Agrify Corporation (NASDAQ:AGFY) released financial results for the second quarter ended June 30, 2022, revealing revenue of $19.3 million, an increase of 63.5% compared to $11.8 million for the prior year period.
Q2 2022 Financial Highlights
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Gross profit for the second quarter totaled $1.6 million, or 8.3% of revenue, compared to $527 thousand, or 4.5% of revenue, in the prior year period.
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Operating expenses totaled $93.1 million for the second quarter, compared to $6.0 million in the prior year period.
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Net loss for the second quarter was $93.4 million, or $3.51 per diluted share, compared to a net loss of $5.6 million, or $0.28 per diluted share, in the prior year period.
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Adjusted EBITDA was a loss of $19.4 million in the second quarter, compared to an adjusted EBITDA loss of $4.5 million in the prior year period.
"The second quarter was challenging for the entire cannabis industry," stated Raymond Chang, chairman and CEO of Agrify. "Despite this difficult business environment, which has impacted our recent performance and altered our outlook for the remainder of 2022, we are actively taking steps to adapt to the new market realities. We have adjusted our near-term strategy and priorities to focus on the most immediate and impactful revenue-generating opportunities, all without compromising our ability to capitalize on the expected long-term growth in the sector. In parallel, we are also in the process of restructuring our credit facility and reducing our operating expenses to strengthen our cash position. We remain steadfast on bringing new and innovative solutions to our customers and delivering value to our stakeholders."
Credit Facility
Agrify has reached an agreement in principle with its institutional lender to amend its existing credit facility to modify and eliminate certain financial covenants which, once complete, should give the company additional flexibility to operate and meet its long-term strategic goals while also allowing it to responsibly adjust to the many challenges currently facing the cannabis industry. The company expects that the restructuring will involve repayment of the existing note with a combination of cash on hand and through the issuance of a new note with a reduced principal amount, no amortization of monthly loan payment, and the flexibility of early re-payment. Agrify and the lender are continuing to finalize the specific terms of this agreement.
2022 Outlook
The company is updating its revenue guidance for fiscal year 2022 due to the downturn in the cannabis industry. Agrify now expects to generate between $70 million and $75 million in total revenue for fiscal year 2022.
Photo by Mackenzie Marco on Unsplash
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