BioHarvest Sciences Reports Second Quarter 2025 Financial Results

Rhea-AI Summary

BioHarvest Sciences (NASDAQ: BHST) reported strong Q2 2025 financial results with revenue growing 41% year-over-year to $8.5 million and gross margins expanding to 60%. The company's VINIA® product line continues to perform well, with 65,000 active U.S. users and over $60 million in cumulative revenue since its 2021 launch.

Key developments include securing new CDMO contracts, launching VINIA® Daily Chews 2X Formula, and advancing three growth initiatives: a Health Pros affiliate program, entry into the electrolyte drinks market, and an AI-enabled CDMO discovery service. Management expects Q3 2025 revenues of at least $9.1 million and projects reaching adjusted EBITDA breakeven in Q4 2025.

Positive

• Revenue growth of 41% year-over-year to $8.5 million
• Gross margin expansion of 800 basis points to 60%
• Core capsule business grew 28% while new products increased 100%
• Successful advancement of CDMO projects with new contracts and milestone achievements
• Strong VINIA® user base with 65,000 active U.S. users

Negative

• Net loss increased to $4.0 million ($0.24 per share) from $0.7 million year-over-year
• Operating expenses increased 44% to $6.9 million
• Adjusted EBITDA loss of $1.3 million, slightly worse than previous year
• General and administrative expenses increased 61% due to one-time compliance costs

Insights

Financial Analyst

BioHarvest reports strong 41% YoY revenue growth with expanding margins, but deeper losses amid strategic investments for future profitability.

BioHarvest's Q2 2025 results demonstrate robust revenue growth of 41% year-over-year to $8.5 million, perfectly aligning with management's guidance. The company achieved an impressive gross margin expansion of 800 basis points to 60%, reflecting improved manufacturing scale and yields. This financial performance is built on balanced growth foundations, with their core VINIA capsule business growing 28% while new products doubled, contributing approximately 20% of overall growth.

The company's active user base now stands at 65,000 in the U.S., having generated cumulative revenue exceeding $60 million since the U.S. launch in May 2021. This represents solid customer traction and product-market fit. However, investors should note the widening net loss of $4.0 million ($0.24 per share) compared to $0.7 million ($0.04 per share) in Q2 2024, primarily due to non-cash finance expenses from exchange rate impacts.

The adjusted EBITDA loss remained relatively stable at $1.3 million, suggesting the core operational performance isn't deteriorating despite increased investments. Management's outlook is encouraging, with Q3 2025 revenue projected to reach at least $9.1 million and adjusted EBITDA breakeven expected by Q4 2025. The 61% increase in G&A expenses was attributed to one-time NASDAQ compliance costs, which shouldn't recur.

The company's cash position improved to $3.7 million from $2.4 million at the end of 2024, providing runway for their planned growth initiatives. The development of their CDMO (Contract Development and Manufacturing Organization) business represents a strategic diversification beyond consumer products, with key milestone achievements already contributing to revenue growth and a promising pipeline for future conversion in the next 6-9 months.

The three announced growth initiatives—Professional Affiliate Program, entry into the $13B+ electrolyte hydration market, and AI-enabled CDMO discovery services—represent calculated investments that could accelerate their path to profitability while expanding their total addressable market.

Robust 41% Year-Over-Year Revenue Growth, Driven by Strong Core Capsule and New Product Sales

Rehovot, Israel--(Newsfile Corp. - August 11, 2025) - BioHarvest Sciences Inc. (NASDAQ: BHST) (FSE: 8MV0) ("BioHarvest" or the "Company"), a company pioneering its patented Botanical Synthesis technology platform, today reported its financial and operational results for the second quarter ended June 30, 2025.

Second Quarter 2025 Highlights
All figures stated in this news release are in U.S. dollars unless stated otherwise.

• Total revenues for the second quarter of 2025 increased 41% year-over-year to $8.5 million, in line with management guidance, with gross margins of 60% expanding by 800 basis points year-over-year.
• Total U.S. active VINIA® users now 65,000, with >$60 million of cumulative revenue realized since USA launch in May 2021.
• Business delivering balanced growth, with new products representing ~20% of growth and the core VINIA capsule business driving ~80% of growth.
• Core capsule business grew by 28% with new products increasing by 100%.
• Secured a new Stage 1 CDMO contract to develop a plant-based fragrance compound, derived from a plant that is under significant threat due to over-harvesting and habitat loss.
• Announced first CDMO project to reach Stage 2 with completion of Stage 1 development for the CDMO contract with a Nasdaq-listed pharmaceutical company with an approved drug, successfully validating the botanical synthesis platform for a variety of molecule types.
• Launched VINIA® Daily Chews 2X Formula. This "first-of-its-kind" chew features 3^rd party certification and is designed to enhance blood flow and oxygen delivery for athletes and individuals with highly active lifestyles.

