Organto Foods Announces Fiscal 2025 Financial Results

• Organto Foods Inc. reported Fiscal 2025 financial results on April 28, 2026, marking a record sales year of $60.8 million, up 194% year-over-year.
• The company eliminated all short-term loans and convertible debentures, reducing debt from $12.5 million to zero.
• Net equity shifted from negative $13.9 million in 2024 to positive $8.8 million at the end of Fiscal 2025.
• Despite revenue growth, EBITDA remained negative at -$1.15 million (-1.9% of sales), though improved from -6.5% in the prior year.
• Cash position stands at $5.7 million (excluding restricted cash), with working capital improving to $7.6 million from a deficit of $14.6 million in 2024.
• Q4 2025 sales were $14.9 million, up 132% YoY, but gross profit margins remained thin at 8.6%.

• The news confirms the successful execution of a restructuring plan announced piecemeal throughout late 2025 and early 2026 (debt prepayments in Nov 2025, warrant exercises in Feb 2026).
• While the balance sheet cleanup is significant (zero debt, positive equity), it was largely anticipated following the November convertible note prepayment announcement and February warrant incentive completion.
• Revenue growth validates the operational expansion strategy but does not yet translate to profitability; EBITDA remains negative.
• The discrepancy between the April 16 run-rate claim of $100 million annualized sales and the actual FY25 result of $60.8 million suggests the run rate is forward-looking for 2026 rather than a reflection of past performance, requiring scrutiny in future quarters.
• This release serves as a confirmation of solvency rather than a new catalyst, making it Routine - Positive.

• Organto Foods Inc. operates as an integrated organic food distributor connecting certified organic growers to retailers in Europe.
• The company utilizes a "farm-to-shelf" model, managing sourcing, logistics, quality control, and certification.
• Flagship operations are concentrated in European markets with recent expansion into Switzerland, Ukraine, and Spain.
• The business model relies on high volume and low margins (8.6% gross profit), requiring significant working capital efficiency to generate cash flow.