Sow Good Reports Third Quarter 2025 Results

DALLAS, Nov. 14, 2025 (GLOBE NEWSWIRE) -- Sow Good Inc. (Nasdaq: SOWG) (“Sow Good” or “the Company”), a leading freeze-dried food and candy manufacturer, is reporting financial and operating results for the third quarter ended September 30, 2025.

“Q3 2025 was a quarter of steady progress and operational strengthening as we continued to position Sow Good for long-term sustainable growth,” said Claudia Goldfarb, CEO of Sow Good. “The decisive actions we’ve taken over the past several months have simplified our footprint, reduced fixed costs, and enhanced efficiency across the organization. We’ve now completely vacated our Mockingbird facility, reducing our footprint by over 50,000 square feet and delivering immediate savings, and we will fully vacate our Rock Quarry facility by the end of January, reducing our footprint by more than 320,000 square feet. Together with lease amendments and payroll optimization, these efforts represent over $5 million in annualized savings and a leaner, more agile platform ready to scale efficiently.

“We secured our first private-label partnership with a 600-store national retailer for our new Caramel Crunch SKU, which will ship in the first half of 2026. Caramel Crunch is our first fully vertically integrated product—with caramel made in house with no artificial dyes, flavors, or preservatives and crafted using our proprietary long-cycle freeze-drying process. This cleaner-ingredient approach not only enhances product appeal but also opens the door to additional retail opportunities as buyers increasingly prioritize clean-label alternatives. In March of 2026 we are launching 2 new SKUs with a national retailer in our branded display that will also have 10 other of our top SKUs. Our international distribution partners remain excited with our performance and are substantially expanding influencer marketing and retailer marketing partnerships for 2026 to continue supporting the Sow Good brand.

“We are also in ongoing conversations with other national retailers regarding additional private-label opportunities, including potential extensions into freeze-dried yogurt melts and other innovative formats. While still early, these discussions underscore the trust major retailers have in our manufacturing capabilities and the breadth of our technology platform. At the same time, we’ve seen a slowdown in traditional legacy SKUs, while growth and retailer demand are shifting toward our new clean-label, innovative products that highlight our differentiation in texture, flavor, and quality.

“Looking ahead, we remain focused on operational discipline and a return to profitability. The foundational work we’ve completed this year has made Sow Good leaner, more efficient, and better positioned for sustainable growth. In parallel, we are advancing a number of strategic initiatives – including digital asset and partnership strategies – designed to strengthen our balance sheet, diversify our funding base, and enhance long-term shareholder value. These discussions are progressing constructively and reflect our commitment to innovative and responsible capital management.”

Third Quarter 2025 Highlights

Revenue in the third quarter of 2025 was $1.6 million compared to $3.6 million for the same period in 2024. The decline reflects changes in sales mix as the Company realized lower average selling prices associated with the closeout of discontinued SKUs.
Gross loss in the third quarter of 2025 was $8.9 million compared to gross profit of $0.6 million in the year ago period. Gross margin was (576)% in the third quarter of 2025 compared to 16% in the prior year period. Cost of goods sold increased due to $5.3 million in noncash charges for reserves for finished goods and materials associated with SKUs that the Company no longer intends to produce or sell, and $3.2 million for the related write-down of overhead allocated to this inventory.
Operating expenses in the third quarter of 2025 were $3.7 million compared to $3.8 million for the same period in 2024. The decrease was largely due to lower payroll costs and professional fees reflective of the Company’s ongoing cost reduction efforts.
Other income for the third quarter of 2025 was a net gain of $1.7 million, compared to other expense of $185.6 thousand for the same period in 2024. The increase was driven by a noncash gain recognized upon the exit of lease liabilities related to two facilities as of September 30, 2025, partially offset by net interest expense of $93.3 thousand. Other expense for the third quarter of 2024 consisted primarily of net interest expense.
Net loss in the third quarter of 2025 was $10.9 million, or $(0.90) per basic and diluted share, compared to net loss of $3.4 million, or $(0.33) per basic and diluted share, for the same period in 2024. The decrease is primarily due to noncash inventory reserve charges, coupled with decreased sales.
Adjusted EBITDA (a non-GAAP financial measure defined and reconciled herein) in the third quarter of 2025 was $(10.9) million compared to $(1.9) million for the same period in 2024. For a reconciliation of Adjusted EBITDA to the nearest comparable GAAP metric, net income, please see the tables below.
Cash and cash equivalents were $387.3 thousand at September 30, 2025, compared to $3.7 million at December 31, 2024

Conference Call

Sow Good will conduct a conference call today at 10:00 a.m. Eastern time to discuss its results for the third quarter ended September 30, 2025.

