10-Q · May 14, 2026
Barfresh Food Group reported a significant revenue increase of 92% year-over-year for Q1 2026, reaching $5.6 million, driven largely by the acquisition of Arps Dairy. Despite this growth, operating margins are under…
Earnings analysis · 10-Q
BRFH earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
Barfresh reported second-quarter revenue of $4.7 million, up approximately 190% year over year but below the $5.3548 million consensus estimate, while gross margin fell to negative 3.2%. Management lowered full-year…
Read full summary
Barfresh reported second-quarter revenue of $4.7 million, up approximately 190% year over year but below the $5.3548 million consensus estimate, while gross margin fell to negative 3.2%. Management lowered full-year 2026 revenue guidance to $23.0 million-$26.0 million from $28.0 million-$32.0 million and expects an Adjusted EBITDA loss of $1.0 million-$2.0 million. The 10-Q also disclosed ineffective controls as of June 30, 2026, including a material weakness related to inadequate segregation of duties and information-technology controls.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Gross margin
- -3.2%
What stood out
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Revenue grew but missed consensus
Second-quarter revenue was $4.7 million, approximately 190% above the $2.0 million reported in the prior-year quarter, but below the $5.3548 million consensus estimate.
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Production scale-up pressured margins
The company reported a negative 3.2% gross margin in the second quarter, reflecting production inefficiencies and startup costs.
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Selling costs improved
Selling and distribution costs improved during the quarter, partially offsetting the impact of startup costs and slower production efficiency.
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Financing supports capacity buildout
The company received financing and grant support for its capacity buildout, providing additional resources for production expansion.
What to watch
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Material weakness in internal controls
Disclosure controls were not effective as of June 30, 2026. Management identified a material weakness in the control environment, primarily inadequate segregation of duties and information-technology control activities.
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Manufacturer dispute and litigation
The company has an ongoing dispute with its manufacturer, and the outcome cannot currently be predicted. It is also a defendant in a separate legal proceeding involving an amount below $100,000.
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Equity issuance and dilution
The company issued 59,289 shares to three directors in settlement of vested restricted stock units with a grant-date value of $150,000, creating potential shareholder dilution while the company remains loss-making.
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Lower outlook and continued losses
Full-year 2026 revenue guidance was reduced from $28.0 million-$32.0 million to $23.0 million-$26.0 million, while Adjusted EBITDA guidance calls for a loss of $1.0 million-$2.0 million.
Management's outlook
Full-year 2026 revenue guidance was lowered to $23.0 million-$26.0 million from $28.0 million-$32.0 million. Adjusted EBITDA guidance is a loss of $1.0 million-$2.0 million, with second-half Adjusted EBITDA expected at negative $0.5 million to breakeven.
Earlier filings 2
10-K · April 15, 2026
Barfresh completed the strategic acquisition of Arps Dairy on October 3, 2025, bringing in a 15,000‑sq ft dairy processing facility and a new 44,000‑sq ft facility under construction for 2026 to add in‑house…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.