Functional Brands Inc.
05/18/2026 | Press release | Distributed by Public on 05/18/2026 05:56
Functional Brands Announces First Quarter 2026 Financial Results (Form 8-K)
Functional Brands Announces First Quarter 2026 Financial Results
Lake Oswego, OR - (May 18, 2026) - Functional Brands Inc. (NASDAQ: MEHA), a leading innovator in wellness and performance products, today announced financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Financial Highlights
| ● | Revenue grew to $1.65 million, up 3.5% from $1.59 million in the prior year period, reflecting continued momentum across the Company's brand portfolio. |
| ● | Gross profit increased to $0.96 million from $0.87 million in the prior year period and gross margin increased 390 basis points to 58.4%, driven by continued focus on higher margin channels. |
| ● | Operating loss increased to $0.68 million from $0.03 million in the prior year period, largely reflecting expenses related to becoming a public company. |
| ● | Net loss of $7.0 million reflected a $6.3 million of non-cash GAAP charge on equity exchange. |
Strategic Highlights
| ● | Continued expansion of Kirkman® distribution across eCommerce, retail, and international channels. |
| ● | Tru2u.health platform gaining traction with growing registered user base. |
| ● | P2i™ Prenatal line achieving broader practitioner and retail placement following iHerb listing. |
| ● | Strategic AI partnership with partnrup.ai driving qualified traffic acquisition for Tru2u.health. |
| ● | Entered into a binding letter of intent regarding the acquisition of intellectual property and related blockchain-based assets. |
| ● | Completed a capital structure simplification. |
"Our recent results reflect important strategic and operational progress, including revenue growth, a 390 basis point expansion of gross margin, and the completion of a simplification of our capital structure," said Eric Gripentrog, CEO of Functional Brands Inc. "Over the past several months, we've executed a series of key initiatives that mark a pivotal period in the Company's evolution and establish a strong foundation for sustainable, profitable growth."
Financial Results for the Quarter Ended March 31, 2026:
Revenue
Net revenue for the three months ended March 31, 2026 was $1,645,524 compared to $1,590,256 for the three months ended March 31, 2025 representing an increase of approximately 3.5%. This increase of $55,268 in net revenue was primarily due to the increase in the demand from our direct-to-consumer sales channel.
Gross profit
Gross profit for the three months ended March 31, 2026 was $961,133 compared to 866,764 representing an increase of 11%. This increase of $94,369 was primarily due to the increase in demand from direct-to-consumer sales channel and operational efficiencies. Gross profit margin increased 390 basis points to 58.4%, driven by continued focus on higher margin channels.
Sales and marketing expenses
Sales and marketing expenses for the three months ended March 31, 2026, was $263,707 compared to $178,630 for the three months ended March 31, 2025, representing an increase of approximately 48%. This increase of $85,077 was primarily due to the increase in amazon referral fees and commissions moving from a wholesaler model to a Direct Seller's Central model.
General and administrative expenses
General and administrative expenses for the three months ended March 31, 2026 was $1,380,231, compared to $720,234 for the three months ended March 31, 2025, representing an increase of approximately 92%. This increase of $659,997 was primarily attributable to an increase professional fees and payroll.
Other income / (expenses)
Other income /expense for the three months ended March 31, 2026 was a negative $6,307,984 compared to a negative of $94,682 for the three months ended March 31, 2025. This increase of $6,213,302 was primarily due to the loss on issuance of preferred stock of $6,310,464, a reduction in interest expense of $69,290, and a change of fair value of derivative liability of $25,374.
About Functional Brands Inc.
Functional Brands Inc. (NASDAQ: MEHA) is a leading innovator in wellness and performance products dedicated to Making Everyone Healthy Again™. The Company's portfolio includes Kirkman®, one of the most trusted names in nutritional supplements for over 75 years with products available in more than 35 countries; P2i™ by Kirkman® Prenatal Multivitamin & Multimineral, the first prenatal supplement to align with FIGO standards and comply with California SB 646; and Tru2u.health, a consumer-facing telehealth and wellness platform. Functional Brands operates an FDA-registered, cGMP-compliant manufacturing facility in Oregon. For more information, visit www.functionalbrandsinc.com, www.kirkmangroup.com, or www.tru2u.health.
For more information, visit www.functionalbrandsinc.com and www.kirkmangroup.com, and www.Tru2u.health
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