Sow Good Inc. Reports Q1 2025 Revenue Drop to $2.5M, Net Loss of $2.6M; EPS Falls to $(0.23)

Reuters
05-14
Sow Good Inc. Reports Q1 2025 Revenue Drop to $2.5M, Net Loss of $2.6M; EPS Falls to $(0.23)

Sow Good Inc. reported its financial results for the first quarter of 2025, revealing a decline in revenue to $2.5 million from $11.4 million in the same period of 2024. This decrease was attributed largely to increased competitive pressure leading to softened demand. Gross profit also fell to $1.1 million from $4.6 million in the prior year, though the gross margin improved to 45% from 41%, primarily due to lower cost of goods sold as a percentage of sales. The company reported a net loss of $2.6 million in this quarter, a significant change from the net income of $0.5 million recorded in the first quarter of 2024. This shift was mainly due to lower gross profit, partially offset by reduced operating expenses, which decreased to $3.5 million from $3.7 million, attributed to lower bonus compensation and decreased legal service expenses. Adjusted EBITDA was reported as $(0.8) million compared to $2.5 million for the same period in the previous year. Cash and cash equivalents stood at $1.6 million as of March 31, 2025, down from $3.7 million at the end of 2024. In terms of business updates, Sow Good Inc. highlighted successful product launches at major retailers including Winn-Dixie, Ace Hardware, Orville Hardware, and Albertsons, indicating progress in retail expansion and operational execution. The company noted a renewal in consumer enthusiasm for its freeze-dried candy line, reflecting the effectiveness of strategic actions taken to streamline operations and enhance agility.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Sow Good Inc. published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0000950170-25-070955), on May 14, 2025, and is solely responsible for the information contained therein.

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