Summary of BioHarvest Sciences Q2 2026 Earnings Call

1Key Financial Results and Metrics

Revenue: $8.8 million, up 3.8% year-over-year from $8.5 million.

Cost of Revenue: $3.7 million, compared to $3.4 million last year.

Gross Profit: $5.1 million (58% of revenue), slightly down from 59% last year.

Operating Expenses: $7.6 million, an increase from $6.9 million last year, driven by technology development and marketing investments.

Net Loss: $3.7 million ($0.17 per share), improved from a loss of $4.1 million ($0.24 per share) in the previous year.

Adjusted EBITDA Loss: $1.6 million, compared to $1.2 million last year.

Cash Position: $16.2 million as of June 30, 2026, significantly up from $3.7 million a year prior.

2Strategic Updates and Business Highlights

CDMO Agreement: BioHarvest secured its first contract for manufacturing and supply with a UAE-based customer for a luxury fragrance, expected to generate $20 million to $30 million in revenue in 2027-2028.

Saffron Development: Progress in the CDMO division with the completion of Stage 1 of a saffron development agreement, moving to Stage 2 valued at $1.125 million.

Partnership with Tate & Lyle: Expanded collaboration to develop multiple plant-based sweeteners, with potential for future manufacturing agreements.

Innovation Grants: Received a $1.4 million grant from the Israel Innovation Authority to enhance research initiatives integrating advanced technologies into plant cell culture workflows.

3Forward Guidance and Outlook

Revenue Guidance: Total revenue for 2026 revised to $37 million to $40 million, down from $42 million to $48 million.

EBITDA Loss: Expected consolidated EBITDA losses revised to $3 million to $5 million, slightly higher than the previous forecast of $3 million to $4 million.

Direct-to-Consumer Business: VINIA revenue guidance reduced to $33 million to $35 million, with an anticipated EBITDA loss of $1.5 million to $2.5 million, reflecting a strategic reallocation of resources.

4Bad News, Challenges, or Points of Concern

Increased Operating Expenses: Rising costs in sales and marketing, as well as R&D, are impacting profitability.

Declining Direct-to-Consumer Revenue: The reduction in revenue guidance for the VINIA product line indicates challenges in the direct-to-consumer market, including increased media costs and competitive pressures.

Adjusted EBITDA Loss: The increase in adjusted EBITDA loss suggests ongoing financial strain despite revenue growth.

5Notable Q&A Insights

CDMO Contract Production: Production will commence in early 2027, with revenue recognition expected before the completion of Stage 2 development.

Focus on High-Value Projects: The tightening of CDMO revenue guidance is attributed to a strategic shift towards high-value projects rather than a broad range of opportunities.

Retail Opportunities: Discussions for retail expansion continue alongside CDMO initiatives, indicating a dual focus on both business segments.

Capital Expenditure Strategy: The company aims to manage capital expenditures carefully to avoid raising equity, planning to stagger investments in facility expansion based on cash flow from operations. Overall, BioHarvest Sciences is navigating a complex landscape with promising strategic initiatives in the CDMO space, though it faces challenges in its direct-to-consumer business and rising operational costs. The company remains focused on achieving EBITDA breakeven by 2027 while managing its cash reserves prudently.