Sow Good (SOWG)
NASDAQ:SOWG
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Sow Good
(NASDAQ:SOWG)
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Rating:48Neutral
Price Target:
$0.62
▲(82.35% Upside)
Action:ReiteratedDate:01/21/26
The score is held down primarily by weak financial performance (profitability collapse and ongoing cash burn). Technicals provide some offset with improving price momentum, but valuation support is limited due to losses, and recent guidance/corporate actions highlight a turnaround effort amid liquidity and execution risk.
Positive Factors
Permanent cost reduction from lease amendments
Material, ongoing rent savings and a much smaller facility footprint reduce fixed costs and improve operating leverage. These structural cost cuts lower the break-even point and sustainably improve margin potential, directly supporting the path to profitability over the next 2–6 months.
Negative Factors
Consistent negative cash generation
Persistent negative operating and free cash flow forces ongoing reliance on external financing and asset disposals. This structural cash burn erodes the balance sheet, limits reinvestment capacity, and raises execution risk if revenue recovery and margin improvement are delayed.
Read all positive and negative factors
Positive Factors
Negative Factors
Permanent cost reduction from lease amendments
Material, ongoing rent savings and a much smaller facility footprint reduce fixed costs and improve operating leverage. These structural cost cuts lower the break-even point and sustainably improve margin potential, directly supporting the path to profitability over the next 2–6 months.
Read all positive factors
Sow Good (SOWG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.20M
Dividend YieldN/A
Average Volume (3M)659.98K
Price to Earnings (P/E)―
Beta (1Y)2.27
Revenue Growth-81.88%
EPS Growth-672.01%
CountryUS
Employees86
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)N/A
Shares Outstanding13,328,469
10 Day Avg. Volume76,965
30 Day Avg. Volume659,977
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)0.59
Price to Sales (P/S)0.59
P/FCF Ratio-1.48
Enterprise Value/Market Cap1.71
Enterprise Value/Revenue1.46
Enterprise Value/Gross Profit-1.16
Enterprise Value/Ebitda-0.56
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Sow Good Business Overview & Revenue Model
Company Description
Sow Good Inc. provides freeze-dried snacks, smoothies, soups, and granola in the United States. The company markets its products through direct-to-consumer focused website, as well as through the business-to-business sales channel. It offers its p...
How the Company Makes Money
Sow Good generates revenue through several key streams. Primarily, the company sells organic seeds and gardening supplies through its online platform and physical retail locations. Additionally, it earns income from its food distribution services,...
Sow Good Earnings Call Summary
Earnings Call Date:Nov 14, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Negative
The earnings call presented significant operational improvements and strategic initiatives for future growth, including cost reductions and new product launches. However, these positive steps were overshadowed by a dramatic decline in revenue, negative gross margins, increased net losses, and decreased cash reserves. The company is in a transitional period with a focus on positioning for future profitability, but current financial metrics indicate substantial challenges.Positive Updates
Cost Reduction and Efficiency Improvements
Sow Good Inc. completed lease amendments resulting in over $5 million in annualized rent savings and reduced their operational footprint by over 370,000 square feet. Additionally, payroll efficiencies lowered monthly costs by approximately $40,000.
Negative Updates
Significant Revenue Decline
Revenue for Q3 2025 was $1.6 million compared to $36 million for the same period in 2024, primarily due to lower average selling prices and discontinued SKUs.
Read all updates
Q3-2025 Updates
Positive
Negative
Cost Reduction and Efficiency Improvements
Sow Good Inc. completed lease amendments resulting in over $5 million in annualized rent savings and reduced their operational footprint by over 370,000 square feet. Additionally, payroll efficiencies lowered monthly costs by approximately $40,000.
