Earnings call transcript: Replenish Nutrients posts lower Q2 2026 revenue as expansion advances

Replenish Nutrients released its Q2 2026 earnings report, revealing a decline in second-quarter revenue and a widening loss as the company shifted focus from traditional blended fertilizer sales to higher-margin granulated and pelletized products. The company's revenue decreased by 34.7% to CAD 980,000, while adjusted EBITDA loss widened to CAD 842,000 from CAD 460,000 in the previous year.

However, granulated fertilizer sales increased by more than 1,200 metric tons year-over-year, and the company's year-to-date granulated sales were up by more than 1,600 tons. Gross margin on granulated products was 19%, falling short of the target range of 25% to 35% due to ramp-up costs. Replenish Nutrients recently closed a CAD 15 million strategic investment from SRC Agrominerals, which improved its balance sheet and working capital position.

The company is in the process of transitioning from a smaller blended fertilizer business to a broader platform centered around granulated and pelletized products, with several facilities, including Beiseker Colony, MJ Ag, and Farmers Union Enterprises, moving toward first production in Q4 2026.