Laird Superfood, Inc.

Good afternoon. Thank you for attending the Laird Superfood first quarter 2025 financial results call. My name is Matt and I'll be the operator for today's call. All lines will be muted during the presentation portion of the call for an opportunity for questions and answers at the end. If you'd like to ask a question, please press star one on your telephone keypad. I'll now have to pass the conference over to our host, Trevor Russo, head of investor relations. Trevor, please go ahead.

Thank you and good afternoon. Welcome to Laird Superfood's first quarter 2025 earnings conference call and webcast. On today's call are Jason Beef, Laird Superfood's President and Chief Executive Officer, and Anya Hamel, our Chief Financial Officer. By now, everyone should have access to the company's earnings release, which is today after market close. It is available on the investor relations section of Laird Superfood's website at www.lairdsuperfood.com. Before we begin, please note that during this call, management may make forward-looking statements within the context of federal securities laws. These statements are based on management's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those described. Please refer to today's press release and other filings of the SEC for a detailed discussion of these risks and uncertainties. With that, I'll turn the call over to Jason.

Thank you, Trevor. And hello, everyone. I'm delighted to share with you the results for Laird Superfood's first quarter of 2025, which marked another strong period as a high growth premium brand, robust margins and significant market potential. During Q1 2025, we achieved an 18% year over year increase in net sales to $11.7 million, up from $9.9 million in the same period last year. This marks our fifth consecutive quarter of double-digit sales growth, which is even more impressive in what has recently become an inflationary and uncertain economic environment. Our profitability metrics remain a highlight. In Q1 of 2025, we delivered 41.9% gross margin, a 1.9-point improvement versus Q1 of last year. This margin strength despite significant commodity price pressures in ingredients such as coffee and coconut milk powder, positions us well above the industry average for food companies. And our ability to sustain margins in the high 30 to low 40% while driving nearly 20% sales growth underscores the resilience and exceptional execution of our omnichannel business model, driven by strategic sourcing, a variable cost manufacturing approach, and discipline trade spend management. Our Q1 results also demonstrate the progress that we are making in our two primary strategic commercial initiatives to drive robust growth on Amazon and to significantly expand our wholesale distribution. Our e-commerce channel grew by 6% during Q1, led by our performance on Amazon, which delivered strong performance driven by improved inventory management and targeted marketing execution that drove platform demand for our new superfood products. In our direct-to-consumer business, more than 75% of Q1 DTC sales came from repeat customers and subscribers, a testament to our ability to foster long-term relationships and a demonstration of the trust and loyalty that our consumers have in the brand. Similarly, we continue to make exceptional progress on the wholesale front, with net sales increasing 35% year-over-year and now contributing nearly half of our total LSF revenue. This growth was driven by distribution gains in grocery and club stores, including key partners across both natural and conventional grocery, coupled with improved dollar sales velocity at existing accounts. Our efficient promotional strategies and strong consumer demand for our products fueled this momentum. As we noted on our previous calls, we expected our Q1 sales growth would be tempered by out-of-stock issues with our creamer and instant latte products, stemming from unexpectedly high demand during Q4 2024. Indeed, we did feel that impact, yet I am pleased to be able to report that we have resolved these constraints by qualifying additional raw material suppliers and enhancing our supply chain flexibility. and that we are now in a stronger inventory position on our coconut milk products, which we expect will allow us to drive accelerated growth on these products in the second half of 2025. Focusing on our supply chain, Q1 was another testament to the agility that we have built in this function. Despite persistent commodity inflation in coffee, cacao, and coconut milk powder, we were largely able to mitigate these cost impacts through strong supplier relationships and operational efficiency. and by beginning to make moves that will mitigate the impact of tariffs on our business. Our 41.9% gross margin in Q1 includes a 3.3 point benefit from a timing change in capitalization of inbound freight. But even without this, our margin resilience is notable. We remain committed to our goal of sustaining annual gross margins in at least the upper 30s, and we're cautiously optimistic about potential commodity price corrections in 2025 that could further enhance our profitability. As we have previously discussed, our strategy remains to maintain sharp pricing to prioritize volume growth, positioning us to build a larger, more profitable business from commodity costs normalized. Speaking of tariffs, let's address the elephant in the room. As you'd expect, much of our raw materials, such as our coconut products and our coffee, are imported from farms overseas. While we continue to watch this situation very carefully, We feel that we are in position to manage the impact of the tariffs that have thus far been levied within the guidance that we have previously provided. Should significant additional tariffs be levied on our ingredients, we would likely need to take price to accommodate that impact. Before I hand it over to Anya, I want to highlight our continued progress on profitability. In Q1 2025, we narrowed our net loss to $0.2 million. compared to a $1 million loss to Q1 2024. We also achieved a positive adjusted EBITDA of $0.4 million, compared to a negative $0.8 million in the prior year. This result demonstrates the operating leverage we're unlocking as we scale our business, reinforcing our path towards sustainable profitability. And our balance sheet remains strong, with no debt and ample cash to operate our business as we continue to grow our revenues and push beyond breakeven profitability. Now, let me turn it over to Anya to dive into the financial details for the quarter.