Functional Brands Inc. (NASDAQ: MEHA), a leading innovator in wellness and performance products, announced its financial results for the fourth quarter and full-year ended December 31, 2025. The company reported a net income of $0.9 million for the fourth quarter, a significant improvement compared to a net loss of $0.3 million in the same period last year. However, revenue for the fourth quarter decreased to $1.50 million from $1.68 million in the prior year, primarily due to a shift in the company's Amazon business model from a reseller model to a direct-to-consumer approach. Gross profit for the quarter was $0.67 million, with a gross margin of 44.9%, down from 58.9% in the previous year, attributed to changes in the business model and inventory adjustments related to the transition out of the hemp business. For the full year 2025, the company reported revenue of $6.61 million, a slight increase from $6.57 million in 2024, reflecting the stability of the Kirkman business. The full-year net income was $0.8 million, compared to a net loss of $0.6 million in the prior year. CEO Eric Gripentrog expressed satisfaction with the company's performance, highlighting key initiatives that have laid a strong foundation for sustainable growth. The company also launched Tru2u.health, a digital health platform, and expanded its product portfolio with innovative bundles. These developments demonstrate the company's commitment to innovation and its mission of 'Making Everyone Healthy Again.'

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