BHST — BioHarvest Sciences Inc. Common Stock

Summary of BioHarvest Sciences Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 Revenues: $9.1 million, up 25% year-over-year, aligning with guidance.
• Annual Revenues: $34.5 million for 2025, a 37% increase from the previous year.
• Gross Margins: 58% for Q4 (up 100 basis points YoY) and 59% for the year (up 400 basis points YoY).
• Operating Expenses: $6.3 million in Q4, up from $5.8 million YoY, but decreased as a percentage of revenue from 80% to 70%.
• Net Loss: $2.2 million for Q4 ($0.10 per share), improved from a net loss of $3 million ($0.17 per share) in Q4 2024.
• Adjusted EBITDA: $0.5 million, compared to an adjusted EBITDA loss of $1.8 million in the same quarter last year.
• Cash Position: $23 million as of December 31, 2025, significantly up from $2.4 million a year prior.

2. Strategic Updates and Business Highlights

• Business Structure: BioHarvest operates through two divisions: Direct-to-Consumer (D2C) and Contract Development and Manufacturing Organization (CDMO), each serving as growth engines.
• VINIA Performance: The VINIA nutraceutical platform exceeded 85,000 active users, achieving #1 market position in the U.S. for Resveratrol polyphenol products.
• Product Launches: The new VINIA BloodFlow Hydration product launched in December 2025, showing promising early sales and high customer ratings (4.8/5 on vinia.com and 4.9/5 on Amazon).
• Health Professionals Channel: Partnering with 250 health professionals to promote VINIA, contributing over 10% of new customer revenue in March 2026.
• CDMO Growth: The CDMO division generated approximately $2 million in third-party revenue, with ongoing projects in nutraceuticals, nutrition, and fragrance.

3. Forward Guidance and Outlook

• 2026 Revenue Expectations: Management anticipates D2C profitability in 2026, with CDMO revenues projected to grow to $4 million to $6 million, doubling or tripling from 2025.
• Gross Margin Goals: Expected to improve gradually, targeting 64%-65% by year-end 2026.
• Marketing Strategy: A shift towards digital marketing to attract younger demographics, with expectations for improved customer acquisition costs.

4. Bad News, Challenges, or Points of Concern

• Geopolitical Risks: Ongoing conflict in the Middle East raised concerns, although operations have continued without interruption.
• Operating Losses: Continued net losses, though improving, raise questions about the sustainability of current spending levels.
• Market Competition: The company faces competitive pressures in the nutraceutical market, necessitating effective differentiation and marketing strategies.

5. Notable Q&A Insights

• CDMO Pipeline: Management confirmed ongoing investments in the CDMO infrastructure to support multiple projects simultaneously, with expectations for significant revenue growth in 2026.
• Marketing Efficiency: The transition to digital marketing channels is expected to yield better customer acquisition costs, with a focus on leveraging the Health Professionals channel.
• Revenue Phasing: Q1 2026 is anticipated to show moderate growth, with acceleration expected in Q2 and beyond as investments take effect.
• Long-Term Investments: Management emphasized that current losses are part of a strategic investment in future capabilities, particularly in AI and manufacturing efficiencies.

Overall, BioHarvest Sciences demonstrated strong growth in 2025, with promising product launches and strategic initiatives aimed at expanding market reach and operational efficiency. However, challenges remain, particularly regarding geopolitical risks and the need to manage ongoing losses while scaling operations.