DALLAS, Nov. 14, 2025 (GLOBE NEWSWIRE) -- Sow Good Inc. (Nasdaq: SOWG) ("Sow Good" or "the Company"), a leading freeze-dried food and candy manufacturer, is reporting financial and operating results for the third quarter ended September 30, 2025.
"Q3 2025 was a quarter of steady progress and operational strengthening as we continued to position Sow Good for long-term sustainable growth," said Claudia Goldfarb, CEO of Sow Good. "The decisive actions we've taken over the past several months have simplified our footprint, reduced fixed costs, and enhanced efficiency across the organization. We've now completely vacated our Mockingbird facility, reducing our footprint by over 50,000 square feet and delivering immediate savings, and we will fully vacate our Rock Quarry facility by the end of January, reducing our footprint by more than 320,000 square feet. Together with lease amendments and payroll optimization, these efforts represent over $5 million in annualized savings and a leaner, more agile platform ready to scale efficiently.
"We secured our first private-label partnership with a 600-store national retailer for our new Caramel Crunch SKU, which will ship in the first half of 2026. Caramel Crunch is our first fully vertically integrated product--with caramel made in house with no artificial dyes, flavors, or preservatives and crafted using our proprietary long-cycle freeze-drying process. This cleaner-ingredient approach not only enhances product appeal but also opens the door to additional retail opportunities as buyers increasingly prioritize clean-label alternatives. In March of 2026 we are launching 2 new SKUs with a national retailer in our branded display that will also have 10 other of our top SKUs. Our international distribution partners remain excited with our performance and are substantially expanding influencer marketing and retailer marketing partnerships for 2026 to continue supporting the Sow Good brand.
"We are also in ongoing conversations with other national retailers regarding additional private-label opportunities, including potential extensions into freeze-dried yogurt melts and other innovative formats. While still early, these discussions underscore the trust major retailers have in our manufacturing capabilities and the breadth of our technology platform. At the same time, we've seen a slowdown in traditional legacy SKUs, while growth and retailer demand are shifting toward our new clean-label, innovative products that highlight our differentiation in texture, flavor, and quality.
"Looking ahead, we remain focused on operational discipline and a return to profitability. The foundational work we've completed this year has made Sow Good leaner, more efficient, and better positioned for sustainable growth. In parallel, we are advancing a number of strategic initiatives -- including digital asset and partnership strategies -- designed to strengthen our balance sheet, diversify our funding base, and enhance long-term shareholder value. These discussions are progressing constructively and reflect our commitment to innovative and responsible capital management."
Third Quarter 2025 Highlights
-- Revenue in the third quarter of 2025 was $1.6 million compared to $3.6
million for the same period in 2024. The decline reflects changes in
sales mix as the Company realized lower average selling prices associated
with the closeout of discontinued SKUs.
-- Gross loss in the third quarter of 2025 was $8.9 million compared to
gross profit of $0.6 million in the year ago period. Gross margin was
(576)% in the third quarter of 2025 compared to 16% in the prior year
period. Cost of goods sold increased due to $5.3 million in noncash
charges for reserves for finished goods and materials associated with
SKUs that the Company no longer intends to produce or sell, and $3.2
million for the related write-down of overhead allocated to this
inventory.
-- Operating expenses in the third quarter of 2025 were $3.7 million
compared to $3.8 million for the same period in 2024. The decrease was
largely due to lower payroll costs and professional fees reflective of
the Company's ongoing cost reduction efforts.
-- Other income for the third quarter of 2025 was a net gain of $1.7 million,
compared to other expense of $185.6 thousand for the same period in 2024.
The increase was driven by a noncash gain recognized upon the exit of
lease liabilities related to two facilities as of September 30, 2025,
partially offset by net interest expense of $93.3 thousand. Other expense
for the third quarter of 2024 consisted primarily of net interest
expense.
-- Net loss in the third quarter of 2025 was $10.9 million, or $(0.90) per
basic and diluted share, compared to net loss of $3.4 million, or $(0.33)
per basic and diluted share, for the same period in 2024. The decrease is
primarily due to noncash inventory reserve charges, coupled with
decreased sales.
-- Adjusted EBITDA (a non-GAAP financial measure defined and reconciled
herein) in the third quarter of 2025 was $(10.9) million compared to
$(1.9) million for the same period in 2024. For a reconciliation of
Adjusted EBITDA to the nearest comparable GAAP metric, net income, please
see the tables below.