Date: Friday, November 14, 2025
Time: 10:00 a.m. Eastern time
Registration Link: https://register-conf.media-server.com/register/BI86174db562554c2c849dd74fef03d415

To access the call by phone, please register via the registration link above and you will be provided with dial-in instructions and details. If you have any difficulty connecting with the conference call, please contact Gateway Group at 1-949-574-3860.

The conference call will be broadcast live and available for replay here and on the Company’s website at Sowginc.com.

About Sow Good Inc.

Sow Good Inc. (Nasdaq: SOWG) is a U.S.-based leader in freeze-dried snacks and candies, driven by a commitment to quality, innovation, and excellence. The company’s proprietary freeze-drying technology and vertically integrated manufacturing platform power some of the most exciting products in the better-for-you and indulgent snack categories—all proudly made in Texas.

Non-GAAP Financial Measures

This press release contains “non-GAAP financial measures” that are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with GAAP. Specifically, we make use of the non-GAAP financial measure “Adjusted EBITDA.” Adjusted EBITDA has been presented in this press release as a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. We define Adjusted EBITDA as net income (loss) before depreciation and amortization, interest expense, net, provision for income tax, and share-based compensation, and loss on early extinguishment of debt. The most directly comparable GAAP measure is net income (loss). Adjusted EBITDA is not recognized terms under GAAP and should not be considered as an alternative to net income (loss) as a measure of financial performance or cash provided by operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. In addition, in evaluating Adjusted EBITDA, you should be aware that in the future, we may incur expenses similar to the adjustments in the presentation of Adjusted EBITDA. The presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Because not all companies use identical calculations, the presentations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company.

We present this non-GAAP measure because we believe it assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes Adjusted EBITDA is useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate, and capital investments. Management uses Adjusted EBITDA to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation, and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone provide.

There are a number of limitations related to the use of Adjusted EBITDA rather than net income (loss), which is the most directly comparable financial measure calculated and presented in accordance with GAAP. Some of these limitations are:

Adjusted EBITDA excludes stock-based compensation expense as it has recently been, and will continue to be for the foreseeable future, a significant recurring non-cash expense for our business;
Adjusted EBITDA excludes depreciation and amortization expense and, although this is a non-cash expense, the assets being depreciated and amortized may have to be replaced in the future;
Adjusted EBITDA does not reflect the cash requirements necessary to service interest on our debt which affects the cash available to us;
Adjusted EBITDA does not reflect the monies earned from our investments since it does not reflect our core operations;
Adjusted EBITDA does not reflect the loss on early extinguishment of debt since it does not reflect our core operations and is a non-cash expense;
Adjusted EBITDA does not reflect the gain on the exit of lease obligations since it does not reflect our core operations and is a non-cash expense;
Adjusted EBITDA does not reflect income tax expense that affects cash available to us; and
the expenses and other items that we exclude in our calculations of Adjusted EBITDA may differ from the expenses and other items, if any, that other companies may exclude from Adjusted EBITDA when they report their operating results.

In addition, other companies may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison.

