty food products, including Vitamin Way® and Vitamin Whey®—plant and whey protein powders—and Kick. Sports Nutrition, a premium performance line for health-conscious athletes seeking cleaner, better-for-you options. The Company’s offerings further include fresh, sustainable condiments such as Pulp fermented gourmet and chili-based sauces, as well as Pickle Party, a collection of fermented fresh pickles and krauts. Learn more at https://ediblegardenag.com For Pulp products, visit https://www.pulpflavors.com. For Vitamin Whey® products, visit https://vitaminwhey.com. For Kick. Sports Nutrition products, visit https://kicksportsnutrition.net/ Watch the Company’s latest corporate video here. Forward-Looking Statements This press release contains forward-looking statements, including with respect to the Company’s ability to improve its financial results, the Company’s growth strategies, the Company’s ability to expand and develop into new product lines, the Company’s ability to expand its distribution network and relationships, and its performance as a public company. The words “believe,” “continue,” “design,” “focus,” “expect,” “intend,” “look ahead” “opportunity,” “plan,” “potential,” “seek,” “strategy,” “target,” “will,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including, market and other conditions and the Company’s ability to achieve its growth objectives, and other factors set forth in the Company’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2025 and subsequent quarterly reports on Form 10-Q. Actual results might differ materially from those explicit or implicit in the forward-looking statements. The Company undertakes no obligation to update any such forward-looking statements after the date hereof to conform to actual results or changes in expectations, except as required by law. Investor Contacts: Crescendo Communications, LLC 212-671-1020 [email protected] Tables Follow (1) Adjusted to reflect the stock splits (1) Adjusted to reflect the stock splits

BELVIDERE, NJ, May 07, 2026 (GLOBE NEWSWIRE) -- Edible Garden AG Incorporated (“Edible Garden” or the “Company”) (Nasdaq: EDBL, EDBLW), a leader in controlled environment agriculture (CEA), locally grown, organic, better-for-you, sustainable produce and products, announced today that it will host a conference call on Friday May 15, 2026 at 8:00 AM Eastern Time to discuss financial results for the quarter ended March 31, 2026, and provide a business update. The conference call will be available via telephone by dialing toll-free +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering access code 794078. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2914/54011 or on the investor relations section of the company’s website, https://ediblegardenag.com/presentations/. A webcast replay will be available on the investor relations section of the Company’s website at https://ediblegardenag.com/presentations/ through May 15, 2027. A telephone replay of the call will be available approximately one hour following the call, through May 29, 2026, and can be accessed by dialing +1 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 54011. ABOUT EDIBLE GARDEN® Edible Garden AG Incorporated is a leader in controlled environment agriculture (CEA), delivering locally grown, organic, better-for-you, sustainable produce and products through its Zero-Waste Inspired® next-generation farming model. Available in over 6,000 retail locations across the United States, Caribbean, and South America, Edible Garden is at the forefront of the CEA and sustainability technology movement, distinguished by its advanced safety-in-farming protocols, sustainable packaging, patented GreenThumb software, and innovative Self-Watering in-store displays. The Company operates state-of-the-art, vertically integrated greenhouses and processing facilities, including Edible Garden Heartland in Grand Rapids, Michigan; Edible Garden Prairie Hills in Webster City, Iowa; and its headquarters at Edible Garden Belvidere in New Jersey. It also partners with a network of contract growers strategically located near major U.S. markets to ensure freshness and reduce environmental impact. Edible Garden’s proprietary GreenThumb 2.0 software—protected by U.S. Patents US 11,158,006 B1, US 11,410,249 B2, and US 11,830,088 B2—optimizes vertical and traditional greenhouse growing conditions while aiming to reduce food miles. Its patented Self-Watering display (U.S. Patent No. D1,010,365) is designed to extend plant shelf life and elevate in-store presentation. In addition to its core CEA operations, Edible Garden owns three patents in advanced aquaculture technologies: a closed-loop shrimp farming system (US 6,615,767 B1), a modular recirculating aquaculture setup with automated water treatment and feeding (US 10,163,199 B2), and a sensor-driven ammonia control method utilizing electrolytic chlorine generation (US 11,297,809 B1). The Company has been recognized as a FoodTech 500 firm by Forward Fooding, a leading AgriFoodTech organization, and is a Giga Guru member of Walmart’s Project Gigaton sustainability initiative. Edible Garden also develops and markets a growing line of nutrition and specialty food products, including Vitamin Way® and Vitamin Whey®—plant and whey protein powders—and Kick. Sports Nutrition, a premium performance line for health-conscious athletes seeking cleaner, better-for-you options. The Company’s offerings further include fresh, sustainable condiments such as Pulp fermented gourmet and chili-based sauces, as well as Pickle Party, a collection of fermented fresh pickles and krauts. Learn more at https://ediblegardenag.com. For Pulp products, visit https://www.pulpflavors.com. For Vitamin Whey® products, visit https://vitaminwhey.com. For Kick. Sports Nutrition products, visit https://kicksportsnutrition.net/ Watch the Company’s latest corporate video here. Investor Contacts: Crescendo Communications, LLC 212-671-1020 [email protected]