Sow Good Inc. (NASDAQ: SOWG) shares began Friday slightly below breakeven. The Dallas-based company, a leading freeze-dried food and candy manufacturer, is reporting financial and operating results for the third quarter ended September 30, 2025.
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 writedown of overhead allocated to this inventory.
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.
SOWG dipped three cents, or 4.3%, to 54 cents.
