Borealis Foods Inc. announced its Q2 2025 financial results on September 8, 2025, reporting a 35% surge in net revenue to $7.19 million, up from $5.33 million in Q2 2024. Gross profit for the quarter rose 21% to $0.51 million, although the non-GAAP gross margin (excluding depreciation) saw a slight dip from 15% to 14%. Sales, General, and Administrative (SGA) expenses declined 51% to $3.87 million year-over-year.
For the first half of 2025, net revenue increased 6% to $14.03 million, and gross profit surged 112% to $1.41 million, representing 10% of net revenue. Adjusted EBITDA for Q2 2025 increased to $0.80 million, compared to $0.68 million in Q2 2024. The loss from operations narrowed significantly to $6.27 million in H1 2025, down from $12.16 million in H1 2024.
Despite these operational improvements, the company continues to face significant liquidity constraints. As of June 30, 2025, Borealis had cash-on-hand of only $0.21 million and negative working capital of $29.49 million. The independent registered public accounting firm expressed substantial doubt about the company's ability to continue as a going concern within one year from August 19, 2025.
In product news, Borealis Foods' Chef Woo high-protein ramen was awarded the American Masters of Taste Gold Medal for Superior Taste by Chefs In America, recognizing its Roasted Chicken, Tequila Lime, and Baja Chili flavors. Chef Woo was also named an Editor's Top Pick by Food & Beverage Magazine in its August 2025 issue. These accolades validate the brand's culinary credibility and consumer appeal.
Net cash provided by financing activities for the first half of 2025 totaled $3.15 million, primarily driven by advances from related parties, including $3.43 million from the Chairman and CEO during H1 2025, with an additional $980,000 advanced post-Q2. The CEO also deferred approximately $69,000 in compensation.
The company carries a substantial debt burden, with total contractual obligations of $65.19 million as of June 30, 2025, of which $39.63 million is due within one year. Management is actively evaluating additional financing alternatives and aligning inventory and production levels with committed institutional demand to enhance working capital efficiency.
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