-- Cash and cash equivalents were $387.3 thousand at September 30, 2025,
compared to $3.7 million at December 31, 2024
Conference Call
Sow Good will conduct a conference call today at 10:00 a.m. Eastern time to discuss its results for the third quarter ended September 30, 2025.
Date: Friday, November 14, 2025
Time: 10:00 a.m. Eastern time
Registration Link: https://register-conf.media-server.com/register/BI86174db562554c2c849dd74fef03d415
To access the call by phone, please register via the registration link above and you will be provided with dial-in instructions and details. If you have any difficulty connecting with the conference call, please contact Gateway Group at 1-949-574-3860.
The conference call will be broadcast live and available for replay here and on the Company's website at Sowginc.com.
About Sow Good Inc.
Sow Good Inc. (Nasdaq: SOWG) is a U.S.-based leader in freeze-dried snacks and candies, driven by a commitment to quality, innovation, and excellence. The company's proprietary freeze-drying technology and vertically integrated manufacturing platform power some of the most exciting products in the better-for-you and indulgent snack categories--all proudly made in Texas.
Non-GAAP Financial Measures
This press release contains "non-GAAP financial measures" that are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with GAAP. Specifically, we make use of the non-GAAP financial measure "Adjusted EBITDA." Adjusted EBITDA has been presented in this press release as a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. We define Adjusted EBITDA as net income (loss) before depreciation and amortization, interest expense, net, provision for income tax, and share-based compensation, and loss on early extinguishment of debt. The most directly comparable GAAP measure is net income (loss). Adjusted EBITDA is not recognized terms under GAAP and should not be considered as an alternative to net income (loss) as a measure of financial performance or cash provided by operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. In addition, in evaluating Adjusted EBITDA, you should be aware that in the future, we may incur expenses similar to the adjustments in the presentation of Adjusted EBITDA. The presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Because not all companies use identical calculations, the presentations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company.
We present this non-GAAP measure because we believe it assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes Adjusted EBITDA is useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate, and capital investments. Management uses Adjusted EBITDA to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation, and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone provide.
There are a number of limitations related to the use of Adjusted EBITDA rather than net income (loss), which is the most directly comparable financial measure calculated and presented in accordance with GAAP. Some of these limitations are:
-- Adjusted EBITDA excludes stock-based compensation expense as it has
recently been, and will continue to be for the foreseeable future, a
significant recurring non-cash expense for our business;
-- Adjusted EBITDA excludes depreciation and amortization expense and,
although this is a non-cash expense, the assets being depreciated and
amortized may have to be replaced in the future;
-- Adjusted EBITDA does not reflect the cash requirements necessary to
service interest on our debt which affects the cash available to us;
-- Adjusted EBITDA does not reflect the monies earned from our investments
since it does not reflect our core operations;
-- Adjusted EBITDA does not reflect the loss on early extinguishment of debt
since it does not reflect our core operations and is a non-cash expense;
-- Adjusted EBITDA does not reflect the gain on the exit of lease
obligations since it does not reflect our core operations and is a
non-cash expense;
-- Adjusted EBITDA does not reflect income tax expense that affects cash
available to us; and
-- the expenses and other items that we exclude in our calculations of
Adjusted EBITDA may differ from the expenses and other items, if any,
that other companies may exclude from Adjusted EBITDA when they report
their operating results.
In addition, other companies may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison.
Forward-Looking Statements
This press release contains forward-looking statements. Statements other than statements of historical facts contained in this press release may be forward-looking statements. Statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, including, among others, statements regarding the offering, expected growth, and future capital expenditures, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan, " "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Forward-looking statements contained in this press release include, but are not limited to statements about: (a) our ability to compete successfully in the highly competitive industry in which we operate; (b) our ability to maintain and enhance our brand; (c) our ability to successfully implement our growth strategies related to launching new products and enter new markets; (d) the effectiveness and efficiency of our marketing programs; (e) our ability to manage current operations and to manage future growth effectively; (f) our future operating performance; (g) our ability to attract new customers or retain existing customers; (h) our ability to protect and maintain our intellectual property; (i) the government regulations to which we are subject; (j) our ability to maintain adequate liquidity to meet our financial obligations; (k) failure to obtain sufficient sales and distributions for our freeze dried product offerings; (l) the potential for supply chain disruption and delay; (m) the potential for transportation, labor, and raw material cost increases; (n) the timing of our operational efficiencies measures and the anticipated savings therefrom, and (o) such other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission, including the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2024 and our most recent Quarterly Report on Form 10-Q. All information provided in this release is as of the date hereof and we undertakes no duty to update this information except as required by law.
