Wed, May 7, 8:48 PM (4 days ago)
### Laird Superfood, Inc. (LSF) Q1 2025 Financial Performance Summary **Company Overview:** Laird Superfood, Inc. (LSF) focuses on creating clean, functional, and sustainability-conscious food products. The company operates through e-commerce and wholesale channels, selling coffee creamers, hydration products, snacks, and other food items. **Financial Health and Performance Metrics:** - **Revenue:** Q1 2025 revenue increased by 18% to $11.7 million from $9.9 million in Q1 2024. This growth was driven by a 35% increase in wholesale sales and a 6% increase in e-commerce sales. - **Profit Margins:** Gross profit rose by 23% to $4.9 million, with a gross margin of 41.9% compared to 40.0% in Q1 2024. Operating expenses increased by 1%, with general and administrative expenses up by 4% and sales and marketing expenses down by 1%. - **Net Loss:** The net loss narrowed significantly to $156,182 in Q1 2025 from $1.02 million in Q1 2024, reflecting improved operational efficiency. - **Cash Flow:** Cash used in operating activities was $1.27 million, primarily due to strategic investments in working capital to meet higher demand. Cash used in investing activities was $72,214, and cash used in financing activities was $3,832. **Earnings and Trends:** - **Sales Growth:** The increase in net sales was driven by velocity improvements and distribution gains in grocery and club stores, partially offset by increased promotional trade spend. - **Operating Expenses:** The slight decrease in sales and marketing expenses was due to planned reductions in marketing and advertising spend, offset by increased selling costs due to higher sales volume. - **Cash Flow:** The company invested in working capital to address higher demand and prevent future out-of-stocks, leading to increased cash used in operating activities. **Future Operations and Uncertainties:** - **Growth Strategy:** LSF aims to grow its customer base through e-commerce and wholesale channels, manage co-manufacturer relationships, and expand product lines. - **Supply Chain:** The company faces challenges in sourcing raw materials and managing supply chain disruptions, which could impact future performance. - **Market Risks:** Economic pressures, including inflation and tariffs, may affect net sales and profitability. The company is monitoring these factors and evaluating potential cost-saving measures. **Conclusion:** Laird Superfood, Inc. showed significant improvement in Q1 2025, with increased revenue, improved profit margins, and a narrower net loss. The company's strategic investments in working capital and operational efficiency are expected to support future growth, despite potential market uncertainties.