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Arcadia Biosciences (RKDA) Announces First Quarter 2025 Financial Results and Business Highlights

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Arcadia Biosciences (RKDA) reported strong Q1 2025 financial results, with total revenues increasing 22% year-over-year to $1.2 million, driven by 90% growth in Zola® coconut water sales. The company's gross margins maintained above 30% for nine consecutive quarters. Key developments include the sale of patents for $750,000 and elimination of $1 million in liabilities. Net income reached $2.6 million ($1.90 per share), a significant improvement from a $2.4 million loss in Q1 2024. Operating expenses decreased by $1.9 million. The company also amended its agreement with Roosevelt Resources, establishing a fixed equity share ratio of 90%/10% between Roosevelt partners and Arcadia stockholders, with the transaction expected to complete by late summer 2025.
Arcadia Biosciences (RKDA) ha riportato solidi risultati finanziari nel primo trimestre 2025, con ricavi totali in aumento del 22% su base annua, raggiungendo 1,2 milioni di dollari, trainati da una crescita del 90% nelle vendite di acqua di cocco Zola®. I margini lordi dell'azienda sono rimasti sopra il 30% per nove trimestri consecutivi. Tra gli sviluppi chiave si segnalano la vendita di brevetti per 750.000 dollari e l'eliminazione di 1 milione di dollari di passività. L'utile netto ha raggiunto 2,6 milioni di dollari (1,90 dollari per azione), un miglioramento significativo rispetto alla perdita di 2,4 milioni nel primo trimestre 2024. Le spese operative sono diminuite di 1,9 milioni di dollari. Inoltre, la società ha modificato l'accordo con Roosevelt Resources, stabilendo un rapporto fisso di partecipazione azionaria del 90%/10% tra i partner di Roosevelt e gli azionisti di Arcadia, con la transazione prevista per la fine dell'estate 2025.
Arcadia Biosciences (RKDA) reportó sólidos resultados financieros en el primer trimestre de 2025, con ingresos totales que aumentaron un 22% interanual hasta 1,2 millones de dólares, impulsados por un crecimiento del 90% en las ventas de agua de coco Zola®. Los márgenes brutos de la empresa se mantuvieron por encima del 30% durante nueve trimestres consecutivos. Los desarrollos clave incluyen la venta de patentes por 750.000 dólares y la eliminación de 1 millón de dólares en pasivos. El ingreso neto alcanzó 2,6 millones de dólares (1,90 dólares por acción), una mejora significativa respecto a una pérdida de 2,4 millones en el primer trimestre de 2024. Los gastos operativos disminuyeron en 1,9 millones. La compañía también modificó su acuerdo con Roosevelt Resources, estableciendo una proporción fija de participación accionaria del 90%/10% entre los socios de Roosevelt y los accionistas de Arcadia, con la transacción prevista para completarse a finales del verano de 2025.
