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Barfresh Food Group Inc. (BRFH)
:BRFH
US Market

Barfresh Food Group (BRFH) AI Stock Analysis

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Barfresh Food Group

(NASDAQ:BRFH)

Rating:39Underperform
Price Target:
Barfresh Food Group faces severe financial challenges, including no revenue in the latest period and a negative cash flow, significantly impacting its overall score. Technical indicators show a bearish trend with limited immediate upside potential. Despite promising growth projections and new initiatives, the current operational inefficiencies and financial losses weigh heavily on the stock's attractiveness.
Positive Factors
Partnerships
Barfresh's partnership with Revolution Foods, the second largest school meal provider in California, enhances its market reach.
Product Reception
The new Pop & Go freeze pop product received an overwhelmingly positive response during testing, indicating strong market demand.
Revenue Growth
Barfresh reiterated 2025 revenue guidance of $14.5M-$16.6M, representing 35.3%-54.9% year-over-year growth.
Negative Factors
Guidance
Management introduced guidance below expectations.
Manufacturing Issues
Manufacturing disruptions related to inadequate production equipment negatively impacted sales and margins.
Valuation
BRFH trades at a 2026 EV/revenue multiple of 2.3x compared to the peer average of 1.4x, and the premium is justified based on the company's significantly expanded educational customer channel.

Barfresh Food Group (BRFH) vs. SPDR S&P 500 ETF (SPY)

Barfresh Food Group Business Overview & Revenue Model

Company DescriptionBarfresh Food Group, Inc. manufactures and distributes ready-to-drink and ready-to-blend frozen beverages in the United States. The company offers smoothies, shakes and frappes in various formats comprising ready-to-drink bottled, easy pour, juice concentrates, and single serve. The company was founded in 2009 and is based in Los Angeles, California.
How the Company Makes MoneyBarfresh Food Group makes money through the sale of its ready-to-blend frozen beverages to various foodservice operators. The company's revenue model is primarily based on selling these products to restaurants, convenience stores, and schools, which then serve them to their customers. Barfresh generates income through direct sales and has distribution agreements with key foodservice distributors to widen its market reach. These partnerships are crucial for expanding its customer base and facilitating product delivery. Additionally, Barfresh may also earn from strategic partnerships and collaborations that enhance its market presence and product offerings.

Barfresh Food Group Financial Statement Overview

Summary
Barfresh Food Group is facing severe financial difficulties, with no revenue reported in the latest period, negative profitability metrics, and deteriorating cash flows. The balance sheet shows declining equity, posing future liquidity risks. Immediate strategic changes are essential to address these challenges.
Income Statement
20
Very Negative
Barfresh Food Group has shown a declining trend in revenue from $9.16 million in 2022 to $0 in 2024, indicating significant business challenges. The company consistently reported negative EBIT and net income, reflecting ongoing losses and operational inefficiencies. The absence of revenue in the latest period indicates severe financial distress.
Balance Sheet
40
Negative
The company's debt-to-equity ratio is relatively low due to low total debt, but the equity base has been shrinking, from $2.52 million in 2022 to $578,000 in 2024. The equity ratio dropped significantly, indicating a potential risk in financial stability. However, the reduced liabilities provide some relief.
Cash Flow
25
Negative
Operating cash flow remains negative and worsening, from -$2.65 million in 2022 to -$2.23 million in 2024. Free cash flow also remains negative, highlighting the company's struggle to generate cash. The company relies heavily on financing activities to sustain operations, which is unsustainable long-term.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
10.72M8.13M9.16M6.70M2.57M
Gross Profit
3.67M2.48M1.44M2.51M764.07K
EBIT
-2.77M-2.63M-5.47M-2.09M-4.21M
EBITDA
-2.49M-2.41M-4.94M-495.98K-3.60M
Net Income Common Stockholders
-2.83M-2.82M-6.96M-435.91K-4.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
235.00K1.89M2.81M5.53M1.82M
Total Assets
3.32M4.81M5.09M9.72M5.82M
Total Debt
832.00K0.0020.00K95.00K1.89M
Net Debt
597.00K-1.89M-2.79M-5.44M77.46K
Total Liabilities
2.74M2.31M2.57M1.54M3.49M
Stockholders Equity
578.00K2.50M2.52M8.18M2.32M
Cash FlowFree Cash Flow
-2.28M-2.96M-2.66M-2.01M-3.27M
Operating Cash Flow
-2.23M-2.96M-2.65M-1.86M-3.20M
Investing Cash Flow
-53.00K0.00-13.00K-150.54K-74.19K
Financing Cash Flow
626.00K1.83M5.00K5.73M4.14M

