Sow Good Revenue Falls Amid Competition
Sow Good(NASDAQ:SOWG) reported Q2 2025 results on August 14, 2025, with revenue declining year over year to $1.9 million and a GAAP net loss of $4.2 million, as the company faced heightened competition and increased costs. Management highlighted operational stabilization, new retail distribution wins, and expects to reach cash flow breakeven before year-end. The following insights examine competitive pressures, cost structure changes, and retail momentum.
Gross margin turned negative at negative 7% in Q2 2025, compared to 58% in the prior year, as new market entrants intensified competition and occupancy costs rose. The company’s gross loss for the quarter was $100,000, a reversal from a $9 million gross profit in Q2 2024.
This sharp revenue contraction highlights the company’s vulnerability to market share loss when larger competitors enter the freeze-dried snack category, underscoring the need for differentiation and scale.
Source Fool.com
