Functional Brands (NASDAQ:MEHA), a leading developer and manufacturer of functional health and wellness products, today announced its financial results for the fourth quarter and full year ended December 31, 2025.
For the full year 2025, Functional Brands reported total revenue of $6.61 million, a slight increase of 0.7% compared to 2024.
More notably, the company recorded a full-year net income of $0.8 million, or $0.01 per diluted share, representing a substantial recovery from the net losses reported in the prior fiscal year.
In the fourth quarter, revenue was $1.50 million, down approximately 11% year-over-year, yet the company managed to post a quarterly net income of $0.9 million ($0.01 per diluted share).
Meanwhile, the company faced significant pressure on its margins throughout the year.
The full-year gross margin compressed to 52.7%, down 220 basis points from 2024, while the fourth-quarter margin saw a sharper decline to 44.9%—a drop of 1,400 basis points compared to the same period last year.
Management attributed this compression to two primary factors: a fundamental shift in the company’s Amazon selling model and non-recurring inventory adjustments related to the strategic decision to exit the hemp-based product business.
Despite these headwinds, 2025 was a year of operational expansion.
The company successfully launched its new health platform, Tru2u.health, designed to provide a direct-to-consumer experience for specialized nutritional needs.
Additionally, Functional Brands expanded the international distribution of its flagship Kirkman brand, targeting new markets in Europe and Asia to diversify its geographic revenue base.