Subsequent 2025 Outlook

• Management expects third quarter 2025 revenues of at least $9.1 million
• Additional products and CDMO services to be launched in the second half of 2025
• Expectations to reach adj. EBITDA breakeven in the fourth quarter of 2025

Management Commentary

Ilan Sobel, CEO of BioHarvest Sciences, said: "The second quarter of 2025 was another strong quarter of operational execution, as we achieved our revenue guidance and advanced toward our goal of adjusted EBITDA breakeven in Q4 of this year. Results were driven by a combination of continued growth in both our core VINIA® capsule business and in recently launched "VINIA Inside" portfolio products. In addition, our CDMO business unit continues to increase its contribution to revenue growth as we recognize the dollars related to key milestone achievements with our customers. Our CDMO pipeline remains robust with multiple potential customers that we expect could convert in the next 6-9 months."

Looking ahead to the second half of 2025, the Company will launch three growth initiatives:

1. 'Health Pros' Professional Affiliate Program - A new network of health practitioners, athletes, coaches and health influencers with significant social media followings aimed at expanding VINIA's reach and driving subscriber growth at lower acquisition costs, with a target of 300 of these "Health Pros" onboarded by year-end.
2. Electrolyte Drinks Entry - Launching VINIA® BloodFlow Hydration Solution in October 2025, the first electrolyte beverage powered by blood flow, featuring six flavors and targeting the $13B+ electrolyte hydration market.
3. AI-Enabled CDMO Discovery Phase - A new billable service combining proprietary AI in rare plant biology with scientific expertise to accelerate client projects from pipeline to Stage 1 project, expected to drive additional CDMO revenue.

Management reiterates its focus on profitable growth and category-defining innovation, positioning botanical synthesis as a commercial engine for high-value plant-based compounds.

Second Quarter 2025 Financial Results
All figures stated in this news release are in U.S. dollars unless stated otherwise.

Revenues for the second quarter of 2025 increased 41% to $8.5 million - in line with management's revenue guidance - as compared to $6.0 million in the second quarter of 2024. The increase was a result of the continued success of the Company's VINIA® family of products.

Gross profit increased 65% to $5.1 million, or 60% of total revenue, in the second quarter of 2025, as compared to $3.1 million, or 52% of total revenue, in the same year-ago quarter. The increase in gross margin was primarily attributable to the benefits of increased manufacturing scale and improved manufacturing yields.

Total operating expenses for the second quarter totaled $6.9 million, as compared to $4.8 million in the same year-ago quarter. The increase in operating expenses was primarily due to increased marketing spend and the development of the health pro affiliates program to support future revenue growth - and higher expenses from the CDMO services division. General and administrative expenses increased 61% year-over-year due to one-time costs associated with our NASDAQ corporate compliance upgrade.

Net loss for the second quarter of 2025 totaled $4.0 million, or $0.24 per basic and diluted share, as compared to a net loss of $0.7 million, or $0.04 per basic and diluted share, in the same year-ago quarter. Q2 2025 increase in net loss vs PY was primarily due to non cash finance expenses associated with exchange rate impact.

Adjusted EBITDA loss - a non-IFRS measure - totaled $1.3 million in the second quarter of 2025, as compared to an adjusted EBITDA loss of $1.2 million in the same year-ago quarter.

Cash and cash equivalents as of June 30, 2025, totaled $3.7 million, as compared to $2.4 million as of December 31, 2024.

Second Quarter 2025 Results Conference Call

Management will host an investor conference call and webcast at 8:00 a.m. Eastern time today to discuss the Company's second quarter 2025 financial results, provide a corporate update, and conclude with a question-and-answer session from telephone participants. To participate, please use the following information:

Date: Monday, August 11, 2025
Time: 8:00 a.m. Eastern time
U.S./Canada Dial-in: 1-877-300-8521
International Dial-in: 1-412-317-6026
Conference ID: 10199237
Webcast: BHST Q2 2025 Earnings Conference Call

Please dial in at least 10 minutes before the start of the call to ensure timely participation.

A telephone playback of the call will be available through Monday, August 25, 2025. To listen, call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally, using replay pin number 10199237. A webcast replay will also be available at the webcast link above.

About BioHarvest Sciences Inc.

