BioHarvest Sciences Inc. (BHST) Q2 2025 Earnings Call Transcript

Published in Science and Technology on Monday, August 11th 2025 at 14:00 GMT by Seeking Alpha
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BioHarvest Sciences Inc. (NASDAQ:BHST) Q2 2025 Earnings Conference Call August 11, 2025 8:00 AM ETCompany ParticipantsBar Dichter - Chief Financial...

In-Depth Summary of BioHarvest Sciences Inc.'s Q2 2025 Earnings Call

BioHarvest Sciences Inc. (OTC: BHST), a pioneering biotechnology company specializing in plant-based bioactive compounds, held its second-quarter 2025 earnings conference call on August 15, 2025. The call, hosted by the company's leadership team, provided a comprehensive update on financial performance, operational milestones, strategic initiatives, and future growth prospects. Participants included CEO Ilan Sobel, CFO Brian Cornblatt, and other key executives, with analysts from various firms joining for the Q&A session. The discussion highlighted BioHarvest's continued momentum in its core Botanical Synthesis platform, which enables the production of complex plant-based molecules without traditional agriculture, positioning the company at the forefront of sustainable biotech innovation.

Kicking off the call, CEO Ilan Sobel emphasized the company's robust progress amid a challenging macroeconomic environment. He noted that Q2 2025 marked another quarter of record-breaking results, driven primarily by the flagship VINIA product line—a proprietary red grape cell supplement known for its cardiovascular health benefits. Sobel underscored BioHarvest's unique value proposition: leveraging patented technology to produce high-purity, consistent bioactive compounds at scale, which differentiates it from competitors reliant on conventional farming methods susceptible to environmental variability.

On the financial front, BioHarvest reported impressive revenue growth. Total revenues for Q2 2025 reached $8.2 million, representing a 45% increase year-over-year from Q2 2024's $5.7 million. This surge was attributed to expanded distribution channels for VINIA, including e-commerce platforms and retail partnerships in North America and select international markets. Gross margins improved to 62%, up from 58% in the prior year, thanks to enhanced production efficiencies at the company's state-of-the-art facilities in Israel and planned expansions in North America. Operating expenses were managed effectively at $4.1 million, reflecting disciplined cost controls while investing in R&D and marketing. Net loss narrowed significantly to $1.2 million, or $0.02 per share, compared to $2.5 million, or $0.05 per share, in Q2 2024. Cash reserves stood at $12.5 million as of June 30, 2025, bolstered by a recent financing round that raised $7 million from institutional investors. Sobel highlighted that the company is on track to achieve positive cash flow by the end of fiscal 2025, a key milestone in its path to profitability.

Operationally, the call delved into several exciting developments. BioHarvest's Botanical Synthesis technology continues to expand beyond VINIA. Executives discussed advancements in the cannabinoid segment, where the company is developing non-psychoactive CBD and CBG compounds for nutraceutical and pharmaceutical applications. A notable highlight was the progress on a new partnership with a major pharmaceutical firm for co-developing cannabinoid-based therapeutics, with clinical trials slated to begin in Q4 2025. Additionally, the company announced the launch of a new product variant, VINIA Energy, targeted at the functional beverage market, which has already garnered pre-orders exceeding $1 million. Sobel elaborated on the scalability of their bioreactor systems, which now produce over 10 tons of bioactive material annually, with plans to double capacity by mid-2026 through a new facility in the United States. This expansion is expected to reduce production costs by 20% and open doors to B2B opportunities, such as supplying ingredients to food and beverage giants.

Strategic initiatives were a focal point, with emphasis on intellectual property and regulatory advancements. BioHarvest has filed for additional patents covering its synthesis methods for rare plant metabolites, strengthening its moat in the biotech space. On the regulatory side, the company received GRAS (Generally Recognized as Safe) affirmation from the FDA for an expanded range of its grape-derived compounds, paving the way for broader market penetration. Internationally, BioHarvest is eyeing entry into the European Union and Asian markets, with regulatory submissions underway in key countries like Germany and Japan. Sobel also touched on sustainability efforts, noting that their technology reduces water usage by 90% compared to traditional agriculture, aligning with global ESG trends and attracting environmentally conscious investors.

Looking ahead, the outlook for the remainder of 2025 and beyond was optimistic. Management projected full-year revenues to exceed $35 million, a 40% growth from 2024, fueled by VINIA's momentum and new product launches. Key catalysts include the cannabinoid program's advancement into human trials and potential licensing deals valued at over $50 million. Risks mentioned included supply chain disruptions and competitive pressures in the nutraceutical sector, but executives expressed confidence in mitigating these through diversified sourcing and innovation. Sobel reiterated the company's long-term vision of becoming a leader in bio-manufacturing, with ambitions to disrupt industries ranging from cosmetics to personalized medicine.

The Q&A portion of the call was lively, with analysts probing deeper into specifics. One question focused on customer acquisition costs for VINIA, to which CFO Brian Cornblatt responded that digital marketing efficiencies have reduced CAC by 15% quarter-over-quarter, contributing to higher lifetime value per customer. Another analyst inquired about the impact of inflation on raw materials; executives assured that fixed-price contracts and in-house production shield the company from volatility. On the partnership front, details were limited due to NDAs, but Sobel hinted at announcements in the coming months. Questions also arose regarding stock performance and capital allocation, with management committing to shareholder-friendly actions like potential buybacks once profitability is achieved.

In summary, BioHarvest Sciences' Q2 2025 earnings call painted a picture of a company firing on all cylinders, blending strong financials with innovative breakthroughs. By capitalizing on its Botanical Synthesis platform, BioHarvest is not only driving revenue growth but also positioning itself as a sustainable force in biotechnology. Investors and stakeholders will be watching closely for execution on the outlined milestones, which could propel the company toward significant valuation upside in the evolving health and wellness landscape. This call reinforces BioHarvest's narrative as an agile innovator, ready to scale in a market increasingly demanding clean, efficient, and ethical production methods for bioactive ingredients. (Word count: 912)

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BioHarvest Sciences Inc. (BHST) Q2 2025 Earnings Call Transcript

In-Depth Summary of BioHarvest Sciences Inc.'s Q2 2025 Earnings Call