Arcadia Biosciences(RKDA)는 2025년 1분기 강력한 재무 실적을 보고했으며, 총 매출이 전년 동기 대비 22% 증가한 120만 달러를 기록했으며, 이는 Zola® 코코넛 워터 판매가 90% 성장한 데 힘입은 결과입니다. 회사의 총이익률은 9분기 연속 30% 이상을 유지했습니다. 주요 개발 사항으로는 75만 달러 규모의 특허 판매와 100만 달러 부채 제거가 포함됩니다. 순이익은 260만 달러(주당 1.90달러)에 달해 2024년 1분기 240만 달러 손실에서 크게 개선되었습니다. 영업비용은 190만 달러 감소했습니다. 또한, 회사는 Roosevelt Resources와의 계약을 수정하여 Roosevelt 파트너와 Arcadia 주주 간의 고정 지분 비율을 90%/10%로 설정했으며, 거래는 2025년 늦여름까지 완료될 예정입니다.
Arcadia Biosciences (RKDA) a publié de solides résultats financiers pour le premier trimestre 2025, avec un chiffre d'affaires total en hausse de 22 % sur un an, atteignant 1,2 million de dollars, porté par une croissance de 90 % des ventes d'eau de coco Zola®. Les marges brutes de l'entreprise sont restées supérieures à 30 % pendant neuf trimestres consécutifs. Parmi les faits marquants, on compte la vente de brevets pour 750 000 dollars et l'élimination de 1 million de dollars de passifs. Le bénéfice net a atteint 2,6 millions de dollars (1,90 dollar par action), une nette amélioration par rapport à une perte de 2,4 millions au premier trimestre 2024. Les dépenses d'exploitation ont diminué de 1,9 million. La société a également modifié son accord avec Roosevelt Resources, établissant une répartition fixe des actions de 90 %/10 % entre les partenaires Roosevelt et les actionnaires d'Arcadia, la transaction devant être finalisée d'ici la fin de l'été 2025.
Arcadia Biosciences (RKDA) meldete starke Finanzergebnisse für das erste Quartal 2025, mit einem Gesamtumsatzanstieg von 22 % im Jahresvergleich auf 1,2 Millionen US-Dollar, angetrieben durch ein 90%iges Wachstum bei den Verkäufen von Zola® Kokosnusswasser. Die Bruttomargen des Unternehmens blieben neun Quartale in Folge über 30%. Zu den wichtigsten Entwicklungen gehören der Verkauf von Patenten für 750.000 US-Dollar und die Eliminierung von 1 Million US-Dollar an Verbindlichkeiten. Der Nettogewinn erreichte 2,6 Millionen US-Dollar (1,90 US-Dollar pro Aktie), eine deutliche Verbesserung gegenüber einem Verlust von 2,4 Millionen im ersten Quartal 2024. Die Betriebskosten sanken um 1,9 Millionen US-Dollar. Das Unternehmen änderte außerdem seine Vereinbarung mit Roosevelt Resources und legte ein festes Beteiligungsverhältnis von 90%/10% zwischen den Roosevelt-Partnern und den Arcadia-Aktionären fest; der Abschluss der Transaktion wird für Ende Sommer 2025 erwartet.
Positive
  • Revenue grew 22% YoY to $1.2M, with Zola® coconut water sales up 90%
  • Net income of $2.6M ($1.90 per share), compared to $2.4M loss in Q1 2024
  • Operating expenses decreased by $1.9M (74% reduction)
  • Gross margins maintained above 30% for nine consecutive quarters
  • Sale of patents generated $750K and eliminated $1M in liabilities
  • Zola® distribution grew 70% year-over-year
Negative
  • Arcadia shareholders will only retain 10% ownership post-Roosevelt merger
  • Transaction fees of $500K impacted operating expenses
  • Cost of revenues increased by 45% YoY
  • Timeline for Roosevelt merger extended to late summer

