Laird Superfood’s Earnings Call: Growth Amid Challenges

Laird Superfood, Inc. ((LSF)) has held its Q3 earnings call. Read on for the main highlights of the call.

Laird Superfood’s recent earnings call presented a balanced sentiment, showcasing strong growth in the wholesale channel and new product innovations that contributed positively to the company’s top-line growth. However, the company also faced challenges, including declines in e-commerce, gross margin contractions, and a net loss due to impairment charges. Overall, the sentiment reflected both notable achievements and significant challenges.

Net Sales Growth

Laird Superfood reported a commendable increase in net sales, with a 10% year-over-year rise to $12.9 million for the third quarter. For the first nine months of 2025, net sales climbed 15% to $36.5 million, indicating a robust performance in driving revenue growth.

Wholesale Channel Performance

The wholesale channel emerged as a strong performer, with net sales surging by 39% in the quarter and 40% year-to-date. This channel contributed significantly, accounting for 53% of the net sales during Q3, highlighting its pivotal role in the company’s growth strategy.

Positive Adjusted EBITDA and Cash Flow

The company achieved a positive adjusted EBITDA of $0.2 million and generated $1.1 million in positive operating cash flow for the third quarter, marking a step towards financial stability and operational efficiency.

New Product Launches

Laird Superfood is expanding its product lineup with the launch of a new protein coffee and improved liquid creamer products, featuring organic ingredients and enhanced taste. These innovations are expected to bolster the company’s market presence and drive future sales.

Tariff Relief

In a positive development, Laird Superfood’s coconut milk products will not face additional tariffs, which is anticipated to enhance the company’s financials by over $1 million in 2026, providing a favorable outlook for cost management.

E-commerce Channel Decline

The e-commerce channel, which represents 47% of net sales, experienced an 11% decline year-over-year. This decline was primarily attributed to softness in the direct-to-consumer platform, posing a challenge to the company’s digital sales strategy.

Gross Margin Contraction

Gross margin contracted to 36.5% from 43% the previous year, impacted by commodity cost inflation and a shift towards the wholesale channel. This contraction underscores the need for strategic adjustments to maintain profitability.

Picky Bars Brand Impairment

Laird Superfood recorded a $661,000 impairment charge related to Picky Bars intangible assets, which are set to be discontinued in Q2 of 2026. This decision reflects a strategic move to streamline the company’s brand portfolio.

Net Loss Increase

The company reported a net loss of $1.0 million for the third quarter, compared to a $0.2 million loss in the prior year period. This increase was primarily due to impairment charges and higher marketing costs, highlighting areas for cost management improvement.

Forward-Looking Guidance

Looking ahead, Laird Superfood remains optimistic, forecasting a 15% growth in net sales for the full year 2025. The company expects gross margins to remain in the upper 30s and aims for breakeven adjusted EBITDA. Product innovation, such as the new protein coffee, is anticipated to be a key driver of future growth, reflecting the company’s commitment to expanding its market footprint.

In summary, Laird Superfood’s earnings call revealed a balanced sentiment with strong growth in the wholesale channel and promising product innovations. However, challenges such as e-commerce declines and gross margin contractions persist. The company’s forward-looking guidance remains optimistic, with expectations of continued net sales growth and strategic product launches to drive future success.