TOFUTTI ANNOUNCES RESULTS FOR THE THIRTEEN AND TWENTY-SIX WEEKS ENDED JUNE 28, 2025

Rhea-AI Summary

Tofutti Brands (OTCQB:TOFB), a vegan food products company, reported financial results for Q2 2025. The company experienced a 11% decrease in net sales to $2.029M for Q2 2025, compared to $2.283M in Q2 2024. For the first half of 2025, net sales declined 19% to $3.62M.

The company's vegan cheese sales decreased to $1.708M in Q2 2025 from $1.926M in Q2 2024, while frozen dessert sales dropped to $321,000 from $357,000. Despite revenue challenges, gross profit margin improved to 33% for H1 2025 compared to 25% in H1 2024, benefiting from late-2024 price increases. The company reported a reduced net loss of $(7,000) in Q2 2025 versus $(32,000) in Q2 2024.

Positive

• Gross profit margin improved to 33% in H1 2025 from 25% in H1 2024
• Q2 2025 net loss narrowed to $(7,000) from $(32,000) in Q2 2024
• Maintained strong working capital position of $2.733M with no borrowings
• Successfully implemented price increases to offset cost pressures

Negative

• Net sales declined 11% year-over-year in Q2 2025
• First half 2025 sales decreased 19% to $3.62M
• Vegan cheese sales dropped due to increased competition
• Tariff uncertainty caused major customers to pause purchase plans
• Cash position decreased to $350,000 from $462,000 at end of 2024

Edison, New Jersey, Aug. 18, 2025 (GLOBE NEWSWIRE) -- TOFUTTI BRANDS INC. (OTCQB Symbol: TOFB) issued its results for the thirteen and twenty-six weeks ended June 28, 2025 and June 29, 2024 today.

Tofutti Brands reported net sales for the thirteen weeks ended June 28, 2025 decreased by $254,000, or 11%, from net sales of $2,283,000 for the thirteen weeks ended June 29, 2024 to $2,029,000 for the thirteen weeks ended June 28, 2025. Sales of our vegan cheese products decreased to $1,708,000 in the thirteen weeks ended June 28, 2025 from $1,926,000 in the thirteen weeks ended June 29, 2024, due to increased competition in the vegan cheese category. Sales of our frozen dessert products decreased to $321,000 in the thirteen weeks ended June 28, 2025 from $357,000 for the thirteen weeks ended June 29, 2024. Our sales were also negatively impacted by the proposed new tariffs to be implemented by the USA and foreign countries that we sell to. The uncertainty created by the tariffs caused our two largest domestic customers to pause some of their regular purchase plans.

Our gross profit decreased to $618,000 for the thirteen weeks ended June 28, 2025 from $667,000 for the thirteen weeks ended June 29, 2024, due primarily due to the reduction of sales from the prior year period. Our gross profit percentage increased slightly to 30% for the thirteen weeks ending June 28, 2025 compared to 29% for the thirteen weeks ending June 29, 2024.

Net sales for the twenty-six weeks ended June 28, 2025 were $3,620,000, a decrease of $875,000, or 19%, from net sales of $4,495,000 for the twenty-six weeks ended June 29, 2024. Sales of our vegan cheese products decreased to $3,081,000 in the twenty-six weeks ended June 28, 2025 from $3,735,000 in the twenty-six weeks ended June 29, 2024, due to increased competition in the vegan cheese category. Sales of our frozen dessert products decreased to $539,000 in the twenty-six weeks ended June 28, 2025 from $700,000 for the twenty-six weeks ended June 29, 2024. Our sales were negatively impacted by the proposed new tariffs to be implemented by the U.S and foreign countries that we sell to. The uncertainty created by the tariffs caused our two largest domestic customers to pause some of their regular purchase plans.

Our gross profit increased to $1,207,000 for the twenty-six weeks ended June 28, 2025 by $71,000 from $1,136,000 for the twenty-six weeks ended June 29, 2024, due principally to significant price increases we implemented at the end of 2024. Our gross profit percentage was 33% for the twenty-six weeks ending June 28, 2025 compared to 25% for the twenty-six weeks ending June 29, 2024. There were ingredient and packaging cost increases that took place in the first twenty-six weeks of 2024 that negatively impacted the gross profit in the 2024 period that were not present in the first two quarters of 2025.

The Company reported a net loss of $(7,000) or $(0.00) per share, for the thirteen weeks ended June 28, 2025, compared to a net loss of $(32,000) or $(0.01) per share, for the thirteen weeks ended June 29, 2024. For the twenty-six weeks ended June 28, 2025 and June 29, 2024, the Company reported Net losses of $(169,000) or $(0.03) per share and $(335,000), or $(0.06) per share, respectively.

As of June 28, 2025, we had approximately $350,000 in cash and our working capital was approximately $2,733,000, compared with approximately $462,000 in cash and working capital of $2,893,000 at December 30, 2024. We principally operate our business on the cash flows from our operations and currently have no borrowings.

