MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF) recognized revenue for sales of its biofertility product TerraSante for the first time in the third quarter with higher revenue generation on the horizon, analysts at Noble Capital believe.
The agricultural technology company reported revenue of about C$279,000 for the past quarter, including C$272,000 in deferred revenue.
For the fourth quarter and fiscal 2025, analysts projected revenue of C$25,000 and C$625,000 as MustGrow ramps up TerraSante sales.
“We expect TerraSante revenue to begin to impact revenue in a meaningful way in the latter half of 2025,” analysts wrote in a note to clients.
“As the company receives more approvals from different states, we believe the opportunity to showcase TerraSante to farmers can expand, along with revenue.”
They noted that MustGrow’s management is in contact with larger growers for TerraSante, increasing the potential pipeline Further, they noted its approval pipeline, with Texas, Pennsylvania, Connecticut, and New Mexico as key states for management's 'horseshoe' shape.
“We believe the focus on larger growers and state approvals can result in the buildup of demand for TerraSante and, thus, higher revenue generation,” they wrote.
Noble repeated its ‘market perform’ rating on MustGrow, which traded hands at C$1.72 in the early afternoon on Wednesday.
“Although the company has received revenue from its TerraSante product, we would like to see more substantial revenue, which we believe could happen sooner rather than later,” they wrote.
“We believe substantial opportunity exists for natural alternatives in the company's targeted end markets, such as preplant soil fumigation, bioherbicides, postharvest food preservation, soil amendment, and biofertility.”