Else Nutrition Reports 2025 Second Quarter Financial Results and Provides Business Update

Executive Summary

• Else Nutrition Holdings Inc. reported financial results for the second quarter ended June 30, 2025, highlighting a significant decline in revenue and gross profit due to temporary inventory constraints and out-of-stocks.
• The company achieved a substantial reduction in operating expenses, down 62% year-over-year, which helped cut the operating loss by more than half compared to the previous year.
• Management provided a business update focusing on regulatory momentum in the U.S., supply chain optimization, and strategic cost-cutting measures, with a goal to achieve cash-flow positivity by late 2026 or early 2027.

Key Details

• Revenue: $1.5 million for Q2 2025, a decrease from $2.6 million in Q2 2024.
• Operating Expenses: $1.3 million for Q2 2025, representing a 62% decrease from $3.4 million in Q2 2024.
• Gross Profit: A loss of $0.06 million for Q2 2025, compared to a profit of $0.26 million in Q2 2024.
• Gross Profit Margin: -3.7% for Q2 2025, compared to 10% in Q2 2024.
• Cash Position: Cash balance as of June 30, 2025, was $0.9 million (including restricted cash).
• Cost Reductions: Operating expenses are down 65% over the last 15 months, including a 50% reduction in wages.
• Operational Issues: Revenue was impacted by temporary inventory constraints and out-of-stocks; production is underway with expected availability the following month.
• One-Time Items: Late 2024 deductions totaling approximately CAD $270 thousand in the U.S. and Canada reduced both revenue and gross profit, though these were not reflective of Q2's operating performance.
• Strategic Updates:
  • Transitioning to European-based powder production.
  • Restructuring Canadian operations to build a more profitable distribution model.
  • Discussions underway with multinational companies regarding distribution and R&D collaborations.
  • Regulatory momentum noted in the U.S., including "Operation Stork Speed," the FY2026 Agriculture Appropriations Bill, and recommendations from the National Academies of Sciences, Engineering, and Medicine.
  • Confidence in advancing plant-based infant formula clinical trials.
  • Target to achieve cash-flow positivity by late 2026 or early 2027.

Notable Quotes

• "The second quarter marked steady progress in our transformation journey... we streamlined operations, advanced regulatory momentum, and continued to build a pipeline for long-term sustainable growth." — Hamutal Yitzhak, CEO & Co-Founder
• "We are especially encouraged by the regulatory developments in the United States... Together, these signal a clearer pathway for modernizing infant formula standards and give us increased confidence in advancing our plant-based infant formula clinical trials." — Hamutal Yitzhak, CEO & Co-Founder
• "From a financial standpoint, revenue was impacted by temporary inventory constraints and out-of-stocks, however, demand for our products remains strong and production is now underway with expected availability next month." — Hamutal Yitzhak, CEO & Co-Founder
• "At the same time, we are actively reducing costs, with operating expenses down more than 60% year-over-year... which helped us cut our operating loss by more than half for the second quarter of 2025." — Hamutal Yitzhak, CEO & Co-Founder