Sow Good Investor Inquiries:
Cody Slach
Gateway Group, Inc.
1-949-574-3860
SOWG@gateway-grp.com
Sow Good Media Inquiries:
Sow Good, Inc.
1-214-623-6055
pr@sowginc.com
SOW GOOD INC.
CONDENSED BALANCE SHEETS
September 30, December 31,
2025 2024
--------------- ------------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 387,294 $ 3,723,440
Accounts receivable, net 174,757 460,147
Inventory, net 11,524,269 20,313,315
Prepaid inventory 19,923 55,796
Prepaid expenses 226,694 523,442
Assets held for sale 713,256 -
----------- -----------
Total current assets 13,046,193 25,076,140
----------- -----------
Property and equipment, net 10,311,440 11,802,420
Security deposit 1,043,972 1,357,956
Right-of-use asset 1,169,271 16,459,215
----------- -----------
Total assets $ 25,570,876 $ 54,695,731
=========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 818,797 $ 1,368,006
Accrued interest 110,973 -
Accrued expenses 734,548 976,153
Current portion of operating lease
liabilities 1,551,711 2,599,102
Current maturities of notes
payable, related parties, net of
$0 and $304,500 of debt discounts
at September 30, 2025 and December
31, 2024, respectively - 2,195,500
Current maturities of notes
payable, net of $0 and $13,470 of
debt discounts as of September 30,
2025 and December 31, 2024,
respectively - 225,780
----------- -----------
Total current liabilities 3,216,029 7,364,541
Operating lease liabilities 1,123,302 15,193,129
Convertible notes payable, related
parties, net of $811,388 and $0 of
debt discounts as of September 30,
2025 and December 31, 2024,
respectively 1,992,430 -
Notes payable 150,000 150,000
----------- -----------
Total liabilities 6,481,761 22,707,670
----------- -----------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value,
20,000,000 shares authorized, no
shares issued and outstanding - -
Common stock, $0.001 par value,
500,000,000 shares authorized,
12,223,599 and 11,300,624 shares
issued and outstanding as of
September 30, 2025 and December
31, 2024 12,224 11,300
Additional paid-in capital 99,212,152 94,418,972
Accumulated deficit (80,135,261) (62,442,211)
----------- -----------
Total stockholders' equity 19,089,115 31,988,061
----------- -----------
Total liabilities and stockholders'
equity $ 25,570,876 $ 54,695,731
=========== ===========
SOW GOOD INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
2025 2024 2025 2024
------------ ----------- ------------ -----------
Revenues $ 1,553,138 $ 3,554,157 $ 5,886,372 $30,608,526
Cost of goods
sold 10,500,626 2,998,171 13,860,846 16,415,970
----------- ---------- ----------- ----------
Gross profit (8,947,488) 555,986 (7,974,474) 14,192,556
----------- ---------- ----------- ----------
Operating
expenses:
General and
administrative
expenses:
Salaries and
benefits 1,826,918 1,875,908 5,701,187 6,350,038
Professional
services 97,553 320,289 548,106 1,382,393
Other general
and
administrative
expenses 1,712,505 1,607,844 4,832,623 3,879,350
----------- ---------- ----------- ----------
Total general
and
administrative
expenses 3,636,976 3,804,041 11,081,916 11,611,781
Depreciation and
amortization 8,584 8,583 25,751 23,060
Loss on
impairment of
long-lived
assets 24,690 - 24,690 -
----------- ---------- ----------- ----------
Total operating
expenses 3,670,250 3,812,624 11,132,357 11,634,841
----------- ---------- ----------- ----------
Net operating
income (loss) (12,617,738) (3,256,638) (19,106,831) 2,557,715
----------- ---------- ----------- ----------
Other income
(expense):
Interest income - 39,509 27,266 43,639
Interest expense (93,274) (225,095) (389,013) (1,243,428)
Loss on early
extinguishment
of debt - - - (696,502)
Gain on
termination of
leases 1,775,528 - 1,775,528 -
----------- ---------- ----------- ----------
Total other
expense 1,682,254 (185,586) 1,413,781 (1,896,291)
----------- ---------- ----------- ----------
Income (loss)
before income
tax (10,935,484) (3,442,224) (17,693,050) 661,424
Income tax
provision - 62,315 - (195,603)
----------- ---------- ----------- ----------
Net income
(loss) $(10,935,484) $(3,379,909) $(17,693,050) $ 465,821
=========== ========== =========== ==========
Weighted average
common shares
outstanding -
basic 12,203,609 10,245,388 11,708,645 8,651,223
=========== ========== =========== ==========
Net income
(loss) per
common share -
basic $ (0.90) $ (0.33) $ (1.51) $ 0.05
=========== ========== =========== ==========
Weighted average
common shares
outstanding -
diluted 12,203,609 10,245,388 11,708,645 9,613,553
=========== ========== =========== ==========
Net income
(loss) per
common share -
diluted $ (0.90) $ (0.33) $ (1.51) $ 0.05
=========== ========== =========== ==========
SOW GOOD INC.
