Laird Superfood Inc (NYSEARCA:LSF) Reports Q3 2025 Revenue Miss and Stock Decline

Laird Superfood Inc (NYSEARCA:LSF) reported its financial results for the third quarter of 2025, revealing a mixed performance that has been met with a negative reaction in after-hours trading. The company, known for its plant-based superfood products, posted sales growth but fell short of analyst revenue expectations, contributing to a decline in its stock price.

Earnings and Revenue Versus Estimates

The company's top-line performance showed continued growth but failed to meet market expectations. For the third quarter, Laird Superfood reported net sales of $12.9 million, representing a 10% increase compared to the same period last year. However, this figure came in below analyst estimates of $14.3 million.

The earnings picture was more complex. The company reported a net loss of $1.0 million, or $0.09 per diluted share, which showed improvement over the analyst estimate of a $0.0438 loss per share. This better-than-expected bottom-line performance was overshadowed by the revenue miss and other operational challenges.

Key financial metrics from the quarter include:

• Reported Revenue: $12.9 million vs. Estimate: $14.3 million
• Reported EPS (Non-GAAP): -$0.03 vs. Estimate: -$0.0438
• Gross Margin: 36.5%, down from 43.0% in the prior year period

Market Reaction and Price Action

The market's response to the earnings release has been decidedly negative. Following the announcement, the stock experienced a decline of approximately 5.5% in after-market trading. This immediate reaction suggests investor concern over the company's ability to meet revenue targets despite controlling its net loss more effectively than anticipated.

The recent trading pattern shows broader weakness, with the stock down:

• Approximately 0.15% over the past two weeks
• More than 21% over the past month

This downward trend indicates that market sentiment had already been cautious heading into the earnings report, with the quarterly results failing to provide the positive catalyst needed to reverse the slide.

Operational Highlights and Challenges

The earnings release highlighted several important operational developments. Wholesale sales emerged as a significant growth driver, increasing 39% year-over-year and now contributing 53% of total net sales. This expansion in retail distribution represents a strategic shift for the company.

Conversely, the company faced headwinds in its e-commerce channel, where sales decreased by 11% compared to the prior year period. Management attributed this decline to "softening of new-customer sales on our direct-to-consumer platform," though noted this was partially offset by growth on Amazon.com.

Other notable operational aspects include:

• Laird Superfood branded products increased 14% year-over-year
• Picky Bars branded products declined by 45%
• Gross margin compression due to commodity cost inflation and tariff costs
• The company ended the quarter with $5.3 million in cash and no debt

Forward Outlook and Analyst Expectations

Looking ahead, management provided updated guidance for the full year 2025, now expecting net sales growth of approximately 15%. This projection appears ambitious when compared to current analyst expectations, which had been more modest. The company also reaffirmed its expectation of achieving breakeven Adjusted EBITDA for the full year while anticipating a net loss on a GAAP basis.

For the upcoming fourth quarter, analysts have projected:

• Estimated Revenue: $14.6 million
• Estimated EPS: -$0.054

Management acknowledged that as the business shifts more toward wholesale, "variability may increase due to the timing of larger orders from key customers," but expressed confidence in the underlying demand trends supporting their growth outlook.

The company's ability to convert strategic inventory investments into sales will be crucial in the coming quarters, particularly as it works to normalize cash usage after reporting $2.9 million in cash used in operating activities for the first nine months of 2025.

For more detailed earnings information and future estimates, you can review the complete LSF earnings data and analyst projections.

Disclaimer: This article provides financial analysis for informational purposes only and does not constitute investment advice, recommendation, or solicitation to buy or sell any securities. Investors should conduct their own research and consult with financial advisors before making investment decisions.