Eshbal Reports Record Q1 2026 Revenues, Up 43% YoY

Executive Summary

• Q1 2026 revenue surged 43% to US$5.38 million, with gross profit rising 41% to US$1.55 million, though gross margin remained stable at approximately 29%.
• Operating income and EBITDA declined year-over-year to US$254 thousand and US$512 thousand respectively, driven by increased operating expenses from recent acquisitions and North American platform expansion.
• Financial results include initial partial-quarter contributions from the February 2026 acquisitions of Gluten Free Nation and Dare to Be Different Foods, supporting the company's strategic growth into North American retail, foodservice, and e-commerce channels.

Key Details

• Revenue: US$5.38 million in Q1 2026, a 43% increase from US$3.76 million in Q1 2025.
• Gross Profit: US$1.55 million in Q1 2026 (up 41% from US$1.10 million in Q1 2025), with gross margin stable at ~29%.
• Operating Income: US$254 thousand in Q1 2026, down from US$434 thousand in Q1 2025.
• Income Before Taxes: US$149 thousand in Q1 2026, down from US$390 thousand in Q1 2025.
• EBITDA: US$512 thousand in Q1 2026, down from US$604 thousand in Q1 2025.
• Acquisitions: Partial-quarter financial results included from the acquisitions of Gluten Free Nation and Dare to Be Different Foods, both closed in February 2026.
• Operational Expansion: Continued expansion of North American commercial activities across retail, foodservice, and e-commerce channels, alongside expanded local commercial production capabilities.
• Non-GAAP Reconciliation (Q1 2026): Operating income before interest and tax of $254k, plus $58k in share-based compensation and $200k in depreciation, resulting in EBITDA of $512k.

Notable Quotes

• "We are pleased with the Company's strong start to 2026, highlighted by record quarterly revenues and continued expansion of our North American operations," said Tomer Bar Meir, Chief Executive Officer of Eshbal. "During the quarter, we completed the acquisitions of Gluten Free Nation and Dare to Be Different, continued advancing our retail, foodservice and e-commerce activities in North America, and expanded local commercial production capabilities. While these initiatives increased operating expenses during the quarter, management believes these initiatives establish important infrastructure for future growth."