Edible Garden AG Incorporated Common Stock (EDBL)

FairStock Score: 20/100 — RISKY

Key Financials

AI Analysis

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

I look for businesses with durable earnings, honest accounting, and a margin of safety. Edible Garden offers neither at present. It sells packaged herbs, lettuces, and salad kits, a competitive consumer-defensive niche with little evidence of a moat. Revenue declined from $14.0 million in fiscal 2023, the year ended 2023-12-31, to $13.9 million in fiscal 2024, the year ended 2024-12-31, and to $12.8 million in fiscal 2025, the year ended 2025-12-31. Losses worsened over the same period: net income was -$10.2 million in fiscal 2023, the year ended 2023-12-31, -$11.1 million in fiscal 2024, the year ended 2024-12-31, and -$17.3 million in fiscal 2025, the year ended 2025-12-31. The latest reported quarter, fiscal Q2 2026, the quarter ended 2026-06-30, showed revenue of $3.5 million and a net loss of $3.3 million, a -91.8% net margin. That is better than fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $3.1 million and net loss was $4.0 million, but still deeply unprofitable. Cash generation is alarming: trailing twelve-month free cash flow was -$8.0 million, and FairStock's FCF yield calculation is -452.3% against a $1.8 million market cap at the 2026-10-13 close. The balance sheet looks strained, with FairStock-calculated debt-to-equity of 2.64 and Altman Z-score of -3.63. FairStock's P/E is 0.00 and P/B is N/A, reflecting losses and unavailable book value. The Lynch category is none, because the company lost money in each of the last four years. At $0.91, the stock has a 52-week range of $0.08 to $19.80, reflecting extreme volatility. Without a path to consistent profit and positive cash flow, this fails the quality and valuation tests I would apply. A speculative turnaround, not a value investment.

In plain English: Edible Garden grows and sells packaged herbs, lettuces, and salad kits. The business looks weak: it has lost money for years, sales fell from $14.0 million in fiscal 2023 to $12.8 million in fiscal 2025, and it used $8.0 million of cash over the last twelve months. At $0.91 a share, the price may look small, but the losses and cash use are huge compared with the company's $1.8 million market value, so it does not look like a bargain on these numbers.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · 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) · FY2025 10-K (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