The company continues to struggle with profitability, evidenced by a 2025Q4 gross margin of 11.8% and an operating margin of -31.7% as SG&A expenses consistently outpace gross profit.
| Sales/Revenue | 30.08M | 27.67M | 0 | 25.59M | 13.63M |
| Revenue Growth % | 8.71% | - | -100% | 87.71% | - |
| Cost of Goods Sold | 26.57M | 25.48M | 0 | 33.66M | 13.85M |
| COGS % of Revenue | 88.33% | 92.09% | - | 131.53% | 101.56% |
| Gross Profit | 3.51M | 2.19M | 0 | -8.07M | -212.99K |
| Gross Margin % | 11.67% | 7.91% | - | -31.53% | -1.56% |
| Gross Profit Growth % | 60.37% | - | 100% | -3688.81% | - |
| Operating Expenses | 14.55M | 22.59M | 5.13M | 14.99M | 10M |
| OpEx % of Revenue | 48.36% | 81.66% | - | 58.59% | 73.32% |
| Selling, General & Admin | 14.55M | 22.59M | 5.13M | 14.99M | 10M |
| SG&A % of Revenue | 48.36% | 81.66% | - | 58.59% | 73.32% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -11.04M | -20.4M | -5.13M | -23.06M | -10.21M |
| Operating Margin % | -36.69% | -73.75% | - | -90.12% | -74.88% |
| Operating Income Growth % | 45.92% | -297.68% | 77.75% | -125.92% | - |
| EBITDA | -9.19M | -18.08M | -4.96M | -19.61M | -8.11M |
| EBITDA Margin % | -30.57% | -65.35% | - | -76.63% | -59.49% |
| EBITDA Growth % | 49.15% | -264.32% | 74.69% | -141.79% | - |
| D&A (Non-Cash Add-back) | 1.84M | 2.32M | 167.9K | 3.45M | 2.1M |
| EBIT | -13.06M | -20.4M | -2.94M | -2.89M | -9.84M |
| Net Interest Income | -5.99M | -5.06M | 5.16K | 4.01K | -264.72K |
| Interest Income | 0 | 0 | 5.16K | 4.01K | 0 |
| Interest Expense | 5.99M | 5.06M | 0 | 0 | 264.72K |
| Other Income/Expense | -8.01M | -5.06M | 2.19M | 22.76M | 106.55K |
| Pretax Income | -19.05M | -25.46M | -2.94M | -26.23M | -10.1M |
| Pretax Margin % | -63.32% | -92.02% | - | -102.48% | -74.1% |
| Income Tax | -66.71K | -134.9K | 0 | 55.59K | 19.54K |
| Effective Tax Rate % | 0.35% | 0.53% | 0% | -0.21% | -0.19% |
| Net Income | -18.98M | -25.33M | -2.94M | -26.28M | -10.12M |
| Net Margin % | -63.09% | -91.54% | - | -102.7% | -74.24% |
| Net Income Growth % | 25.07% | -761.06% | 88.81% | -159.67% | - |
| Net Income (Continuing) | -18.98M | -25.33M | -2.94M | -302.54K | -10.12M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.89 | -1.25 | -0.15 | -1.20 | -0.46 |
| EPS Growth % | 28.8% | -733.33% | 87.5% | -160.87% | - |
| EPS (Basic) | -0.89 | -1.25 | -0.15 | -1.20 | -0.46 |
| Diluted Shares Outstanding | 21.43M | 20.31M | 19.47M | 21.86M | 21.86M |
| Basic Shares Outstanding | 21.43M | 20.31M | 19.47M | 21.86M | 21.86M |
| Dividend Payout Ratio | - | - | - | - | - |
Persistent Gross Margin Compression
According to the most recent quarterly filings, BRLS reported a 32.3% revenue increase in 2025Q4, yet the company's top-line performance remains inconsistent, characterized by significant fluctuations in quarterly growth rates that suggest a reliance on sporadic retail distribution gains rather than stable, organic demand expansion.
The erratic nature of revenue growth indicates that the company is still in a nascent phase of market penetration where shelf-space acquisition drives results more than repeat consumer purchasing. Investors should monitor whether the recent 32.3% growth can be sustained without escalating promotional expenditures that further erode the bottom line.
As reported in financial statements, the company's gross margin of 11.8% in 2025Q4 highlights a significant competitive disadvantage compared to established packaged food peers, suggesting that high input costs for specialized ingredients and third-party manufacturing continue to severely limit the firm's pricing power.
The inability to consistently maintain gross margins above 15% implies that the current product cost structure is not optimized for scale. This margin profile warrants further investigation into whether the company's reliance on premium pea protein isolates creates a permanent cost floor that prevents meaningful profitability.
Based on BRLS's reported figures, the company continues to exhibit negative operating leverage, with SG&A expenses frequently exceeding gross profit, resulting in an operating margin of -31.7% in 2025Q4 that underscores the heavy burden of scaling distribution and brand awareness in a crowded market.
The persistent gap between gross profit and operating expenses suggests that the company is currently prioritizing aggressive market share acquisition over operational efficiency. Without a clear path to reducing fixed overhead relative to revenue, the firm may continue to face significant challenges in achieving an operating breakeven point.
Analysis of the income statement reveals that SG&A remains the primary driver of the company's net losses, with quarterly expenditures consistently consuming a large portion of revenue, as evidenced by the $3.9 million in SG&A costs reported during the final quarter of 2025.
The high level of SG&A relative to total revenue suggests that the company is heavily invested in marketing and distribution infrastructure, which may be necessary for growth but currently masks the underlying unit economics. Investors should scrutinize whether these costs are scaling linearly with revenue or if they represent a fixed burden that will require significant volume growth to amortize.
Data from recent filings suggests that the company's reliance on high-profile marketing partnerships may be masking weak underlying retail velocity, as the firm continues to report significant net losses despite the recent infusion of capital and the expansion of its retail footprint.
Short-term growth metrics may be inflated by trade spend and promotional activity, which warrants caution regarding the long-term durability of the current revenue trajectory. If the company cannot demonstrate improved unit economics as it scales, the current cash-burning model may face significant scrutiny from investors concerned about the path to long-term viability.
Quick answers to the most common questions about buying BRLS stock.
For fiscal year 2025, Borealis Foods Inc. (BRLS) reported total revenue of $30.1M. This represents a 120.6% increase compared to $13.6M in 2021.
Borealis Foods Inc. (BRLS) reported a net loss of $19.0M for the fiscal year ending 2025.
Borealis Foods Inc. (BRLS) reported an operating income of $-11.0M, resulting in an operating profit margin of -36.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Borealis Foods Inc. (BRLS) generated $3.5M in gross profit for the year, representing a gross profit margin of 11.7%. This demonstrates the company's core pricing power and production efficiency.