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.