MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF)’ first quarter 2025 earnings report was a pivotal milestone for the company as it reported significant sales revenue for the first time, analysts at Nobel Capital Markets have highlighted.
Q1 marked the first full quarter since the company acquired NexusBioAg at the end of 2024.
Revenue was $3.78 million, above the Noble analysts’ estimate of $2.6 million.
“Recent steps by the company to add more products to its line-up have the potential to drive NexusBioAg revenue even higher going forward, which could be supplemented by sales from the company's TerraSante product,” analysts wrote. “While still early days, the first quarter is a step in the right direction, in our view.”
Higher expenses from the acquisition contributed to a net loss of $1.6 million or $0.03 per share versus the Jefferies estimate of a loss of $570,00 or $0.01 per share.
Jefferies maintained its ‘market perform’ rating on MustGrow.
“The NexusBioAg acquisition provides MustGrow with an experienced sales team that can be leveraged for NexusBioAg's and MustGrow's products,” 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.”
For the second quarter, the analysts continue to expect $5.2 million but lowered their net income estimate to $1.125 million or a loss per share of $0.02 to reflect a lower gross margin and increased costs.
Shares of MustGrow traded hands at C$0.94 on Thursday afternoon.