Insights

Arcadia posts strong Q1 with 207% net income improvement, driven by Zola's 90% growth and strategic one-time gains.

Arcadia Biosciences has delivered a significant financial turnaround in Q1 2025, with total revenue increasing 22% year-over-year to $1.2 million. This growth was driven entirely by their Zola coconut water brand, which achieved impressive 90% sales growth and 70% distribution expansion compared to Q1 2024 – without implementing any price increases.

The company reported net income of $2.6 million ($1.90 per share) for Q1 2025, a remarkable 207% improvement from the $2.4 million net loss in Q1 2024. However, this improvement includes substantial non-operational gains: $750,000 from patent portfolio sales, $1 million from elimination of contingent consideration liability, and $1.9 million from changes in fair value of stock warrant and option liabilities.

Operating expenses decreased by $1.9 million (74%) compared to Q1 2024, though cost of revenues increased by $211,000 (45%) due to higher Zola sales volume. SG&A expenses decreased by $324,000 (16%). The company has maintained gross margins above 30% for nine consecutive quarters – demonstrating consistent operational discipline.

Strategically, Arcadia is pivoting away from its legacy agricultural biotechnology business through the sale of key patent portfolios. The company has also amended its exchange agreement with Roosevelt Resources to establish a fixed equity ratio where Roosevelt partners will own 90% and Arcadia stockholders will retain 10% of the combined entity post-transaction. This transaction is expected to complete by late summer 2025, subject to stockholder approval.

While one-time gains significantly boosted this quarter's bottom line, the underlying Zola business demonstrates strong growth momentum. The company's transformation from agricultural biotechnology to focused consumer products appears to be gaining meaningful traction.

-- Revenues increase 22% year over year driven by 90% growth in Zola® --
-- Arcadia sells patents for $750K and eliminates $1M in liabilities --
-- Roosevelt agreement amended to provide greater certainty regarding exchange ratio --

DALLAS, May 08, 2025 (GLOBE NEWSWIRE) -- Arcadia Biosciences, Inc.® (Nasdaq: RKDA), a producer and marketer of innovative, plant-based health and wellness products, today released its financial and business results for the first quarter of 2025. The company has scheduled a conference call at 2:00 p.m. Eastern time (11:00 a.m. Pacific time) to discuss first-quarter results and key strategic achievements.

“The momentum we experienced in the second half of 2024 has continued into 2025, and we are very pleased with our first quarter results,” said T.J. Schaefer, CEO of Arcadia. “Zola® coconut water continues to thrive and significantly outperform the category, with sales increasing 90% and distribution growing 70% year-over-year. Our gross margins have now exceeded 30% for nine straight quarters, and our operating expenses are near their lowest level in 10 years, even with half a million dollars in transaction fees.

“In addition to our strong brand performance, we also made significant progress exiting our legacy business by monetizing our intellectual property, selling select patents for $750,000, eliminating $1 million in liabilities, and streamlining operations ahead of the pending business combination with Roosevelt Resources.

“Our business combination with Roosevelt continues to move forward. We recently amended our exchange agreement with Roosevelt to establish a fixed equity share ratio of 90%/10% between the Roosevelt partners and Arcadia stockholders, respectively, providing a greater level of ownership certainty post-transaction for Arcadia’s stockholders,” Schaefer stated. “The amendment also extends the anticipated timeline for the exchange transaction, which we believe is on track to be completed towards the end of the summer, subject to approval by the company's stockholders.”

Arcadia Biosciences, Inc.
Financial Snapshot
(Unaudited)

($ in thousands)
 Three Months Ended March 31,
 2025 2024 Favorable / (Unfavorable) 
     $%
Total revenues1,200 987 213 22%
Total operating expenses670 2,575 1,905 74%
Income (loss) from continuing operations530 (1,588) 2,118 133%
Net income (loss) attributable to common stockholders2,599 (2,423) 5,022 207%
        

Certain previously reported financial information has been reclassified to conform to the current year presentation. Reclassifications are related to the presentation of the financial results of our former GoodWheatTM brand as discontinued operations. The financial information above and narrative that follows relate to continuing operations unless stated otherwise.

More detailed financial information is included in the company's Report on Form 8-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (SEC), available in the Investors section of the company’s website under SEC Filings.

Revenues
Revenues increased $213,000, or 22%, and consisted entirely of Zola coconut water sales during the first quarter of 2025 compared to the same period in 2024. Zola revenues increased $567,000, or 90% during the first quarter of 2025 compared to the same period in 2024. This was primarily driven by an increase in distribution resulting in higher sales volume. The company did not implement any price increases during 2024 or the first quarter of 2025. Revenues during the first quarter of 2024 included $354,000 from GLA oil.

Operating Expenses
Operating expenses decreased $1.9 million during the first quarter of 2025 compared to the same period in 2024, primarily driven by decreases in selling, general and administrative expenses (SG&A) and other operating expenses, offset by an increase in cost of revenues.

