Q4 2025 revenue fell 10% to $9.7 million from $10.8 million in Q4 2024, driven by a 12% drop in the company’s flagship wellness supplement line while the new plant‑based product line grew 8%. The decline reflects softer demand in the core supplement market amid rising competition and higher raw‑material costs.
Gross profit margin contracted to 72.9% from 74.2% in the prior year, largely because the cost of goods sold rose 5% due to higher ingredient prices and a shift toward higher‑margin specialty ingredients. Despite the margin squeeze, operating income fell to $0.4 million, a 60% drop from $1.0 million in Q4 2024, as fixed manufacturing overhead remained unchanged.
The quarter ended with a net loss of $588,000, or $0.05 per diluted share, compared with a net income of $176,000 ($0.02 per diluted share) in Q4 2024. The loss was driven by a $200,000 one‑time restructuring charge related to the closure of a legacy manufacturing facility and a $150,000 impairment of inventory tied to the under‑performing supplement line.
For full‑year 2025, revenue declined 7% to $39.8 million from $43.0 million in 2024, while the company posted a net loss of $882,000 ($0.08 per diluted share). Management highlighted that the loss was largely attributable to the restructuring initiatives, which are now 80% complete and are expected to generate $1.5 million in annualized cost savings.
Looking ahead, the company reaffirmed its guidance for 2026, projecting full‑year revenue of $38.5–$39.0 million and a net loss of $1.0–$1.1 million. Management emphasized that the company remains focused on product innovation, market expansion for its 25th anniversary, and continued cost discipline, signaling confidence that the restructuring will translate into improved profitability in the next fiscal year.
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