Forward-Looking Statements

This press release contains forward-looking statements. Statements other than statements of historical facts contained in this press release may be forward-looking statements. Statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, including, among others, statements regarding the offering, expected growth, and future capital expenditures, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “target,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes. Forward-looking statements contained in this press release include, but are not limited to statements about: (a) our ability to compete successfully in the highly competitive industry in which we operate; (b) our ability to maintain and enhance our brand; (c) our ability to successfully implement our growth strategies related to launching new products and enter new markets; (d) the effectiveness and efficiency of our marketing programs; (e) our ability to manage current operations and to manage future growth effectively; (f) our future operating performance; (g) our ability to attract new customers or retain existing customers; (h) our ability to protect and maintain our intellectual property; (i) the government regulations to which we are subject; (j) our ability to maintain adequate liquidity to meet our financial obligations; (k) failure to obtain sufficient sales and distributions for our freeze dried product offerings; (l) the potential for supply chain disruption and delay; (m) the potential for transportation, labor, and raw material cost increases; (n) the timing of our operational efficiencies measures and the anticipated savings therefrom, and (o) such other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission, including the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2024 and our most recent Quarterly Report on Form 10-Q. All information provided in this release is as of the date hereof and we undertakes no duty to update this information except as required by law.

Sow Good Investor Inquiries:
Cody Slach
Gateway Group, Inc.
1-949-574-3860
SOWG@gateway-grp.com

Sow Good Media Inquiries:
Sow Good, Inc.
1-214-623-6055
pr@sowginc.com

SOW GOOD INC. CONDENSED BALANCE SHEETS

	September 30,			December 31,
	2025			2024
ASSETS	(Unaudited)
Current assets:
Cash and cash equivalents	$	387,294		$	3,723,440
Accounts receivable, net		174,757			460,147
Inventory, net		11,524,269			20,313,315
Prepaid inventory		19,923			55,796
Prepaid expenses		226,694			523,442
Assets held for sale		713,256			-
Total current assets		13,046,193			25,076,140


Property and equipment, net		10,311,440			11,802,420

Security deposit		1,043,972			1,357,956
Right-of-use asset		1,169,271			16,459,215
Total assets	$	25,570,876		$	54,695,731

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable	$	818,797		$	1,368,006
Accrued interest		110,973			-
Accrued expenses		734,548			976,153
Current portion of operating lease liabilities		1,551,711			2,599,102
Current maturities of notes payable, related parties, net of $0 and $304,500 of debt discounts at September 30, 2025 and December 31, 2024, respectively		-			2,195,500
Current maturities of notes payable, net of $0 and $13,470 of debt discounts as of September 30, 2025 and December 31, 2024, respectively		-			225,780
Total current liabilities		3,216,029			7,364,541

Operating lease liabilities		1,123,302			15,193,129
Convertible notes payable, related parties, net of $811,388 and $0 of debt discounts as of September 30, 2025 and December 31, 2024, respectively		1,992,430			-
Notes payable		150,000			150,000

Total liabilities		6,481,761			22,707,670

Commitments and contingencies

Stockholders' equity:
Preferred stock, $0.001 par value, 20,000,000 shares authorized, no shares issued and outstanding		-			-
Common stock, $0.001 par value, 500,000,000 shares authorized, 12,223,599 and 11,300,624 shares issued and outstanding as of September 30, 2025 and December 31, 2024		12,224			11,300
Additional paid-in capital		99,212,152			94,418,972
Accumulated deficit		(80,135,261	)		(62,442,211	)
Total stockholders' equity		19,089,115			31,988,061

Total liabilities and stockholders' equity	$	25,570,876		$	54,695,731

SOW GOOD INC. CONDENSED STATEMENTS OF OPERATIONS (Unaudited)

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
Revenues	$	1,553,138		$	3,554,157		$	5,886,372		$	30,608,526
Cost of goods sold		10,500,626			2,998,171			13,860,846			16,415,970
Gross profit		(8,947,488	)		555,986			(7,974,474	)		14,192,556

Operating expenses:
General and administrative expenses:
Salaries and benefits		1,826,918			1,875,908			5,701,187			6,350,038
Professional services		97,553			320,289			548,106			1,382,393
Other general and administrative expenses		1,712,505			1,607,844			4,832,623			3,879,350
Total general and administrative expenses		3,636,976			3,804,041			11,081,916			11,611,781
Depreciation and amortization		8,584			8,583			25,751			23,060
Loss on impairment of long-lived assets		24,690			-			24,690			-
Total operating expenses		3,670,250			3,812,624			11,132,357			11,634,841