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(Unaudited)
For the Three Months Ended September 30, 2025
-----------------------------------------------------------------
Additional Total
Common Stock Paid-in Accumulated Stockholders'
--------------------
Shares Amount Capital Deficit Equity
----------- ------- ----------- ------------ ---------------
Balance, June
30, 2025 12,166,128 $12,166 $97,758,199 $(69,199,777) $ 28,570,588
Common stock
issued to
directors for
services 57,471 $ 58 $ 49,941 -- 49,999
Common stock
issued to
officers for
services -- -- 104,554 -- 104,554
Common stock
options
granted to
directors
and advisors
for
services -- -- $ 3,598 -- 3,598
Common stock
options
granted to
officers and
employees
for
services -- -- 1,295,860 -- 1,295,860
Net loss for
the three
months ended
September
30, 2025 -- -- -- (10,935,484) (10,935,484)
---------- ------- ----------- ----------- -----------
Balance,
September
30, 2025 12,223,599 $12,224 $99,212,152 $(80,135,261) $ 19,089,115
========== ====== ========== =========== ===========
For the Three Months Ended September 30, 2024
-----------------------------------------------------------------
Additional Total
Common Stock Paid-in Accumulated Stockholders'
--------------------
Shares Amount Capital Deficit Equity
----------- ------- ----------- ------------ ---------------
Balance, June
30, 2024 10,245,388 $10,245 $89,899,666 $(54,894,265) $ 35,015,646
Common stock
options
granted to
directors
and advisors
for
services -- -- 29,284 -- 29,284
Common stock
options
granted to
officers and
employees
for
services -- -- 1,157,587 -- 1,157,587
Net loss for
the three
months ended
September
30, 2024 -- -- -- (3,379,909) (3,379,909)
---------- ------- ----------- ----------- -----------
Balance,
September
30, 2024 10,245,388 $10,245 $91,086,537 $(58,274,174) $ 32,822,608
========== ====== ========== =========== ===========
For the Nine Months Ended September 30, 2025
-----------------------------------------------------------------
Additional Total
Common Stock Paid-in Accumulated Stockholders'
--------------------
Shares Amount Capital Deficit Equity
----------- ------- ----------- ------------ ---------------
Balance,
December 31,
2024 11,300,624 $11,300 $94,418,972 $(62,442,211) $ 31,988,061
Common stock
issued to
directors
for
services 139,907 142 279,858 -- 280,000
Common stock
issued to
officers for
services 783,068 782 263,572 -- 264,354
Common stock
options
granted to
directors
and
advisors
for
services -- - 13,487 -- 13,487
Common stock
options
granted to
officers
and
employees
for
services -- -- 3,541,322 -- 3,541,322
Additional
paid in
capital
from
exchange of
related
party debt,
net -- -- 694,941 -- 694,941
Net loss for
the nine
months
ended
September
30, 2025 -- -- -- (17,693,050) (17,693,050)
---------- ------- ----------- ----------- -----------
Balance,
September
30, 2025 12,223,599 $12,224 $99,212,152 (80,135,261) $ 19,089,115
========== ====== ========== =========== ===========
For the Nine Months Ended September 30, 2024
-----------------------------------------------------------------
Additional Total
Common Stock Paid-in Accumulated Stockholders'
--------------------
Shares Amount Capital Deficit Equity
----------- ------- ----------- ------------ ---------------
Balance,
December
31, 2023 6,029,371 $ 6,029 $66,014,415 $(58,739,995) $ 7,280,449
Common stock
issued in
public
offering,
net of
offering
costs 1,380,000 1,380 11,973,596 -- 11,974,976
Common stock
issued in
private
placement
offering 515,597 516 3,737,484 -- 3,738,000
Proceeds
from the
exercise of
stock
options and
warrants 2,289,209 2,288 5,670,680 -- 5,672,968
Common stock
issued to
directors
for
services 31,211 32 295,616 -- 295,648
Common
stock
options
granted to
directors
and
advisors
for
services -- -- 86,892 -- 86,892
Common
stock
options
granted to
officers
and
employees
for
services -- -- 3,307,854 -- 3,307,854
Net income
for the
three
months
ended
September
30, 2024 -- -- -- 465,821 465,821
---------- ------- ----------- ----------- -----------
Balance,
September
