Barfresh Reports Strong Production Progress and Receives Final Approval for $2.4 million Government Grant for New Arps Dairy Manufacturing Facility

Rhea-AI Summary

Barfresh (Nasdaq: BRFH) announced operational progress at its newly acquired Arps Dairy facility in Defiance, Ohio and final approval of a $2.4 million government grant. The company began manufacturing its core bottled, carton and gallon/half-gallon products at the existing 15,000 sq ft site; those SKUs represent roughly 90% of total revenue. The $2.4M grant will fund completion and equipment installation at a new 44,000 sq ft manufacturing facility, with full-scale production expected to begin in 2026. Barfresh said the Arps acquisition (closed in early October 2025) reduces third-party manufacturing reliance and is expected to be accretive to earnings in fiscal 2026.

Positive

• Received $2.4 million government grant for new facility
• Core products now produced at 15,000 sq ft Arps Dairy site
• 90% of revenue mix produced at acquired facility
• New 44,000 sq ft facility planned; full-scale production expected in 2026

Negative

• None.

Key Figures

Government grant $2.4 million Final approval to support new Defiance, Ohio facility

Revenue coverage 90% of revenue mix Products now manufactured at existing Arps Dairy facility

New facility size 44,000 square feet New manufacturing facility in Defiance, Ohio

Existing facility size 15,000 square feet Current Arps Dairy processing facility in Defiance, Ohio

Production timeline 2026 Expected start of full‑scale production at new facility

Market Reality Check

$2.65 Last Close

Volume Volume 26,821 vs 20‑day average 5,827 (about 4.6x normal activity) ahead of this news. high

Technical Price $3.02 was trading slightly below the 200‑day MA at $3.06 before the announcement.

Peers on Argus 1 Down

BRFH was down 13.71% with elevated volume, while key beverage peers like SHOT, ZVIA, BLNE and STKL were modestly negative (around low‑single‑digit declines). Momentum scans only flagged one peer (IMG, down 8.5%), suggesting BRFH’s move was more company‑specific than sector‑driven.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 06	Q3 2025 earnings	Positive	-2.9%	Record Q3 revenue, better margins and Arps acquisition, yet shares fell.
Oct 23	Earnings call notice	Neutral	-3.9%	Scheduling of Q3 2025 results call coincided with a modest price drop.
Oct 07	Arps deal closing	Positive	+6.9%	Completion of Arps acquisition and facilities added drove a share‑price gain.
Sep 18	Arps deal agreement	Positive	+32.0%	Strategic Arps purchase and upgraded 2025–2026 revenue outlook boosted stock.
Aug 13	Q2 2025 earnings	Negative	-4.7%	Guidance cut and margin pressure with ongoing operational challenges weighed on shares.

Pattern Detected

Strategic Arps Dairy news has previously drawn strong positive reactions, while earnings and routine updates have often seen modest negative follow‑through, indicating investors focus more on major strategic steps than on quarterly metrics.

Recent Company History

Over the last six months, Barfresh has combined improving fundamentals with a major manufacturing pivot. Q2 and Q3 2025 results showed double‑digit revenue growth but mixed margins, and those earnings events on Aug 13 and Nov 6 saw small share‑price declines. By contrast, Arps Dairy acquisition milestones on Sep 18 and Oct 7 triggered strong gains as investors responded to expanded in‑house capacity. Today’s update on Arps integration and a finalized $2.4M grant extends that same strategic manufacturing narrative.

Market Pulse Summary

This announcement highlights tangible progress on Barfresh’s Arps Dairy integration, with core products representing about 90% of revenue now produced in‑house and a finalized $2.4M government grant to complete a new 44,000‑sq‑ft facility. It extends the strategic shift seen in recent quarters toward greater control over manufacturing. Investors following this story would monitor construction completion, 2026 production ramp, and how these changes translate into margins and earnings.

Key Terms

margin expansion financial

"transitioning to an integrated manufacturing model that enhances operational control and margin expansion."

Margin expansion means a company is keeping a larger share of each dollar it earns — like a baker finding ways to bake the same loaf with lower ingredient or energy costs so more of the sale price becomes profit. For investors this matters because wider margins usually lead to higher reported profits, stronger cash flow and a healthier cushion against downturns, which can support higher stock valuations and reduce risk.

integrated manufacturing model technical

"transitioning to an integrated manufacturing model that enhances operational control"

An integrated manufacturing model is a way a company organizes production so many steps—design, sourcing, making, testing and packing—happen under one coordinated system instead of being spread across unrelated suppliers. For investors, it matters because tighter control can lower costs, speed up launches and protect quality, but it also concentrates capital and operational risk, much like a bakery that mixes, bakes and packages all its goods on site.

accretive to earnings financial

"We expect the Arps Dairy acquisition to be accretive to earnings in fiscal year 2026"

When a deal or action is described as "accretive to earnings," it means the transaction is expected to increase the profit allocated to each share held after the change. Think of slicing a pie: if the pie grows faster than new slices are added, each slice gets bigger. Investors care because larger per-share profits can justify a higher share price and signal the move strengthens shareholder value.

co-manufacturers technical

"reducing our historical dependency on third-party co-manufacturers and significantly expanding"

Co-manufacturers are two or more separate companies that share responsibility for making the same product under an agreement, like two kitchens preparing different parts of the same meal. For investors this matters because it affects production capacity, cost control, quality risk, and supply reliability—any partner’s problem can disrupt deliveries or profit margins, while multiple partners can speed scaling and reduce single‑source risk.

