Borealis Foods (BRLS) AI Stock Analysis

• Market Cap: $19.49M
• Dividend Yield: N/A
• Average Volume (3M): 44.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: 33.43%
• EPS Growth: 25.00%
• Country: US
• Employees: 147
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -1.28
• Shares Outstanding: 21,463,306
• 10 Day Avg. Volume: 55,744
• 30 Day Avg. Volume: 44,222
• PEG Ratio: -6.52
• Price to Book (P/B): -173.95K
• Price to Sales (P/S): 4374.85
• P/FCF Ratio: -7.10K
• Enterprise Value/Market Cap: 1.18K
• Enterprise Value/Revenue: 3.24
• Enterprise Value/Gross Profit: 22.15
• Enterprise Value/Ebitda: -15.59
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $0.86 ▼(-45.66% Downside)

The score is driven primarily by very weak financial performance (large losses, negative equity, and ongoing cash burn) and bearish technical signals (below major moving averages with negative MACD). Additional downside risk comes from recent governance and lender-default related corporate events, while valuation provides limited support due to ongoing losses and no dividend yield.

Positive Factors

Revenue Growth

A sharp TTM revenue increase indicates growing product demand and expanding distribution. Durable top-line expansion provides operating leverage potential, improves negotiating position with suppliers and creditors, and forms a foundation for margin recovery if management controls SG&A and scale benefits over the next several months.

Governance Strengthening

Appointment of an independent director to key committees enhances board oversight and regulatory independence. Structurally stronger governance can improve compliance, reduce Nasdaq listing risks, and increase lender and investor confidence—important levers when addressing capital structure and executing medium-term turnaround plans.

Positive Gross Margin

A positive gross margin shows underlying product profitability before overhead. This suggests unit economics can be viable; with scale and cost control, the company can narrow operating losses. Over months, maintaining or improving gross margins supports a credible path toward operating leverage and eventual profitability.

Negative Factors

Negative Equity & High Leverage

Negative shareholders’ equity signals capital erosion and materially reduces financial flexibility. High leverage with meaningless debt-to-equity ratios raises default risk, limits ability to raise non-dilutive capital, and constrains strategic options—an enduring impairment to stability until equity is repaired or debt restructured.

Sustained Operating Losses & Cash Burn

Deeply negative EBITDA and net margins combined with negative operating and free cash flow indicate ongoing cash burn and weak profitability. This undermines internal financing for working capital or capex, forces reliance on external funding, and makes sustained recovery contingent on rapid margin improvement or refinancing.

Lender Defaults & Liquidity Constraints

Events of default and lender actions that restrict revolver access and place cash in dominion are structural liquidity constraints. Reduced access to working capital and higher default rates increase refinancing risk, may interrupt supply or operations, and materially hamper the company's ability to execute a multi-month recovery plan.

Borealis Foods Business Overview & Revenue Model

Company Description

Borealis Foods Inc. engages in the distribution of plant-based protein food products. The company's product includes Chef Woo, a high-protein meat alternative; and Ramen Express, vegetarian ramen noodles. Borealis Foods Inc. was incorporated in 2020 and is based in Oakville, Canada.

How the Company Makes Money

Borealis Foods generates revenue primarily through the sale of its food products to retailers, wholesalers, and directly to consumers. The company may also engage in licensing agreements for its proprietary food technologies or recipes, contributing an additional revenue stream. Strategic partnerships with retailers and distributors expand their market reach, enhancing sales volume. Furthermore, Borealis Foods might participate in government or private sector initiatives promoting sustainable food practices, occasionally resulting in grants or subsidies that supplement its income.

Borealis Foods Financial Statement Overview

Summary

Despite a sharp TTM revenue increase, profitability and financial stability are very weak: deeply negative EBITDA and net margins, negative operating/free cash flow, and a balance sheet with negative shareholders’ equity and high leverage risk.

Income Statement

TTM (Trailing-Twelve-Months) revenue shows an extreme jump versus prior periods, but profitability is very weak. Gross margin is modest (~14.6%) while operating performance is deeply negative (EBITDA margin ~-20.8%), and net losses are severe (net margin ~-53.3%). Historical annual results also show persistent losses and volatile/weak margins, indicating the business has not yet demonstrated a stable path to profitability despite top-line expansion.

Balance Sheet

The balance sheet is highly stressed with negative stockholders’ equity in TTM (Trailing-Twelve-Months), which materially increases financial risk and limits flexibility. Total debt is very large relative to the business profile, and the debt-to-equity ratio is not meaningful/healthy due to negative equity. Earlier years showed positive equity, but the shift to negative equity in the most recent period signals significant erosion of the capital base.

