Borealis Foods Inc. Class A Common Shares (BRLS)

FairStock Score: 24/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look first for a business that earns good returns and has staying power. Borealis sells branded ramen in a defensive category, but the record shows a company still searching for profitability. Revenue was $31.5M in fiscal year 2025, up from $29.1M in fiscal year 2024, so the top line is not collapsing. Yet net income was -$19.0M in fiscal year 2025, -$25.3M in fiscal year 2024, and -$27.5M in fiscal year 2023; diluted EPS was -$0.89, -$1.25, and -$2.56, respectively. Losses have narrowed, but a business losing money in each of the last four years has no demonstrated competitive moat to me. The computed Lynch category is none: losses in each of the last four years. The latest filed quarter, fiscal Q1 2026, the quarter ended 2026-03-31, showed revenue of $7.8M and net income of -$3.5M, or diluted EPS of -$0.16. Trailing free cash flow was -$5.4M, a FairStock-calculated FCF yield of -22.2% against a $24.3M market cap at the 2026-10-26 close. The FairStock-calculated P/E is -1.12; P/B and ROE are N/A, and ROCE is -11.64%. A FairStock-calculated Altman Z-score of -4.46 and Piotroski F-score of 4/9 point to financial fragility. At $1.13, within a 52-week range of $0.60-$3.99, the price is optically low, but without positive earnings or cash flow Graham's margin of safety is absent. Growth from $29.1M to $31.5M revenue is real but too modest to offset persistent losses.

In plain English: Borealis Foods makes ready-to-eat ramen noodles under brands such as Chef Woo, Chef Ramsay, Ramen Express, and Woodles. The business looks weak because it has lost money in each of the last four years and is using cash. At $1.13 a share, the price looks low, but without profits or positive cash flow there is no clear evidence it is cheap rather than risky.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K/A (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer