BIOHARVEST SCIENCES INC. (BHST): Financial results for Q2 2026
BIOHARVEST SCIENCES INC. (BHST) furnished an SEC Form 6-K — earnings release. BioHarvest Reports Second Quarter 2026 Financial Results and Provides Business Update - Secured first ever CDMO Manufacturing Agreement supporting planned 20-ton commercial production program over two years for rare botanical fragrance, that BioHarvest expects to drive profitable
How this was made
The 30-second read
Why it matters
The earnings release provides fresh financial metrics and a strategic contract that may influence the company's valuation and sector perception.
Market read
Primary earnings disclosure for a niche biotech; modest relevance to investors tracking specialty chemicals and biotech micro‑caps.
What to watch
Grant funding and saffron program could diversify revenue streams beyond the fragrance CDMO deal.
BioHarvest Reports Second Quarter 2026 Financial Results and Provides Business Update - Secured first ever CDMO Manufacturing Agreement supporting planned 20-ton commercial production program over two years for rare botanical fragrance, that BioHarvest expects to drive profitable growth trajectory for CDMO business - Reports $8.8 million in Q2 revenue, up 3.8% from Q2 2025
Revenue grew 3.8% year-over-year and net loss narrowed, while gross margin declined, operating loss and adjusted EBITDA loss widened, and full-year VINIA D2C revenue and profitability guidance were reduced. The company also announced its first CDMO manufacturing and supply agreement supporting anticipated 20 tons of fragrance composition production.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended June 30, 2026other | $ 8,837 | – | 3.8% |
| Cost of revenues, three months ended June 30, 2026other | (3,755) | – | – |
| Gross profit, three months ended June 30, 2026other | 5,082 | – | – |
| Gross margin, three months ended June 30, 2026other | 58% of total revenue | – | – |
| Research and development expense, three months ended June 30, 2026other | (1,664) | – | – |
| Sales and marketing expense, three months ended June 30, 2026other | (4,380) | – | – |
| General and administrative expense, three months ended June 30, 2026other | (1,545) | – | – |
| General and administrative expense as a percentage of revenues, three months ended June 30, 2026other | 17% of revenues | – | – |
| Total operating expenses, three months ended June 30, 2026other | (7,589) | – | – |
| Operating loss, three months ended June 30, 2026other | (2,507) | – | – |
| Finance income, three months ended June 30, 2026other | 97 | – | – |
| Finance expenses, three months ended June 30, 2026other | (1,253) | – | – |
| Net loss before tax, three months ended June 30, 2026other | (3,663) | – | – |
| Taxes on income, three months ended June 30, 2026other | (52) | – | – |
| Net loss and comprehensive loss, three months ended June 30, 2026other | (3,715) | – | – |
| Basic and diluted loss per share, three months ended June 30, 2026other | (0.17) | – | – |
| Weighted average number of shares outstanding, three months ended June 30, 2026other | 22,667,842 | – | – |
| Adjusted EBITDA, three months ended June 30, 2026non-GAAP | (1,559) | – | – |
| CDMO Services adjusted EBITDA, three months ended June 30, 2026non-GAAP | (894) | – | – |
| Products adjusted EBITDA, three months ended June 30, 2026non-GAAP | (665) | – | – |
| Revenue, six months ended June 30, 2026other | $ 17,344 | – | – |
| Cost of revenues, six months ended June 30, 2026other | (7,225) | – | – |
| Gross profit, six months ended June 30, 2026other | 10,119 | – | – |
| Research and development expense, six months ended June 30, 2026other | (3,058) | – | – |
| Sales and marketing expense, six months ended June 30, 2026other | (8,506) | – | – |
| General and administrative expense, six months ended June 30, 2026other | (2,896) | – | – |
| Total operating expenses, six months ended June 30, 2026other | (14,460) | – | – |
| Operating loss, six months ended June 30, 2026other | (4,341) | – | – |
| Finance income, six months ended June 30, 2026other | 211 | – | – |
| Finance expenses, six months ended June 30, 2026other | (2,128) | – | – |
| Net loss before tax, six months ended June 30, 2026other | (6,258) | – | – |
| Taxes on income, six months ended June 30, 2026other | (98) | – | – |
| Net loss and comprehensive loss, six months ended June 30, 2026other | (6,356) | – | – |
| Basic and diluted loss per share, six months ended June 30, 2026other | (0.28) | – | – |
| Weighted average number of shares outstanding, six months ended June 30, 2026other | 22,667,605 | – | – |
Full-Year 2026 outlook
- NoteCDMO business expected revenue range: $4-$5 million
- NoteCDMO business full-year EBITDA loss: $1.5m - $2.5 million
- NoteVINIA D2C business full-year guidance: $33-$35 million
- NoteDTC business expected EBITDA loss: $1.5m- 2.5 million
- NoteConsolidated EBITDA losses: $3m-$5 million
What drove it
- VINIA D2C revenue growth in Q2, 2026 was 2% year-over-year and 2% versus the first quarter of 2026.
