Controlled Environment Agriculture Financial Results

Edible Garden AG Reports 22.9% Revenue Growth in Q1 2026, Advances RTD Platform

Edible Garden reported revenue of $3.1 million for the three months ended June 30, 2025, compared with $4.3 million in Q2 2024.
Image provided by Edible Garden.

Key Takeaways

  • Edible Garden AG (Nasdaq: EDBL) reported Q1 2026 revenue of approximately $3.3 million, a 22.9% increase from $2.7 million in Q1 2025.
  • Cut herb sales surged approximately 46% year-over-year, supported by new account contributions from Kroger and Weis Markets.
  • Condiment and international sales each grew approximately 51% and 50%, respectively, reflecting continued portfolio and distribution expansion.
  • Net loss widened slightly to $3.7 million from $3.3 million, with operating expenses rising 77.5% primarily due to accelerated depreciation tied to the RTD manufacturing pivot.
  • The company is advancing its Tetra Pak-powered RTD platform in the Midwest, targeting the global RTD market projected to reach $1.26 trillion by 2033.

Edible Garden AG Reports 22.9% Revenue Growth in Q1 2026

Edible Garden AG Incorporated (Nasdaq: EDBL), a controlled environment agriculture company expanding into clean-label consumer packaged goods and ready-to-drink (RTD) nutrition, reported first quarter 2026 revenue of approximately $3.3 million, up 22.9% from $2.7 million in the same period a year earlier. Growth was broad-based, spanning cut herbs, vitamins and supplements, condiments, and international markets.

Edible Garden Ag's Retail Footprint Drives Volume Gains

Cut herb sales, the company's core category, rose approximately 46% year-over-year, driven by growth in existing accounts and new listings at Kroger and Weis Markets. The company's distribution network now spans more than 6,000 retail locations, with new and expanded partnerships added during the quarter at Target, Safeway, The Fresh Market, Hannaford, Busch's Fresh Food Market, and Woodman's Markets. Vitamin and supplement sales climbed approximately 27%, while branded condiment sales increased approximately 51%.

“Revenue increased 22.9% year-over-year, supported by expansion across more than 6,000 retail locations, new and expanded relationships with major retail partners including Target and Safeway, and approximately 46% growth in cut herb sales,” said Jim Kras, Chief Executive Officer of Edible Garden AG.

RTD Platform Advancement and Operating Costs

Operating expenses rose to $10.0 million from $5.6 million in Q1 2025, an increase of $4.4 million or 77.5%. The jump was driven by higher cost of goods sold linked to increased cut herb volumes sourced from third-party growers, and $2.5 million in accelerated depreciation on certain fixed assets related to the company's shift toward RTD clean nutrition manufacturing. The company also recorded a $3.4 million income tax benefit tied to a New Jersey state tax certificate sale. Net loss for the quarter was $3.7 million, compared to $3.3 million a year earlier.

Progress on the Midwest RTD manufacturing platform continued during the quarter, with advancements made toward integrating Tetra Pak processing and aseptic packaging solutions. Edible Garden AG sees the RTD category as a long-term growth driver, citing a global RTD market projected to expand from approximately $842.5 billion in 2025 to roughly $1.26 trillion by 2033.

“We are still in the early stages of this evolution, but we believe the foundation is in place: a growing retail network, an expanding branded product portfolio, and a path to RTD manufacturing with Tetra Pak. We remain focused on executing against these opportunities while continuing to position Edible Garden for potential improved margins, greater scalability, and long-term value creation,” said Kras.

For the full financial results, visit the complete Q1 2026 earnings release.

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