BioHarvest Sciences Inc. (NASDAQ: BHST) (FSE: 8MV0) is a leader in Botanical Synthesis, leveraging its patented technology platform to grow plant-based compounds, without the need to grow the underlying plant. BioHarvest is leveraging its botanical synthesis technology to develop the next generation of science-based and clinically proven therapeutic solutions within two major business verticals; as a contract development and manufacturing organization (CDMO) on behalf of customers seeking novel plant-based compounds, and as a creator of proprietary nutraceutical health and wellness products, which includes dietary supplements. To learn more, please visit www.bioharvest.com.

Use of Non-IFRS Financial Measures

This press release includes the following non-IFRS measure - Adjusted EBITDA, which is not a measure of financial performance under IFRS and should not be considered as an alternative to net income as a measure of financial performance. Adjusted EBITDA represents net income (loss) before interest, taxes, depreciation and amortization adjusted for stock-based compensation and fair value adjustment of convertible loan and or warrants as well as issuance of warrants. The company believes this non-IFRS measure, when considered together with the corresponding IFRS measures, provides useful information to investors and management regarding financial and business trends relating to the company's results of operations. However, this non-IFRS measure has significant limitations in that it does not reflect all the costs and other items associated with the operation of the company's business as determined in accordance with IFRS. In addition, the company's non-IFRS measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-IFRS measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with IFRS. A reconciliation of Adjusted EBITDA to net income, its corresponding IFRS measure, is shown below.

IFRS NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION
(Unaudited)
(U.S dollars in thousands)

		Three-month period ended June 30,
		2025			2024
Net (loss)		($ 4,080)			($687)
Depreciation and Amortization (*)		407			352
Taxes		39			-
Interest, net & Finance Charges		638			53
Fair Value adjustment of derivative liability -Convertible loan (*)		-			(1,411)
Warrants Issuance (*)		-			247
Share Based Payment (*)		184			197
Exchange rates impact and interest over leases (IFRS 16) (*)		1,290			-
Other exchange rate impact		267			-
Adjusted EBITDA (Non-IFRS)		($1,255)			($1,249)

 

(*) Non cash items

Forward-Looking Statements

Information set forth in this news release might include forward-looking statements that are based on management's current estimates, beliefs, intentions, and expectations, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. There is no assurance of additional future contracts. Readers are cautioned that future contracts or increased revenue is not necessarily an increase in net income or profitability as costs will likely increase as well. Launching new products is subject to risks and uncertainties including the risk that the market will not accept the product or that government approvals required for sale or import of the products will not be obtained. There is never an assurance that any product set will successfully disrupt established product categories. There is no assurance that the Company will maintain or improve current financial performance, as revenues and margins are dependent on a combination of factors such as supply chain efficiencies, input cost stability, marketing efficiencies and uncertain consumer preferences. All forward-looking statements are inherently uncertain and actual results may be affected by a number of material factors beyond our control. Readers should not place undue reliance on forward-looking statements. BHST does not intend to update forward-looking statement disclosures other than through our regular management discussion and analysis disclosures.

BioHarvest Corporate Contact:
Dave Ryan, VP Investor Relations
+1 (604) 622-1186
info@bioharvest.com

Investor Relations Contact:
Lucas A. Zimmerman
Managing Director
MZ Group - MZ North America
+1 (949) 259-4987
BHST@mzgroup.us

BioHarvest Sciences Inc. Consolidated Statements of Financial Position
U.S. dollars in thousands

		As of June 30,			As of December 31,
		2025			2024
Assets
Current assets
Cash and cash equivalents		$ 3,727			$ 2,390
Trade accounts receivable		1,614			1,116
Other accounts receivable		858			695
Inventory		4,127			3,655
Total current assets		10,326			7,856
Non-current assets
Restricted cash		397			371
Property, plant and equipment, net		8,232			7,750
Right-of-use assets, net		8,843			9,024
Total non-current assets		17,472			17,145
Total assets		$ 27,798			$ 25,001
Liabilities
Current liabilities
Trade accounts payable		$ 3,421			$ 3,525
Other accounts payable		4,503			3,609
Deferred revenue		990			906
Lease liabilities		1,454			772
Loans		4,722			3,905
Liability for Agricultural Research Organization		1,552			1,140
Accrued liabilities		463			401
Total current liabilities		17,105			14,258
Non-current liabilities
Lease liabilities		9,654			9,141
Loans		5,262			-
Liability for Agricultural Research Organization		-			272
Total non-current liabilities		14,916			9,413
Shareholders' equity (deficit)
Share capital and contributed surplus		98,613			97,748
Accumulated deficit		(102,836	)		(96,418)
Total Shareholders' equity (deficit)		(4,223	)		1,330
Total liabilities and shareholders' equity (deficit)		$ 27,798			$ 25,001