- Approximately 95,000 active VINIA customers at the end of July.
- The company implemented a pricing change of up to 20% for new subscription customers from their second order, while maintaining the introductory first-order offer.
- The CDMO division secured its first manufacturing and supply agreement, supporting anticipated 20 tons of fragrance composition production.
- Following Stage 1 completion in March 2026, the fragrance program initiated Stage 2 in May, with an expected 6-9 months to completion.
- BioHarvest was awarded a $1.4M Grant from the Israel Innovation Authority in July.
- The saffron development program advanced to Stage 2 in May with a contract valued at $1.125 million.
- Tate & Lyle PLC and BioHarvest expanded their joint sweetener development program to include multiple plant-based sweetener molecules.
Concerns
- Three-month gross margin was 58% of revenue, compared to 59% for the same period last year.
- Total operating loss was $2.5 million, compared to $1.8 million for the same period last year.
- Adjusted EBITDA loss totaled $1.6 million, compared to $1.2 million for the same period last year.
- Health and wellness media costs on Meta increased by double-digit levels over the period.
- Full-year VINIA D2C revenue guidance was revised from $38-$42 million to $33-$35 million.
- DTC business expected EBITDA changed from a gain of $.5m - $2 million to a loss of $1.5m- 2.5 million.
- Commercial manufacturing and delivery of the fragrance compound is contingent on the composition under development meeting specific sensory parameters.
What to watch
- Stage 2 completion of the fragrance program, which has an expected 6-9 months to completion.
- Whether limited fragrance-ingredient production begins as early as the first half of 2027.
- Execution against the anticipated 20 tons of fragrance composition production under the manufacturing and supply agreement.
- The effect of the VINIA pricing change on conversion, retention and gross profit.
- Results from the brand-messaging shift and launch of VINIA Daily Chews.
- Progress in scaling the manufacturing facility through industrial automation and machine learning supported by the $1.4M Israel Innovation Authority grant.
Balance sheet and cash flow
- Cash and cash equivalents as of June 30, 2026: $ 15,211; as of December 31, 2025: $ 23,025.
- Bank deposits as of June 30, 2026: 1,012; as of December 31, 2025: -.
- Cash and cash equivalents, together with bank deposits as of June 30, 2026: $16.25 million, compared to $3.7 million as of June 30, 2025.
- Trade accounts receivable as of June 30, 2026: 2,897; as of December 31, 2025: 1,981.
- Other accounts receivable as of June 30, 2026: 1,281; as of December 31, 2025: 935.
- Inventory as of June 30, 2026: 5,779; as of December 31, 2025: 4,559.
- Total current assets as of June 30, 2026: 26,180; as of December 31, 2025: 30,500.
- Restricted cash as of June 30, 2026: 463; as of December 31, 2025: 433.
- Property, plant and equipment, net as of June 30, 2026: 8,945; as of December 31, 2025: 8,326.
- Right-of-use assets, net as of June 30, 2026: 8,981; as of December 31, 2025: 8,406.
- Total assets as of June 30, 2026: $ 44,569; as of December 31, 2025: $ 47,665.
- Trade accounts payable as of June 30, 2026: $ 2,747; as of December 31, 2025: $ 2,627.
- Other accounts payable as of June 30, 2026: 3,290; as of December 31, 2025: 2,173.
- Deferred revenue as of June 30, 2026: 415; as of December 31, 2025: 492.
- Lease liabilities, current, as of June 30, 2026: 1,758; as of December 31, 2025: 1,405.
- Loans, current, as of June 30, 2026: 2,662; as of December 31, 2025: 149.
- Lease liabilities, non-current, as of June 30, 2026: 11,275; as of December 31, 2025: 10,130.
- Loans, non-current, as of June 30, 2026: -; as of December 31, 2025: 2,420.
- Total current liabilities as of June 30, 2026: 11,676; as of December 31, 2025: 7,684.
- Total non-current liabilities as of June 30, 2026: 13,129; as of December 31, 2025: 14,533.
- Share capital and contributed surplus as of June 30, 2026: 133,673; as of December 31, 2025: 133,001.
- Accumulated deficit as of June 30, 2026: (113,909); as of December 31, 2025: (107,553).
- Total shareholders’ equity as of June 30, 2026: 19,764; as of December 31, 2025: 25,448.
- Net cash used in operating activities for the six months ended June 30, 2026: (4,170); for the six months ended June 30, 2025: (2,883).
- Purchase of property and equipment for the six months ended June 30, 2026: (1,161); for the six months ended June 30, 2025: (1,276).
- Net cash used in investing activities for the six months ended June 30, 2026: (2,161); for the six months ended June 30, 2025: (1,272).
- Net cash used in financing activities for the six months ended June 30, 2026: (1,515); net cash provided by financing activities for the six months ended June 30, 2025: 5,508.
- Increase (decrease) in cash and cash equivalents for the six months ended June 30, 2026: (7,846); for the six months ended June 30, 2025: 1,353.
- Cash and cash equivalents at the end of the period: $ 15,211 for the six months ended June 30, 2026; $ 3,727 for the six months ended June 30, 2025.