30, 2024 10,245,388 $10,245 $91,086,537 $(58,274,174) $ 32,822,608
========== ====== ========== =========== ===========
SOW GOOD INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months Ended
September 30,
2025 2024
------------ ------------
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income (loss) $(17,693,050) $ 465,821
Adjustments to reconcile net loss
to net cash used in operating
activities:
Bad debts expense 86,339 176,032
Depreciation and amortization 778,800 582,648
Non-cash amortization of
right-of-use asset and
liability 1,786,411 791,360
Non-cash gain on lease exit (1,775,526) -
Inventory valuation and
obsolescence adjustments 5,377,125 -
Common stock issued to officers
and directors for services 544,356 295,648
Amortization of stock options 3,554,809 3,394,746
Amortization of debt discounts 202,200 932,883
Loss on early extinguishment of
debt - 696,502
Decrease (increase) in current
assets:
Accounts receivable 199,051 1,169,269
Prepaid expenses 296,748 360,734
Inventory 3,447,794 (15,319,762)
Security deposits 313,984 (1,011,340)
Increase (decrease) in current
liabilities:
Accounts payable (549,209) 447,563
Income tax payable - 65,603
Accrued interest 174,863 (363,326)
Accrued expenses (79,765) 1,190,375
----------- -----------
Net cash used in operating
activities $ (3,335,070) (6,125,244)
----------- -----------
CASH FLOWS FROM INVESTING
ACTIVITIES
Fixed asset additions and
disposals, net 32,883 (3,143,561)
Cash paid for construction in
progress (33,959) (1,325,726)
----------- -----------
Net cash used in investing
activities (1,076) (4,469,287)
----------- -----------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from common stock
offerings, net - 15,712,976
Proceeds from the exercise of
warrants and options - 373,855
Repayments of borrowings - (956,249)
----------- -----------
Net cash provided by financing
activities - 15,130,582
----------- -----------
NET CHANGE IN CASH AND CASH
EQUIVALENTS (3,336,146) 4,536,051
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 3,723,440 2,410,037
----------- -----------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD $ 387,294 $ 6,946,088
=========== ===========
SUPPLEMENTAL INFORMATION:
Interest paid $ 399 $ 667,293
=========== ===========
Interest received $ 27,266 $ 43,639
=========== ===========
Income taxes paid $ - $ 130,000
=========== ===========
NON-CASH INVESTING AND FINANCING
ACTIVITIES:
Non-cash exercise of warrants $ - $ 5,299,113
=========== ===========
Retirement of Notes Payable,
related party in non-cash debt
exchange $ (2,500,000) $ -
=========== ===========
Issuance of Convertible Notes
Payable, related party,
including accrued interest of
$64,568 in debt exchange $ 2,803,818 $ -
=========== ===========
Repayment of interest $ (64,568) $ (98,750)
=========== ===========
Repayments of borrowings $ (239,250) $ (5,200,363)
=========== ===========
Reclassification of construction
in progress to assets held for
sale $ 713,256 $ -
=========== ===========
Reclassification of construction
in progress to property and
equipment $ 682,469 $ 2,864,649
=========== ===========
SOW GOOD INC.
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND
ADJUSTED EBITDA
Three Months Ended Nine Months Ended
September 30, September 30,
2025 2024 2025 2024
------------ ----------- ------------ ----------
Net income
(loss) $(10,935,484) $(3,379,909) $(17,693,050) $ 465,821
Depreciation and
amortization 268,281 216,164 786,993 582,948
Interest
expense, net 93,274 185,586 361,747 1,199,789
Provision for
income tax - (62,315) - 195,603
----------- ---------- ----------- ---------
EBITDA (10,573,929) (3,040,474) (16,544,310) 2,444,161
Share-based
payments 1,453,953 1,186,871 4,098,239 3,690,362
Gain on
termination of
leases (1,775,528) - (1,775,528) -
Loss on early
extinguishment
of debt - - - 696,502
----------- ---------- ----------- ---------
Adjusted EBITDA $(10,895,504) $(1,853,603) $(14,221,599) $6,831,025
=========== ========== =========== =========
(END) Dow Jones Newswires
November 14, 2025 08:00 ET (13:00 GMT)
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