Barfresh Food Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.32
Price Trends
50DMA
2.80
Negative
100DMA
3.10
Negative
200DMA
3.00
Negative
Market Momentum
MACD
-0.11
Positive
RSI
40.05
Neutral
STOCH
7.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRFH, the sentiment is Negative. The current price of 2.32 is below the 20-day moving average (MA) of 2.58, below the 50-day MA of 2.80, and below the 200-day MA of 3.00, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 40.05 is Neutral, neither overbought nor oversold. The STOCH value of 7.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRFH.

Barfresh Food Group Risk Analysis

Barfresh Food Group disclosed 32 risk factors in its most recent earnings report. Barfresh Food Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Our use of information technology and third-party service providers exposes us to cybersecurity breaches and other business disruptions. Q4, 2023
2.
We may not be able to continue to comply with Nasdaq listing standards. Q4, 2023

Barfresh Food Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$3.76B13.1923.07%3.91%13.22%11.37%
79
Outperform
$2.06B35.6424.86%8.01%11.26%
64
Neutral
$8.78B14.554.78%173.91%3.39%2.17%
54
Neutral
$210.05M-28.87%-6.83%19.09%
52
Neutral
$306.76M-85.68%4.56%57.03%
39
Underperform
$36.93M-117.82%22.04%-21.72%
37
Underperform
$28.95M-1514.12%-61.03%5.63%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BRFH
Barfresh Food Group
2.32
0.79
51.63%
AKO.A
Embotelladora Andina SA
20.84
7.54
56.69%
SHOT
Safety Shot
0.37
-0.79
-68.10%
OTLY
Oatly Group
10.25
-11.85
-53.62%
ZVIA
Zevia PBC
2.83
1.88
197.89%
COCO
Vita Coco Company
36.28
10.04
38.26%

Barfresh Food Group Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: -22.15%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
While the company has shown promising growth potential with new customer acquisitions and product launches, it is facing significant short-term challenges with decreased gross margins, increased operating expenses, and a higher net loss. The sentiment is balanced with optimistic future projections but tempered by current financial setbacks.
Q1-2025 Updates
Positive Updates
Revenue Growth Guidance
Barfresh Food Group reiterated full-year revenue guidance of 35% to 55% growth, based on progress in manufacturing capacity and first-quarter results.
Expansion in Education Channel
The company continues to sign new customers in the education channel, covering 95% of the U.S., indicating significant potential for growth.
New Product Launch
Launch of Pop & Go 100% Juice Freeze Pops in the education channel, targeting the lunch market, which is significantly larger than breakfast.
Manufacturing Capacity Expansion
Onboarding two new strategic partners to increase bottling capacity, expected to complete by the end of Q2 2025, in time for high season in Q3.
Growth Financing Secured
Secured $3 million in growth financing to support scaling of production capacity and meet growing customer demand, particularly in the education channel.
Negative Updates
Decreased Gross Margin
Gross margin for Q1 2025 was 31%, down from 41% in Q1 2024, due to temporary production inefficiencies and higher supply chain expenses.
Increased Net Loss
Net loss for Q1 2025 was $761,000 compared to $449,000 in Q1 2024, primarily due to the reduction in gross margin.
Adjusted EBITDA Loss
Adjusted EBITDA for Q1 2025 was a loss of approximately $506,000 compared to a gain of $53,000 in the same period last year, impacted by higher logistics costs and less efficient production.
Increased Operating Expenses
Selling, marketing, and distribution expenses increased to $824,000 or 28% of revenue in Q1 2025, up from $694,000 or 25% of revenue in Q1 2024.
Company Guidance
During the first quarter 2025 corporate update call, Barfresh Food Group reiterated its full-year revenue guidance, projecting a growth of 35% to 55%. The company reported a first-quarter revenue of $2.9 million, a slight increase from $2.8 million in the same period of 2024. However, the gross margin for the first quarter declined to 31% from 41% in the previous year, primarily due to temporary production inefficiencies and higher supply chain expenses. Despite these challenges, Barfresh expects its manufacturing capacity to be fully operational by the end of the second quarter, which is anticipated to improve gross and operating margins in the latter half of 2025. The company also highlighted the introduction of its new Pop & Go 100% Juice Freeze Pops, targeting the lunch market, which contributed modestly to the first quarter revenue. Additionally, Barfresh's network now covers 95% of the U.S., with a 5% market penetration in the education channel, signaling significant growth potential. The company ended the quarter with $3.4 million in cash and accounts receivable and secured $3 million in growth financing to support its scaling efforts.