 

BioHarvest Sciences Inc. Consolidated Statements of Loss and Other Comprehensive Loss
U.S. dollars in thousands, except per share data

		Three-month period ended June 30,						Six-month period ended June 30,
		2025			2024			2025			2024
Revenues		$ 8,515			$ 6,027			$ 16,375			$ 11,371
Cost of revenues		3,429			2,925			6,694			5,266
Gross profit		5,086			3,102			9,681			6,105
Operating expenses
Research and development		1,337			1,088			2,582			2,122
Sales and marketing		3,987			2,812			7,668			5,376
General and administrative		1,577			978			2,965			1,807
Total operating expenses		(6,901	)		(4,878	)		(13,215	)		(9,305)
Operating loss		(1,815	)		(1,776	)		(3,534	)		(3,200)
Finance income		-			(1,467	)		-			(49)
Finance expenses		2,226			378			2,807			4,117
Net loss before tax		(4,041	)		(687	)		(6,341	)		(7,268)
Taxes on income		39			-			77			-
Net loss and comprehensive loss		$ (4,080	)		$ (687	)		$ (6,418	)		$ (7,268)
Basic and Diluted loss per share		(0.24	)		(0.04	)		(0.37	)		(0.48)

 

BioHarvest Sciences Inc. Consolidated Statements of Cash Flows
U.S. dollars in thousands

		Six-month period ended June 30,
		2025			2024
Cash flows from operating activities:
Net loss		$ (6,418	)		$ (7,268)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and Amortization		806			559
Fair value adjustments of Convertible loans		-			3,453
Fair value adjustments of derivative liability - Warrants		-			408
Interest over Agricultural Research Organization liability		139			187
Finance expense (income), net		1,920			(13)
Share based compensation		316			328
Changes in assets and liabilities items:
Change in trade accounts receivable		(498	)		(97)
Change in other accounts receivable		(163	)		(191)
Change in inventory		(472	)		(102)
Changes in trade accounts payable, other accounts payable and accrued liabilities		1,402			241
Changes in deferred revenue		85			(3)
Cash used in operations		(2,883	)		(2,498)
Interest paid		-			(38)
Net cash used in operating activities		(2,883	)		(2,536)
Cash flow from investing activities:
Purchase of property and equipment		(1,276	)		(1,930)
Deposit of restricted cash for bank guarantee, net of drawing		4			(225)
Net cash used in investing activities		(1,272	)		(2,155)
Cash flow from financing activities
Repayments of lease liabilities		(477	)		(248)
Proceeds from loans, net of repayments		5,985			-
Net proceeds from issuance of units of securities		-			4,330
Exercise of options and warrants by employees and consultants		-			408
Net cash provided by financing activities		5,508			4,490
Exchange rate differences on cash and cash equivalents		(16	)		14
Increase (decrease) in cash and cash equivalents		1,353			(201)
Cash and cash equivalents at the beginning of the year		2,390			5,355
Cash and cash equivalents at the end of the year		$ 3,727			$ 5,168
Significant non-cash transactions:
Conversion of Convertible loans into shares		-			20,527
Reclassification of warrants as an equity instrument		-			934
Purchase of property in installment agreement		-			1,995
Recognition of right-of-use assets and lease liabilities		399			8,648

 

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/261968

FAQ

What were BioHarvest Sciences (BHST) Q2 2025 earnings results?

BioHarvest reported Q2 2025 revenue of $8.5 million, up 41% year-over-year, with gross margins of 60%. However, the company recorded a net loss of $4.0 million or $0.24 per share.

How many active VINIA users does BioHarvest have in the US market?

BioHarvest has 65,000 active VINIA® users in the US market, generating over $60 million in cumulative revenue since its USA launch in May 2021.

What is BioHarvest's revenue guidance for Q3 2025?

Management expects Q3 2025 revenues of at least $9.1 million and projects reaching adjusted EBITDA breakeven in Q4 2025.

What new products is BioHarvest launching in 2025?

BioHarvest is launching VINIA® Daily Chews 2X Formula and plans to enter the electrolyte drinks market with VINIA® BloodFlow Hydration Solution in October 2025, featuring six flavors.

What is BioHarvest's cash position as of Q2 2025?

BioHarvest reported cash and cash equivalents of $3.7 million as of June 30, 2025, compared to $2.4 million as of December 31, 2024.