Laird Superfood (LSF 0.70%), which develops plant-based functional foods and beverages, released its second quarter earnings on August 6, 2025, covering results for the second quarter. The most notable news was strong double-digit GAAP revenue growth for the fifth consecutive quarter and a better-than-expected GAAP earnings result, though revenue came in just below consensus. Revenue (GAAP) grew 20% to $12.0 million compared to the corresponding prior year period, slightly under analyst forecasts of $12.14 million. GAAP loss per share improved to ($0.03), topping analyst expectations of ($0.06). Margin pressure and increasing cash burn remain concerns, but the overall quarter demonstrated continued growth and improved adjusted (non-GAAP) profitability.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | ($0.03) | ($0.06) | ($0.02) | (50.0%) |
| EPS – Adjusted EBITDA (Non-GAAP) | $0.01 | ($0.01) | n/m | |
| Revenue | $12.0 million | $12.14 million | $10.0 million | 20.0 % |
| Gross Margin | 39.9 % | 41.8 % | (-1.9 pp) | |
| Adjusted EBITDA (Non-GAAP) | $0.1 million | ($0.1 million) | n/m |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
About Laird Superfood and Key Success Factors
Laird Superfood makes functional foods and beverages, putting a spotlight on health-related ingredients. Its main products include coffee creamers, coffee and tea blends, hydration powders, and snacks. What sets it apart is the inclusion of functional mushrooms and other adaptogenic plant elements, which are ingredients believed to provide benefits beyond basic nutrition.
Recently, the company has focused on growing both its wholesale and online channels. A dual-channel approach not only helps reach more customers, but supports recurring revenue, as many consumers purchase these products as part of their daily routines. Key success factors include standing out with innovative, better-for-you products, expanding their retail presence, and maintaining efficient supply chain management—even as commodity costs and tariffs have added pressure.
Quarter in Review: Growth, Margins, and Channel Shifts
The most notable trend was a fifth straight quarter of double-digit revenue growth, with net sales (GAAP) up 20% compared to the prior-year period. Wholesale channel growth played a central role, surging 47% year over year to $5.75 million and now representing 48% of total Net Sales, up from 39% in Q2 2024. Distribution gains in grocery and club stores drove this performance, as did improved shelf velocity for coffee, powdered creamers, and instant latte products. E-commerce sales, powered in part by direct channels and Amazon, rose 2% year over year to $6.24 million, now representing 52% of the mix as wholesale accelerates.
Coffee creamers and coffee, tea, and hot chocolate made up 86% of sales. Both categories grew approximately 44% year over year, while sales of hydration powders and beverage enhancers dropped 21.0% and snacks/other food products declined by 16.1%. This concentration underscores a move toward products aligned with consumers’ daily habits—but it also indicates lagging growth in other categories.
The company maintained high gross margins but saw compression compared with the prior year and previous quarter, with GAAP gross margin at 39.9% versus 41.8% in Q2 2024 and 41.9% in Q1 2025. Gross margin was 39.9% (GAAP), down 1.9 percentage points compared to Q2 2024 and 2.0 percentage points from Q1 2025. Management attributed this to increased promotional trade spend, rising ingredient costs, and the shifting mix toward wholesale, which generally operates at a lower margin than direct online sales.
On profitability, adjusted EBITDA (non-GAAP) turned positive, reaching $0.1 million compared to a loss last year, but came down sequentially from Q1 2025. GAAP net loss widened to $0.4 million versus $0.2 million last year. Greater marketing, selling, and personnel costs—including stock-based compensation—caused the larger loss. Cash flow was also under pressure, with a $4.1 million outflow in operating activities for the first half of 2025, largely due to a “strategic” inventory build to avoid out-of-stock issues and manage against anticipated tariff changes. The company ended the quarter with $4.2 million in cash and no debt.
Business Model, Product Portfolio, and Market Opportunity
Laird Superfood’s core business is supplying clean-label, functional foods—primarily plant-based powdered coffee creamers and beverage mixes—catering to consumers interested in nutrition and wellness. These coffee and creamer product families are complemented by hydration blends (electrolyte powders and mixes intended to improve hydration) and a smaller portfolio of snacks.
Recent product developments included a larger format liquid creamer, which was rolled out to select retailers, and the launch of a new online “marketplace” offering curated wellness products. The company’s direct-to-consumer online platform continues to drive high rates of customer retention—over 75% repeat purchase rates for direct customers. Its omnichannel distribution allows it to grow in grocery, club, and natural food retailers, where it has focused on increasing shelf presence for both its new and established products.
Laird Superfood is positioned in the fast-growing functional foods segment, with a focus on clean ingredients and recurring-use products. The use of functional mushrooms and plant-based fats aligns with broader consumer health and sustainability preferences, helping build brand loyalty and market share.
The company’s ongoing commitment to environmental, social, and governance (ESG) practices, including efforts for sustainable sourcing and transparent labeling, remain brand cornerstones. These factors are important both for consumer trust and continued visibility with investors seeking companies with responsible business practices.
Outlook and Forward Guidance
Looking ahead, management reaffirmed full-year net sales growth guidance of 20–25%. Gross margins (GAAP) are targeted to stay in the upper 30s range for the year, though management cautioned that further inflation or tariff increases might add pressure. Profitability is still expected to land at breakeven for adjusted EBITDA on a full-year basis, although a GAAP net loss remains likely for the year. The company projects cash use of approximately $2 million for the year to bolster inventory to support top line growth, with normalization expected as inventory investments convert to sales in coming quarters.
No specific forward guidance on per-quarter revenue or earnings was issued beyond the full-year targets. Investors and observers should closely watch inventory management, gross margin trends, channel mix between wholesale and e-commerce, and the pace of new product success as key factors that could influence performance in future quarters.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