Barfresh Food Group Corporate Events

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Barfresh Food Group Reports Q1 2025 Revenue Growth
Neutral
May 1, 2025

Barfresh Food Group reported a 4% year-over-year increase in revenue to $2.9 million for the first quarter of 2025, aligning with their guidance. Despite achieving a gross margin of 31%, the company faced temporary production inefficiencies and increased logistics costs due to onboarding new co-manufacturers. These challenges are expected to be resolved by the end of the second quarter, positioning the company to leverage new customer wins in the education channel and potentially achieve record revenue for fiscal year 2025. The company secured $3.0 million in growth financing to support scaling production capacity, particularly in the education market.

Spark’s Take on BRFH Stock

According to Spark, TipRanks’ AI Analyst, BRFH is a Neutral.

Barfresh faces significant financial challenges, with no recent revenue and negative cash flow. However, the company projects strong future growth, driven by new product offerings and expanded manufacturing capabilities. Technical indicators are weak, and valuation is strained due to ongoing losses. The earnings call reflects potential for recovery if strategic goals are met.

To see Spark’s full report on BRFH stock, click here.

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Barfresh Food Group Projects Record Revenue for 2025
Positive
Mar 27, 2025

In 2024, Barfresh Food Group achieved its highest fiscal year revenue of $10.7 million, driven by expanded bottle production capacity and the launch of Pop & Go™ 100% Juice Freeze Pops. Despite facing temporary production inefficiencies and increased logistics costs, the company anticipates resolving these issues by mid-2025, positioning itself for further growth. Looking ahead to 2025, Barfresh expects record revenue between $14.5 million and $16.6 million, supported by enhanced production capacity and a strong product portfolio, aiming to capture significant opportunities in its target markets and deliver long-term shareholder value.

Executive/Board Changes
Barfresh Food Group Director Arnold Tinter Resigns
Neutral
Feb 28, 2025

On February 28, 2025, Arnold Tinter resigned from his roles as a director and corporate secretary of Barfresh Food Group and its subsidiaries, citing his desire to retire from active business pursuits. His resignation was not due to any disagreement with the company, where he also served as chair of the Audit Committee and was a member of the compensation and nominating and corporate governance committees.

Private Placements and FinancingBusiness Operations and Strategy
Barfresh Food Group Announces Securities Purchase Agreement
Positive
Feb 6, 2025

On February 5, 2025, Barfresh Food Group announced a Securities Purchase Agreement to sell 1,052,635 shares of common stock in a registered direct offering, expected to close by February 7, 2025, with gross proceeds of approximately $3 million. This strategic investment, primarily supported by existing shareholders, aims to expand the company’s manufacturing capabilities to meet growing customer demand and achieve positive cash flow, particularly within the education market, following successful testing of its new Pop & Go™ 100% Juice Freeze Pops.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.