Despite 22.9% revenue growth, the deeply negative gross margin (-29%), accelerating cash burn, and $62.3M accumulated deficit on a $1.95M cash balance signal severe financial strain. Monitor the upcoming 10-Q for cash runway disclosure and any financing needs — the RTD pivot requires significant capital that the current balance sheet cannot support.
Price Chart
Executive Summary
Edible Garden AG Inc reported Q1 2026 revenue of $3.3M, up 22.9% YoY from $2.7M, driven by 46% growth in cut herb sales and broad-based gains across vitamins, supplements, and condiments. However, the net loss widened to $3.7M from $3.3M, operating expenses surged 77.5% to $10.0M due to a $2.5M accelerated depreciation charge from the RTD pivot, and gross margin remained deeply negative at -29% (Q1 2025: 0%). The company continues to invest heavily in its RTD platform with Tetra Pak, but the cash burn and negative margins are significant concerns for a micro-cap with only $1.95M cash on hand.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $3.3M, +22.9% YoY from $2.7M
- Net loss widened to $3.7M from $3.3M YoY
- Operating expenses surged 77.5% to $10.0M, including $2.5M accelerated depreciation
- Gross margin negative at -29% vs 0% in prior year period
- Cash balance $1.95M as of March 31, 2026
- Accumulated deficit reached $62.3M
- Company advancing RTD platform with Tetra Pak integration
Financial Impact
Revenue growth of $0.6M YoY offset by $4.4M increase in operating expenses and $2.5M accelerated depreciation charge
Risk Factors
- Cash balance of $1.95M insufficient to fund ongoing losses and RTD capital expenditures
- Gross margin deeply negative at -29%, indicating core operations are not profitable
- Accumulated deficit of $62.3M with no clear path to profitability
- Accelerated depreciation of $2.5M suggests asset write-downs may continue
- Dilution risk from potential equity financing given cash constraints
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001477932-26-003155 |
| Document: edbl_8k.htm | 0001477932-26-003155 |
| Document: 0001477932-26-003155-index-headers.html | 0001477932-26-003155 |
| Document: 0001477932-26-003155-index.html | 0001477932-26-003155 |
| Document: 0001477932-26-003155.txt | 0001477932-26-003155 |
| 8-K Data (Synthetic) | 0001477932-26-003155 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
May 29, 2026 21w ago | 8-K | $0.1398 $0.0378 | ▲ +72.96% | ▲ +74.19% | — |
May 21, 2026 22w ago | 8-K | $0.1398 $0.0414 | ▲ +70.39% | ▲ +73.58% | — |
May 15, 2026 23w ago | 8-K | $0.1398 $0.0248 | ▲ +82.26% | ▲ +86.78% | — |
Apr 24, 2026 26w ago | 8-K | $0.1398 $0.0328 | ▼ −76.54% | ▼ −81.32% | — |
Mar 31, 2026 29w ago | 8-K | $0.1398 $0.0390 | ▲ +72.10% | ▲ +85.48% | — |
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