Tofutti Brands (TOFB -2.24%), a plant-based food company recognized for dairy-free cheese alternatives and frozen desserts, released its earnings for the quarter ended June 28, 2025, on August 18, 2025. The headline news was an 11% drop in net sales for the thirteen weeks ended June 28, 2025 compared to the same period in 2024, with reported net sales of $2.03 million (GAAP) but a narrowed net loss of $(7,000) (GAAP). There were no analyst estimates to benchmark results against. The company’s margin management and smaller loss signal operational discipline, but shrinking sales highlight market share and competitive hurdles for the quarter.
| Metric | Q2 2025(13 weeks ended June 28, 2025) | Q2 2024(13 weeks ended June 29, 2024) | Y/Y Change |
|---|---|---|---|
| Revenue (GAAP) | $2.03 million | $2.28 million | (11.1%) |
| Gross Profit | $0.62 million | $0.67 million | (7.3%) |
| Gross Margin | 30% | 29% | +1.0 pp |
| Net Loss | $(7,000) | $(32,000) | 78.1% |
| EPS (GAAP; Diluted) | $(0.00) | $(0.01) | 0.01 |
Business Overview and Focus Areas
Tofutti Brands makes and sells dairy-free, vegan food products, concentrating on cheese alternatives and frozen desserts that look and taste like traditional dairy foods. Its product portfolio includes spreadable cheese substitutes, cheese slices, and a wide variety of plant-based frozen desserts.
The company’s success depends on its ability to innovate and adapt. It aims to serve health-conscious consumers and those following vegan, kosher, or halal diets. Key factors include product development, strong distribution channels, reliable production through co-packers, and strict regulatory compliance.
Quarter Highlights and Financial Developments
Net sales decreased by 11% for the thirteen weeks ended June 28, 2025 compared to the same period in 2024, mainly due to lower sales of vegan cheese and frozen desserts. Vegan cheese sales decreased to $1,708,000 in the thirteen weeks ended June 28, 2025 from $1,926,000 in the same period in 2024, which the company attributes to "increased competition in the vegan cheese category." Management also cited "proposed new tariffs" as a disruption, saying these caused its two largest U.S. customers to pause regular purchasing. This reliance on a handful of large buyers poses a sales concentration risk for the future.
Gross profit was down in absolute terms, but the gross margin (GAAP) improved 1 percentage point to 30%. This rise was due to price increases implemented at the end of FY2024, which carried into the first half of FY2025. Operating expenses decreased by 9.8% for the thirteen weeks ended June 28, 2025 compared to the same period in 2024, Selling and warehouse costs fell to $188,000 for the thirteen weeks ended June 28, 2025 from $250,000 in the same period in 2024. General and administrative expenses and selling costs both saw reductions. An uptick in marketing and research spending, including an increase in research and development (R&D) to $39,000 from $22,000 (GAAP, Q2 2025 vs Q2 2024), shows some reinvestment in brand and product activity even as revenues fell.
The net result was an improved, though still negative, bottom line. Net loss narrowed to $(7,000), down from $(32,000) in the same period last year. Year-to-date, the loss stood at $(169,000). The company reported $350,000 in cash as of June 28, 2025, and $2.73 million of working capital as of June 28, 2025. Tofutti disclosed no outstanding debt. However, inventories rose to $2.21 million as of June 28, 2025, from $1.88 million at December 28, 2024.
Product innovation remains an area of strategic importance, with the company highlighting over 25 dairy-free foods in its lineup. However, the earnings release did not announce any important new launches or major innovations. There was no clear sign of impact on demand, as sales continued to decline. The absence of explicit updates on co-packer relationships—essential partners who manufacture products for the brand—leaves one area of vulnerability unchanged. The filing reports regulatory compliance, specifically with FDA labeling rules and SQF certification (a food safety standard). All of its products are certified Kosher-parve, while all vegan cheese products and Tofutti Cuties are also certified Halal. No new issues surfaced here. Market competition, especially in plant-based cheese alternatives, was repeatedly flagged by management as the key drag on sales performance. This trend continues to threaten Tofutti’s market share and underlines the need for distinctive innovation and better customer reach.
Outlook and What to Watch
Tofutti Brands did not provide any forward-looking financial guidance for the next quarter or fiscal year. Management’s commentary remained generic, with no clear targets or new initiatives revealed for the remainder of fiscal 2025.
Investors will want to monitor sales trends in the vegan cheese and frozen dessert segments, future pricing changes, and inventory levels. It does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
