Laird Superfood (NYSEAMERICAN:LSF) reported a sharp increase in third-quarter sales as acquisitions expanded its business, but higher commodity costs and a lower-margin product mix weighed on profitability. The company also updated its full-year outlook and outlined plans to increase marketing spending.
Net sales rose 225% to $42 million from $12.9 million a year earlier, primarily reflecting full-quarter contributions from acquired brands Navitas and Terrasoul and expanded retail distribution. Sales increased 2% from the second quarter.
The company reported net income of $1.7 million, or $0.10 per basic and diluted share, compared with a $1 million loss a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, rose to $2.1 million from $0.2 million.
Acquisitions drive growth as margins narrow
Chief Financial Officer Mark Johnson said the third quarter was the first full quarter with Laird, Navitas and Terrasoul under one roof. E-commerce sales grew more than 3.5 times year over year to $22.5 million, representing 54% of revenue. Wholesale sales nearly tripled to $19.4 million, or 46% of the total.
Gross profit rose to $12.4 million from $4.7 million, but gross margin fell to 29.6% from 36.5%. Johnson attributed the decline primarily to commodity inflation and the lower margins associated with Terrasoul’s business model, which involves less brand investment.
Operating expenses increased 79% to $10.2 million, including $7.7 million in sales and marketing expenses. General and administrative expenses fell 9% to $2.4 million, helped by a $4.1 million non-cash gain tied to a change in the fair value of acquisition-related contingent consideration. Excluding that gain, general and administrative expenses would have been $6.6 million, Johnson said.
For the first nine months of 2026, net sales increased 166% to $97.2 million. Adjusted EBITDA was $3.9 million, up from $0.7 million in the prior-year period.
Outlook reflects channel headwinds and marketing spending
Laird updated its full-year 2026 forecast to net sales of $135 million to $140 million and adjusted EBITDA of $5 million to $6 million. Johnson said the earnings outlook reflects a decision to invest further in marketing to drive consumer demand.
Asked about the sales guidance revision, Johnson cited continued headwinds in club and direct-to-consumer channels. President and Chief Executive Officer Jason Vieth said club sales can be uneven because of the timing of promotional programs. The company was comparing against a coffee club promotion in the year-earlier third quarter that did not recur this year, he said.
Vieth said the company plans nearly $2 million in incremental marketing spending in the fourth quarter compared with a year earlier, with a similar increase planned for 2027. The effort will focus largely on building awareness of Laird and Navitas while also pursuing sales conversion on online marketplaces.
“We were seen as being one of the absolute top brands that consumers recognized and trusted when they knew us,” Vieth said of consumer surveys. “But we also found we were very much not known” among consumers.
Vieth said recent Laird launches at Walmart and an expanded Navitas assortment at Target were showing positive early results. The company also is introducing functional instant coffee, electrolyte coffee powders and coffee protein bars, while developing new products for Navitas and Terrasoul for 2027.
Integration and cost pressures remain in focus
Vieth said Navitas is fully integrated into Laird’s organization, processes and enterprise resource planning system. Terrasoul’s accounting and finance integration is further along than its systems and operations work.
The company is evaluating how to use Terrasoul’s Fort Worth facility alongside outside manufacturing partners and plans to address limitations in Terrasoul’s existing software system. Vieth said Laird remains open to acquisitions but would be more cautious in the near term given its integration priorities.
Johnson said general and administrative cost synergies were progressing well, though savings in cost of goods sold had been slower to materialize. Vieth said commodity costs, particularly for organic cacao, had remained higher than expected, while fuel and freight charges added pressure.
Vieth said the company had secured contracts for some ingredients at fairly flat costs entering next year and was cautiously optimistic about better costs in the second half of 2027. He cautioned that gross-margin pressure could persist through at least the first quarter and possibly the second quarter.
The company ended September with $17.3 million in cash and no outstanding debt. Cash declined from $23.2 million at the end of the second quarter as inventory and receivables increased, Johnson said. Laird expects to end the year with more than $20 million in cash.
Vieth also said Laird is evaluating the future of its refrigerated liquid creamer business, which has been declining. He expects the company to make a decision on its direction within the next one to two quarters.
About Laird Superfood (NYSEAMERICAN:LSF)
Laird Superfood, Inc. is a food and beverage company that develops plant-based products designed to support active lifestyles and everyday wellness. The company was founded in 2015 by professional surfer Laird Hamilton and entrepreneur Paul Hodge. Its product portfolio has included functional coffee creamers, instant coffee, hydration mixes, plant-based protein products, supplements and other pantry staples. Many products feature ingredients such as coconut, mushrooms, adaptogens and other plant-based compounds, and are marketed as convenient additions to coffee, beverages and daily nutrition routines.