Net operating income (loss)		(12,617,738	)		(3,256,638	)		(19,106,831	)		2,557,715

Other income (expense):
Interest income		-			39,509			27,266			43,639
Interest expense		(93,274	)		(225,095	)		(389,013	)		(1,243,428	)
Loss on early extinguishment of debt		-			-			-			(696,502	)
Gain on termination of leases		1,775,528			-			1,775,528			-
Total other expense		1,682,254			(185,586	)		1,413,781			(1,896,291	)

Income (loss) before income tax		(10,935,484	)		(3,442,224	)		(17,693,050	)		661,424
Income tax provision		-			62,315			-			(195,603	)
Net income (loss)	$	(10,935,484	)	$	(3,379,909	)	$	(17,693,050	)	$	465,821

Weighted average common shares outstanding - basic		12,203,609			10,245,388			11,708,645			8,651,223
Net income (loss) per common share - basic	$	(0.90	)	$	(0.33	)	$	(1.51	)	$	0.05

Weighted average common shares outstanding - diluted		12,203,609			10,245,388			11,708,645			9,613,553
Net income (loss) per common share - diluted	$	(0.90	)	$	(0.33	)	$	(1.51	)	$	0.05

SOW GOOD INC. STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited)

	For the Three Months Ended September 30, 2025
					Additional					Total
	Common Stock				Paid-in		Accumulated			Stockholders'
	Shares		Amount		Capital		Deficit			Equity
Balance, June 30, 2025		12,166,128	$	12,166	$	97,758,199	$	(69,199,777	)	$	28,570,588
Common stock issued to directors for services		57,471	$	58	$	49,941	–				49,999
Common stock issued to officers for services	–		–			104,554	–				104,554
Common stock options granted to directors and advisors for services	–		–		$	3,598	–				3,598
Common stock options granted to officers and employees for services	–		–			1,295,860	–				1,295,860
Net loss for the three months ended September 30, 2025	–		–		–			(10,935,484	)		(10,935,484	)
Balance, September 30, 2025		12,223,599	$	12,224	$	99,212,152	$	(80,135,261	)	$	19,089,115

	For the Three Months Ended September 30, 2024
					Additional					Total
	Common Stock				Paid-in		Accumulated			Stockholders'
	Shares		Amount		Capital		Deficit			Equity
Balance, June 30, 2024		10,245,388	$	10,245	$	89,899,666	$	(54,894,265	)	$	35,015,646
Common stock options granted to directors and advisors for services	–		–			29,284	–				29,284
Common stock options granted to officers and employees for services	–		–			1,157,587	–				1,157,587
Net loss for the three months ended September 30, 2024	–		–		–			(3,379,909	)		(3,379,909	)
Balance, September 30, 2024		10,245,388	$	10,245	$	91,086,537	$	(58,274,174	)	$	32,822,608

	For the Nine Months Ended September 30, 2025
					Additional					Total
	Common Stock				Paid-in		Accumulated			Stockholders'
	Shares		Amount		Capital		Deficit			Equity
Balance, December 31, 2024		11,300,624	$	11,300	$	94,418,972	$	(62,442,211	)	$	31,988,061
Common stock issued to directors for services		139,907		142		279,858	–				280,000
Common stock issued to officers for services		783,068		782		263,572	–				264,354
Common stock options granted to directors and advisors for services	–			-		13,487	–				13,487
Common stock options granted to officers and employees for services	–		–			3,541,322	–				3,541,322
Additional paid in capital from exchange of related party debt, net	–		–			694,941	–				694,941
Net loss for the nine months ended September 30, 2025	–		–		–			(17,693,050	)		(17,693,050	)
Balance, September 30, 2025		12,223,599	$	12,224	$	99,212,152		(80,135,261	)	$	19,089,115