Read all positive updates
Company Guidance
In the recent conference call, Sow Good Inc. provided detailed guidance on its strategic initiatives and financial outlook, aimed at steering the company towards profitability in 2026. The company highlighted significant operational changes, including lease amendments that saved over $5 million annually and reduced facility footprints by more than 370,000 square feet. Payroll efficiencies achieved a monthly cost reduction of approximately $40,000. Despite a challenging third quarter with a revenue decline to $1.6 million and a gross loss of $8.9 million, the company is optimistic about its strategic focus on innovative SKUs and private label partnerships, such as its new caramel crunch product. Sow Good Inc. has secured $1 million in insider financial commitments to support these initiatives, with expectations of improved margins starting in mid-2026 as they optimize their cost structure and expand retail reach. The company is committed to leveraging its vertically integrated platform and innovation expertise to capture market opportunities and drive long-term growth.Sow Good Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
58
Neutral
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.27M | 31.99M | 16.07M | 428.13K | 88.44K | 0.00 |
| Gross Profit | -9.19M | 12.98M | 4.88M | 119.84K | 7.13K | -3.64K |
| EBITDA | -18.82M | -114.89K | -761.34K | -10.55M | -6.66M | -4.93M |
| Net Income | -21.86M | -3.70M | -3.06M | -12.13M | -6.87M | -5.32M |
Balance Sheet | ||||||
| Total Assets | 25.57M | 54.70M | 21.49M | 8.90M | 14.10M | 12.34M |
| Cash, Cash Equivalents and Short-Term Investments | 387.29K | 3.72M | 2.41M | 276.46K | 3.35M | 2.19M |
| Total Debt | 4.82M | 20.36M | 11.84M | 5.25M | 2.93M | 1.70M |
| Total Liabilities | 6.48M | 22.71M | 14.21M | 6.09M | 3.28M | 2.29M |
| Stockholders Equity | 19.09M | 31.99M | 7.28M | 2.81M | 10.82M | 10.06M |
Cash Flow | ||||||
| Free Cash Flow | -8.43M | -12.70M | -7.11M | -7.83M | -6.62M | -2.80M |
| Operating Cash Flow | -6.94M | -9.43M | -4.85M | -5.15M | -5.55M | -1.74M |
| Investing Cash Flow | -1.46M | -5.93M | -2.27M | -2.62M | -653.05K | 3.28M |
| Financing Cash Flow | 1.54M | 16.67M | 9.25M | 4.70M | 7.64M | 262.93K |
Sow Good Technical Analysis
Neutral
0.34
Price Trends
0.53
Negative
0.55
Negative
0.68
Negative
Market Momentum
0.01
Negative
55.97
Neutral
73.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOWG, the sentiment is Neutral. The current price of 0.34 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.53, and below the 200-day MA of 0.68, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 73.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SOWG.
Sow Good Risk Analysis
Sow Good disclosed 43 risk factors in its most recent earnings report. Sow Good 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 0 New Risks
Sow Good Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $416.33M | 19.90 | 12.18% | ― | 6.62% | -7.85% | |
57 Neutral | $20.86M | -350.92 | 4089.67% | ― | 0.04% | -65.10% | |
48 Neutral | $6.20M | -0.21 | -84.22% | ― | -81.88% | -672.01% | |
46 Neutral | $17.23M | -2.11 | -17.43% | ― | 18.19% | -35.22% |
* Consumer Defensive Sector Average
SOWG
Sow Good
0.47
-0.54
-53.96%
PLAG
Planet Green Holdings
1.64
0.41
33.33%
NAII
Natural Alternatives International
2.79
-0.65
-18.90%
NATR
Nature's Sunshine Products
23.78
11.23
89.48%
NCRA
Nocera
0.20
-0.80
-80.50%
WYHG
Wing Yip Food Holdings Group Limited Sponsored ADR
0.44
-8.59
-95.16%
Sow Good Corporate Events
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsPrivate Placements and Financing
Sow Good Announces Leadership Shake-Up and Capital Restructuring
Negative
Jan 7, 2026
On January 6, 2026, Sow Good Inc. announced a $6.0 million private placement and a $1.5 million strategic asset sale aimed at shoring up liquidity, transitioning to a more asset-light operating model, and preserving its ability to continue as a go...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsPrivate Placements and FinancingShareholder MeetingsStock Split
Sow Good Raises Capital and Undergoes Leadership Transition
Neutral
Jan 5, 2026
On December 31, 2025, Sow Good Inc. raised $3 million in a first closing of a $6 million private placement of new Series AA and Series AAA convertible preferred stock to investor David Lazar, with a second $3 million tranche contingent on sharehol...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.