BioHarvest Sciences Inc. Common Stock 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- BioHarvest Sciences reported second quarter 2026 revenues of $8.8 million, a 3.8% increase year over year from $8.5 million.
- Cost of revenue was $3.7 million, up from $3.4 million the prior year, resulting in a gross profit of $5.1 million or 58% of revenue, slightly down from 59% last year.
- Operating expenses totaled $7.6 million, up from $6.9 million, driven by technology development and new marketing investments.
- Net loss improved to $3.7 million or $0.17 per share, compared to a $4.1 million loss or $0.24 per share last year.
- Adjusted EBITDA loss increased to $1.6 million from $1.2 million year over year.
- Cash and cash equivalents plus bank deposits totaled $16.2 million as of June 30, 2026, up from $3.7 million a year earlier.
- BioHarvest secured its first CDMO manufacturing and supply agreement with a UAE-based customer for a rare premium fragrance raw material, with a 20-ton commitment potentially generating $20 to $30 million in revenue in 2027-2028.
- Limited production for this fragrance will begin in the first half of 2027 in a dedicated facility section.
- The company completed stage one of a saffron development program and advanced to stage two, valued at $1.125 million, focusing on scaling saffron biomass for pre-commercial testing.
- An expanded collaboration with Tate and Lyle now targets multiple plant-based sweetener molecules, with potential manufacturing agreements and technology transfer arrangements.
- BioHarvest received a $1.4 million grant from the Israel Innovation Authority to integrate advanced data science and machine learning into plant cell culture workflows.
- The CDMO business tightened its 2026 revenue guidance from $4-$6 million to $4-$5 million and expects a reduced full-year EBITDA loss of $1.5-$2.5 million, down from $4-$5 million.
- The vineyard direct-to-consumer business lowered full-year revenue guidance from $38-$42 million to $33-$35 million, reflecting reallocation of spend toward manufacturing capacity and CDMO investments.
- The vineyard business expects an EBITDA loss of $1.5-$2.5 million versus prior guidance of a $0.5-$2 million gain, due to deliberate marketing spend adjustments amid media cost inflation.
- BioHarvest implemented a pricing increase up to 20% for new subscription customers starting June 2026, with no material impact observed so far.
- New product launches include single-dose vineyard daily chews in September 2026, targeting improved conversion and retention among younger consumers.
- Retail expansion efforts continue alongside CDMO focus, with opportunities pursued in the US and internationally for products like hydration supplements.
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Transcript
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Good morning, and welcome to the BioHarvest Sciences second quarter 2026 financial results conference call. As a reminder, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If you would like to ask a question, please press star one on your phone. To withdraw your question, please press star one again. As a reminder, this conference is being recorded. I will now hand the call over to Dory Kurowski of LifeSci Advisors.
Please go ahead. Greetings, and welcome to the BioHarvest Sciences second quarter 2026 financial results conference call.
With us on the call this morning is Dr. Zaki Rakib, chairman and chief executive officer. Before we begin, I would like to remind you that management will be making projections and forward-looking statements on the call today regarding future events. Any statements that are not historical facts are forward-looking statements. These statements are made pursuant to and within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. We encourage you to review BioHarvest Sciences' SEC filings, including the company's most recent Form 6-K, which identify risks and uncertainties that may cause future actual results or events to differ materially. These filings can be found on the company website as well as the SEC's website at www.sec.gov.
Please note that the forward-looking statements made during today's call speak only to the date they are made, and BioHarvest Sciences undertakes no obligation to update them. With that, I would like to turn the call over to Dr. Zaki Rakib, chief executive officer of BioHarvest.
Please go ahead. Hello, Dr. Zaki.
Just a reminder to unmute, please.
Hello? Hello, we can hear you.
Hello. Yeah, you can hear me? Should I start from the beginning? Did you hear everything? Yes, please.
Thank you. Okay. Sorry. My apologies.
Thank you, Dory, and thank you all for joining us this morning. This morning, we proudly announced our first-ever CDMO manufacturing and supply agreement, another validating deal that shows the value of our programmable plant cell biology, which yields highly consistent, bioavailable, and patent-protected precision botanics. These are non-GMO compounds possessing enhanced potency and purity compared to the original plant. Our AI-driven development and industrial-scale bioreactors are a revolution in plant cell culture production at mass scale. This morning's announcement relates to a program that we have with an U.A.E.-based customer for a global luxury rare fragrance. I'll talk more about this exciting announcement and what it means to BioHarvest after you hear the prerecorded review of the financials that includes a more detailed summary of our numbers for this quarter.
Please note that our CFO, Bar Dichter, has prerecorded the financial summary, but for happy family-related circumstances will not be joining the call today. Our company's Controller, Roy Asheroff, will be on the call, and if necessary, he'll follow up with any unaddressed financial questions on the call.
Operator? Thank you, Zaki. Good morning, everyone.
I will provide you with a summary of our financial results. A full breakdown is available in our SEC filings and in the press release that crossed the wire before market open today. Please note that all figures are in USD unless stated otherwise. Revenues for the second quarter of 2026 were $8.8 million, an increase of 3.8% year-over-year from $8.5 million for the same period last year. Cost of revenue was $3.7 million compared to $3.4 million for the same period last year. Gross profit for the second quarter of 2026 was $5.1 million, or 58% of total revenue, compared to $5.1 million, or 59% of total revenue for the same period last year. Sales and marketing expenses totaled $4.4 million for the second quarter of 2026, compared to $4 million for the same period last year.
R&D expenses totaled $1.7 million for the second quarter of 2026, compared to $1.4 million for the same period last year. G&A expenses totaled $1.5 million for the second quarter of 2026 compared to $1.6 million for the same period last year, or 17% of revenues as compared to 19% for the same period last year. Total operating expenses for the second quarter of 2026 were $7.6 million, compared to $6.9 million for the same period last year. The increase is driven by technology development expenditures with CDMO services business unit, as well as investing in new marketing strategies for the products business unit. Net losses for the second quarter of 2026 totaled $3.7 million, or $0.17 per basic and diluted share, as compared to a net loss of $4.1 million, or $0.24 per basic and diluted share for the same period last year.
Adjusted EBITDA loss, a non-IFRS measure for the second quarter of 2026 totaled $1.6 million compared to $1.2 million for the same period last year. Cash and cash equivalents, together with bank deposits as of June 30, 2026, totaled $16.2 million, compared to $3.7 million as of June 30, 2025. I would now like to pass the call back to Zaki.
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