About Tofutti Brands Inc. Founded in 1981, Tofutti Brands Inc. develops and distributes a complete line of plant-based products. The Company sells more than twenty-five (25) dairy-free foods including cheese products and frozen desserts. Tofutti Brands Inc. is a proven innovator in the food industry and has developed a full line of delicious and healthy dairy-free foods. Available throughout the United States and in twelve countries, Tofutti Brands answers the call of millions of people who are allergic or intolerant to dairy or wish to maintain a kosher or vegan diet. Tofutti’s product line includes plant-based ice cream pints, cones, Tofutti Cutie® sandwiches and novelty products.

Forward-Looking Statements. Some of the statements in this press release concerning the Company’s future prospects are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Actual results may vary significantly based upon a number of factors including, but not limited to business conditions both domestic and international, competition, changes in product mix or distribution channels, resource constraints encountered in promoting and developing new products and other risk factors detailed in the Company’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K.

Company Contact:	Steve Kass
	Chief Executive and Financial Officer
	(908) 272-2400
	(908) 272-9492 (Fax)

TOFUTTI BRANDS, INC.
Unaudited Condensed Statements of Operations
(in thousands, except per share figures)

		Thirteen weeks ended June 28, 2025				Thirteen weeks ended June 29, 2024				Twenty-six weeks ended June 28, 2025				Twenty-six weeks ended June 29, 2024
Net sales		$	2,029			$	2,283			$	3,620			$	4,495
Cost of sales			1,411				1,616				2,413				3,359
Gross profit			618				667				1,207				1,136
Operating expenses:
Selling and warehouse			188				250				405				464
Marketing			89				79				210				213
Research and development			39				22				83				64
General and administrative			309				342				670				724
			625				693				1,368				1,465
Loss from operations			(7	)			(26	)			(161	)			(329	)
Loss before interest expense and income taxes			(7	)			(26	)			(161	)			(329	)
Interest expense			—				1				1				1
Loss before income tax			(7	)			(27	)			(162	)			(330	)
Income tax expense			—				5				7				5
Net loss		$	(7	)		$	(32	)		$	(169	)		$	(335	)
Weighted average common shares outstanding:
Basic			5,154				5,154				5,154				5,154
Diluted			5,154				5,154				5,154				5,154
Loss per common share:
Basic		$	(0.00	)		$	(0.01	)		$	(0.03	)		$	(0.06	)
Diluted		$	(0.00	)		$	(0.01	)		$	(0.03	)		$	(0.06	)

TOFUTTI BRANDS INC.
Unaudited Condensed Balance Sheets
(in thousands, except share and per share figures)

		June 28, 2025				December 28, 2024
Assets
Current assets:
Cash		$	350			$	462
Accounts receivable, net of allowance for credit losses and sales promotions of $331 and $389.			715				989
Inventories			2,211				1,879
Prepaid expenses and other current assets			91				111
Total current			3,367				3,441
Operating lease right-of-use assets			307				340
Finance lease right-of-use asset			13				21
Other assets			21				21
Total assets		$	3,708			$	3,823
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	333			$	257
Accrued expenses			220				211
Operating lease liability, current portion			67				64
Finance lease liability, current portion			14				16
Total current liabilities			634				548
Operating lease liabilities, net of current portion			257				283
Finance lease liability, net of current portion			—				6
Total liabilities			891				837
Stockholders’ equity:
Preferred stock - par value $.01 per share; authorized 100,000 shares, none issued and outstanding			—				-
Common stock - par value $.01 per share; authorized 15,000,000 shares, 5,153,706 shares issued and outstanding			52				52
Additional paid-in capital			377				377
Retained earnings			2,388				2,557
Total stockholders’ equity			2,817				2,986
Total liabilities and stockholders’ equity		$	3,708			$	3,823

FAQ

What were Tofutti Brands (TOFB) Q2 2025 earnings results?

Tofutti reported a net loss of $(7,000) or $(0.00) per share in Q2 2025, improving from a net loss of $(32,000) or $(0.01) per share in Q2 2024. Net sales decreased 11% to $2.029M.

How did tariffs affect Tofutti's business in 2025?

Proposed new tariffs between the USA and foreign countries created uncertainty that caused Tofutti's two largest domestic customers to pause their regular purchase plans, negatively impacting sales.

What was Tofutti's gross profit margin in H1 2025?

Tofutti's gross profit margin increased to 33% in H1 2025 compared to 25% in H1 2024, primarily due to price increases implemented at the end of 2024.

How much cash did Tofutti have as of June 2025?

As of June 28, 2025, Tofutti had $350,000 in cash and working capital of approximately $2.733M, with no borrowings.

What caused the decline in Tofutti's vegan cheese sales?

Tofutti's vegan cheese sales decreased to $1.708M in Q2 2025 from $1.926M in Q2 2024 due to increased competition in the vegan cheese category.