10-Q · June 30, 2026
Borealis Foods Inc. reported Q4 revenue of $9 million, matching investor expectations but remaining stable compared to the previous quarter. However, earnings continue to reflect a challenging operational environment,…
Earnings analysis · 10-K
BRLS earnings analysis
Filed September 30, 2026 · Our reading of the company's report
The latest report
Borealis improved revenue, gross profit, operating loss and EPS in 2025, supported by a 35.6% reduction in SG&A and stronger Midwest sales. However, the company remains structurally unprofitable, generated negative…
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Borealis improved revenue, gross profit, operating loss and EPS in 2025, supported by a 35.6% reduction in SG&A and stronger Midwest sales. However, the company remains structurally unprofitable, generated negative operating cash flow of $6.6 million, held only approximately $64,000 of cash, and received a going-concern qualification from its auditors. The subsequent related-party refinancing provides additional maturity runway but carries 12% interest and is tied to a required $70 million equity raise, leaving the financial outlook highly constrained.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
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
- Earnings per share
- $-0.89
- Segment
- Single reportable segment: manufacture and sale of ready-to-eat meals.
- Segment
- 2025 gross revenue by region: Southeast $10,695,000; Midwest $9,446,000; Southwest $3,400,000; Northeast $2,441,000; Mountain $2,186,000; Pacific $1,839,000; International $1,469,000.
What stood out
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Innovation-led ready-to-eat food strategy
Borealis describes itself as a food technology integrator developing and commercializing tasty, affordable, sustainable and nutritious ready-to-eat meals across the United States, Canada, Central America, South America and Europe. Management states that innovation is a critical competitive advantage and is focused on enhancements to existing formulations and production processes as well as new products.
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Revenue and gross profit improved
Net revenue increased to $30,079,571 in 2025 from $27,668,894 in 2024, while gross profit rose to $3,511,370 from $2,189,511. The gross margin therefore improved to approximately 11.7% from 7.9%.
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Meaningful SG&A reduction
The operating loss narrowed to $11,035,985 in 2025 from $20,404,975 in 2024, as sales, general and administrative expense declined to $14,547,355 from $22,594,486, a reduction of approximately 35.6%.
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Loss per share improved
Net loss improved to $18,978,618, or $0.89 per diluted share, from a net loss of $25,327,198, or $1.25 per diluted share, in 2024. The improvement includes lower SG&A, although the company remained materially loss-making.
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Midwest drove geographic growth
Geographic mix shifted toward the Midwest, where gross revenue increased to $9,446,000 from $4,307,000, and away from the Pacific region, where revenue declined to $1,839,000 from $5,109,000. Southeast remained the largest region at $10,695,000, despite declining from $11,933,000.
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Capex was kept near zero
Capital spending was sharply reduced: purchases of property, plant and equipment were $3,078 in 2025 versus $1,651,403 in 2024. This conserved cash but also indicates limited incremental investment during a period when management seeks higher production volumes.
What to watch
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Severe liquidity and going-concern risk
The auditors stated that substantial doubt exists about the company’s ability to continue as a going concern. At December 31, 2025, cash was approximately $64,000, negative working capital was approximately $61,762,000, current liabilities were approximately $69,817,000 versus current assets of approximately $8,055,000, and operating cash flow was negative $6,598,823.
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Refinancing and required equity raise
Debt balances outstanding at December 31, 2025 were due entirely in 2026, totaling $25,792,000. Although the company subsequently refinanced its senior facility with a related-party lender through a term loan of up to $17,000,000 at 12% interest, it also became obligated to raise at least $70,000,000 of equity at no less than $9.00 per share by June 30, 2026; failure would permit conversion of outstanding convertible notes into equity.
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Material customer concentration
Customer concentration increased materially: two customers represented approximately 35% of 2025 net revenue, while receivables from three customers represented approximately 51% of accounts receivable, up from 37% in 2024. Loss or deterioration of a major customer could therefore materially affect revenue and collections.
Management's outlook
No quantitative annual revenue or EPS guidance was provided. Management instead describes plans to reduce SG&A, increase production volumes, convert related-party debt to equity, and pursue additional financing.
Earlier filings 4
10-K · June 2, 2026
Borealis Foods Inc. reported an 8.7% increase in revenue to $30.08 million for fiscal 2025, driven primarily by growth in its institutional food service channel and improved gross margins, reaching 11.7%. The company…
10-Q · November 19, 2025
Borealis Foods reported Q3 net revenue of $7,103,749 and a GAAP net loss of $(3,780,821), or $(0.18) per share. Gross profit was $1,040,558 (approx. 14.7% of revenue) while operating loss narrowed to $(1,924,857) from…
10-Q · May 20, 2025
Borealis Foods, Inc. reported a slight revenue decline in Q1 2025, generating $6.85 million compared to $7.90 million in the prior year, while gross margins improved to 12.5%, indicating a shift towards higher-margin…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.