AI-generated analysis. Not financial advice.

Company Successfully Manufacturing Product Portfolio at Acquired Ohio Facility, Representing 90% of Revenue Mix

Grant Funding will Support Finalization of Construction and Equipment Installation at New 44,000-Square-Foot Manufacturing Facility in Defiance, Ohio

LOS ANGELES, Dec. 18, 2025 (GLOBE NEWSWIRE) -- Barfresh Food Group Inc. (the “Company” or “Barfresh”) (Nasdaq: BRFH), a provider of frozen, ready-to-blend and ready-to-drink beverages, today announced significant operational progress at its recently acquired Arps Dairy facility in Defiance, Ohio and receipt of final approval for a $2.4 million government grant to support construction of a new manufacturing facility.

Barfresh has now commenced successfully manufacturing its core product portfolio at the existing 15,000-square-foot facility, including bottled beverages, carton products, gallon and half-gallon formats, which collectively represent approximately 90% of Barfresh’s total revenue. Since completing the Arps Dairy acquisition in early October 2025, Barfresh has rapidly integrated production operations, marking a critical milestone in transitioning to an integrated manufacturing model that enhances operational control and margin expansion.

Barfresh has also received final approval for a $2.4 million government grant to support its new 44,000-square-foot manufacturing facility in Defiance, Ohio. The grant will be utilized to finalize construction of the facility and install specialized equipment necessary for full-scale production operations, which are expected to commence in 2026. The new facility will significantly increase Barfresh's manufacturing capabilities beyond the current 15,000-square-foot processing facility.

Riccardo Delle Coste, the Company’s Chief Executive Officer, stated, "We are extremely pleased with the rapid progress we’ve achieved in transitioning production of our core product portfolio to the Arps Dairy facility, and receiving final approval for this government grant validates the strategic importance of our acquisition. The acquisition delivers immediate increased supply for our core products and operational advantages by minimizing third-party manufacturing fees, enabling more efficient ingredient procurement, and providing enhanced oversight of production processes. The funding will accelerate our timeline for completing the expanded facility and positions us to capture the full operational and financial benefits of our integrated manufacturing model while scaling our production capacity beyond our already increased growth targets for fiscal 2026.”

“We expect the Arps Dairy acquisition to be accretive to earnings in fiscal year 2026 as we realize the full benefit of our expanded manufacturing capabilities and operational cost reductions. This integrated manufacturing model fundamentally changes our business trajectory and positions us to deliver sustainable, profitable growth while reducing our historical dependency on third-party co-manufacturers and significantly expanding our production capacity.”

About Barfresh Food Group

Barfresh Food Group Inc. (Nasdaq: BRFH) is a developer, manufacturer and distributor of ready-to-blend and ready-to-drink beverages, including smoothies, shakes and frappes, primarily for the education market, foodservice industry and restaurant chains, delivered as fully prepared individual portions or single serving and bulk formats for on-site preparation. The Company’s single serving, on-site prepared product utilizes a proprietary system that uses portion-controlled pre-packaged beverage ingredients, delivering a freshly made frozen beverage that is quick, cost efficient, better for you and without waste. For more information, please visit www.barfresh.com.

Forward Looking Statements

Except for historical information herein, matters set forth in this press release are forward-looking, including statements about the Company’s commercial progress, success of its strategic relationship(s), and projections of future financial performance. These forward-looking statements are identified by the use of words such as “grow”, “expand”, “anticipate”, “intend”, “estimate”, “believe”, “expect”, “plan”, “should”, “hypothetical”, “potential”, “forecast” and “project”, “continue”, “could”, “may”, “predict”, and “will” and variations of such words and similar expressions are intended to identify such forward-looking statements. All statements, other than statements of historical fact, included in the press release that address activities, events or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors the Company believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The contents of this release should be considered in conjunction with the Company’s recent filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including any warnings, risk factors and cautionary statements contained therein. Furthermore, the Company expressly disclaims any current intention to update publicly any forward-looking statements after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise.

Investor Relations
John Mills
ICR
646-277-1254
John.Mills@icrinc.com

Deirdre Thomson
ICR
646-277-1283
Deirdre.Thomson@icrinc.com

FAQ

What did Barfresh (BRFH) announce on December 18, 2025?

Barfresh announced production at its acquired Arps Dairy site and final approval of a $2.4M government grant for a new 44,000 sq ft facility.

How much of Barfresh's revenue is produced at the Arps Dairy facility (BRFH)?

Barfresh said products manufactured at the Arps Dairy site represent about 90% of its total revenue mix.

When will Barfresh (BRFH) start full-scale production at the new Defiance, Ohio facility?

The company expects full-scale production at the new 44,000 sq ft facility to begin in 2026.

How will the $2.4 million grant affect Barfresh's (BRFH) operations?

The grant will fund final construction and specialized equipment installation to enable full-scale manufacturing at the new facility.

Will the Arps Dairy acquisition impact Barfresh's (BRFH) earnings?

Barfresh expects the Arps Dairy acquisition to be accretive to earnings in fiscal 2026 as manufacturing costs and third-party fees decline.