Cost of revenues increased by $211,000, or 45%, and consisted entirely of Zola coconut water costs during the first quarter of 2025 compared to the same period in 2024. Zola cost of revenues increased $244,000, or 56% during the first quarter of 2025 compared to the same period in 2024 driven by the increase in Zola unit sales. Cost of revenues during the first quarter of 2024 included $33,000 from GLA oil.

SG&A decreased by $324,000, or 16%, during the first quarter of 2025 compared to the same period in 2024 driven by operating costs and employee related costs in 2024 that were absent in 2025.

Other operating expenses decreased by $1.9 million during the first quarter of 2025 compared to the same period in 2024 due to the $750,000 gain on sale of our reduced gluten and oxidative stability patent portfolios in March 2025, and $1.0 million gain related to the change in fair value of contingent consideration liability.

Net Loss Attributable to Common Stockholders
Net income attributable to common stockholders for the first quarter of 2025 was $2.6 million, or $1.90 per share, a $5.0 million improvement from the $2.4 million net loss, or $1.78 per share, net loss for the first quarter of 2024. The improvement in net income attributable to common stockholders for the first quarter of 2025 compared to the same period in 2024 was primarily driven by the $750,000 gain on sale of our reduced gluten and oxidative stability patent portfolios in March 2025, $1.0 million gain related to the change in fair value of contingent consideration liability, and the $1.9 million gain related to the change in fair value of common stock warrant and option liabilities.

Conference Call and Webcast
The company has scheduled a conference call for 2:00 p.m. Eastern time (11:00 a.m. Pacific time) to discuss first-quarter results and key strategic achievements. Interested participants can join the conference call using the following options:

  • An audio-only webcast of the conference call will be available, with a link posted in the Investors section of Arcadia’s website at www.arcadiabio.com.

  • To join the live call, please register here, and a dial-in number and unique PIN will be provided.

Following completion of the call, a recorded replay will be available in the Investors Section of the company’s website.

About Arcadia Biosciences, Inc.
Since 2002, Arcadia Biosciences (Nasdaq: RKDA) has been innovating high-value, healthy ingredients to meet consumer demands for healthier choices. With its roots in agricultural innovation, Arcadia cultivates next-generation wellness products. For more information, visit www.arcadiabio.com.

Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the company and its products, including statements relating to the company’s growth, cash position, operating costs, financial performance, commercialization of products, strategic transactions and expected business combination transaction with Roosevelt Resources. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to, the risks set forth in filings that the company makes with the Securities and Exchange Commission from time to time, including in Arcadia’s Annual Report on Form 10-K for the year ended December 31, 2024, registration statement on Form S-4 initially filed with the SEC on February 14, 2025, and other filings. These forward-looking statements speak only as of the date hereof, and except as required by law, Arcadia Biosciences, Inc. disclaims any obligation to update these forward-looking statements.

No Offer or Solicitation
As previously reported on a Report on Form 8-K filed by the company with the SEC, on December 4, 2024, the company, Roosevelt Resources, LP, a Texas limited partnership (Roosevelt), and certain other parties entered into a Securities Exchange Agreement (Exchange Agreement) providing for the combination of the two companies in an all-stock transaction.  Under the terms of the Exchange Agreement, at the closing of the transactions contemplated by the Exchange Agreement, Arcadia will issue to the partners of Roosevelt shares of Arcadia common stock in exchange for all of the equity interests in Roosevelt. 

This press release, including the information contained herein, is not intended to and does not constitute (i) a solicitation of a proxy, consent or approval with respect to any securities or in respect of the proposed transaction or (ii) an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities pursuant to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, or an exemption therefrom.

Subject to certain exceptions to be approved by the relevant regulators or certain facts to be ascertained, no offer will be made directly or indirectly, in or into any jurisdiction where to do so would constitute a violation of the laws of such jurisdiction, or by use of the mails or by any means or instrumentality (including without limitation, facsimile transmission, telephone and the internet) of interstate or foreign commerce, or any facility of a national securities exchange, of any such jurisdiction.

