Overview

• Frozen beverage maker's Q1 revenue rose 92% yr/yr, driven by Arps Dairy acquisition

• Gross margin fell to 18% from 31% due to milk processing mix and facility transition costs

• Company reiterated full-year 2026 revenue and adjusted EBITDA guidance

Outlook

• Barfresh sees Q2 2026 revenue between $5.2 mln and $5.6 mln

• Company reiterates 2026 revenue guidance of $28 mln to $32 mln

• Company maintains 2026 adjusted EBITDA guidance of $3.2 mln to $3.8 mln

Result Drivers

• ARPS DAIRY ACQUISITION - Revenue growth driven by stronger-than-anticipated contribution from Arps Dairy’s raw and processed milk business

• LOWER MARGINS FROM MILK BUSINESS - Gross margin decline attributed to continuation of Arps Dairy’s milk processing business, which operates at different margin profiles than core business

• FACILITY TRANSITION COSTS - Start-up and implementation costs from transitioning production to new facility temporarily impacted margins

Company press release: ID:nGNX58c5tH

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-alcoholic beverages peer group is "hold."

• Wall Street's median 12-month price target for Barfresh Food Group Inc is $5.25, about 127.3% above its May 13 closing price of $2.31

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