Laird Superfood signals full-year 15% sales growth outlook as wholesale strategy advances

Earnings Call Insights: Laird Superfood (LSF) Q3 2025

MANAGEMENT VIEW

* Jason Vieth, President and CEO, highlighted "another quarter of solid top line growth as we continue to execute on our strategy to build Laird Superfood into a leading player in the premium plant-based functional food space." Net sales for the third quarter increased 10% year-over-year to $12.9 million, with wholesale channel sales up 39% and now comprising 53% of net sales. Vieth emphasized that "this growth reflects our focused efforts on expanding distribution, particularly in grocery and club stores, where we've seen robust velocity gains and increased shelf space."
* Vieth reported strong consumer demand for core products, including coffee creamers and hydration enhancers, and noted that Laird Superfood is "relaunching these creamers as organic formulations and packaging them in a post-consumer recycled plastic bottle that will be really attractive on the retailer shelves." The company is also set to launch its first dairy product, a protein coffee, which Vieth described as "a high-quality freeze-dried coffee, blended with 10 grams of dairy protein per serving, perfect for anyone looking to add protein to their diet."
* The CEO announced a strategic shift: "We've made the decision to discontinue the Picky Bars brand in the second quarter of 2026. This will allow us to redirect investments toward the core Laird Superfood brand, which we believe has the strongest potential for scale." This resulted in a $661,000 impairment charge in the third quarter.
* Anya Hamill, Chief Financial Officer, stated: "Net sales grew 10% to $12.9 million compared to $11.9 million in the prior year period and $12.0 million last quarter. And excluding Picky Bars products, net sales increased 14% in the third quarter." Hamill added, "I am pleased to report another robust quarter for Laird Superfood highlighted by double-digit top line growth, healthy gross margins, positive adjusted EBITDA and $1.1 million of positive operating cash flow."

OUTLOOK

* Hamill stated, "Reflecting year-to-date trends and these time and effects, we are updating our full year 2025 net sales growth expectation to approximately 15% growth. We continue to expect gross margin to hold in the upper 30s range and to achieve breakeven adjusted EBITDA for the full year."
* Management indicated ongoing caution regarding the timing of large wholesale customer orders, with Vieth noting, "We're also being a little bit cautious looking at timing there, too."

FINANCIAL RESULTS

* Net sales rose to $12.9 million, up from $12.0 million in the previous quarter. Gross profit for the quarter was $4.7 million, with gross margin contracting to 36.5% from 43% last year. The margin decline was attributed to commodity inflation, a shift towards wholesale, and the absence of a prior year one-time supplier settlement benefit.
* Operating expenses increased by $0.4 million, primarily due to higher marketing and selling costs. Net loss for the quarter was $1.0 million, impacted by the $0.7 million impairment charge for the discontinued Picky Bars brand. Adjusted EBITDA was $0.2 million, compared to $0.1 million in the year-ago quarter.
* The company ended the quarter with $5.3 million in cash and no debt, and reduced inventory by over $1 million during Q3. Hamill reported "positive operating cash flow" for the quarter and expects the cash position to continue strengthening as inventory converts to cash.

Q&A

* Eric Des Lauriers, Craig-Hallum: Asked if timing issues in wholesale impacted Q3 or Q4. Vieth responded, "This is a timing issue related to reorders and new orders...It's impacting Q3, Q4, but we don't believe that there's long-term impact...We continue to gain momentum, especially in that club space."
* Des Lauriers: Inquired about trends in the resized 750ml product and protein beverage launch. Vieth explained, "The upsizing worked about as we expected...we're leading that co-packer completely and moving to just an incredible formulation in a better package...We've got all the battle scars on our backs, and we're going to make sure...those lessons get applied."
* Nicholas Sherwood, Maxim Group: Asked about limited-time offer products and Amazon strategy. Vieth said, "We sold out early in almost all retailers. I think we call it a really successful year." On Amazon, "The growth driver of online should be Amazon and then the wholesale business for the entire company."
* Sherwood: Sought detail on protein coffee strategy. Vieth described a "strongest launch effort" with simultaneous retail and online introduction, supported by influencer campaigns.
* George Kelly, ROTH Capital: Asked about future dairy launches and liquid creamer distribution. Vieth confirmed broader dairy plans over the next 15 months and detailed product and marketing improvements for liquid creamers.
* Kelly: Asked about tariff impact and club promotions. Hamill noted "favorable developments as far as some of our key raw materials now being excluded from the tariffs such as coconut milk powder," but expects ongoing margin pressure.

SENTIMENT ANALYSIS

* Analysts' tone was neutral, focusing on clarification around guidance, new product launches, and market impacts from tariffs and commodity costs. Questions were direct with no signs of skepticism or pressing negativity.
* Management maintained a confident and optimistic tone in both prepared remarks and Q&A, repeatedly referencing successful execution and strong category momentum. Vieth emphasized, "We're executing on our plan, and I'm excited about the opportunities ahead."
* Compared to last quarter, management’s confidence remained steady, but with increased caution regarding order timing. Analyst sentiment was similarly neutral and constructive in both periods.

QUARTER-OVER-QUARTER COMPARISON

* Guidance shifted from a range of 20%-25% net sales growth to an updated expectation of approximately 15% growth for full-year 2025.
* The strategic shift accelerated, with the announced discontinuation of the Picky Bars brand to focus investments on Laird Superfood’s core business.
* Gross margin contracted from 39.9% to 36.5%, attributed to commodity inflation, tariffs, and channel mix.
* Analysts in both quarters probed on growth sustainability, channel dynamics, and distribution gains, with the current quarter’s questions reflecting heightened attention to order timing and new product ramp-up.
* Management’s tone was consistently positive, though current remarks reflected a more cautious outlook on near-term order timing and macroeconomic variables.

RISKS AND CONCERNS

* Management cited commodity cost inflation and tariffs as ongoing challenges, especially for key raw materials like coffee and coconut milk powder.
* The company recorded a $661,000 impairment charge related to the Picky Bars brand as part of the discontinuation strategy.
* Timing of large wholesale orders contributed to some volatility in quarterly results, with management indicating caution for Q4.
* Macroeconomic uncertainty and softness in e-commerce, particularly in direct-to-consumer, were noted as headwinds.

FINAL TAKEAWAY

Laird Superfood reported solid top-line growth in Q3 2025, led by a wholesale channel that now comprises the majority of sales and supported by ongoing innovation in core product categories. The company updated its full-year net sales growth expectation to approximately 15%, reflecting timing shifts in wholesale orders, but remains confident in maintaining gross margins in the upper 30s. Strategic focus is sharpening as Laird Superfood discontinues the Picky Bars brand and launches new offerings, including its first dairy-based protein coffee. While commodity costs, tariffs, and channel mix continue to pressure margins, management expects cash flow to improve and remains optimistic about the company’s trajectory into 2026.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/lsf/earnings/transcripts]

MORE ON LAIRD SUPERFOOD

* Laird Superfood, Inc. (LSF) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4841558-laird-superfood-inc-lsf-q3-2025-earnings-call-transcript]
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* Seeking Alpha’s Quant Rating on Laird Superfood [https://seekingalpha.com/symbol/LSF/ratings/quant-ratings]
* Historical earnings data for Laird Superfood [https://seekingalpha.com/symbol/LSF/earnings]