Better Choice Company, known by its ticker BTTR, has made the decision to revoke the stock dividend that it had previously declared. Initially announced on April 7, the dividend promised shareholders an additional 0.35 shares for each share of common stock owned. This reversal means that shareholders will not receive the anticipated dividend shares as initially planned by the company.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Better Choice Co Inc (BTTR, Financial) is $10.00 with a high estimate of $10.00 and a low estimate of $10.00. The average target implies an upside of 378.47% from the current price of $2.09. More detailed estimate data can be found on the Better Choice Co Inc (BTTR) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Better Choice Co Inc's (BTTR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Better Choice Co Inc (BTTR, Financial) in one year is $4.11, suggesting a upside of 96.65% from the current price of $2.09. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Better Choice Co Inc (BTTR) Summary page.
BTTR Key Business Developments
Release Date: March 27, 2025
- Annual Net Revenues: $35 million, down 9% year-over-year.
- Fourth Quarter Revenue Growth: 26% year-over-year to $7.2 million.
- Gross Profit Margin: 37% for the full year, an increase of over 600 basis points.
- Adjusted EBITDA Loss: Improved 78% year-over-year to $1.9 million.
- SG&A Reduction: 22% year-over-year.
- Net Loss: Improved to $168,000 from $23 million in 2023.
- EPS: Loss of $0.11 per share, improved from a loss of $32 per share in 2023.
- Cash and Cash Equivalents: $3 million as of December 31, 2024.
- Net Working Capital Position: Increased over 200% to $7.9 million.
- Fourth Quarter Adjusted EBITDA Loss: Improved 80% year-over-year to approximately $700,000.
- International Revenue Growth: 18% year-over-year.
- Digital Platform Revenue Growth: 32% growth in the fourth quarter.
- Gain from Extinguishing Debt: $6.2 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Better Choice Co Inc (BTTR, Financial) reported a significant improvement in gross profit margin, increasing by over 600 basis points to 37% for the full year.
- The company achieved a 78% year-over-year improvement in adjusted EBITDA loss, reducing it to approximately $1.9 million.
- Fourth quarter revenue growth was impressive at 26% year-over-year, driven by a 32% increase across key digital platforms like Amazon and Chewy.
- Better Choice Co Inc (BTTR) successfully reduced SG&A expenses by 22% year-over-year, contributing to improved profitability.
- The company strengthened its balance sheet by extinguishing debt and accounts payable, resulting in a $6.2 million gain and a healthier working capital position of $7.9 million.
Negative Points
- Annual net revenues decreased by 9% as the company strategically exited non-core sales channels, impacting overall revenue.
- Despite improvements, the company still reported an adjusted EBITDA loss of $1.9 million for the full year.
- The company faced a net cash outflow from operations totaling $4.4 million, driven by paydowns of supplier obligations.
- Better Choice Co Inc (BTTR) had to rely on a $4.7 million equity offering in the third quarter to improve liquidity.
- The company reported a net loss of $168,000 for the year, although this was an improvement from the previous year's loss.