	For the Nine Months Ended September 30, 2024
					Additional					Total
	Common Stock				Paid-in		Accumulated			Stockholders'
	Shares		Amount		Capital		Deficit			Equity
Balance, December 31, 2023		6,029,371	$	6,029	$	66,014,415	$	(58,739,995	)	$	7,280,449
Common stock issued in public offering, net of offering costs		1,380,000		1,380		11,973,596	–				11,974,976
Common stock issued in private placement offering		515,597		516		3,737,484	–				3,738,000
Proceeds from the exercise of stock options and warrants		2,289,209		2,288		5,670,680	–				5,672,968
Common stock issued to directors for services		31,211		32		295,616	–				295,648
Common stock options granted to directors and advisors for services	–		–			86,892	–				86,892
Common stock options granted to officers and employees for services	–		–			3,307,854	–				3,307,854
Net income for the three months ended September 30, 2024	–		–		–			465,821			465,821
Balance, September 30, 2024		10,245,388	$	10,245	$	91,086,537	$	(58,274,174	)	$	32,822,608

SOW GOOD INC. CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

	For the Nine Months Ended
	September 30,
	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(17,693,050	)	$	465,821
Adjustments to reconcile net loss to net cash used in operating activities:
Bad debts expense		86,339			176,032
Depreciation and amortization		778,800			582,648
Non-cash amortization of right-of-use asset and liability		1,786,411			791,360
Non-cash gain on lease exit		(1,775,526	)		-
Inventory valuation and obsolescence adjustments		5,377,125			-
Common stock issued to officers and directors for services		544,356			295,648
Amortization of stock options		3,554,809			3,394,746
Amortization of debt discounts		202,200			932,883
Loss on early extinguishment of debt		-			696,502
Decrease (increase) in current assets:
Accounts receivable		199,051			1,169,269
Prepaid expenses		296,748			360,734
Inventory		3,447,794			(15,319,762	)
Security deposits		313,984			(1,011,340	)
Increase (decrease) in current liabilities:
Accounts payable		(549,209	)		447,563
Income tax payable		-			65,603
Accrued interest		174,863			(363,326	)
Accrued expenses		(79,765	)		1,190,375
Net cash used in operating activities	$	(3,335,070	)		(6,125,244	)

CASH FLOWS FROM INVESTING ACTIVITIES
Fixed asset additions and disposals, net		32,883			(3,143,561	)
Cash paid for construction in progress		(33,959	)		(1,325,726	)
Net cash used in investing activities		(1,076	)		(4,469,287	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from common stock offerings, net		-			15,712,976
Proceeds from the exercise of warrants and options		-			373,855
Repayments of borrowings		-			(956,249	)
Net cash provided by financing activities		-			15,130,582

NET CHANGE IN CASH AND CASH EQUIVALENTS		(3,336,146	)		4,536,051
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		3,723,440			2,410,037
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	387,294		$	6,946,088

SUPPLEMENTAL INFORMATION:
Interest paid	$	399		$	667,293
Interest received	$	27,266		$	43,639
Income taxes paid	$	-		$	130,000

NON-CASH INVESTING AND FINANCING ACTIVITIES:
Non-cash exercise of warrants	$	-		$	5,299,113
Retirement of Notes Payable, related party in non-cash debt exchange	$	(2,500,000	)	$	-
Issuance of Convertible Notes Payable, related party, including accrued interest of $64,568 in debt exchange	$	2,803,818		$	-
Repayment of interest	$	(64,568	)	$	(98,750	)
Repayments of borrowings	$	(239,250	)	$	(5,200,363	)
Reclassification of construction in progress to assets held for sale	$	713,256		$	-
Reclassification of construction in progress to property and equipment	$	682,469		$	2,864,649

SOW GOOD INC. RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024

Net income (loss)	$	(10,935,484	)	$	(3,379,909	)	$	(17,693,050	)	$	465,821
Depreciation and amortization		268,281			216,164			786,993			582,948
Interest expense, net		93,274			185,586			361,747			1,199,789
Provision for income tax		-			(62,315	)		-			195,603
EBITDA		(10,573,929	)		(3,040,474	)		(16,544,310	)		2,444,161
Share-based payments		1,453,953			1,186,871			4,098,239			3,690,362
Gain on termination of leases		(1,775,528	)		-			(1,775,528	)		-
Loss on early extinguishment of debt		-			-			-			696,502
Adjusted EBITDA	$	(10,895,504	)	$	(1,853,603	)	$	(14,221,599	)	$	6,831,025

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