Overview

* Arcadia Q3 revenue declines 15% yr/yr, missing analyst expectations

* Net income for Q3 beats analyst estimates, driven by unrealized gain on ABVE stock

* Arcadia maintains gross profit margins above 30% for 11th consecutive quarter

Outlook

* Arcadia is pursuing resolution of outstanding balance with Above Food Ingredients Inc.

* Company faces uncertainty in timing of Roosevelt Resources transaction due to government shutdown

Result Drivers

* ZOLA REVENUE GROWTH - Year-to-date Zola revenues increased 26% due to expanded distribution and higher sales volumes

* GROSS MARGINS - Gross profit margins exceeded 30% for the 11th consecutive quarter, supported by reduced SG&A expenses

* REVENUE DECLINE FACTORS - Q3 revenue decline attributed to absence of GLA oil sales and lack of incremental sales to a major customer

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $1.3 mln $1.9 mln

Revenue (1

Analyst)

Q3 Net Beat $856,000 -$660,00

Income 0 (1

Analyst)

Q3 $2.45

Operatin mln

g

Expenses

Analyst Coverage

* The one available analyst rating on the shares is "buy"

* The average consensus recommendation for the food processing peer group is "buy"

* Wall Street's median 12-month price target for Arcadia Biosciences Inc ( RKDA ) is $12.00, about 67.5% above its November 6 closing price of $3.90

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)