BHST — BioHarvest Sciences Inc. Common Stock

Summary of BioHarvest Sciences Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 Revenue: $9.1 million, up 25% year-over-year, aligning with guidance.
• Annual Revenue: $34.5 million for 2025, a 37% increase from the previous year.
• Gross Margin: 58% for Q4 (up 100 basis points year-over-year) and 59% for the full year (up 400 basis points).
• Operating Expenses: $6.3 million in Q4, up from $5.8 million, but decreased as a percentage of revenue from 80% to 70%.
• Net Loss: $2.2 million, or $0.10 per share, improved from a loss of $3 million or $0.17 per share in Q4 2024.
• Adjusted EBITDA: $0.5 million, compared to an adjusted EBITDA loss of $1.8 million in the prior year.
• Cash Position: $23 million as of December 31, 2025, significantly up from $2.4 million a year earlier.

2. Strategic Updates and Business Highlights

• Business Structure: BioHarvest operates through two divisions: a direct-to-consumer (D2C) products division (VINIA platform) and a contract development and manufacturing organization (CDMO).
• VINIA Growth: The D2C business achieved $30.6 million in revenue, making it the #1 Resveratrol polyphenol brand in the U.S. with over 85,000 active users.
• New Product Launch: VINIA BloodFlow Hydration launched in December 2025, showing strong early traction with high customer ratings and significant revenue contributions.
• CDMO Expansion: The CDMO division generated approximately $2 million in external revenue, with total activity reaching about $9 million when including internal manufacturing.
• Research and Development: Progress on multiple high-value projects, including collaborations with Saffron Tech and Tate & Lyle, and advancements in fragrance development.

3. Forward Guidance and Outlook

• 2026 Expectations: The D2C business is expected to achieve profitability, while the CDMO is projected to accelerate growth, with revenue guidance of $4 million to $6 million from external customers.
• Gross Margin Goals: Anticipated improvement in gross margins, aiming for 64%-65% by the end of 2026.
• Marketing Strategy: A shift towards digital marketing channels to attract younger consumers, with expectations of improved customer acquisition costs.

4. Bad News, Challenges, or Points of Concern

• Geopolitical Risks: Ongoing conflict in the Middle East raised concerns, although operations remain uninterrupted.
• Operating Losses: Continued net losses indicate the need for careful management of expenses and investments.
• Market Competition: The company faces competitive pressures in the nutraceutical market, necessitating effective differentiation strategies.

5. Notable Q&A Insights

• CDMO Pipeline: The company is actively expanding its CDMO pipeline while also focusing on advancing existing projects to commercialization.
• Revenue Phasing: Revenue growth is expected to be nonlinear, with Q1 anticipated to show moderate growth, followed by acceleration in Q2 and beyond.
• Marketing Efficiency: Investments in marketing are expected to yield efficiencies, particularly through the Health Pros channel, which contributed significantly to new customer revenue.
• Long-term Investments: Management emphasized that current investments in R&D and infrastructure are strategic moves aimed at long-term growth and competitive advantage.

Overall, BioHarvest Sciences is positioned for growth with strong revenue performance, strategic product launches, and a focus on expanding its CDMO capabilities, despite facing some geopolitical and competitive challenges.