Breaking news for health food enthusiasts! Eshbal Functional Food Inc. just dropped their first post-RTO financial results, and the numbers are in. Witness their impressive revenue and gross profit surge, hinting at a strong market position. What does this mean for the future of gluten-free innovations and healthy eating? Find out how this food developer is shaping up!

Eshbal Functional Food Inc. has announced its inaugural consolidated financial results following its April 2025 Reverse Takeover (RTO), marking a pivotal moment for the gluten-free and health-focused food products developer. This release provides a crucial insight into the company’s performance and strategic direction as it navigates its new chapter as a publicly listed entity under TSXV:ESBL.

The second quarter of 2025 represents the first period for which Eshbal Functional Food Inc. presents consolidated statements, integrating its Israeli operating subsidiary. This structural change means year-over-year comparisons require careful interpretation, as the prior-year figures reflect only the standalone performance of Eshbal Israel. Nevertheless, the reported Eshbal Financial Results demonstrate significant positive momentum.

For the three months ending June 30, 2025, the company recorded revenues of US$2.97 million, an increase of US$413 thousand compared to US$2.55 million in the corresponding period of 2024. This growth was further underscored by an improved gross profit of US$628 thousand, or 21.2% of revenues, up from US$478 thousand (18.7% of revenues) in Q2 2024, reflecting both higher absolute profit and stronger margins within the competitive Health Food Industry.

Expanding on this positive trend, the six-month period ending June 30, 2025, saw total revenues reach US$6.72 million, a substantial increase of US$725 thousand (12%) from US$5.99 million in the first half of 2024. Gross profit for this half-year also rose significantly to US$1.73 million (25.7% of revenues), compared to US$1.39 million (23.1% of revenues) in the prior year, signifying approximately 25% Corporate Growth.

Despite these robust operational improvements, the company reported a net loss for both Q2 2025 and the six-month period. This was primarily due to a non-recurring, non-cash listing expense directly associated with the Reverse Takeover transaction, alongside new public company costs. Importantly, operating income for the six-month period remained positive at US$204 thousand, indicating underlying financial health before these one-time expenses.

Eshbal Functional Food Inc. is renowned for its expertise in developing and manufacturing a diverse range of Gluten-Free Food and nutraceutical products. Leveraging proprietary R&D and specialized production technologies, the company offers vegan, low-carb, sugar-free, and supplement-based solutions, spanning categories from baked goods to protein blends and dietary supplements. This commitment to innovation positions Eshbal at the forefront of the evolving health and wellness market.

The company serves a broad client base across industrial, foodservice, and retail sectors, both domestically and internationally, with a strong focus on scaling its presence in the North American market. Following the Reverse Takeover with Hakken Capital Corp., Eshbal’s listing on the TSX Venture Exchange (TSXV:ESBL) as of April 2025 has provided a platform for integrated reporting and accelerated expansion.

Looking forward, Eshbal is actively pursuing organic growth initiatives, evaluating strategic M&A opportunities, and deepening its penetration within the rapidly expanding “better-for-you” food category. The company remains dedicated to executing its plans efficiently, aiming to capitalize on long-term growth opportunities in the specialized Gluten-Free Food and health-focused markets, reinforcing its position as a key player.