Additional Information for Stockholders
In connection with the proposed transaction, Arcadia intends to file relevant materials with the SEC and previously filed a Registration Statement on Form S-4 (Registration Statement) that includes a preliminary proxy statement/prospectus, with the SEC on February 14, 2025. After the Registration Statement is declared effective by the SEC, Arcadia intends to mail a definitive proxy statement/prospectus to the stockholders of Arcadia. This press release is not a substitute for the proxy statement/ prospectus or the Registration Statement or for any other document that Arcadia may file with the SEC and send to Arcadia’s stockholders in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF ARCADIA ARE URGED TO CAREFULLY AND THOROUGHLY READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS, AS EACH MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, AND OTHER RELEVANT DOCUMENTS FILED BY ARCADIA WITH THE SEC, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT ARCADIA, ROOSEVELT, THE PROPOSED TRANSACTION, THE RISKS RELATED THERETO AND RELATED MATTERS.

Investors will be able to obtain free copies of the Registration Statement and proxy statement/prospectus, as each may be amended from time to time, and other relevant documents filed by Arcadia with the SEC (when they become available) through the website maintained by the SEC at www.sec.gov. Copies of documents filed with the SEC by Arcadia will be available free of charge from Arcadia’s website at www.arcadiabiosciences.com under the “Investors” tab.  In addition, investors and stockholders should note that Arcadia communicates with investors and the public using its website (www.arcadiabio.com) where anyone will be able to obtain free copies of the proxy statement/prospectus and other documents filed by Arcadia with the SEC. Stockholders are urged to read the proxy statement/prospectus and the other relevant materials when they become available before making any voting or investment decision with respect to the proposed transactions.

Participants in the Proxy Solicitation
Arcadia, Roosevelt and their respective directors, partners and certain of their officers and other members of management and employees may be deemed, under SEC rules, to be participants in the solicitation of proxies from Arcadia’s stockholders in connection with the proposed transactions. Information regarding the officers and directors of Arcadia is included in Arcadia’s most recent Annual Report on Form 10-K, as amended, filed with the SEC, including any information incorporated therein by reference, its definitive proxy statement for its 2024 annual meeting filed with the SEC on May 16, 2024, and in the Registration Statement initially filed with the SEC on February 14, 2025, and any amendments thereto as filed with the SEC. Additional information regarding such persons, as well as information regarding Roosevelt’s directors, managers and officers and other persons who may be deemed participants in the proposed transaction, will be set forth in the Registration Statement and proxy statement/prospectus, and any amendments thereto, and other materials, when they are filed with the SEC in connection with the proposed transaction. Free copies of these documents may be obtained from the sources indicated above.

Arcadia Biosciences Contact:
T.J. Schaefer
ir@arcadiabio.com


FAQ

What were Arcadia Biosciences (RKDA) Q1 2025 earnings results?

Arcadia reported Q1 2025 revenues of $1.2M (up 22% YoY), with net income of $2.6M ($1.90 per share), compared to a $2.4M loss in Q1 2024. Operating expenses decreased 74% to $670K.

How much did Zola coconut water sales grow for RKDA in Q1 2025?

Zola coconut water sales grew 90% year-over-year, with distribution expanding by 70% compared to Q1 2024.

What is the ownership structure in the Roosevelt-Arcadia merger?

The amended agreement establishes a fixed equity share ratio where Roosevelt partners will own 90% and Arcadia stockholders will retain 10% post-transaction.

How much did Arcadia Biosciences receive from patent sales in Q1 2025?

Arcadia sold its reduced gluten and oxidative stability patent portfolios for $750,000 and eliminated $1 million in liabilities.

What were RKDA's operating expenses in Q1 2025?

Operating expenses were $670,000, a 74% decrease from Q1 2024, despite including $500,000 in transaction fees.
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