Analysis
BioHarvest reported Q2 revenue of $8.8 million, up 3.8% year-over-year from $8.5 million. The underlying IFRS statement reported revenue of $ 8,837 and gross profit of 5,082, compared with $ 8,515 and 5,086, respectively, in the prior-year period. Gross margin declined to 58% of total revenue from 59%, indicating that the modest revenue increase did not translate into gross-profit growth.
Operating costs increased. Research and development expense was $1.7 million versus $1.4 million, sales and marketing expense was $4.4 million versus $4 million, and total operating expenses were $7.6 million versus $6.9 million. The company attributed the increase to technology development expenditures in CDMO Services and investment in the Products business unit's new marketing strategy. Consequently, operating loss increased to $2.5 million from $1.8 million, while adjusted EBITDA loss increased to $1.6 million from $1.2 million.
Net loss improved to $3.7 million, or $0.17 per basic and diluted share, from $4.1 million, or $0.24 per basic and diluted share. The six-month net loss was $ 6,356, compared with $ 6,418 in the prior-year period. Cash and cash equivalents plus bank deposits totaled $16.25 million as of June 30, 2026, while net cash used in operating activities during the first six months was $(4,170) and net cash used in investing activities was $(2,161). The balance sheet also reported current loans of 2,662 and non-current lease liabilities of 11,275.
The principal strategic development was the CDMO division's first manufacturing and supply agreement with an existing UAE-based fragrance customer. The agreement supports anticipated production of 20 tons of fragrance composition, although commercial manufacturing and delivery remain contingent on the composition meeting specified sensory parameters. Management said limited production could begin as early as the first half of 2027. Other CDMO activity included the $1.4M Israel Innovation Authority grant, a $1.125 million Stage 2 saffron contract, and expanded sweetener collaboration with Tate & Lyle PLC.
The outlook was revised to reflect a more cautious VINIA spending posture and further capacity investment. CDMO revenue guidance was tightened to $4-$5 million from $4-$6 million, while expected CDMO EBITDA loss was reduced to $1.5m - $2.5 million from $4m-$5 million. VINIA D2C guidance was reduced to $33-$35 million from $38-$42 million, and expected DTC EBITDA shifted to a $1.5m- 2.5 million loss from a gain of $.5m - $2 million. Consolidated EBITDA losses are now expected at $3m-$5 million, compared with the previous expected loss of $3m-$4 million.
Management, verbatim
We are extremely pleased to have signed a manufacturing agreement this morning with our UAE-based fragrance customer that secures commitment to produce a fragrance ingredient that is widely regarded as one of the most valuable fragrance raw materials in the world.
Dr. Zaki Rakib, Chief Executive Officer of BioHarvest
BioHarvest is transitioning from proving the breadth of our Botanical Synthesis technology across multiple industries to selectively converting our highest-value opportunities into recurring manufacturing revenue, royalties and sustainable profitability.
Dr. Zaki Rakib, Chief Executive Officer of BioHarvest
We are putting a stronger offer, stronger creative and a broader product range into market before we scale spend behind them - sequencing that costs us revenue this year and earns us margin next year.
Dr. Zaki Rakib, Chief Executive Officer of BioHarvest
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no actual-versus-prior-guidance comparisons are included.
- Revenue by CDMO Services segment was not reported.
- Revenue by Products or VINIA D2C segment was not reported.
- Segment gross profit, gross margin and operating income were not reported.
- Free cash flow was not reported.
- Capital returns, including share repurchases and dividends, were not reported.
- A total debt figure was not reported.
- Non-IFRS adjusted EPS was not reported.
- Full-year 2026 consolidated revenue guidance was not reported.
- Full-year 2026 gross-margin, operating-expense and tax-rate guidance was not reported.
- Quarter-over-quarter total revenue, gross profit, margin, operating expense, operating loss, net loss and EPS comparisons were not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
BioHarvest Sciences Inc. (Nasdaq: BHST) is a small-cap biotech focused on plant‑based molecule synthesis. The Q2 2026 filing is its first earnings release for the period.
Ticker impact
BioHarvest disclosed Q2 2026 earnings, reporting $8.8M revenue and a new 20‑ton CDMO manufacturing agreement.
Potential modest upside if investors value the new CDMO deal; downside risk if operating losses persist.
The earnings release is the first public source of the numbers and contract; the scale is small, so price reaction may be limited.
Market effects
Highlights growing demand for high‑value botanical fragrances and CDMO services in the specialty chemicals sector.
The UAE fragrance customer and Israel Innovation Authority grant underscore Middle‑East and Israeli biotech activity.
Limited; primarily relevant to niche botanical synthesis and specialty chemicals investors.
Counterpoint
Operating losses remain sizable; the contract may not offset near‑term cash burn, suggesting caution.
Key entities
- companyBioHarvest Sciences Inc.
Issuer of the earnings release and CDMO agreement.
- clientUAE fragrance customer
Recipient of the 20‑ton manufacturing agreement.
