Else Nutrition Reports First Quarter 2026 Results Highlighting Significant Improvement in Gross Margin and Reduced Net Loss
Rhea-AI Summary
Else Nutrition (OTCQX:BABYF) reported Q1 2026 results, with revenue of $1.5 million versus $2.1 million a year ago, mainly due to out-of-stock issues.
Gross margin rose to 40% from 24%, quarterly net loss declined to about $0.6 million from $3.4 million, and operating expenses fell 45% to $1.2 million. Cash balance on March 31, 2026 was $245 thousand, including restricted cash. Management highlighted ongoing work with the FDA on infant formula commercialization and parallel efforts to secure a listing on the Canadian Securities Exchange while addressing TSX delisting challenges.
AI-generated analysis. Not financial advice.
Positive
- Gross margin improved to 40% from 24% in Q1 2025
- Quarterly net loss reduced to about $0.6M from $3.4M year-over-year
- Operating expenses cut 45% to $1.2M from $2.2M
- Gross profit increased to $0.6M from $0.5M
- Company advancing infant formula toward commercialization with U.S. FDA
- Parallel CSE listing pursued to support trading continuity and liquidity
Negative
- Revenue declined to $1.5M from $2.1M in Q1 2025
- Out-of-stock challenges constrained sales during the quarter
- Production capabilities depend on the company’s free cash position
- Cash balance was $245K as of March 31, 2026, including restricted cash
- TSX delisting process has presented additional challenges for the company
"During the first quarter of 2026, we remained intensely focused on strengthening the operational foundation of the business while navigating a challenging capital markets and retail environment," said Hamutal Yitzhak, Chief Executive Officer of Else Nutrition. "While revenue declined for the quarter to
"We also significantly reduced our quarterly net loss to
"Importantly, we continue to see a growing demand for our products, and our belief in the long-term opportunity for clean-label, plant-based nutrition products is strengthening. Consumer awareness around dairy-free, minimally processed and sustainable nutrition solutions continues to expand globally, and Else remains uniquely positioned with differentiated products developed specifically for infants, toddlers, children, and for adults. We believe our proprietary formulations and plant-based platform continue to provide a strong foundation for future growth opportunities across multiple markets and channels. We understand that AI changes how consumers search for solutions, and we are working hard to adapt to this changing environment."
"We also continue to work closely with the
"Management remains highly focused on maintaining trading continuity and preserving access to the public markets for our shareholders. While we continue to make every effort to maintain our current TSX listing, management is acting cautiously and diligently and is pursuing in parallel a listing on the Canadian Securities Exchange to help ensure market continuity for the benefit of our shareholders. We believe applying for a CSE listing represents an important step toward supporting continued liquidity and operational flexibility while we execute on our strategic priorities. Although the TSX delisting process has presented additional challenges, we remain focused on advancing the business, strengthening our financial position, and continuing to build long-term value around our differentiated plant-based nutrition platform."
"Looking ahead, our priorities remain centered on disciplined execution, strategic partnerships, operational efficiency and strengthening the Else brand as we continue working to create long-term value for shareholders and advance our mission of delivering innovative plant-based nutrition products to families worldwide," concluded Ms. Yitzhak.
2026 First Quarter Financial Results
All figures are in CAD unless otherwise indicated.
- Revenue for the three months ended March 31, 2026 was
$1.5 million $2.1 million - Operating expenses for the quarter were
$1.2 million $2.2 million - Gross profit for the first quarter of 2026 was
$0.6 million 40% ), compared to$0.5 24% ) million in the comparable prior-year quarter. - Cash balance as of March 31, 2026, was
$245 thousand dollars
About Else Nutrition Holdings Inc.
Else Nutrition Holdings Inc. (TSX: BABY, OTCQX: BABYF, FSE: 0YL) is a food and nutrition company in the international expansion stage focused on developing innovative, clean, and plant-based food and nutrition products for infants, toddlers, children, and adults. Its revolutionary, plant-based, non-soy formula is a clean-ingredient alternative to dairy-based formulas. Since launching its Plant-Based Complete Nutrition for Toddlers, made of whole foods, almonds, buckwheat, and tapioca, the brand has received thousands of powerful testimonials and reviews from parents, gained national retailer support, and achieved rapid sales growth.
Awards and Recognition:
- "2017 Best Health and Diet Solutions" award at
Milan's Global Food Innovation Summit - #1 Best Seller on Amazon in the Fall of 2020 in the New Baby & Toddler Formula Category
- "Best Dairy Alternative" Award 2021 at World Plant-Based Expo
- Nexty Award Finalist at Expo West 2022 in the Plant-Based lifestyle category
- During September 2022, Else Super Cereal reached the #1 Best Seller in Baby Cereal across all brands on Amazon
- In May 2024 Else Nutrition's Ready-to-Drink Kids Vanilla Shake Named Among the Best in Family-Friendly Products by the Prestigious Mom's Choice Awards®
TSX
Neither the TSX nor its regulation services provider (as that term is defined in the policies of the TSX) accept responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward-Looking Statements
This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as "will" or similar expressions. Forward-looking statements in this press release include statements with respect to the anticipated dates for filing the company's financial disclosure documents. Such forward-looking statements reflect current estimates, beliefs, and assumptions, which are based on management's perception of current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. No assurance can be given that the foregoing will prove to be correct. Forward-looking statements made in this press release assume, among others, the expectation that there will be no interruptions or supply chain failures as a result of COVID-19 and that the manufacturing, broker, and supply logistic agreement with the company does not terminate. Actual results may differ from the estimates, beliefs, and assumptions expressed or implied in the forward-looking statements. Readers are cautioned not to place undue reliance on any forward-looking statements, which reflect management's expectations only as of the date of this press release. The company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
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SOURCE Else Nutrition Holdings Inc.