Barfresh Food Group (BRFH 0.66%), a provider of ready-to-drink and frozen beverage products often found in schools and institutional settings, released earnings for the second quarter of fiscal 2025 on August 13, 2025. The results showed an 11.0% increase in revenue to $1.6 million (GAAP) compared to the prior year. Earnings per share (EPS) (GAAP) recorded a loss of ($0.88), but the company lowered its full-year revenue outlook due to ongoing production and logistics challenges. The quarter was marked by gross margin compression, a sequential decline in revenue, and signs that recent manufacturing investments are starting to resolve operational bottlenecks.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | ($0.88) | ($0.06) | ($0.10) | ($0.78) |
| Revenue (GAAP) | $1.63 million | $2.14 million | $1.46 million | 11.6 % |
| Gross Margin | 31.1 % | 34.8 % | (3.7) pp | |
| Adjusted EBITDA | ($0.60 million) | ($0.68 million) | 11.8 % |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company Overview and Focus Areas
Barfresh Food Group specializes in frozen and ready-to-drink beverages designed for schools, military bases, and institutional customers. Its product range includes smoothies, shakes, and frozen juice servings that offer low-calorie, gluten-free, and dairy-free options for health-conscious consumers. Barfresh differentiates itself through products like "Twist & Go" smoothies and "Pop & Go 100% Juice Freeze Pops," designed to meet school nutrition standards while providing convenient serving formats.
Recently, the company has focused on expanding its manufacturing capacity and growing its presence in the education channel. Barfresh’s business success hinges on its ability to consistently deliver innovative, compliant products and maintain strategic partnerships through reliable production and efficient distribution. Effective supply chain management and regulatory compliance are especially crucial, as many sales rely on qualifying for school meal programs and large government contracts.
Quarterly Performance and Key Developments
Barfresh reported 11.0% revenue growth (GAAP) compared to the prior year. However, this growth was tempered by a sequential drop in sales, as revenue (GAAP) declined from $2.93 million in Q1 2025 to $1.63 million in Q2 2025. The company’s gross margin (GAAP) dropped to 31.1%, down 3.7 percentage points from the prior fiscal year. Management cited inefficiencies related to onboarding new manufacturing partners and costs of trial production batches as primary causes for this margin decline.
Adjusted EBITDA, which measures earnings before interest, taxes, depreciation, amortization, and certain non-cash or nonrecurring costs, showed a loss of $0.60 million. This was a slight improvement from the $1.0 million GAAP net loss in Q2 2024, reflecting efforts to control costs even as gross margin (GAAP) declined. General and administrative costs (GAAP) fell to $673,000 from $865,000, comparing Q2 2025 to Q2 2024.
Operationally, a key milestone was the completion of equipment installation by a new co-manufacturer at quarter’s end. This resolved earlier production delays, with two manufacturing partners now active. Management expects this to strengthen supply reliability, especially heading into the company’s seasonally strongest period as schools reopen for the fall. Inventory grew to $1.8 million.
The focus remains on single-serve and bulk "Easy Pour" beverage formats, which require minimal preparation and meet industry demand for convenience and compliance with nutritional standards.
Financial Outlook and What to Watch
Management lowered its revenue forecast for FY2025, now expecting $12.5 million to $14.0 million, compared to previous projections of $14.5 million to $16.6 million. This downward adjustment reflects extended production and logistics bottlenecks experienced in the first half of the year. The company did not offer firm guidance regarding profitability, but indicated expectations for improved margins and higher sales in the second half of the year as new manufacturing partners support higher volume and operational costs normalize.
No explicit earnings-per-share or adjusted EBITDA targets were published for the rest of fiscal 2025. Investors are likely to focus on whether sales and margins will rebound as projected, especially given the importance of the back-to-school season for the company’s performance. Barfresh’s ability to demonstrate scaling of production and delivery, cost control, and cash flow improvements will be important factors to watch for the remainder of the year.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