Cash Flow

Cash generation is weak: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both deeply negative, implying ongoing cash burn and likely reliance on financing. While free cash flow growth is shown as sharply positive versus prior periods, it is improving from very negative levels rather than indicating sustainable cash generation. Cash flow also does not currently provide meaningful support for debt servicing or reinvestment needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.12B	27.67M	0.00	25.59M	13.63M
Gross Profit	1.04B	2.19M	0.00	-8.07M	-212.99K
EBITDA	-1.48B	-18.08M	-2.77M	564.79K	-7.74M
Net Income	-3.80B	-25.33M	-2.94M	-26.28M	-10.12M
Balance Sheet
Total Assets	56.30B	60.01M	22.04M	64.77M	57.38M
Cash, Cash Equivalents and Short-Term Investments	128.87M	652.97K	93.11K	5.15M	2.91M
Total Debt	23.20B	32.28M	3.99M	41.18M	13.19M
Total Liabilities	69.25B	60.70M	7.49M	60.13M	29.30M
Stockholders Equity	-12.95B	-695.89K	14.56M	4.64M	28.08M
Cash Flow
Free Cash Flow	-3.76B	-17.06M	-22.47M	-2.11M	-27.99M
Operating Cash Flow	-3.76B	-15.09M	-18.01M	-2.11M	-6.78M
Investing Cash Flow	-61.52M	-1.91M	-4.47M	0.00	-21.21M
Financing Cash Flow	3.30B	10.03M	24.94M	1.66M	27.52M

Borealis Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRLS, the sentiment is Negative. The current price of 1.59 is above the 20-day moving average (MA) of 1.15, above the 50-day MA of 1.56, and below the 200-day MA of 3.19, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 32.49 is Neutral, neither overbought nor oversold. The STOCH value of 17.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRLS.

Borealis Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
WYHG	57 Neutral	$24.82M	4.89	2.84%	―	0.04%	-65.10%
LSF	52 Neutral	$29.39M	-15.30	-14.63%	―	17.73%	-34.71%
NAII	48 Neutral	$22.79M	-1.89	-15.93%	―	18.19%	-35.22%
BRLS	42 Neutral	$19.49M	-1.06	―	―	33.43%	25.00%

Borealis Foods Corporate Events

Borealis Foods Adds Independent Director to Board Committees

On January 29, 2026, Borealis Foods Inc. appointed Amin Ajami as an independent director to fill a board vacancy created by the February 2025 resignation of Kanat Mynzhanov, with Ajami to serve until the company’s next annual shareholder meeting or until a successor is chosen. The board also immediately named Ajami to its Audit, Compensation, and Nominating and Governance Committees, emphasizing his regulatory independence under Nasdaq and SEC rules and noting there are no related-party, familial, or material transaction ties influencing his selection, with details of any compensation arrangements to be disclosed in a later regulatory filing.

The most recent analyst rating on (BRLS) stock is a Hold with a $0.94 price target. To see the full list of analyst forecasts on Borealis Foods stock, see the BRLS Stock Forecast page.

Borealis Foods Faces Nasdaq Non-Compliance Over Annual Meeting

Borealis Foods Inc., listed on Nasdaq under the symbol BRLS, was notified on January 12, 2026, that it is out of compliance with Nasdaq’s requirement to hold an annual meeting of shareholders within twelve months of its fiscal year-end. The company has until February 26, 2026, to submit a compliance plan and could receive an extension until June 29, 2026, to hold the overdue meeting; while the notice has no immediate effect on the listing of its common shares, Borealis will be flagged as non-compliant on Nasdaq’s public list and market data feeds, signaling governance and procedural risk that investors will likely monitor closely.

The most recent analyst rating on (BRLS) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on Borealis Foods stock, see the BRLS Stock Forecast page.

Borealis Foods Faces Financial Default Challenges

On December 10, 2025, Borealis Foods Inc. received a letter from Frontwell Capital Partners Inc. regarding a Credit Agreement initially dated August 10, 2023. The letter highlighted ongoing and additional Events of Default, including failures to maintain required financial metrics and deliver necessary financial documents. As a result, the Lender has opted to charge interest at a Default Rate from November 12, 2025, and may refuse future loan requests. Borealis Foods is actively engaging with the Lender to address these issues and is exploring other financial strategies to enhance liquidity.

Borealis Foods Faces Financial Challenges with Lender

Borealis Foods Inc. is facing significant financial challenges due to multiple Events of Default under its Credit Agreement with Frontwell Capital Partners Inc. As of November 13, 2025, the lender has imposed cash dominion over certain deposit accounts and has ceased honoring further requests for revolving loans, citing failures by Borealis Foods to maintain required excess availability, cure over advances, deliver financial reporting, and comply with requests for additional records. Despite these challenges, Borealis Foods has made substantial payments on the revolving loans, reducing the outstanding balance significantly by November 19, 2025, and is working to maintain a constructive relationship with the lender.